Corporate social responsibility (CSR) is the legitimate, discretionary, ethical and economic expectations which society has of an organization or organizations at any given time. CSR means that a company has ethical, philanthropic and good obligations notwithstanding the duties the company needs to get reasonable investors to return and can conform to the law. A more traditional perspective of a corporation is that it is the sole or primary responsibility of the owner and stockholders of an organization (Lawrence & Weber, 2014) . The purpose of CSR to Paradigm Toys is to ensure;
Legal compliance
Legal compliance to Paradigm Toys means that the company is acting by the law for it to keep the trust of the society. Organizations contribute a lot of resources and time in making the extensive standard of consistency and procedures. Reliable compliance systems also help to insulate an organization from litigation, punitive fines, and indictments (Lawrence & Weber, 2014) .
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Ethical responsibility
The ethical aspect of CSR centers around the reasonable treatment of workers and these may incorporate even those that don't work legitimately for the company. What it uncovers is that ethical corporate social responsibility focuses on the entire production network (Lawrence & Weber, 2014) . Ethical duty centers on guaranteeing that each partner is genuinely treated. This incorporates even clients, investors, workers and partners.
Environmental sustainability
The efforts environmental sustainability adopted by companies mainly focus on minimizing greenhouse gases and reducing pollution. Environmental awareness issues are expanding, and companies are taking measures to reduce land, water, and air pollution. Through this exercise, a company has an opportunity to stand as corporate citizens that can benefit the whole society (Lawrence & Weber, 2014) .
Primary Stakeholders of Paradigm Toys
The two main primary stakeholders that can impact the company are the end project sponsors and customers. These two stakeholders have an interest in the success of the company projects or operations because they are affected directly by the outcome.
How the board of Directors can meet their CSR to Primary Stakeholders
To project sponsors, the BOD can decide to get B Corp Certification. The purpose of this certification is to create value for the money being invested and the nearby society. The board must match high standards of accountability and transparency and establish a positive environmental and social benefit. To customers, the BOD must get all the suppliers of the toys on board (Lawrence & Weber, 2014) . The committee ensures that all suppliers understand and meet the company’s expectations of responsible behavior on issues like fair pricing. All suppliers must be screened to find their past conduct and inform them what the company expects from them; they serve their customers on the ground.
Secondary Stakeholders that influence Paradigm Toys
The two essential secondary stakeholders of Paradigm Toys are trade unions and labor unions. Their primary role is to aid in administrative reprocess. There should be perfect communication between the primary and secondary stakeholders to enable everyone to work towards the same goals.
How the board of directors can meet their CSR to secondary stakeholders
On the employees, the BOD should ensure that safety programs and workplace health are maintained. This is because having reliable systems can shield employees and eliminate accidents and injuries that workers can encounter while at work.
Importance of Business Culture for Paradigm Toys
Having a workplace ethical culture is significance for Paradigm Toys because; it can protect the assets of the company. A formidable ethical culture can help in safeguarding all the assets that the company has. Developing an ethical culture can make the employees respect and protect business assets. Second, an ethical culture promotes teamwork and productivity (Lawrence & Weber, 2014) . The presence of an ethical culture helps in aligning the business values and those of workers. Ethics makes employees feel a strong alignment between the business and their benefits. Developing an ethical culture improves Paradigm Toys public image. A strong perception among the public is only earned if the company makes ethical choices. For example, Paradigm Toys can fulfill its CSR by minimizing waste discharge from its business
Role of Paradigm’s Leadership in Fostering an Ethical Culture
The BOM of Paradigm conveys through actions that long-term success and reputation are crucial than short gains. All information about performance and strategies must be kept open for access. They review all complaints from stakeholders and workers to know if the company is operating within its values. The leaders must always conduct character evaluation during hiring, retention, and promotion practices. Training is another crucial role that the leaders must always observe since it also instills an ethical culture.
An Ethics Audit
An ethics audit is an investigation which informs an organization how best or poorly it complies with the ethical standards of its operational industry. Organizations adopt a code of ethics and perform periodic ethics to establish how close they follow their rules.
Benefits of an Ethical Audit
Benefits that an ethical audit could bring to Paradigm Toys include, setting the tone of the business. Recent legal developments have emphasized how companies operate. An ethical audit to the company can dispel if he has a code of ethics to prevent wrongdoing. The audit will also give guidelines for employee training and protection of their working condition (Lawrence & Weber, 2014) . The second benefit is that an ethical audit lays the groundwork for the company operations. Ethics audits will assure that the company behaviors support its code of conduct and the procedures used are the right ones. The impacts of avoiding ethics audit as can be brutal. Therefore if Paradigm has an ethics audit in place, it can eliminate the dangers that are likely to occur the company
Example of an Ethical Dilemma
Alex works as a data analyst in Peza casino. One evening, he was forced to work past the normal business working to complete a certain crucial project. He discovers that he is does not have data that was sent to his workmate Jared. Alex has unintentionally seen Jared keying in his password two weeks ago and he decides to log into Jared’s computer to resend the information to his computer himself. While doing so, Alex notices an open email containing gambling bets that Jared had placed some time back with a local sports book. It is illegal for any employee to participate in any form of gambling to avoid any clue of conflict of interest. Alex understands that this should be reported but he has to accept to violating the organization’s IT rules by logging into Jared’s computer. Suppose he decides to warn Jared to seize from betting, he will be required to disclose the source of his information. What should Alex do in such a situation?
Solution
Alex’s actions portray theft at workplace at act. It is unethical to steal but pretending that he never saw anything will not be good too. In order to find the course of action, Alex can use the utilitarian method where which can allow him to weigh the advantages and disadvantages of keeping his discovery a secret or letting the management to know of what is happening or convince Jared to stop betting before deciding what to do next. Therefore, Alex should take time to talk to Jared and remind him what Peza casino’s policy of theft states. He can talk to other two coworkers for advice before taking the matter to the management. The solution above is ethical because it will guide Alex to follow the right channel of solving an ethical dilemma wisely.
Components to include in an Ethics Training Program
The essential elements to include in an ethics training program are training and support, executive commitment and accountability. These three components are essential for any organization to function properly. Training and support equip employees with the right knowledge and skills that can assist them in performing their current roles diligently. Executive commitment is an essential component in the ethics training since centers around the company’s culture, strategy, leadership, and processes (Lawrence & Weber, 2014) . Accountability is a component in the ethics training that ensures all employees are answerable for their actions. It also makes employees understand how their actions affect indicators and initiatives
Delivery Method
The best delivery method for the ethics program is through the lecture method. Since Paradigm Toys is not a big company, the lecture method will help to create a general understanding of ethics. Since it is an interactive method, communication will be one way from the manager to the employees. The manager will be by introducing himself and the members before the lecture begin. At the end of the lecture, the manager will provide copies if the same ethics and give every employee to go and master them on their own.
Reference
Lawrence, A. T., & Weber, J. (2014). Business and Society: Stakeholders, ethics, public policy . Tata McGraw-Hill Education.
