Running head: GLOBAL ETHICAL CORPORATE CITIZENSHIP

Global Ethical Corporate Citizenship and the Future Strategies for Success
Dion Meneley
MGMT 560/ Southwestern College
Dr. Roger Fuller
March 28, 2016

GLOBAL ETHICAL CORPORATE CITIZENSHIP

Global Ethical Corporate Citizenship and the Future Strategies for Success
Achieving and sustaining a firms global citizenship efforts requires that global
citizenship be embedded throughout the organisations culture (Galpin, 2013, p. 34). Global
ethical corporate citizenship is a business practice that requires many levels of commitment from
an organization. A strong leader that is willing to exhibit the qualities that the organization is
trying to instill in its culture is imperative if lasting change is to take hold. Internal and external
regulations will ensure that a certain level of ethical corporate citizenship is realized; however,
lasting citizenship comes from an internal motivation of the people within the organization.
Organizational structure can and will dictate what type of global citizens it produces. The
purpose of this paper is to identify, describe, analyze, and evaluate the best practices and
strategies and success in: ethical leadership and organizational conduct, corporate socially
responsible conduct, environmentally sustainable conduct, and implementing and applying the
triple bottom line.
Global Ethical Leadership and Organizational Conduct
Given the critical role that codes of ethics can play in shaping institutional behavior and
the level of scrutiny likely to be placed upon these codes, it is helpful to understand what they
inherently represent (Bray, 2012, p. 75). Global ethical leadership requires a strong leader with
a clear organizational plan. In order for an organization to become internally motivated to
conduct itself in an ethical manner, leadership must consistently exhibit how organizational
members are to conduct themselves within the different cultural communities they service and
represent. Differing religious beliefs, customs, and behavioral norms across countries and
cultures give rise to multiple sets of standards concerning what is ethically right and wrong
(Thompson, Peteraf, Gamble, & Strickland, 2014, p. 258). The idea of an action being

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considered ethically right or wrong can be a confusing concept. There are going to be instances
where the ethically correct decision may not agree with the moral codes of many employees;
however, it is up to the organization to conduct itself in accordance with its code of conduct and
the culture within which it is conducting business. Every community has a sense of what is
acceptable according to their cultural beliefs, and an organization needs to portray itself in a
manner that both respects the culture they are in and displays the values they bring with them.
Ethical leadership involves ethical awareness and adherence to morally upright values, the
ability to act in accordance with those values over varying settings, and doing so despite the risk
of unpleasant consequences (Tanner, Brugger, van Schie, & Lebherz, 2010, p. 226).
According to Ivey Business Journal (2015), todays business leaders are scrutinized like
never before, and not just for their ability to lead their organizations to financial success.
The pressure is on for CEOs to adhere to accepted values. And thanks to social media,
leadership behaviour, even during personal time away from the office, is constantly being
monitored by a mass market of judges ready to transmit news of transgressions around
the planet in a matter of seconds. As a result, the price paid for departing from expected
behaviour is steep for both leaders and organizations (p. 1).
Corporate Socially Responsible Conduct
It is a companys duty to operate in an honorable manner, provide good working
conditions for employees, encourage workforce diversity, be a good steward of the environment,
and actively work to better the quality of life in local communities (Thompson, Peteraf,
Gamble, & Strickland, 2014, p. 270). Corporate social responsibility is a philosophy that is
centered on doing good in order to do well. CSR is not a universally adopted concept as it is
understood differently despite increasing pressure for its incorporation into business practices

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(Freeman & Hasnaoui, 2011, p. 419). Cultures around the world have different ideas as to what
being socially responsible means; and as a result, it is imperative that an organization establish
an identity regarding who they are and how they want to be portrayed. Simply giving money to
charitable organizations, while admirable, is not enough to be socially responsible. In order to be
considered exemplary in the area of social responsibility, an organization must consider their
supply chain, manufacturing process, treatment of employees, distribution of products,
profitability, and sustainability in the industry. Prior research has firmly established that
consumers draw benefits from a firms engagement in corporate social responsibility, especially
the feeling of a warm glow. These benefits positively affect several desirable outcomes, such as
willingness to pay and customer loyalty (Habel, Schons, Alavi, & Wieseke, 2016, p. 1).
Consumers and investors are becoming more aware of the social impact of global organizations,
and are looking to conduct business with those that are considered to be socially responsible.
Corporate social responsibility is not only good for the people affected by an organization, but
good for profits as well.
Environmentally Sustainable Conduct
Various stakeholders place a premium on the ethical behaviours of corporations. For
instance, few stakeholders want corporations to employ child labour, damage the environment, or
trade unfairly (Millar & Poole, 2011, p. 137). Environmental sustainability is something that
requires careful planning and foresight. While being respectful of the environment is an absolute
in todays economy, it is also imperative that organizations integrate environmentally friendly
practices at a pace that allows them to be compliant with regulations and be profitable at the
same time. Environmentally sustainable conduct is not simply taking care of the earth that takes
care of us. Sustainability requires that an organization be able to endure the business practices

