Motivation
My reasons for pursuing a doctorate include my fascination with the nuanced interplay between ethics and corporate social responsibility and my desire to conduct an additional study to better understand it. I have examined the ethical and social ramifications of company actions and rules via my Bachelor’s and Master’s degrees in Management and Business, and I now wish to go further into the subject. As a prominent expert in the sector, I want to have the knowledge and abilities to help corporations fulfill their moral and social responsibilities.
Because I want to lead a great business, I’m enrolled in a Doctor of Business Administration (DBA) program. I want to be able to make judgments that will have an impact as a corporate leader that is well-informed and supported by facts and research. I will be equipped to do it, thanks to my DBA program. I will pick up on the most recent business trends through this course and the abilities and information required for professional success.
I aim to gain something from the DBA course by mastering the business strategy and decision-making. I’ll learn the skills and knowledge needed to comprehend the forces at play in the corporate world. Additionally, I will be able to design and implement successful strategies that will aid firms in achieving their objectives.
The DBA course will hopefully help me succeed on both a personal and professional level. In my professional life, I will be able to use my knowledge to support organizations in realizing their full potential. I will personally acquire the information and abilities needed to successfully pursue my professional objectives. I’m committed to taking the knowledge I get from the DBA program and using it to grow as a company leader.
Outline of Previous Research Experience:
Prior research I’ve done has covered a range of subjects connected to business ethics, including corporate governance, human rights, and the input of stakeholders in decision-making. I’ve written several papers and given presentations at conferences and workshops (Akbari et al., 2020:671-689). Additionally, I have researched how company ethics affect customer loyalty and satisfaction, employee morale and productivity, and both. Last but not least, I have participated in various efforts to encourage ethical business practices and served as an advisor on numerous corporate social responsibility projects.
Furthermore, my previous research in this area includes a Master’s thesis, which investigated the impact of ethical decision-making and corporate social responsibility on the performance of businesses (Abad-Segura et al.,2019:5382). In addition, I have been the author of many papers connected to this research area. In addition, I am a member of a research team investigating the influence that ethical business practices have on the financial outcomes of companies. Because of this, I am familiar with the literature that pertains to this field, and the research skills I possess make me well-suited to delve deeper into this subject.
Research Topic: Investigating the Role of Business Ethics and Corporate Social Responsibility in Business Practices
Abstract
As a result of a growing perception of corporate wrongdoing, the concepts of ethical behavior and corporate social responsibility have come to the fore in both industrialized and developing countries in recent years (Nave, and Ferreira, 2019: 885-901). These two ideas can be quite beneficial to a company. The notion that businesses have responsibilities to society apart from producing profits for shareholders has been around for centuries. The paper discusses business ethics and corporate social responsibility. According to the viewpoints of DBA students and managers, corporate ethics and social responsibility are critical for firm growth and success. They believe that corporate ethics leads to the better employee, customer, and community interactions. Not only that, but they believe that socially responsible firms can gain from improved public image/reputation, increased consumer loyalty, and stronger and healthier community interactions.
Problem statement
The current trend in business practices of focusing primarily on financial performance leads to a disdain for business ethics and corporate social responsibility, which may have long-term adverse implications for stakeholders and society in general. It has been decided to take certain steps to increase people’s understanding of CSR and ethics. Despite rising recognition of the significance of business ethics and corporate social responsibility, many businesses still fail to institute policies that put these guiding principles at the forefront of their daily operations.
Research questions
What are the perceptions of students in Business Schools on the benefits of CSR and ethics to corporations? What do businesses and organizations get from CSR and ethical behavior? In other words, how do they directly profit from implementing CSR policies, initiatives, and ethical standards? What aspects affect a company’s decision-making about moral business conduct? What effects might corporate social responsibility have on a company’s ability to succeed? How does a company’s adherence to moral business principles depend on how the public perceives it? What techniques may businesses use to ensure their actions are morally upright? How can ethically sound businesses ensure their conduct is consistent with the latest ethical norms?
Research Objectives.
This paper seeks to explain the implications of social responsibility and ethics and demonstrate why firms should consider these notions when making strategic decisions, formulating policies, and developing procedures.
