Team Project 20orgb 601 Bon Winter 23 Team Project Includes

Team Project 20orgb 601 Bon Winter 23team Project Includes Team

Using the Internet or other sources, research any two organisations that are considered as ethical. In your paper, be sure to address the following items: a) Brief description on each of the organization you researched. b) Explain the Organizational Structure of the two companies. What advantages and disadvantages do you experience based on the current structure? c) Explain why they fit the criteria of an ethical company. Of the two ethical companies you researched, contrast the way these companies became known for being ethical. d) Compare and Contrast the Corporate Social Responsibility (CSR) activities of the two companies. Be sure to include proper text citations and APA style references for all sources.

Paper For Above instruction

Introduction

In an era where corporate integrity and social responsibility are increasingly scrutinized, the classification of organizations as ethical entities is a vital consideration for consumers, investors, and stakeholders alike. This paper examines two organizations widely recognized for their ethical practices: Patagonia and The Body Shop. By exploring their organizational structures, CSR activities, and pathways to ethical recognition, this analysis aims to highlight the practices that underpin their reputation and the benefits and challenges inherent in their structural choices.

Organizational Descriptions

Patagonia, founded in 1973, is an American company specializing in outdoor apparel and gear dedicated to environmental sustainability and ethical manufacturing. Its mission emphasizes environmental responsibility, including using recycled materials and promoting fair labor practices (Patagonia, 2020). The Body Shop, established in 1976 in the UK, is a cosmetics and skincare company committed to cruelty-free products, ethical sourcing, and community trade initiatives. Both companies have integrated ethical considerations into their core business models, influencing their global longevity and trustworthiness (The Body Shop, 2021).

Organizational Structures and Their Implications

Patagonia operates with a decentralized organizational structure that promotes employee participation and environmental activism. This structure affords flexibility and fosters innovation but can pose challenges in maintaining uniform policy implementation across global operations (Jones & George, 2019). Conversely, The Body Shop employs a functional organizational structure, emphasizing clear departmental roles to streamline operations and ensure alignment with ethical standards. While this structure enhances efficiency, it risks reducing flexibility and adaptability to local ethical issues (Robbins & Coulter, 2018).

Criteria for Ethical Identity

Both Patagonia and The Body Shop meet the criteria of ethical companies through consistent implementation of policies favoring environmental sustainability, fair labor, and community engagement. Patagonia's commitment is demonstrated by its advocacy campaigns and efforts to reduce its carbon footprint, aligning corporate actions with environmental ethics (Patagonia, 2020). The Body Shop's ethical stance is rooted in its cruelty-free product line, ethical sourcing, and Fair Trade initiatives, establishing its reputation as a pioneer in ethical cosmetics (The Body Shop, 2021). Their persistent dedication to these principles has earned them recognition as ethical leaders.

Pathways to Ethical Recognition

Patagonia's reputation for ethics emerged from its proactive stance on environmental activism, including initiatives like the "Worn Wear" program and advocacy for climate change policies (Patagonia, 2020). Its transparent supply chain management and activism have cemented its image as an ethical innovator. The Body Shop gained its ethical reputation through pioneering cruelty-free testing, Ethical Sourcing programs, and community trade programs in developing countries (The Body Shop, 2021). The company's early adoption of these standards allowed it to become synonymous with corporate social responsibility and ethical integrity in the cosmetics industry.

Comparison of CSR Activities

Both organizations prioritize environmental and social responsibilities but approach them differently. Patagonia’s CSR efforts focus heavily on environmental sustainability, including their '1% for the Planet' pledge, where they donate 1% of sales to environmental causes (Patagonia, 2020). Additionally, they actively promote environmental advocacy campaigns. The Body Shop emphasizes ethical sourcing, community trade, anti-animal testing policies, and campaigns against human trafficking (The Body Shop, 2021). They invest significantly in programs that benefit marginalized communities and promote fair labor practices worldwide. While Patagonia leans primarily on environmental activism, The Body Shop maintains a broader scope encompassing social and ethical issues.

Conclusion

In conclusion, Patagonia and The Body Shop exemplify the integration of ethical practices into core business operations. Their organizational structures support their respective missions, though each encounters specific advantages and challenges. Their pathways to becoming recognized as ethical companies stem from consistent application of values and proactive public engagement. Both demonstrate that corporate social responsibility is not only compatible with business success but essential for maintaining stakeholder trust and long-term viability in ethically conscious markets.

References

• Jones, G. R., & George, J. M. (2019). Understanding organizational behavior (8th ed.). Pearson.
• Patagonia. (2020). Our Environmental & Social Responsibility. https://www.patagonia.com/environmental-and-social-responsibility/
• Robbins, S. P., & Coulter, M. (2018). Management (13th ed.). Pearson.
• The Body Shop. (2021). Our Ethical Commitments. https://www.thebodyshop.com/en-us/about-us/our-commitments
• Carroll, A. B. (1999). Corporate social responsibility: Evolution of a definitional construct. Business & Society, 38(3), 268-295.
• Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
• Freeman, R. E., & Reed, D. L. (1983). Stockholders and stakeholders: A new perspective on corporate governance. California Management Review, 25(3), 88-106.
• Moon, J. (2007). The contribution of corporate social responsibility to sustainable development. Sustainable Development, 15(5), 296-306.
• World Resources Institute. (2020). Corporate sustainability strategies. https://www.wri.org/blog/corporate-sustainability-strategies
• Youn, S. (2020). Ethical brand management and consumer perceptions. Journal of Business Ethics, 163, 57-69.