Good Governance and
Corporate Responsibility
Good governance
is a way of measuring how public institutions carry out public activities. Manage
public resources with the idea of social and environmental welfare. A
government must guarantee the fulfilment of human rights in a way that is free
from abuse and corruption and with respect for the rule of law. According to
the UN definition of good governance, it has significant following
characteristics:
·
Participatory allowing everyone in a particular society,
organization, team, etc. to give their opinion and to help make decisions in
different spheres of like and inclusive development goals.
·
Consensus-oriented, in a diverse citizenry, people’s needs vary. It should be
demonstrated by an agenda that seeks to mediate between the many different
requirements, perspectives and expectations. Decisions need to be made in a
manner that reflects a deep understanding of the historical, cultural, social,
national and environmental context of the geographic part.
·
Accountable, Transparent and
Responsive toward all the stakeholder’s interests. It promises
to reduce corruption, takes into account the views of minorities and the voices
of the most vulnerable in society are heard in decision-making. It can also
respond to current and future societal needs.
·
Efficient and Effective
so that it could fulfil the broader mission and vision of sustainable
development.
·
Honest and Inclusive
insight for the development of all the people without any discrimination based
on gender, race, caste and so on.
·
Rule of Law the
people and affairs should be governed by the rule of law. In the process of
law-making, all the stakeholder’s interests should entertain indescribably.
Corporate Responsibility
CR addresses different aspects of the organization which
impact society, the environment and the economy. Having a practical CR
programme contributes to all stakeholders. It adds value to the organisation
itself and ensures it operates in a sustainable way.
Good
corporate governance
The
rules and processes govern the relationship between managers and shareholders
of companies. The stakeholders in a company such as employees, retirees and the
local community – ensure transparency, honesty and accountability. Without an
appropriate governance body, a company could lack achieve their goal.
Corporate
Social Responsibility
CSR
is a management concept. Companies integrate social and environmental care into
their business operations. They take care of all the aspects by interactions
with their stakeholders. The policy makes considers all the practices worldwide
so that an appropriate CSR can be implemented. CSR is an action that enables companies not only to fulfil
legal obligations but also to increasingly invest in human capital and the
environment-related aspects.
Some
examples of CSR in action include – reducing the carbon
footprint. Participate in charitable work. Shop and trade products to enhance
economic activities. Producing goods and services which can promote social and
environmental welfare. It should not be for one class but for all humankind.
Even keeping in mind that coming generations could also use the natural
resources. Organizations should use natural resources very wisely for the
betterment of the future.
Ethical
Responsibility
The
common examples of ethical responsibility are the inclusive well-being
of employees. It ensures a higher minimum wage and safety at the workplace. In
the workplace, there should not be gender-based discrimination in wages.
Companies’ policy must be based on the ethical use of materials and ensuring
all the employees receive a competitive wage. Employees must get all the
comprehensive benefits and they are treated with care. They could get insurance
and medical facility in case of any unfortunate incidents.
Organizational
commitment
It
helps organizations perform better and achieve their goals. It makes their
employees feel connected to the organization. In this way, they do even better
work and increase productivity. Dedication toward work help in many factors. Organizational
decision-making is the most important aspect of a firm. In the process, one
or more organizational units make decisions on behalf of an organization. The
decision unit can be as small as an individual, such as a manager, or as large
as an entire member organization. The decision and executive plans of an
organization matter a lot. It might affect multiples aspects of employees and
the environment and so on.
The role of leaders
Leadership in the area of social responsibility requires
involvement and legitimacy. Businesses play an intensive important role in
society. They influence and manage the well-being of citizens, workers,
consumers and the environment. They also help to achieve sustainable
development goals. Businesses generate employment which reduces the crime rate.
They use human capital in the best possible way.
Leadership and Corporate Social Responsibility are some of the most studied topics that generate a lot of literature.
Today, leaders face economic, social and environmental challenges. Some ways
forwards and developments are appreciable. but still, unfortunately, confidence
in business is now low. In this complex global environment of uncertainty,
leaders must expect some rational changes. Even more intensive research and
development are required to move their organizations toward a sustainable society. The growing interest in a sustainable company
requires a new kind of leadership that emphasizes the values of CSR. A
concrete action plan with a holistic development vision can lead to a better
society. leadership is about engagement and creating a family-like commitment
to appropriate behaviours. The key to leading CSR is an interest in the
past and present interactions between the firm and society, including learning
by engaging with critics.
Application of Approach
Embracing CSR increases customer retention and loyalty. It
increases employee engagement in the development of the company. If all the
aspects work in a holistic way then it improves brand imaging and attracts
investment opportunities and top talent. It makes a difference for bottom-line
financials. Corporate social responsibility has four major aspects –
Environmental Responsibility, Ethical Responsibility, Philanthropic
Responsibility and Economic Responsibility.
India`s
Companies Act 2013 has introduced the provision for Corporate Social
Responsibility. The ideology of CSR is about giving and taking. Companies use
resources in the form of raw materials and human resources etc. from society.
By executing the task of CSR activities, the companies are giving something
back to the society and environment.
Common Ethical Dilemmas for Business
Owners
Business ethics deals with requisite
and standard business policies and practices. It is associated with a
potentially controversial topic, including corporate governance, insider
dealing, bribery, discrimination, corporate social responsibility and fiduciary
responsibility. Appropriate ethical behaviour is essential for any sustainable
business model.
An ethical dilemma can be to support
other companies when money is hard because of a business’s dependence on
several factors and resources. An ethical dilemma is that business owners
cannot compromise on product quality by doing unethical practices which can
cause harm for the health of the people as well as the environment issue. There
are other ethical dilemmas also like leaving clients, responding to employee behaviour
on behaviour networks, Retention of employees due to years of service and Accepting
candidates from the competition.
Conclusion
The CSR models increase business and revenue and also
promote change and progress throughout the globe. It often involves helping
people with few or no resources. As everyone deserves a better and more prosperous
life. CSR is a kind of philanthropy which enhances the values of life and shows
a path for a better future.
There are some drawbacks also which should be discussed and
look for a practical solution. For an instance, a drawback is that its costs
fall disproportionally on small businesses. Leading corporations can afford to
allocate a budget to CSR reporting, but this is not always open to smaller
businesses with between 10 and 200 employees. There is much more such matter
which needs attention and It should be discussed and researched to get a
constructive result.
Reference
Harlia, J. H. (2022).
The Effect of Good Corporate Governance Implementation on Corporate Social
Responsibility and Company Values. Account and Financial Management Journal,
07(06). https://doi.org/10.47191/afmj/v7i6.02
Sahut, J. (2019,
September 28). Corporate social responsibility and governance.
SpringerLink. https://link.springer.com/article/10.1007/s10997-019-09472-2?error=cookies_not_supported&code=8971038b-457c-45f5-acc3-c4ddc59b5575
Edupedia Publications.
(2014, September 12). Corporate Social Responsibility and Good Governance.
Https://Www.Academia.Edu/. Retrieved June 26, 2022, from https://www.academia.edu/8300505/Corporate_Social_Responsibility_and_Good_Governance
Kumar, R. (2019b,
October 9). Top five qualities of an effective CSR leader. India CSR
Network. https://indiacsr.in/top-five-qualities-of-an-effective-csr-leader/
Business Ethics:
Fair Business Policies Within Controversial Subjects. (2021, August 29).
Investopedia. https://www.investopedia.com/terms/b/business-ethics.asp#:%7E:text=Business%20ethics%20is%20the%20study,social%20responsibility%2C%20and%20fiduciary%20responsibilities.