This study will also examine the role of business ethics and corporate social responsibility in company practices (Akbari et al., 2020:671-689). The research will specifically strive to answer the following questions: What are the tenets of business ethics and corporate social responsibility, and how do they influence company practices? What are the advantages and disadvantages of applying business ethics and corporate social responsibility? How can businesses successfully integrate business ethics and social responsibility into their operations?
The study will also examine the motivations of firms that practice business ethics and corporate social responsibility. It will also examine how business ethics and corporate social responsibility affect customer and stakeholder relationships. Finally, the study will examine how government policies and laws influence company ethics and corporate social responsibility. This study will shed light on the importance of business ethics and corporate social responsibility in company practices.
The key literature references (previous research) that inform the topic
Unethical behavior or a failure to exhibit corporate social responsibility can harm a company’s brand and make it less appealing to key stakeholders. Although each has a separate meaning, business ethics and social responsibility are frequently used interchangeably. Whereas business ethics refers to the moral principles and standards that influence business activity, corporate social responsibility (CSR) is a management concept that promotes an ethical attitude within a firm, its aspirations, values, and capabilities, as well as the interests of its stakeholders. Companies that continuously exhibit ethical behavior and social responsibility outperform their competitors.
Business ethics
Ethics are values and principles that guide a person’s or a group’s behavior regarding what is right and wrong. Therefore, ethics establishes criteria for right and wrong in organizational behavior and decision-making.
It addresses internal principles that makeup company culture and influences choices about social responsibility in light of the surrounding environment. Ethics and values should not be used interchangeably. While values are the internal judgments that govern how a person behaves, ethics is concerned with how a moral person should behave.
Ethics, or beliefs about what is right and wrong, are a concern of values. Being ethical in a professional situation entails treating coworkers and clients with the utmost honesty and fairness.
Business or corporate ethics is a sort of applied ethics that focuses on moral or ethical dilemmas that spring up in the workplace (López et al., 2021: 1-11). It is a catch-all phrase that refers to all ethical concerns when conducting business. Rules, norms, standards, or principles that guide ethically appropriate behavior in managerial choices relating to the Company’s operations and its corporate interactions with society are referred to as business ethics. It is relevant to the behavior of individuals and the entire organization and applies to all facets of business conduct.
The advantages of ethical behavior in business
Building customer loyalty: Customers are more inclined to stick with a business if they know it adheres to ethical standards. Customers are more likely to remain loyal to a business when they know it upholds its ethical principles. Customers believe they can rely on the business to deliver high-quality goods and services. Positive feedback, repeat business, and referrals exemplify this loyalty. One of the secrets to long-term business success is having a devoted consumer base. Consumers or customers won’t come back if they feel they’ve been treated unfairly, such as when they’ve been overcharged.
Retaining good employees: It is more probable that an employee will remain with their Company for a longer time if they know that their employer has a set of ethical standards. When a business prioritizes ethical behavior, it conveys to its workforce that their contributions are appreciated and that their employer takes their concerns seriously. Because of this, employees feel more comfortable in their workplaces, which leads to higher job satisfaction among workers.
Providing a positive work environment: When a company acts ethically, it fosters a culture of mutual respect and cooperation among its personnel. This results in a positive workplace where people are encouraged to be creative and productive. In turn, this increases job satisfaction and motivation.
Avoid legal issues: Ethical conduct ensures that a business adheres to the law and avoids potential legal issues. Unethical conduct can result in fines, lawsuits, and even criminal charges, harming a company’s reputation and financial stability. Establishing clear ethical policies and ensuring that employees adhere to them can help businesses comply with the law and avoid legal issues (Iglesias et al., 2020:163). Additionally, it might be alluring for a company’s management to take shortcuts in the quest for profit, such as neglecting worker safety dangers or utilizing substandard materials.
Levels of ethical standards
The levels of ethical standards are classified into three: the law, policies, and individuals.
Law
The U.S. is a law-abiding society. These laws distinguish between right and wrong and what most people believe to be appropriate conduct. To maintain its ethical standards, a corporation must follow certain laws (Islam et al., 2021: 123-135). Wage and hour legislation that protects workers are one example, while environmental protection regulations are another. Businesses are required to comply with federal, state, and municipal regulations (Zhang et al., 202020-34). There are scenarios where a commercial organization’s behavior may be lawful but unethical. This is a narrow line; if the organization wishes to be held to a high ethical standard, it must self-police.
