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This is about ethics and corporate social responsibility involved in opening a new
business enterprise for a company known as Koffu plc. Koffu plc will be importing
coffee beans from Africa, packaging them (whole and after grinding) and distributing
that to wholesaler and retailers throughout New Zealand. Waitakere city Council
promised funding to build a warehouse, factory and transport depot just outside
Henderson.

In this we are discussing what ethics and social cultural responsibility means, how it
is important for any organisation. Elaborating some issues Koffu place has to
consider for them and pointing out difficulties that can be faced in developing a
policy. Report is based on literature review.

Detailed discussion as follows -:

(a) Meaning of ethics:-

1. Strictly thinking then ethics in an organisation is kind of written and

unwritten codes of principles or rules and values that govern decisions and
actions within a company. In the business world, the organization’s culture
sets standards for determining the difference between good and bad
decision making and behaviour. The phrase 'business ethics' can be used
to describe the actions of individuals within an organization, as well as the
organization as a whole.

A list of work ethics for an employer or a company might be:

• To provide a safe work environment for its staff and employees,
• To treat employees with dignity and respect,
• To provide a fair wage for the services rendered,
• To handle all business transactions with integrity and honesty.
A list of work ethics for the employee might include:
• To show up on time.
• To tend to company business for the whole time while at work.
• To treat the company’s resources, equipment, and products with care,
• To give respect to the company. That means honesty and integrity.
2. While developing thoughts regarding ethics we should consider some of the
following guidelines when developing codes of ethics:

• Review any values need to adhere to relevant laws and regulations

• Review which values produce the top three or four traits of a highly ethical
and successful product or service in your area,
e.g., for accountants: objectivity, confidentiality, accuracy, etc. Identify which
values produce behaviours that exhibit these traits.
• Identify values needed to address current issues in your workplace.
Appoint one or two key people to interview key staff to collect descriptions of
major issues in the workplace.

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• Identify any values needed based on findings during strategic planning.

What behaviours are needed to build on strengths, shore up weaknesses,
take advantage of opportunities and guard against threats?
• Consider any top ethical values that might be prized by stakeholders.
For example, consider expectations of employees, clients/customers,
suppliers, funders, members of the local community, etc.

3. Business ethics do influence our social standards in following ways:-

• Attention to business ethics has substantially improved society.

• Ethics programs help maintain a moral course in unstable times.
During times of change, there is often no clear moral compass to guide
leaders through complex conflicts about what is right or wrong. Continuing
attention to ethics in the workplace sensitizes leaders and staff to how they
want to act consistently.
• Ethics programs cultivate strong teamwork and productivity. Ethics
programs align employee behaviours with those top priority ethical values
preferred by leaders of the organization.
• Ethics programs support employee growth and meaning.
• Ethic programs help avoid criminal acts “of omission” and can lower fines.
• Ethics programs help manage values associated with quality.
• Ethics programs promote a strong public image. Attention to ethics is also
strong public relations -- admittedly, managing ethics should not be done
primarily for reasons of public relations. But, frankly, the fact that an
organization regularly gives attention to its ethics can portray a strong
positive to the public.

(b)- Concept of social responsibility for an organisation:-

Businesses work in a wider social environment in which they have a responsibility to

a range of stakeholders including the wider community.

The term Corporate Social Responsibility (CSR) refers to the responsibility that

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modern business organisations have in creating a healthy and prosperous society.

As it is said businesses do not work in isolation, e.g.:
• The products and services that they provide are consumed by large numbers
of consumers, their employees are part of wider communities, in which they
have responsibilities to families and other social groupings.
• Business activity impacts on the lives of people in many ways, ranging from
the creation of a safe and clean environment, through clean and careful
production, to the creation of jobs, and opportunities for all members of the
community.
Responsible businesses are responsible citizens. This responsibility is
reflected through ethical practice. Ethical practice involves doing the right
thing rather than the wrong one - and is based on operating in a 'moral way'.

Corporate social responsibility involves making sure that:

• Your goods and services meet customer requirements, and are provided in a
fair way.
• Your employees are given responsibility and opportunities to work with the
organisation in supporting community projects.
• The organisation is involved in relevant sponsorship and 'corporate giving'
activities that are relevant and helpful to the community.
• The organisation is involved in activities and programmes that support the
development of the whole community.

Many organisations today realise the importance of building a prosperous

'inclusive society'. This involves including members of society by providing
them with opportunities and futures rather than marginalising and excluding
them. In addition large companies like Starbucks and Kellogg have strong
corporate social responsibility programmes involving employees working on
community projects and the sponsorship of relevant community activities.

