Organisational ethics is the ethics of the organisation and the process of determining how it responds to internal and external environment. Organisational ethics are the principles and standards by which businesses operate and best demonstrated through acts of fairness, integrity, compassion, responsibility and honor.Organisational ethics is interdependent with the organisational culture.Organisational ethics expresses the value of the organisation to its employees, government, other entities. Organisational ethics refers to adherence to related laws, policies and regulations.
Organisational ethics and corporate social Resposibility (CSR) are two concepts of business environment.
Organisational ethics have to follow related regulations and laws.
CSR is a social responsibility. CSR focuses on corporates and society. CSR is a kind of moral obligation and behaviour not related to regulation or illegal.The concept of CSR raises the question to companies to look beyond how their decision making have an effect on the society.
The Three contemporary models of CSR are as follows:
1) Analytical Model
2)CSR 2.0 Model
3)CSR model with best goodness-of-fit.
Analytical Model: An analytical model to appraise and measure corporate social responsibility. This model permits an analytical explanation of the behaviour of a company and its owners when incorporating both economic rationality and social responsibility. However, this quantitative study did not consider an environmental element as part of CSR contribution to society.
CSR 2.0 Model: CSR Model is about designing and adopting an inherently sustainable and responsible business model, supported by a reformed financial and economic system. Clearly, it was most concerned with profit motive to ensure the viability of the model rather than environmental conservation as the main priority.
CSR model with best goodness-of-fit:This model of which CSR is mainly influenced by four components:accountability, transparency, competitiveness and responsibility. It also suggests qualitative approach to complement findings and additional insights.However, this model did not include environmental perspective as one of the components.
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