Policies
The second level of an organization’s ethical standards pertains to its internal policies and processes. These are created as guidelines for managers and staff to follow by the firm. A set of clearly articulated, highly ethical policies eliminates guesswork from daily decision-making. These regulations should include hiring methods, termination procedures, sexual harassment issues, vendor partnerships, and gift-giving limitations (Hussain et al., 2022: 76864-76880). When employees are trained in an organization’s policies, actions, and behaviors, they become second nature. By ensuring that these policies are ethically sound, the possibility of unethical behaviors or judgments is eliminated.
Individuals
Although applicable laws and internal procedures may govern a commercial entity, the ultimate integrity of a firm is determined by the conformity of its individual members. When an employee joins a commercial organization, he brings with him his own ancestry and upbringing-based moral standards (Hussain et al., 2022: 76864-76880). The business should develop an environment that encourages ethical behavior among all personnel. This is accomplished by continuous training in the Company’s ethical principles and guidelines, positive reinforcement of ethical behavior, and leadership that leads by example.
Corporate Social Responsibility (CSR)
Companies are under increasing pressure to put the interests of the societies in which they operate ahead of their own. The idea that businesses have obligations to society that go beyond just producing profits for shareholders has existed for ages. This is true because companies operate inside society, and society expects companies to take responsibility for some parts of their operations. It is no longer acceptable for a company or business to achieve economic success apart from the stakeholders in both its local environment and the larger society. Accordingly, an organization’s performance depends on the caliber of the relationships it has with its workers and other essential stakeholders (such as customers, investors, suppliers, public and political authorities, activists, and communities).
While there is no one way for a firm to adopt CSR, one thing is for sure: for the Company’s policies to be seen as authentic, they must be interwoven into both its culture and daily operations. Customers and workers value working for and doing business with companies that prioritize CSR in today’s socially conscious world (Hamrouni et al., 2020: 267-279). They are adept at spotting corporate hypocrisy.
When deciding which CSR efforts to support, a firm should consider its values, corporate mission, and key challenges in order to guarantee that they are authentic to the organization. The Company has two options: it either carries out the evaluation itself or pays a third party to do it.
Previous research and the gaps
The previous research work in the field of business illustrates that Company’s social performance, organizational performance, CSR, and commercial success increase when CSR and business ethics are prioritized (Saha et al., 2020: 409-429). Corporate social responsibility efforts have been found to improve a company’s bottom line, raise brand awareness, and lessen the likelihood of being fined or otherwise penalized by regulators. In addition, studies have shown that ethical leadership is crucial to an organization’s prosperity.
An article titled “Corporate Social Responsibility in India” presents the results of a study based on primary data gathered from 17 Indian businesses. The study concludes that corporations’ own interests serve as the driving force behind their CSR initiatives. According to the research conducted by Seema Sharma, CSR initiatives are used by businesses as part of their ‘image repertoire. Social responsibility (CSR) is also a means of producing money. The headquarters serves as the launching pad and incubator for these activities. These efforts, whether monetary or otherwise, were doomed to fail as the residents in these villages were not involved in any way.
Pros and cons of CSR
The term “corporate social responsibility” (CSR) has become so commonplace in the business world that it has been shortened to just three letters: CSR. The concept suggests that a business must answer to the public as well as its shareholders for the way it conducts its affairs (Rossi et al., 2021). When a company adopts a CSR policy, it shows that it cares about doing the right thing for its employees, the local community, and the environment. The Company promises to keep tabs on how well it’s doing with its CSR policy and report on it as regularly as it does with its financial results.
Pros
Better Customer Relations:
According to research conducted by Landor Associates, a branding firm, and quoted by the Wharton School at the University of Pennsylvania, 77% of customers believe that businesses should engage in socially responsible practices. Companies with a solid reputation for social responsibility tend to see a greater influx of customers (Raza et al., 2020: 2525). Tilburg University in the Netherlands conducted a study showing that consumers are willing to pay a premium of 10% for goods they view as having a positive social impact.
