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HOW CADBURY SCHWEPPES PLC FULFILS ITS OBLIGATIONS TO STAKEHOLDERS IN TERMS OF ETHICAL BUSINESS PRACTICE AND SOCIALLY RESPONSIBLE BEHAVIOUR.

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Introduction

HOW CADBURY SCHWEPPES PLC FULFILS ITS OBLIGATIONS TO STAKEHOLDERS IN TERMS OF ETHICAL BUSINESS PRACTICE AND SOCIALLY RESPONSIBLE BEHAVIOUR The characteristics of ethical business practice and socially responsible corporate behaviour are rapidly becoming progressively more essential to the integrity and overall success of large organisations. This can primarily be ascribed to the increase in globalisation of organisations making these matters more intricate. As there are fairly new stipulations to the business environment, there is not one clearly defined definition for business ethics and social responsibility. Fry et al, (third edition - page 136), gives a definition of business ethics as "... the search for and commitment to meet appropriate standards of moral conduct in business situations.", whereas, Jobber, (2001 - page 130), gives a definition of social responsibility as "... the ethical principle that a person or an organisation should be accountable for how its acts might affect the physical environment and the general public.". Therefore, we can say that social responsibility and ethical business practice should be the core of an organisation's objectives and decision-making because the organisation believes that it has a responsibility and duty in cooperation with their stakeholders and society as a whole. The purpose of this essay is to examine and analyse the above-mentioned issues in collaboration with the allocated company, Cadbury Schweppes Plc. This essay will briefly introduce Cadbury Schweppes Plc, and will provide a stakeholder analysis, in order to help recognise and evaluate ethical issues, in regard to their main stakeholders. ...read more.

Middle

The community is a secondary stakeholder and according to Fry et al, (third edition - page 135), "Businesses recognise that community involvement is both the right thing to do and good business.". Numerous people believe that organisations have a responsibility to the communities where they function. However, even though it is a stakeholder to Cadbury Schweppes, their community possesses a very low level of interest and a moderately low level of power, as it does not directly affect the company's operation. A company's employees are primary stakeholders and are extremely vital in the running of the organisation. Basically, without them, there is no business. Cadbury Schweppes consists of over 55,000 staff, which includes the board of directors, group secretary and chief legal officers, and, of course, the just as important employees. These employees are stakeholders that hold an extremely high level of interest and a very high level of power, but can also have a very high level of interest with also a reasonably low level of power. This is due to Cadbury Schweppes' Board of Directors possessing more authority and say in the company's main goals, in comparison to the organisation's standard workforce. Cadbury Schweppes' main stakeholders have now been described and explained. The essay will now be stating, analytically, the company's ethical and corporate social responsibility behaviour, in relation to their stakeholders, and in what way they demonstrate this kind of behaviour. In order to aid the following analysis and evaluation, they will be based on information obtained from extracts from journals, such as, Management Today ...read more.

Conclusion

Also, the company came top in a Management Today poll of Britain's leading businesses when they were voted most admired company for community and environmental responsibility. Most recently, they received an AAA rating, coming first out of 25 global food companies for environmental management by USA based eco-rating agency, Innovest Strategic Value Advisors Inc. Therefore, in order to conclude this essay, it can be said with strong evidence that Cadbury Schweppes Plc almost base their organisation according to business ethics and corporate social responsibility. As a company with many stakeholders, there is more than sufficient proof to advocate that they have fulfilled their obligations to them. There is verification in the above evaluation and analysis to state that all the policies that Cadbury Schweppes Plc embark on, regarding business ethics and corporate social responsibility, are primarily, but not only, for the benefit of its shareowners. Furthermore, there is confirmation that Cadbury Schweppes Plc is being ethically and socially responsible towards the communities and environments they function in. The fact that the company finished top in a Management Today poll for the 'most admired company for community and environmental responsibility' supports this declaration. They have also been ethically and socially responsible to their employees, as each employee is given a code of conduct, which if they all adhere to, is then enforced through the management process. Remember, to Cadbury Schweppes Plc, 'good ethics and good business go together'. Therefore, it can be said that Cadbury Schweppes Plc does, in fact, fulfil its obligations to their stakeholders, in terms of ethical business practice and socially responsible behaviour. ...read more.

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