Good governance and social responsibility

Corporate Social Responsibility
Student Name
Institutional Affiliation
Social responsibility refers to a theory of ethics founded on accountability of
individuals through validation of their actions to ascertain that they are sensitive to the
economic needs, social needs, and the environmental needs of the society they live in. This,
therefore, means that the people in leadership positions especially should strike a state of
equilibrium between the economic growth and the general needs of the society. On the other
hand, good governance can be defined as a leadership approach established on the basis of
effectiveness, inclusivity, and transparency in decision-making. The key elements of good
governance include the rule of law, being proactive, efficient, competitive, and accountability.
Most organizations rely on the theory of social responsibility and ethic-based practice to
achieve their set objectives. This is the import of good governance which is applied in the
decision-making as the key influence in the achievement of the set organizational goals (Saeidi
et al., 2015). The individuals in leadership positions engage in a variety of activities which are
expected to be conducted within the set ethics and code of conduct so as to satisfy the
constructs of social responsibility. The principles of conduct apply irrespective of whether the
organization is a public or privately owned. In this regard, the leader acts as the organization’s
spokesperson, monitor, resource allocator, disseminator, negotiator, and figurehead.
Background of Organization
Basically, an organization refers to an independent and stable social structure that
absorbs the production input from the immediate environment and converts them into more
valuable outputs. The organization should be able to seamless integrate the concept of social
responsibility and good governance in its interaction with the immediate environment which
forms the society in its key operations. This creates a confidence in the consumers due to the
existing good relationship between the organization and the elements of its surrounding
In the light of corporate governance, an organization should operate in a way that is
socially acceptable as prescribed in the code of ethics to minimize or even eliminate the
likelihood of conflict in the societal dimension. This significantly facilitates decision-making
with regard to management dilemma when the society is positively involved in the activities
of the organization. Effective corporate governance results in value addition to the society and
the organization founded on these key principles.
Definition and Understanding of Ethics and Corporate Social Responsibility
A successful firm is able to effectively interact with its immediate environment through
observation of the key values, ethics, and moral constructs of the society irrespective of the
industry in which the organization operates. Therefore, a watertight description of the business
code of ethics cannot be defined due to the variation in the key parameters. However, business
ethics has a wide scope that ranges from the economic addition of value to the cultural tastes
of the society (Chernev & Blair, 2015). Ethics can be basically defined as the principles and
moral values upon which an entity or an individual acts. The key values and morals form an
integral part of the code of ethics despite the disparities in the immediate environment
surrounding different organizations.
Corporate social responsibility is the basis upon which an organization portrays
sensitivity to the social welfare of the people in its environment while formulating the key
objectives that facilitate profit maximization. Most organizations bear the obligation to
safeguard the interests of the society to avoid criticism and the consequentially possible
conflicts (Brammer & Pavelin, 2016). Therefore, a community within the environment in
which an organization operates will probably associate with it more profitably if the
organization shows interest in the welfare of the society. However, keeping the factor of the
mutual association constant, any organization has the obligation to act in a socially responsible
The Applicability of Approach
Organizations consider the key needs of their surrounding community while
formulating their code of ethics and social responsibility to add more value and relevance to
the fulfillment of this obligation. These code of ethics are, therefore, formulated such that they
not only fulfill the needs of social responsibility but also facilitate steering of the organization’
agenda of profit maximization. This creates the need for a purpose while engaging the
community in activities that promote a sense of social responsibility by the organization.
The applicability approach in fulfilling the constraints of organizational ethics and
social responsibility largely depends on activities in which the organization is engaged in. For
instance, the applicability of corporate social responsibility may revolve around the
environmental issues, ethical issues, economic issues, legal-political issues, and the
philanthropic issues. The environmental responsibilities of an organization to the society
revolve around ecological conservation and preventing pollution while the economic
responsibility deals with financial benefits through jobs and projects. The legal responsibility
is concerned with ensuring that the organization operates within the set laws to avoid conflict
with the authorities and the society at large. Additionally, other responsibilities such as the
ethical and philanthropic activities combine to steer the organization’s agenda for the extended
benefit of the stakeholders in the society.
Impact of Concept of the Organizational Commitment and Decision Making
Organizational commitment and decision-making facilitate the attainment of the
threshold for good governance and social responsibility. Therefore, the organization should be
stable enough to ensure that the impact of some decisions is felt within the firm and the society.
This culminates to the success of the organization’s commitment to promoting cohesion and
satisfaction by application of a cognitive and environmentally interactive model that can
analyze the functional consequences of the key decisions successfully within the immediate
environment (Tai & Chuang, 2014).
The commitment of an organization to attaining the threshold of good governance and
social responsibility depends on the effectiveness of the decision-making process which is
fairly political in most organization. This is because the process is generally manipulated
though subunit powers that make up the bureaucratic process of making key decisions. These
powers bring about the inclusivity of all the concerned stakeholders through a series of steps
which include forming groups, storming the projected ideas, norming, and incubating the ideas.
This significantly influences the criteria in which key decisions are arrived at.
Ethical and Business Dilemmas
The ethical dilemmas in business have significant impacts on the successful integration
of the business interests and the welfare of the key stakeholders such as the community. These
dilemmas are usually either long-term or short-term. According to research findings seeking
to analyze the implications of the use of questionnaires which are considered ethical in
collecting certain data about an organization is an example of an ethical dilemma in business.
This is because the ideologies deducted from the data can be symbolically used to explain a
moral issue affecting the business at a given time.
The price fixation is another dilemma in business whereby most organizations try to
obey the requirements of the code of ethics while maximizing their profit margins. The
deception of customers is deemed unethical in business despite the occasional lobbying by the
consumers to protect them against the malpractice. Therefore, it’s important that an
organization should adhere to business ethics in solving the dilemmas.
How Leaders Set and Influence Corporate Responsibility
The theory of social learning is usually situational in most leadership positions since
the managerial perceptions of social responsibility depend on the situational influence. As a
result, the leaders adopt a proactive approach to influence corporate responsibility for the long-
term benefit of the organization. This is achieved by involving the members of the society in
making the key decisions that concern their welfare. Therefore, leaders consider the resource
allocation and the consequential outcomes of influencing the corporate social responsibility
before taking any actions.
Models, Concepts, Theories, and Literature in Organizational Behavior
Organizational behavior refers to the way in which the members of a group related to
each other (Huczynski & Buchanan, 2010). The literature on organizational behavior focuses
on models of efficiency, accountability, and effectiveness in decision-making. The key theories
of organizational behavior are;
1. Theory of neoclassical organization
2. Contingency theory
3. Classical theory
4. Systems theory
These theories interact to promote good governance and social responsibility based on
the four key principles; close supervision of workers, management control and planning, one
best way rule, and division and specialization of labor.
Supporting Research and Theory from Corporate Responsibility Literature and
According to Peter, Jeremy, and Bin (2017), the theory of corporate social
responsibility can be best viewed from the angle of authoritarian capitalism. This seeks to
explain the concept of corporate social responsibility using a framework that derives its code
of ethics basically from the national environments and the societal pressures. The authors of
this journal have focused on a code of ethics that is applicable in both small firms and huge
multi-national firms to meet the global and local expectations by the society. This calls for the
effectiveness of the decisions that play leading role in mediating the national and societal
pressures. As a result, its imperative to focus on the conceptual integrity of an organization to
operate within the constraints of corporate social responsibility.
Hofman, P. S., Moon, J., & Wu, B. (2017). Corporate social responsibility under authoritarian
capitalism: Dynamics and prospects of state-led and society-driven CSR. Business &
Society, 56(5), 651-671.
Huczynski, A., & Buchanan, D. A. (2010). Organizational behaviour. Financial Times Prentice
Tai, F. M., & Chuang, S. H. (2014). Corporate social responsibility. Ibusiness, 6(03), 117.
Saeidi, S. P., Sofian, S., Saeidi, P., Saeidi, S. P., & Saaeidi, S. A. (2015). How does corporate
social responsibility contribute to firm financial performance? The mediating role of
competitive advantage, reputation, and customer satisfaction. Journal of Business
Research, 68(2), 341-350.
Chernev, A., & Blair, S. (2015). Doing well by doing good: The benevolent halo of corporate
social responsibility. Journal of Consumer Research, 41(6), 1412-1425.
Brammer, S. J., & Pavelin, S. (2016). Corporate Reputation and Corporate Social
Responsibility. A Handbook of Corporate Governance and Social Responsibility, 437.