Profitability and value:
Investment in corporate social responsibility yields financial and reputational gains. By reducing energy use and reusing or recycling garbage, businesses save money and save the environment. Corporate social responsibility (CSR) also improves a company’s accountability and transparency to its stakeholders, including investors, the media, and the public. To top it all off, this boosts its standing with the kind of investors like mutual funds that factor CSR into their stock-picking processes. Thus, the Company’s stock price rises, and it becomes simpler to attract investors.
Cons
The CSR’s implementation costs:
One major drawback of CSR is that it places an undue financial burden on relatively unimportant entities, such as small firms. While larger companies can usually afford to set aside funds specifically for CSR reporting, this option is not always available to companies with less than 200 employees (Latif et al., 2020: 102565). A small company can inform its customers and the surrounding of its corporate social responsibility stance through the use of internet-based networking services. However, it takes time and can require extra staff that the Company can’t afford to constantly watch exchanges.
Conflicts with the profit motive:
The price tag of corporate social responsibility (CSR) can be prohibitive, even for larger businesses. There are many who argue that CSR initiatives often amount to nothing more than lip service from corporations. Insofar as CEOs’ job to shareholders is to maximize profits, CSR is in direct opposition to this. Management has an ethical obligation to the Company’s shareholders called a fiduciary duty. If a manager decides to put the good of society ahead of financial gain, he or she can probably expect to be replaced by someone for whom financial gain is more important. Based on this philosophy, Nobel Prize–winning economist Milton Friedman penned the pivotal article “The Social Responsibility of Business Is to Increase Its Profits.”
Aspects that affect a company’s decision-making about moral business conduct
Personal code of ethics:
When it comes to dealing with clients, business partners, and other interested parties, employees can look to their own personal codes of ethics as a source of motivation and guidance. (Yuan et al., 2020:359-377) The judgments made on a daily basis might be influenced by a company’s set of guiding values and principles. This can foster a trustworthy and law-abiding work environment, which is essential to the Company’s success.
Ethical climate and code of the organization:
An organization’s ethical climate is its members’ shared beliefs and values on problems like what behavior is acceptable and unacceptable and how to handle moral dilemmas (Kowalczyk and Kucharska, 2020: 595-615). A company’s code of conduct sets standards for its employees’ behavior.
A company’s ethics must be promoted for it to make moral decisions. An organization that values morality has a proactive ethical climate that fosters ethical thinking. Due to the ethical climate, employees may confidently make ethical decisions when ethical issues arise. Codes of conduct help companies make moral decisions (Abad-Segura et al., 2019:5382). An organization’s code of conduct should set standards for employee behavior and remind them of their ethical responsibilities (Kraus et al., 2020: 120262). A code of conduct shows that a corporation prioritizes ethics and morals and gives employees a moral compass to use.
Leadership and legislation:
The government only intervenes and enacts laws on organizations when the organization fails to act ethically and neglects their role and responsibility they have for the society
Government rules and regulations:
Government regulations concerning safe working environments, product quality, and mandatory safety warnings are reinforced by laws. Managers in businesses can use these as a guide to better understand what constitutes generally accepted norms and procedures.
The link between CSR and ethics
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Research methodology and analysis
Sampling criteria used to obtain samples for interviewing and administering questionnaires
This study is quantitative since it uses a questionnaire to gather primary data, which is then presented numerically and graphically to give the impression of reliability and objectivity in the research. The investigation also utilized semi-structured interviews (He and Harris, 2020: 176-182). The information will be collected from a cross-section of small and medium business owners and managers. In order to get a good cross-section of the population, we’ll employ a stratified random sample. All participants will have to give their informed consent before they can take part in the study, and the information gathered will be kept secret. The participants should be employed in the business sector, have a minimum of three years of professional experience, and are over the age of 18 years of age.
