It seems as though firms have become more aware of the importance of social responsibility and business ethics. With summit meetings such as the Annual Global Ethics Summit, run by Thomson Reuters and the Ethisphere Institute, or public acknowledgments such as the Observer Ethical Awards and the Best Global Green Brands, one can’t help but think that corporations are aiming towards a more ethical business environment. However, is it the importance of reducing pollution, establishing safer and more humane work conditions that concern them, or is their search for social responsibility motivated by achieving a good social image?

Both Kellogg’s and PepsiCo were criticized for “scoring low on commitment to improving the rights of women and farmers” in a report published this year by Oxfam, an NGO that focuses on corporate social responsibility actions of MNC’s. Nonetheless, later this year, the Ethisphere Institute ranked Kellogg’s and PepsiCo as “two of the world’s most ethical companies.” As noted by a peer in her blog post on business ethics, Jenny Diemer points out that “ethics have become a marketing tool for many companies.” The issue with such awards and acknowledgements is that, although they can motivate businesses to become more socially responsible, the focus is not on sustainability, but rather on “celebrating” the individual firm’s achievements. Social responsibility should become a business’ priority both on an ethical level and because, as explained by Freeman, it is important for businesses to concern themselves with all stakeholders, including the well-being of their customers, suppliers, and their community in order to prosper.

Sources:

1. McEachran, Rich. “Ethical Awards: Green Wash or Genuinely Recognising Sustainability?” The Guardian. N.p., 3 Sept. 2013. Web. 11 Sept. 2013.

2. “Ethisphere’s 2013 Global Ethics Summit.” Corpedia. N.p., n.d. Web. 11 Sept. 2013.

3. Diemer, Jenny. “Jenny Diemer’s Blog.” Jenny Diemers Blog. N.p., 11 Sept. 2013. Web. 11 Sept. 2013.

4. “What Is Stakeholder Theory? – R. Edward Freeman.” YouTube. YouTube, 01 Oct. 2009. Web. 11 Sept. 2013.