Корпоративная ответственность в деловой этике

Dmitrieva Maria Anatolyevna,
Student at the Russian State University of Justice

Scientific consultant Bulanovskaya Tatiana Alexandrovna,
Associate Professor at the Foreign Languages Department,
Russian State University of Justice, PhD in Philology
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Corporate responsibility in business ethics

Abstract. The article is devoted to the philosophy of company development and business achievement of commercial success in ways that are based on ethical standards and respect for people, communities, and the environment, and also provides examples of the consequences of non-compliance with the principles of corporate social responsibility.

Keywords: business responsibility, corporate social responsibility, vulnerability, environment, corporate environmental responsibility, economic responsibility, philanthropic responsibility.

The role of business as an enterprise is to increase profits in a competitive and equal market. At the same time, it is worth remembering that a competition must be fair and businessmen should not resort to the disparate classes of speculation, much less fraud. Corporate social responsibility was created for this purpose. The modern concept of CSR (Corporate social responsibility) appeared in the last century. For example, in the 1970s Archie Carroll formulated the CSR model as a holistic system [1].

Industry was rapidly developing in the 20th century, and very few were aware of the harmful impact of manufacturing on the environment, for example, Pacific Gas and Electric company that polluted groundwater with carcinogens. The situation was starting to change in a positive direction after the major stories about the neglect of pollution, not only for the environment but also for human health. Nowadays, most businesses are trying to position themselves as “green”. They create programmes for recycling, introduce bio-grown items in the sale, etс. Moreover, the State regulates this issue. For example, in Russia there is a law “About environmental protection”, which specifies the standards of additional emissions and additional discharges [2]. Undoubtedly, businesses, especially small and medium-sized ones, often constitute the most vulnerable group among companies whose activities are subject to environmental regulation. This vulnerability is the result of a number of different factors.

The first vulnerability is related to the fact that greening is a complex process for small and medium-sized businesses. This segment is more likely to face resource constraints due to company size, staff shortages, etc [3]. It is claimed that the solution to this problem could be the cooperation of organizations with companies producing these implements, in exchange for their products or to receive a discount. It should be noted that the need to protect the environment and ensure sustainable development leads to the creation of new types of economic activity, and also contributes to the creation of jobs.

The second vulnerability is related to the existence of fragmented legal acts which create problems in the interpretation of documents and the monitoring of changes, as well as the emergence of technical solutions [3]. Consequently, attention should be paid to a more detailed and transparent legislative framework. Also, enterprises should regularly contact monitoring and supervising services to regulate the impact of their activities on the environment.

The environmental issues mostly focus on energy use, water use, waste management, recycling, emissions and eco-friendly office and business travel policies, to name the most important ones. Managing is rather costly, but in the end they can save money on simple things like switching off the light when equipment is not in use, stopping water leaks and so on. Also more customers may be attracted by using paper cups, paper bags and book binding made of recycled paper and advertising the fact or a chemical company refusing to test their products on animals [4].

There is also an opposite point of view in existence. It claims that a corporation is only responsible to its shareholders to bring them ever-increasing dividend on their investment. It dates back to the days of wild capitalism, when business owners and operators were not responsible for the environment or their employees. There is no doubt that the return to such policies in the “post-communist” countries, when the grabbers of large pieces of formerly public property tried to squeeze as much money from them and as quickly as possible, provoking technological catastrophes.

Corporate Environmental Responsibility (CER), also known as “Green CSR” has been a global trend for some time. Businesses have a prime responsibility towards the environment. They overuse natural resources, produce toxic waste, emit CO ₂ and contribute to global warming. They also deplete forests, pollute rivers and intoxicate ocean ecosystems. So there is an urgent need to find ways to slow down and even stop the impact companies have on the environment.

Evidently, corporations should not stop producing. However, measures have to be taken and are taken according to researchers [3]. Studies also show that companies which take care of the environmental issues, gain “competitive advantage” in the long run [5]. Recycling and reusing does reduce costs, and “green” image helps to boost sales. In many cases shareholders are behind the initiative, both for financial and conscientious reasons.