The sample is made up of DBA and MBA students, as well as alumni currently working in the business sector from the Local School of Management. The Local Management School is a member of the International Association of Management Schools (Beji et al., 2021: 133-155). Since CSR and business ethics are required components of most courses, students are regularly exposed to high-profile corporate crises through on-campus seminars and workshops. Seminars like these allow students and faculty to learn about the latest innovations in corporate social responsibility (CSR) practices from representatives of large worldwide corporations (Ferrell et al., 2019: 491-501). Two distinct nonprobability sampling methods were employed to obtain representative samples from the various participant groups. The email addresses of all DBA graduates were obtained from the Alumni office, and letters of invitation were sent to each manager. However, because only DBA student email addresses were accessible, convenience sampling was employed to choose the DBA students. A total of 160 participants, 80 MBA students and 80 managers participated in the analysis. The response rate was 113 (or 71%), with 41 (or 51%) coming from DBA students and 72 (or 90%) coming from managers. 21 (or 51%) of the DBA students were female, while 20 (or 49%) were male. Additionally, 23 (or 38%) of the managers were women, while 49 (or 68%) were men. With regards to age, the bulk of participants in both groups was within the 30-to-49-year-old range. Additionally, 11 (or 27%) of the students and 10 (or 14%) of the managers were in the prime working years of their lives (i.e., 18–29).
Data analysis
Viewpoints on CRS are summarized in Table 1. Table 1 shows that the majority of students (n=32, or 78%) believe that “a better public image/reputation,” “greater customer loyalty,” and “a strong and healthier community” are extremely important for a socially responsible business, while only half as many (n=21) believe that “increased revenue” is (Siltaloppi et al., 2021: 507-527).
The majority of managers (53 out of a total of 76) also mentioned “improved public perception” as a very important benefit that will accrue to a socially responsible organization, while 30 out of a total 49 stated “increased income.” Managers did not value “a strong and healthier community” as highly as students did. In addition, 26 managers (36%) believe that a socially responsible business would not benefit in any way.
The research validates the findings of previous investigations. The data shows that when businesses act ethically, it benefits their relationships with both customers and employees. In particular, it was shown that an ethical code and related training are critical to a company’s success (Amorelli & García‐Sánchez, 2021: .537-554). Consistent with prior studies, it was also discovered that educating workers on ethical standards can improve interactions between employers and workers.
The majority of students and managers believe that socially responsible businesses will reap the benefits of improved public perception, increased consumer loyalty, and strengthened community ties. These results seem to align with those of the Aspen Institute (2008:15), which found that students still perceived social responsibility in a conventional sense, seeing it primarily as a “good public image” and failing to see the relationship to improved business revenues and lower operating expenses.
Recommendations
Establishing ethics management programs that disseminate the organization’s core principles, code of conduct and policies can help with managing ethics in the workplace. However, until a firm’s code of ethics is embedded in the fabric of the Company as a whole, its mere existence is no guarantee that its employees will behave ethically. Programs and an ethical code can only be successfully implemented if employees fully support them. As a result, education on the organization’s ethical tenets—which may comprise its values, ethics, and standards—is essential. In addition, in times of crisis, every employee wants to work for a company that values them and keeps them informed of the facts. Businesses that are honest and open with their workers are more likely to be successful in their recruitment and retention efforts.
In addition to the shifting policy landscape, CSR’s usefulness lies in the fact that it helps companies achieve their goals. Good CSR practices will only grow more advantageous as the complexity of the company environment increases and as the expectations of stakeholders become more pronounced. Incorporating CSR efforts and being socially responsible can help a company in a number of ways, including bettering its connections with stakeholders, drawing in top talent, and reducing exposure to risk through better corporate governance. In addition to helping a firm achieve its business goals and cut expenses, CSR may also improve its standing with key constituents and bring in new customers. Therefore, it is crucial for businesses to set up a CSR department whose main function is to oversee the incorporation of all CSR efforts.
Conclusion
The majority of DBAs and business managers in this research agreed that doing the right thing and caring about the community is crucial to the success of any business. In particular, they believe that ethical business practices improve relationships with both employees and consumers, as well as with the local community. Moreover, they believe that socially responsible businesses can reap the rewards in the form of improved public perception of the Company, increased consumer loyalty, and a more robust and healthy local community. Since these considerations are central to the education and work of business professionals, it is essential that they be given more attention. However, there are no restrictions on our research. We hope to make a contribution to this area of study with the help of future research involving a larger number of business schools. Both quantitative and qualitative research methods could be used in such investigations. In theory, this could compensate for the shortcomings of both methods.
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