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Discuss twoways a corporate board member might engage in inappropriate ethicalbehavior, and explain why each is a problem for the company andshareholders.

Corporate socialresponsibility is one of my favorite topics for discussion inbusiness as it is a subject that is of great importance in mypersonal beliefs and values which greatly shape my shoppingbehavior.

There are manycompanies that are worth mentioning for their commitment to socialresponsibility but one of the first that comes to mind is The BodyShop. Established in 1976, English founder dame Anita Roddick beganmaking cosmetic and body care products with a vision for developinga business with a heart and one that would be a force of positivityin the world. The Body Shop is now a recognized brand around theglobe and is known for its efforts to enrich products, people andthe planet. The Body Shop has been a pioneer over the years indeveloping products in the beauty industry and doing so whilemaintaining a firm stance against animal testing and otherenvironmental initiatives (The Body Shop, 2018a).

The Body Shop boasts along history of socially responsible initiatives and has severalpages on their website dedicated to these efforts. I have listedonly a few of these initiatives below but have included a link totheir about us page for those who may want to learn more abouttheir socially responsible practiceshttps://www.thebodyshop.com/en-gb/about-us/our-commitment

Body Shop initiativeshave demonstrated stellar social responsibility and have set thefollowing goals to achieve by 2020 (The Body Shop, 2018b:

Doubled community trade program from 19 to 40 ingredients; theBody Shop states that this has ‘enriched’ the communities in whichthe ingredients are sourced.

The Body Shop guarantees that 100 percent of the naturalingredients used are not only traceable but sourced throughsustainable methods. The Body Shop aims to protect 10,000 hectaresof forest and various other habitats.

Reduce energy usage by 10 percent in addition to relying on wellrenewable or carbon balanced energy to power 100 percent of itsstores.

Aims have been set to create and deliver 3 new sustainablepackaging alternatives.

Aims to guarantee that 70 percent of its product packaging isfree of fossil fuels.

Goals have been set and will continue annually to reduce theirenvironmental footprint across each of its product lines.

Aspires to include 8 million people in its “Enrich Not Exploit”campaign to spread their mission.

The Body Shop has alsoannounced its commitment to releasing annual reports to offerinsight into its business practices and target progress with totaltransparency. The Body Shop benefits from these efforts largely inpart due to a shift in consumer values and their desire to supportcompanies that share their values and beliefs. From a CSRstandpoint, these efforts aid in fostering customer relationshipsand attracting new customers. The Body Shop has gained competitiveadvantage having been a long-time pioneer in green practices,raising the bar for higher ethical standards and its strong desireto fill consumer needs without harming animals or the environment(The Body Shop, 2018b).

As a result, the BodyShop has attained brand and product differentiation as well assolidifying a large and very loyal consumer base through increasedbrand recognition and positive brand association. Additionally, theBody Shop’s efforts to reduce energy usage utilizing alternativemethods leads to a reduction in operational costs (NI BusinessInfo, 2018)

NI Business Info(2018) also notes that social responsibility also attracts highlydesirable talent and can work to retain the talent the companyalready has as such efforts are known for increasing motivation andemployee satisfaction; this is great for companies as costs arefurther reduced due to a decline in disruption and the costsassociated with recruiting and training.

Some additionalbenefits that can be attained from socially responsible practicesas noted by NI Business Info (2018) include:

Greater access to capital: Investors are more likely to investin responsible and reputable companies

Greater opportunities for positive media attention.

Restrictions and regulations may be easier to navigate throughstrong relationships with governing agencies.

Opportunities for growth and innovation.

LA#2.2

Explain whyCorporate Social Responsibility is important to each of the abovestakeholders.

Concerns of socialresponsibility are not only relative to consumers, but are alsoshared by corporate stakeholders. By definition stakeholders arecomprised of customers as well as employees, suppliers, boarddirector members, government agencies, political groups etc. It isthese groups of interested parties that make up the communities andmarkets in which companies aim to serve (Saylor Foundation,n.d.).

Primary stakeholdershave a strong interest in the performance of the organization andits actions relative to how its business is conducted. Those inthis category (e.g. employees, shareholders), are directly affectedby the positive outcomes (successes) and in turn, are also subjectto the company’s failures (The Saylor Foundation, n.d.).

Secondary stakeholderssuch as the media, labor unions, political and social groups notonly have the power to positively and negatively affect companiesbut are also capable of influencing company actions. Stakeholdersin this category serve as an example of how vested interest nomatter how far removed from the internal and external workings ofthe company relate to primary stakeholders, communities (SaylorFoundation, n.d.) and in many instances society as a whole on aglobal scale. Thus, the scale of cause and effect can be quitelarge and all encompassing.

In short, virtuallyeveryone in the world today has a stake or interest in thebehaviors and actions that businesses carry out in the world todayas we all are subject to the economic, social and environmentaloutcomes that play out.