Besides environmental responsibility there are three other branches of CSR. They are ethical responsibility, philanthropic responsibility and economic responsibility [3]. The first responsibility is very much like the old idea of fair play. Everything a business does should be aboveboard – no cheating, no stealing, no machinations of any sort. It is important to remember about equal and respectful treatment of partners, employees, shareholders or customers. This may take different forms: for employees – setting a higher minimum wage and ensuring that all employees receive competitive pay and comprehensive benefits [6]. The second responsibility is a philanthropic one. Its scale varies from joining the local non-profit fundraising to giving a percentage of their annual profit to a prominent cause [7].

Economic responsibility can also take different forms, but they all include making greater good a priority over making the most profit possible [7]. For example, the company will pay more for sustainable materials rejecting cheaper ones or establish a wage system that addresses historical pay disparities based on gender or race.

The same issues exist in rapidly developing Asian countries. Notoriously, China is the place where pollution is an ever-present problem in big cities like Beijing, Shanghai, Guangzhou and many others. Acceleration of economic growth led to cutting corners in keeping the costs down, which could not but have a negative impact on the environment. Today most regional territories face the problem of degradation of natural resources [8]. China is also a largely agrarian nation with a vast population of over 1.4 billion people who have to be fed. This leads to deforestation to obtain new arable lands an excessive use of fertilizers, bringing about soil erosion and water poisoning by chemicals.

In the current situation, the country’s leadership is forced to combine economic and administrative regulatory measures to achieve environmental goals. Those include some measures that might seem peculiar to an outsider. For example, a resident of Beijing or Shanghai can buy a car only after winning the lottery registration number for the car. This helps to reduce air pollution by car exhaust, something that could not be achieved by economic restraints only.

In conclusion, it should be said that Environmental Regulation has an undeniable impact on business, as a result, it is necessary to develop such a mechanism for managing in relationship with nature which should be based on a positive relationship between efficiency, production and business, and maintaining a positive quality of the environment, as well as take into account the fineness of changing law.

Литература

1. Pustynnikova E.V, Pustynnikova E.V. Corporate social responsibility of business. Ekonomika i bizness: teoria i praktika [Economics and business: theory and practice]. 2023, №11-3 (105). URL: https://cyberleninka.ru/article/n/korporativnaya-sotsialnaya-otvetstvennost-biznesa-1 (дата обращения: 10.08.2024).

2. The Federal law of the Russian Federation of January 10, 2002 № 7 «About environmental protection». Rossiiskaia hazeta [Russian Newspaper], 2002, 10 January.

3. Anisimov D.V, Dolgov S.F. Problems and gaps in environmental legislation. E-Scio. 2021, №9 (60). URL: https://cyberleninka.ru/article/n/problemy-i-probely-ekologicheskogo-zakonodatelstva (дата обращения: 15.08.2024).

4. Bartel J. Corporate social responsibility and business ethics. Forbs. 2022. Available at: https://www.forbes.com/councils/forbesfinancecouncil/2022/06/27/corporate-social-responsibility-and-business-ethics/ (дата обращения: 15.07.2024).

5. Zoogah D.B. Ingenuity spirals and corporate environmental sustainability. Handbook of Organizational and Entrepreneurial Ingenuity. Elgar publisher, 2014, pp. 57-83. Available at: https://china.elgaronline.com/edcollchap/edcoll/9781782549031/9781782549031.00010.xml (дата обращения: 14.08.2024).

6. Hasanova M., Rzayeva U., Ismayilova G. Principles of business ethics and corporate social responsibility in business development. Science of Europe. 2022, № 107. Available at: https://cyberleninka.ru/article/n/principles-of-business-ethics-and-corporate-social-responsibility-in-business-development/viewer (дата обращения: 05.08.2024).

7. Godfrey A, Dr. John Bosco Azigwe, Awuni A.R. Business ethics and corporate social responsibility for business success and growth. European Journal of Business and Innovation Research. 2016, vol. 4, № 6, p. 26-42. Available at: https://eajournals.org/wp-content/uploads/Business-ethics-and-corporate-social-responsibility-for-business-success-and-growth.pdf (дата обращениян: 15.08.2024).

8. Zharikov E.P, Chan Y, Chernaya V.Y. China’s Environmental Problems. Aziatsco-Tihooceanscii region: economica, politica, pravo [Asia and the Pacific: economics, politics, law]. 2008, №1. Available at: https://cyberleninka.ru/article/n/ekologicheskie-problemy-kitaya-1 (дата обращения: 01.08.2024).