The Ethical Standards Of Corporate Social Responsibility

Introduction In 2013, the American Insurance Company AIG, American International Group was ranked the worst company in corporate social responsibility for the fifth consecutive year (Orwell, 2014). Known for its exorbitant executive salaries, â€Å"golden parachutes†, and lavish management perks during the infamous financial bailouts of 2009, AIG still struggles to regain consumer confidence (Orwell, 2014). Multiple corporations grapple with how to meet the ethical standards of corporate social responsibility in today’s global economy. Becoming a triple bottom line company would help a business meet its ethical obligations and demonstrate its sustainability progress to stakeholders. Employing utilitarian theory of ethics to exam triple bottom†¦show more content†¦The legal responsibility of an organization is to abide by all laws and regulations. The expectation is for the business to follow and obey not only the explicit version of the law but its intended pur pose. The corporation’s ethical responsibility is to conduct business and act in accordance with ethical and moral values even when not required by law. The philanthropic responsibility refers to an organization’s obligation to contribute to the betterment of society through its â€Å"generosity towards the community† where it resides (Metivier Matteson, 2015). Triple Bottom Line The triple bottom line (TBL) is a theory of corporate social responsibility and accounting framework that focuses on a corporation’s long-term sustainability in three different areas. It proposes that the ultimate success of a corporation depends not only on how well it performs financial but also socially and environmentally (Norman MacDonald, 2004). The TBL concept requires the performance in each area of sustainability be measured independently (Metivier Matteson, 2015). The triple bottom line has been commonly referred to as the three Ps for profits, people, and planet (Slaper Hall, 2011). Similarly to CSR, the economic sustainability measure of TBL evaluates the profitability of a business. Measured primarily in dollars, the economic sustainability assesses the variables related to the bottom line (Slaper Hall, 2011). The social