Place new order. It's free, fast and safe

550 words

Our customers say

Customer Avatar
Jeff Curtis
USA, Student

"I'm fully satisfied with the essay I've just received. When I read it, I felt like it was exactly what I wanted to say, but couldn’t find the necessary words. Thank you!"

Customer Avatar
Ian McGregor
UK, Student

"I don’t know what I would do without your assistance! With your help, I met my deadline just in time and the work was very professional. I will be back in several days with another assignment!"

Customer Avatar
Shannon Williams
Canada, Student

"It was the perfect experience! I enjoyed working with my writer, he delivered my work on time and followed all the guidelines about the referencing and contents."

  • 5-paragraph Essay
  • Admission Essay
  • Annotated Bibliography
  • Argumentative Essay
  • Article Review
  • Assignment
  • Biography
  • Book/Movie Review
  • Business Plan
  • Case Study
  • Cause and Effect Essay
  • Classification Essay
  • Comparison Essay
  • Coursework
  • Creative Writing
  • Critical Thinking/Review
  • Deductive Essay
  • Definition Essay
  • Essay (Any Type)
  • Exploratory Essay
  • Expository Essay
  • Informal Essay
  • Literature Essay
  • Multiple Choice Question
  • Narrative Essay
  • Personal Essay
  • Persuasive Essay
  • Powerpoint Presentation
  • Reflective Writing
  • Research Essay
  • Response Essay
  • Scholarship Essay
  • Term Paper
We use cookies to provide you with the best possible experience. By using this website you are accepting the use of cookies mentioned in our Privacy Policy.