1- Advantages of Social Responsibility for an organisation :-

In recent years many consumers have been upset by widely publicized examples of
fraud by executives and harmful products produced by some companies. As a result
consumers have become more conscious of whom they are doing business with and
which products they should buy. Many companies who are looking for long-term
profitability are looking for ways to become more socially responsible.
Likewise, the International Organization for Standardization (ISO) : “In the wake of
increasing globalization, we have become increasingly conscious not only of what
we buy, but also how the goods and services we buy have been produced.
Environmentally harmful production, child labour, dangerous working environments
and other inhumane conditions are examples of issues being brought into the open.
All companies and organizations aiming at long-term profitability and credibility are
starting to realize that they must act in accordance with norms of right and wrong.”

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2- Importance of social responsibility for Koffu :-

Social responsibility is very important for Koffu place as they are setting up
new business venture and they will be importing beans from Africa and
distributing here. If they will take responsibility then they can get along with
community and will be really helpful to make their goodwill in market and
community will feel good and safe if they will be involved in all the matters
related to environment and there safety that will be affected due to this new
project and company can take advantage of their involvement so that they feel
safe and important part of their project. As it is located just on the edge of
residential area and close to primary and intermediate school they can take
opportunity of sponsoring or funding various events, functions etc. They can
get proper feedback and suggestions from participating members of their
community as they will be there first potential consumers of product and that
will help them to increase or maintain their standards.

3- Disadvantages of Social Responsibility for an organisation :-

• CSR can be mere corporate terminology and politically correct box-ticking,

rather than a commitment to concrete action. In such cases the benefits for
the charity may be superficial at best
• Depending on the priorities of those responsible it may be the case that CSR
is a lower priority for the corporate than it is for an organisation. We should,
therefore, be wary of the risk of becoming overly reliant on a corporate body.
However much we benefit from a company's input, we should seek to
maintain our charity's independence.
• Lack of equality or even exploitation within the partnership. Some companies,
for example, stand accused of promoting an initiative more for their own
benefit, to enhance credibility or profit, rather than to aid a charity or the
community
(c) Issues to be considered by Koffu :-
Some of main issues to be consider by Koffu plc while developing this policy
are as follow:-

• Close to residential Area :-

Koffu place is close to residential area therefore they really need consider the
effects of setting up warehouse and factory near residential area how
community will react. As being importer and despatching finished product lot
of heavy vehicles will be involved and people will feel disturbed if done on
wee hours secondly it’s not safe for kids as primary and intermediate school is
located there.

• Fair-trade:- The global coffee industry is in crisis. Although world consumption

is growing, and the value of the coffee trade makes it the world’s second most
valuable commodity after oil, many of the world’s 25 million coffee growers
face immense hardship. How can this be?

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Trade, unfortunately, simply isn't fair. The coffee producing countries have some of
the lowest levels of income and some of the lowest GDPs in the world. Many coffee
growers are receiving only a fraction of the value of their coffee.
The most difficult concept for Western consumers to grasp is that growers have no
real say in the price they will be paid, nor an easy alternative to growing coffee as a
cash crop. In effect, they are paid just enough to prevent them from pulling out their
crops and growing something else, but not enough to earn a living wage.
If we will practice fair-trade producer will be happy and will get equally paid for his
hardwork.
Actions to be taken :-
• We should arrange meeting with local bodies and seek their suggestions and
ask them what kind of timings they will not like for our transportation system.
• Should tell them what will be the benefits which they can avail from us and
how we can help them for cultural functions etc
• Will also tell them the objectives of our company and benefits to society (like
benefits of fair-trade to consumers and producers)
• Should tell them about employment opportunities for suitable candidates.
• Conduct meeting with school management.
• Can sponsor their rugby team or can fund some play grounds etc.
• Can put up free coffee machine or something for staff.
• Can arrange special awareness trip for kids and community to factory and
show them whole process from importing to distribution.

Implementation -:
• Should make a body of members who can approach community members
and management of school to tell our goals and how they can benefit them.
Should conduct meetings with them. Should see areas in which may need our
area and support.
• Can give special offers to local area residents and can give special offers if
somebody want to be wholesaler or retailer of our product .
• Should keep community informed about our company goals and there
benefits to them.
• Can give them some handouts of fair-trade and tell them how that helps
consumers and producers.
• Should work out with community for heavy vehicle traffic timings to avoid
traffic conjunction.
• Should work out with school management about safety of kids during busy
hours allowed for heavy vehicles.
• Should arrange educational trips for school kids.

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REFERENCES:
• Lot of material from handouts given in the class.
• www.businessknowledgesource.com
• www.business.com
• www.scu.edu

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