Corporate Social Responsibility Essay

a federal criminal investigation into the explosion that resulted in the death of 29 workers. Additionally, they settled a $265 million pension lawsuit that accused them of falsifying safety standards. The company that filled the report acted ethically by providing accurate information about the explosion, which led to the arrest of a Massey manager (Schneider & Schmidpeter, 2012). It is important to examine the costs and benefits an organization faces when it behaves ethically or unethically.

Build Customer Loyalty

According to Schneider & Schmidpeter (2012), consumers will abandon an organization if they perceive unfair treatment, resulting in loss of customer loyalty.

The reputation of a company in ethics plays a vital role in building a positive market image and attracting more customers. Conversely, a negative reputation can be detrimental to the organization, as unethical actions can spread rapidly through social networks, tarnishing the organization's image.

Employee Retention

All employees expect to be rewarded and recognized for their hard work and loyalty. They desire promotions based on merit rather than personal bias.

When companies treat their employees fairly, the chances of retaining them are significantly higher. Conversely, employees who are not motivated by compensation are usually not dedicated, which leads to a decline in company production (Lindgreen ; Swaen, 2010).

Positive Work Environment

Employees should be honest about their capabilities and experience and foster positive relationships with their coworkers. If employers catch employees engaging in unethical behavior, it harms their chances of advancing within the company (Lindgreen ; Swaen, 2010). Theft is an example of poor ethics.

In certain industries, taking shortcuts to achieve profits can be financially detrimental to businesses. This

includes noncompliance with regulations, labor laws, worker safety hazards, or the use of substandard materials. The penalties imposed on organizations for these actions can lead to significant financial losses.

The organization may suffer long-term damage to its reputation (Lindgreen ; Swaen, 2010).

1. References
2. Lindgreen, A., ; Swaen, V. (2010). Corporate social responsibility. International Journal of Management Reviews, 12(1), 1-7.
3. Schneider, A., ; Schmidpeter, R. (2012). Corporate social responsibility. Verantwortliche Unternehmensfuhrung in der Praxis, Berlin ua.