Corporate responsibility and good governance are applied by organizations that engage in activities that contribute to the improvement of social welfare. Upholding corporate citizenship has become an emerging trend among companies in the 21st century. Corporate responsibility refers to an obligation by the management of any organization to perform actions that improve the society's welfare as well as the institutions. Good governance, on the other hand, refers to specific rules that help an organization to counter challenges about reputation, accountability, risk and commerce. An organization is said to have good governance if it can separate its management from ownership. Numerous firms have attempted to practice social citizenship despite all its underlying challenges. A responsible corporate firm is one that puts its managerial ethics active. The cost of exercising corporate responsibility is high; it can even impact negatively on a firm's total profit. This paper focuses on addressing corporate responsibility and good governance with the application of relevant theories and models in the field of organizational behavior.
Definition and understanding of Ethics and Corporate Social Responsibility
The ability to be ethical is a difficult task especially when there is a conflict between social goals and profits. Social responsibility can be referred to as a contract that defines what an organization is required to undertake in its business environment. According to law, any leader has to ensure their firm is in alliance with certain set standards. These standards can be determined either by investors, customers or the society at large. A company is said to be socially responsible if it adheres to these regulations in good faith and not by being compelled (Aguilera, 202. The role of a leader in any Organization is to ensure their firm's choices, and actions are convenient with the interest and welfare of the society. Any organization is required to support specific levels of social responsibilities they include; ethical, economic, legal, and discretionary. An organization is composed of six main areas; employees, customers, shareholders, government, and the community.
Relevant models, concepts, theories and literature in the field of Organizational behavior
Three concepts are imperative in management and leadership: Technological, socio-economic, and human. The Human aspect is of great significance, and it entails the relationship between employees. The success of an Organization is highly determined by governance, the connection between people, and leadership both vertical and horizontal. Organizational behavior is the study of human behavior in organizations; therefore this definition elucidates that people behave differently when outside the institutions (Quinn & Delton, 90). To ensure that communication is effective in the workplace, it is important to practice emotional intelligence. Emotional intelligence reduces conflict in the workplaces and makes the office comfortable to work. Organization behavior is a managerial skill to understand, predict and control human behavior; therefore it is a concept indispensable o emotional intelligence.
Based on the institutional theory of corporate social responsibility, it is certain that an institutions condition can influence the occurrence of socially responsible behavior (Strand, 114). It merely is the institutional mechanism, based on this; an organization's behavior has the power to set forth a corporate social responsibility culture depending on the conditions upon which it operates. The main determinants of the institutional mechanism include the organization's objectives, size, structure and characteristics. For instance, an Organization whose primary goal is to maximize profit and shareholder value will perceive the idea of corporate social responsibility as silly since it does not align with the institution's objectives.
Upholding corporate responsibility to the society is of great significance; despite the ethical dilemmas accompanied by this practice. Organizations that practice a culture fully committed to moral leadership experience minimal difficulties; it is, therefore, essential to uphold corporate social responsibility to the society that supports their existence.