Question

Managers are expected to act ethically towards their workers and the environment at large.

a. Distinguish among corporate philanthropy, corporate policy and corporate social responsibility

Answer 1

The divide between corporate philanthropy, corporate policy, and corporate social responsibility is pretty clear when we take a hard look at the context of each, and when these are practiced simultaneously by corporations.

Corporate philanthropy involves making an effort to drive social change. It involves finding long-term solution t homelessness, rather than delivering temporary relief. On the corporate level, philanthropy is practiced in many different ways. Corporations may also be directly involved in philanthropy by partnering closely with a cause, or, in some cases, by bringing the efforts in-house. Some large corporations have separate department dedicated to manage their philanthropic programs.

Corporate policy- it refers to the roles and responsibilities of top-level management. It is a guideline which helps the management to carry out its activities in a efficient and effective manner so that the objective of the corporate will be achieved. Corporate policy is also an effective way of demonstrating an ethical commitment to honest and proper business practices, from the way that corporate treats its employees to how it deals with its environmental impact. Corporate policies include ethical policies in it.

Corporate social responsibility- it directly involves the corporation’s business model and its business practices. It goes a step further than philanthropy by directly involving the corporation in the causes and community. It is not mandatory, and is not always practiced, but it should be a major aspect of any large scale corporation, as some negative side effects many stem from the business practices. It means that the corporation is working to mitigate potentially negative effects on the society and also to solve the effects it has socially, environmentally, and on public health. Failing to implement corporate social responsibility, however, will cast the corporation in a negative light.