Good Example Of Essay On Multinational Corporations Social Responsible Bottom Line To Meet Ethical Obligations
Type of paper: Essay
Topic: Company, Sociology, Corporation, Responsibility, Social Responsibility, Society, World, Business
"It isn't enough for a multinational corporation to be socially responsible; they must be a triple bottom line company to meet their ethical obligations." This is true in many global companies mainly because corporate social responsibility mostly involves various ethical and morally accepted procedures that global firms are using in order to promote social welfare and environmental sustainability in regions where they operate (Schmeltz, 2014). In most cases, the majority of services and activities that global firms provide to promote their corporate social responsibility include environmental, social and societal based programs are meant to improve their brand image and relationships with local communities (Glavas, & Kelley, 2014). On the other hand, the triple bottom line approach is mainly a strategy used by global firms to promote their social responsibility through considering people, the planet and the sources of its revenues and profitability systems (Schmeltz, 2014).
There is also the concept of distributive justice that mostly deals with equitable procedures that can be used to promote socially and morally accepted ways of distributing wealth in society (Glavas, & Kelley, 2014). The principle of distributive justice also includes the availability of resources and the processes that can be used to promote fair and equitable distribution of resources in the society (Schmeltz, 2014).
Therefore, the main and purpose of this paper is to discuss and support the notion that, “It isn’t enough for a multinational corporation to be socially responsible; they must be a triple bottom line company to meet their ethical obligations”. The paper will also highlight some differences between corporate social responsibility and the triple bottom line concept. Finally, the paper will include the principle of distributive justice and how it influences the distribution of wealth in the society.
Differences between Corporate Social Responsibility and Triple Bottom line Concepts
Corporate social responsibility mostly involves the provision of social welfare and environmental sustainability services by global companies to boost their relationships with the local communities (Glavas, & Kelley, 2014). Adherence to ethical procedures and socially accepted policies is one approach that global firms are currently using to promote social programs in the society using the organization's revenues (Glavas, & Kelley, 2014). It also allows a firm's management systems to integrate and involve various societal programs such as environmental protection and educative programs for the community in their business operations and activities (Schmeltz, 2014).
According to a number of research studies and publications, corporate social responsibility forms is one of the procedures and strategies that can be used by global organizations to improve and promote ethical policies and environmental friendly activities in their operations (Hack, Kenyon, & Wood, 2014). It also clear and true from several research studies that the application of corporate social responsibility systems can effectively reduce poverty levels in the society (Glavas, & Kelley, 2014). This is because corporate social responsibility mostly involves the use of global firms' resources to improve and promote social, economic as well as environmental based activities in the society (Filatotchev, & Nakajima, 2014). Corporate social responsibility also promotes the brand image of the global firms, improves their reputation and also provides proper accountability from the firms' management systems (Filatotchev, & Nakajima, 2014). In that sense, it is imperative that global firms use ethical and legal practices in their business activities to promote and improve their competitive advantage and success (Filatotchev, & Nakajima, 2014). Corporate social responsibility also allows global firms to consider a number factors in their operations including motivating employees to promote their ethical conduct and integrity in the society (Schmeltz, 2014). In the current business operations in global firms, there are various factors that influence the need to practice corporate social responsibility. These include competitive labor markets, reduced levels of government in social responsibility activities and growing pressure from various investors (Hollos, Blome, & Foerstl, 2012).
There are also various reasons why the participation multinational firms in corporate social responsibility is important. First, it promotes the social welfare of the society through consideration of ethical and legal policies (Glavas, & Kelley, 2014). This usually promotes the financial stability and profitability of the multinational corporations leading to high customer loyalty towards the firm's products and services (Filatotchev, & Nakajima, 2014). Corporate social responsibility also improves workforce diversity and promotes cost-effective operation of the firm leading to good a relationship between the firm and the government (Glavas, & Kelley, 2014).
In most cases, corporate social responsibility and the concept of triple bottom line usually work together towards the promotion of social, economic and environmental sustainability systems in the society (Glavas, & Kelley, 2014). This is because the concept of triple bottom line mostly uses various procedures and policies of measuring the social impact of multinational corporation's business activities in the society, including the impact of a firm's business operations on people and the planet (Glavas, & Kelley, 2014). The concept of triple bottom line also ensures that global firms are fully responsible towards all the stakeholders in the firm including the employees and the larger society (Filatotchev, & Nakajima, 2014). In that sense, it covers a firm's global operations such as hiring competent and professional employees, motivating employees and using the firm's revenues to promote social welfare in the society (Glavas, & Kelley, 2014). The triple bottom line concept is also mostly used by global firms to attract employees and customers to their firms especially through providing ethical and legal procedures that guide the firm's activities and operations (Glavas, & Kelley, 2014).
The triple bottom line concept constitutes three main systems including the people, the planet and the firm's profits and revenues. In that sense, global firms should consider the welfare of people in their business operations especially through providing safe working conditions and societal programs (Glavas, & Kelley, 2014). The planet system in triple bottom line involves the consideration of the environment sustainability systems through the firm integrating environmental friendly activities in their business operations (Filatotchev, & Nakajima, 2014). This may entail the use of renewable energy sources in the firm and the reduction of pollution and toxic wastes (Öztürk, & Özçelik, 2014). The profit and revenue systems in the triple bottom line concept in the global firms mostly use the firm's revenues and profitability to empower the society and promote environmental sustainability systems (Glavas, & Kelley, 2014).
Therefore, for multinational corporations to be socially responsible, the involvement of corporate social responsibility and triple bottom line systems is important especially in the firm's business operations and activities (Glavas, & Kelley, 2014).
Distributive Justice and the Current Distribution of Wealth
The concept of distributive justice in multinational firms mostly involves the use and application of fairness procedures to provide equitable distribution of wealth in the society (Filatotchev, & Nakajima, 2014). This may be achieved through corporate social responsibility and triple bottom line policies to cover different individuals in the society (Jones Christensen, Mackey, & Whetten, 014). For global firms to promote distributive justice systems in the society, the firm management should work closely with the local communities to access the needs in the society and allow sharing of resources (Schmeltz, 2014). This is because the theory of distributive justice states that all individuals in the society have a social responsibility to help those in need. Therefore, global firms should use distributive justice systems to promote human rights, needs and interests of the society especially through undertaking socially responsible activities (Glavas, & Kelley, 2014). Global firms should also provide proper procedures of distributing rewards and firm resources to all the employees to promote equitable distribution of wealth in the society. This will provide a stable society leading to few conflicts and problems (Merriman, & Sen, 2012).
In summary, global firms can effectively provide socially responsible activities in the society through triple bottom line activities and corporate social responsibility systems that promote their ethical and legal obligations.
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Glavas, A., & Kelley, K. (2014). The Effects of Perceived Corporate Social Responsibility on Employee Attitudes. Business Ethics Quarterly, 24(2), 165-202
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