—Contributed by Charu Gupta

Corporate Ethics and Social Responsibility is quite a buzzword in today’s market. Companies are rising to the social needs and growing consumer awareness and hence, can’t risk their reputation in the markets.  

The consumer is changing and now he is no more looking for just a good price or quality but also concerned about how the product is made too. For eg. People accused Starbucks of selling overpriced coffee and not giving back to the farmers who grew the coffee in poor starved countries like Ethiopia their due. Its the public who agitated in Europe against Shell on the dumping of Brent Spar oil in the North Sea. In spite of British government backing, the company had to eventually abandon its plan. There was a campaign against child labour and exploitation of workers in Nike's factories and there were people boycotting Adidas for using Kangaroo skin in the boots.  

Companies have become even more cautious of their production procedures and the other activities involved in their business as more and more NGOs and activist groups are coming to the forefront against the unethical practices followed by the corporate houses. A similar protest seen in recent times was against Pepsi wherein this Cola giant was accused of using pesticides in the carbonated drink. Even, Cadbury has to rope in Amitabh Bacchan and Aamir Khan to revamp its image when worms were found in its chocolates. 

Carpet makers in India, Nepal and Pakistan have become more cautious when the western press singled them out and criticised them for employing children at the cost of their health, education and childhood.  

Today, consumers are even more empowered with the help of virtual world i.e. Internet. This technology has enabled them to become more easily united through mails, blogs, etc. and voice their opinions freely. People from different countries and cultures can come together and raise their voices against any indiscrimination and unethical practices followed by organizations which can also lead to the extent of even boycotting their products.   

In an ethical business the essential thrust is on social values. Business is conducted in consonance with broader social values and the stakeholders' long-term interests. This ranges from concepts of nation-building and trusteeship that are demonstrated in the business practices of the Tatas and Birlas, and new generation enterprises such as Infosys, Wipro, Dr. Reddy's and Ranbaxy, where less emphasis is on minimising negative impacts and more on maximising the positive spill-over effects of corporate development. 

Thus, it is the need of the hour that business houses become more careful and know their responsibilities towards the society as hurting the sentiments of the consumers can really be hard on their finances, profits, share prices and their mental peace.