The Caux Round Table of Ethics Essay

The Caux Round Table of Ethics

The Caux Round Table of Ethics for business was originally launched by leaders from Europe, Japan and the US.  The main purpose of these business principles is to effectively see how a business performs and at the same time how it should apply innovative changes towards the development of global economy.  The Caux Round table does not only focus on business improvement but also on how it can improve social conditions which can provide human dignity.  There are 13 principles applied, seven of which consists of the general principles which the next 6 principles focus on stakeholder principles.  All these principles were created to guide countries worldwide on how to implement business effectively and efficiently.  In this paper, three important principles will be discussed with an example company that shows how these principles are applied and how it provides positive impact in their business operations.

Principle 2: The Economic and Social impact of business: towards innovation, justice and community.

In this principle it shows company how they help improve the social standard of countries where they operate, like providing job opportunities, involvement in social environment projects, and most especially provides social and technical advancement on them.  Most global companies are starting to follow this important principle and one of the main reason is that it gives their business better customer awareness which resulted to increase in customer patronage and respect to their product or services.  In this principle it also helps global businesses understand the local culture and how they can use this for the business.  Like for instance what Starbucks has made in the global market, it provides its customers around the world how business should operate in a way of respecting its own people or staff by empowering them and at the same time provides important policies that would also give improvement in their lives in and out of the company.  Employees shown constant respect to its customers and the value for customer service is applied on high standards.  But facts would show that from 2002 to 2007 these coffee business giant has rose above the competition that for them not just in terms of the quality of its product can give them to the top but more so it is the type of customer service that they shown to their loyal and new customers is what matters the most.  In the report below consolidated net revenues of $2.8 billion, a 17 percent which has an increase from Q1 of 2007.  An operating margin contracted 160 basis points to 12.0 percent with earnings per share of $0.28, compared to $0.26 per share in Q1 of 2007.  (See Figure 1 and 2).

In fact the company is proud to be part of many social organization such as: Conservation International, Earth Watch Institute, African Wildlife Foundation, Save the Children, Mercy Corps and this only shows that they are always trying to give back to the nature and to those who are in need.  (Corporate Social Responsibility, 2008).

Principle 6: Respect for the Environment

Company respecting and for some improve the environment for future generation is also one of the biggest challenges these days for global companies.  The main reason why this has become a priority is simply due to climate changes.  Company that definitely has a bigger challenges to this are oil companies, like for instance one of the biggest in the world, SHELL, it is considered to be one of the pioneer in the oil business in the world and that is why no wonder the company continues to improved its policies regarding it.  One of the facts that can be attributed to this is the company’s Global Environmental Standards, which was launched and started its implementation in 1998 and in the year 2007 they have improved it more to address better the issue of the environment.  The topics that it has covered and improved are: (1) managing green house emission in all of its facilities worldwide, (2) improving the integration of environment, health and social assessment with the stakeholders, to constantly address urgent issues, (3) strictly implement solid waste management, (4) continue to promote natural gas on all production sites, and a lot more.  This only shows that environment are important to business operations and it should be prioritize because it will not only result to failure for business gains but more importantly failure to preserve better surrounding for future generations.  (Global Environmental standards, 2008).

Principle 4: Respect for the Rules

This is one also of the most important aspect for business to operate effectively and efficiently and one of the main reason is that global business should not just follow its own business policies but also should be carefully studying how these policies be well adhered with the local policies where their business is operating.  Sometimes companies would tend to ignore it and instead follow the processes and guidelines that they have and with that business failed.  Rules in the local territories are not the only ones; there are also some governing global policies that must also be adhered like GATT/ World Trade Organization. GE or General Electric is just one of the very few companies that apply this policy seriously in their business operations.  One of the good actions taken by the company is on how it applies the policies and rules applied in all Europe and US countries where it implements the importance of privacy towards these major regions.  What happen is that it helps both of these external businesses located to this site to help to participate primarily on the issues of cross-border data transmissions between the EU nations and the US, also pointing at what governing data use by the company regardless of its geographical locations.  This only shows that GE is not just performing for the will of its own benefit but more so it always find ways on how to create better relationship to all its global businesses by following its local rules and business policies, with of course with respect to global business standards.  (Privacy within and outside GE, 2008).

References

General Electric. (2008). Privacy within and outside GE. Retrieved December 11, 2008, from

http://www.ge.com/citizenship/performance_areas/human_rights_privacy.jsp

 SHELL. (2008). Global Environmental Standards. Retrieved December 11, 2008, from

http://www.shell.com/home/content/responsible_energy/integrated_approach/our_commitments_and_standards/global_environmental_standards/minimum_environmental_standards.html

Starbucks. (2008). Corporate Social Responsibility. Retrieved December 12, 2008, from

http://www.starbucks.com/aboutus/csr.asp