EHM2, Task Two
Western Governors University C206:
Ethical Leadership Corporate Social Responsibility Within the contemporary commercial setting, emerging altruism among enterprises has demonstrated organizational accountability complementary to optimal socioeconomic outcomes. “Corporate Social Responsibility (CSR) describes how a company manages its industry and takes responsibility for its social impact” (Chen et al., 2021). “Corporate social responsibility encompasses various characteristics like economic dependence, legal conformity, ethical requirement, and societal influences” (Chen et al., 2021). In other words, corporate social responsibility may be regarded as the ethical conduct for which a company practices morally imperative business that transcends profit maximization. Through conducting business, corporate social responsibility aims to benefit the environment, society, and customers. This involves sustainable operations, the promotion of decent working conditions, local community development, and the reduction of ecological disruption. CSR fosters consumer confidence, organizational credibility and sustainable performance by connecting business interests with larger social and environmental commitments. Finally, CSR allows organizations to not only 1 / 2
create value economically but to be an active member of the society in which they operate.Primary & Secondary Stakeholders Generally, a stakeholder is any individual or group of individuals who are invested in the operations and outcomes of an organization. Stakeholders maintain an interest in business operations and through their involvement, may be categorized as either primary or secondary.However, a primary stakeholder shares a direct relationship with a company and its financial transactions while a secondary stakeholder shares an indirect relationship with a company and its social transactions.“Primary stakeholders are those who can directly influence firm operations” (Kim et al., 2023). “Examples include employees, suppliers, and customers” (Kim et al., 2023). Regarding Paradigm Toys, the customer demonstrates a primary stakeholder considered directly influential. Consumers are Paradigm Toys’ single most important stakeholders as the company
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