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they wish to employ in order to avoid being in business one day and bankrupt the next. One
could imagine a society, even a global one, in which present and future needs were met in an
environmentally safe way without also recognizing widespread commitments to civil rights,
labor rights, or other socially desirable ends (DesJardins, 2016, p. 124). Many times
environmental sustainability is mentioned as being exclusive to being socially responsible;
however, an organization can be environmentally conscious without necessarily being socially
responsible as a whole. According to Shadymanova, Wahlen, and Horst (2014), consumers
must possess some knowledge of sustainability issues as well as the ways by which they can
diminish the impacts of their individual consumption practices (p. 682). Consumers tend to
hold corporations to a higher standard than what they are willing to do themselves; however, in
this present economy it is the responsibility of the organization to meet the needs of their target
audience. As consumers become more environmentally aware, organizations are going to have
to implement business strategies that comply with the standards set by todays consumer.
Implementing and Applying the Triple Bottom Line
Organizations struggle to tell their stories, to communicate the good and sometimes the
bad they do in the marketplace, in the community, to and for the environment, and in society
(Sherman, 2012, p. 673). As a result; the triple bottom line method of accounting has been
recognized as a way to measure an organizations impact on people, the planet, and how profits
are affected as a result. Sustainability has been an often mentioned goal of businesses,
nonprofits and governments in the past decade, yet measuring the degree to which an
organization is being sustainable or pursuing sustainable growth can be difficult (Slaper & Hall,
2011, p. 1). Many leaders today want to implement business models that accentuate and
promote the Triple Bottom Line that focuses on people, planet, and profit (Frie & Nisiewicz,

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2013, p. 2). The problem with the triple bottom line is not identifying what the organization
wants to do, but how to measure what it is doing. Since putting a monetary value on
environmental damage can be an issue, some have recommended implementing and index that
would allow unlike things to me measured. Others have recommended that each aspect of the
triple bottom line stand alone in an effort to give each area the attention it truly deserves. ,
According to Slaper and Hall (2011), the social variables refer to social dimensions of a
community or region and could include measurements of education, equity and access to
social resources, health and well-being, quality of life, and social capital. Environmental
variables should represent measurements of natural resources and reflect potential
influences to its viability. It could incorporate air and water quality, energy consumption,
natural resources, solid and toxic waste, and land use/land cover. Economic variables
ought to be variables that deal with the bottom line and the flow of money (p. 3).
Implementing the triple bottom line method of accounting for people, planet, and profits
can be a challenging endeavor; however, deciding how to measure each category is not as
important as being consistent in measuring and comparing the results. Showing continued
progress, or lack thereof, is the ultimate goal of the triple bottom line method.
Conclusion
Global leadership has a responsibility to conduct itself in a manner that will drive profits,
encourage stakeholder investments, be environmentally sustainable, and meet consumer
expectations. Corporate conduct is under extreme scrutiny as it pertains to the ethical treatment
of employees, supply chain integrity, and cleanliness of the production process as it relates to the
environment. Leadership must not only adapt to the communities they operate in, but offer the
positive aspects of the culture they represent. Positive change can take on many roles, ranging

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from instilling democracy within a region to empowering a little girl to chase her dreams to
become a corporate leader. Corporate social responsibility is an undertaking that must start from
the top; either through mandatory volunteering or incentive programs that encourage members of
the organization to get involved. Measuring profits, social impact, and environmental impact is a
difficult undertaking that can be achieved using the triple bottom line accounting method;
however, investors and stakeholders need quantitative data that paints a picture of the impact the
organization is having on people, the planet, and profits. Organic ethical organizational
leadership cannot be achieved by simply satisfying short term objectives as a public relations
stunt. True ethical leadership comes from a vision and ethical framework that is meticulously
planned out, while being flexible enough to adapt to the changing global environment.

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