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Social responsibility and ethics is an important issue. There are various reasons for a company to conduct business in and ethical and social manner. In the wake of scandals such as Enron it is important companies make an effort to become more responsible. This report will provide a strategy to help Company X Financial Service become socially responsible.
A1. Environmental considerations and recommendations A successful company goes further than just meeting the standards mandated by law. A socially responsible organization should be aware of the effects that follow their decision making. Social responsibility is an ethical theory that an entity, be it an organization or individual, has an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem (Wikipedia, 2013). There are various ways Company X can become environmentally responsible. Company X could utilize their local energy vendor by having them construct an energy audit of their location. Many companies are utilizing such services to save money but this also helps the environment. By utilizing led lighting instead of normal lighting energy costs are reduced and waste is minimized. Most led lighting components are rated at a life of 10 years. The upfront costs will be high but the upgrades will save on utility bills and maintenance. The company could start an internal recycling program. This will consist of paper and toner packages. The average toner costs $75 but to refill the same bottle of toner only costs 15% of the original value. The biggest cost is the bottle that the toner comes in. An in-house method to refill toner could save up to 85%. To help the environment and prevent identify theft paper should be shredded and recycled. The company could replace outdated equipment with Energy Star rated electronics and appliances. These electronics have been proven to save 12-15% in energy. These are a few simple steps Company X can take in order to become more socially responsible.
A2. Ethical leadership considerations and recommendations The correct leadership needs to be established in order to reinforce the ethics that the company has put in place. According to Brechet (2008), “Ethical leaders refuse to choose between profits and people, as high-commitment and high-performance companies reveals.” Figure 1 shows the different styles of leadership and tactics that can be utilized to drive change. Figure 1. Ethical Leadership
Executives regularly encounter a variety of issues that need ethical solutions. To ensure these decisions are being made with an ethical mindset the tone of leaders in an organization need to stay ethical. Leaders can make sure they are ethical by basing decisions on the core values of the company. In order for leaders to refer to the core value the company needs to establish core values. According to deliveringhappiness.com (2013) there are 10 steps to establish core values. The following steps should be followed by Company X to develop core values:
1. Decide if your company is committed to having a value based organization
2. Figure out personal values.
3. Get partners, manager, and influencer’s key values.
4. Combine values.
5. Test values on employees.
6. Test company’s commitment.
7. Send to entire organization and ask for feedback.
8. Take feedback and combine issues.
9. Roll out values to company.
10. Integrate values into all aspects of company.
In order for the ethics of the company to grow internally its leaders must be ethically conscious, committed, competent, courageous, consistent and candid. Managers should have appreciation for the ethical implications around their daily jobs. They should always be committed to do the right thing and demonstrate their knowledge on the depths of their decisions. The organization should make everyone responsible for the quality of their work. This will give employees a sense of pride in their everyday roles. Managers should make it clear how each job is important and demonstrate the importance of all roles.
A3. Organizational Viability and Recommendations The viability of a business is measured by its long-term survival, and its ability to have sustainable profits over a period of time. If a business is viable, it is able to survive for many years, because it continues to make a profit year after year. The longer a company can stay profitable, the better its viability. A company must balance the Triple Bottom Line of “people, planet and profit” in order to remain profitable. Many organizations fail to recognize a balance between the TBL and start moving away from being socially responsible and focusing on profit. Company X must demonstrate a top down commitment to become socially responsible. Employees must see the buy-in from top executives. As stated in section A1, many strategies are available to reduce daily cost which will increase profitability of the organization. Those strategies cover the TBL by focusing on the environment which will help turn a profit for the business. Another part of the TBL is based on tax deductions. By becoming more economically friendly the business will have a chance to utilize all deductions available to them but should make sure they don’t cheat on their tax returns and risk an audit. At the present time due to the size of the business most cost for recycling and waste disposal are minimum. If a company’s social performance is poor, it will impact the employee attitudes which will in turn impact productivity and then affect the financial bottom line. The goal of this report is to ensure a business that is socially responsible, environmentally sound and economically profitable. The following should be down to help ensure profitability:
1. Leaders must define metrics to identify measure and control viability.
2. Actively involve employees on environmental and social issues.
3. Report annually to the general public about the Triple Bottom Lin’s progress.
4. Integrates Triple Bottom Line principles into management so that all policies and actions contain a balance of economic financial, environmental and social perspectives and consequences.
A4. Legal and Regulatory Recommendations One of the laws that apply to this type of business is the new “Light Bulb Law.” On January 1, 2012 a new law phasing out standard 100 watt incandescent lights went into effect. Seeing that this business has been in effect for five years it is possible that there are still bulbs of this nature around. Businesses are urged to buy Compact Fluorescent Bulbs better known as CFLs. According to Weir (2011), “The new incandescent bulbs operate and look just like the old-fashioned bulbs that you are used to-they have the same shape and base design. And, according to Horowitz, most people won't notice any difference in the color or quality of light. What is different is that they have an improved filament design, which makes them 28% more efficient as the law requires.” County and city ordinances require each household or business to have a solid waste bin and recycle bin. Batteries also should not be thrown away and recycled. . The Clean Water Act will also have impact on business. It restricts what can be dumped down the drain into the sewage. Only biodegradable, non hazardous liquids can be dumped in the sewage. It is important for the company to keep abreast of the newest laws that will affect its business. The company should have an individual or consultant keep track of the newest laws to keep the business in compliance. To prevent legal mishaps, management must take a proactive approach to become socially responsible. To maintain the image of the company if a legal issue occurs there should be a designated individual to help with any external investigations and speak for the company to make sure all information is correct. Management should have an investigation that decides if a problem is internal before an external investigation occurs. The government finding a problem that should have been found internally will put the company under a spotlight that would jeopardize its credibility. The cost of fixing problems before an external source gets involved is better for the business’s finances and credibility.
B. Sources
10 Steps For Developing Your Company’s Core Values - Delivering Happiness. (2013).
Retrieved October 13, 2013, from http://www.deliveringhappiness.com/core-values/

Brechet, F. (2008, December 14). Organized Organizations: December 2008. Retrieved 14, 2013, from http://organizedorganizations.blogspot.com/2008_12_01_archive.html
Weir, S. (2011, December 14). The Truth About the New Light Bulb Law | Financially Fit - Yahoo Shine. Retrieved October 14, 2013, from http://shine.yahoo.com/green/truth-light-bulb-law-200200491.html
Wikipedia (2013). Social responsibility - Wikipedia, the free encyclopedia. Retrieved October 14, 2013, from http://en.wikipedia.org/wiki/Social_responsibility…...

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