Based on the potential business ethics and regulatory issues that you previously described, what are the business decisions that you will need to make? What processes will be used to make these decisions?

Assignment Brief

The final project for this course is the creation of a corporate social responsibility (CSR) addendum to the business plan you created in MBA 560: Marketing and Strategy. The CSR addendum will include a brief discussion of the mission, vision, and values of the company; the impact of trends in corporate culture and social responsibility on business ideas; and the potential ethical or regulatory issues that affect the corporate strategy and brand development. The CSR addendum will conclude with a discussion of the best potential outcome of the company’s CSR efforts and the intrinsic and extrinsic rewards for the company.

For this milestone, submit a draft of the Decision Making and Impact portions of the final project (Sections IV and V). Specifically, the following critical elements must be addressed:

Decision Making

1. Decisions: Based on the potential business ethics and regulatory issues that you previously described, what are the business decisions that you will need to make? What processes will be used to make these decisions?
2. Culture: How will these decisions and processes impact business sustainability and elements of corporate culture such as corporate citizenship, philanthropy, community involvement, the environment, and causal support?
3. Stakeholders: How will stakeholder groups be affected by these decisions and processes? For example, will any groups be alienated?

Impact

1. Community: Evaluate how the business ethics and regulatory issues that you previously described will impact the community served by your business or the community where your business is located. Support your response with research in best practices in CSR.
2. Global Environment: Evaluate how the business ethics and regulatory issues that you previously described will impact the global environment of your business. Support your response with research in best practices in CSR. Guidelines for Submission: Your paper must be submitted as an 8-10 page Microsoft Word document with double spacing, 12-point Times New Roman font, oneinch margins, and sources cited in APA format.

Sample Answer

CSR Addendum – Draft Sections IV & V

Business Name: EcoGlow – Sustainable Skincare

IV. Decision Making

Decisions

EcoGlow operates in an industry where both environmental and ethical concerns are high. Based on our earlier review of ethical and regulatory challenges (e.g. use of animal testing, greenwashing claims, sustainable sourcing, and waste management), we must make several business decisions:

• Supplier Approval: Only partner with suppliers who can prove ethical labour practices and sustainability certifications (e.g. Fair Trade, FSC).

• Packaging Materials: Transition fully to biodegradable and recyclable packaging by 2026.

• Product Testing Policy: Maintain a strict cruelty-free policy and register with approved third-party certifications like Leaping Bunny.

• Marketing Integrity: Avoid misleading claims about product sustainability to comply with Advertising Standards Authority (ASA) guidelines and prevent reputational harm.

To make these decisions, EcoGlow will use a combination of:

• Ethics Review Boards: Quarterly internal reviews that assess policies and external feedback.

• Stakeholder Consultation: Involving customers, suppliers, and NGOs in decision-making processes through surveys and focus groups.

• Regulatory Compliance Audits: Legal teams will assess operations regularly to ensure we meet UK and international standards (e.g. UK REACH, EU regulations, and FDA cosmetic rules).

These structured processes ensure decisions are transparent, evidence-based, and aligned with CSR values.

Culture

These decisions directly shape EcoGlow’s corporate culture. Emphasising ethical supply chains, eco-conscious packaging, and transparency builds a brand rooted in corporate citizenship and sustainability.

• Philanthropy: EcoGlow pledges 2% of annual profits to charities focused on reforestation and clean water access.

• Community Involvement: We run educational workshops in local schools on eco-friendly skincare habits and environmental awareness.

• Environmental Impact: Our operations strive for zero-waste and carbon neutrality by 2030, encouraging a culture where every employee contributes to sustainability goals.

• Causal Support: Campaigns such as #BeautyWithoutCruelty strengthen public trust and employee pride.

These cultural values drive both employee engagement and customer loyalty. They also position EcoGlow as a purpose-led business that puts ethical practice ahead of short-term profits.

Stakeholders

Key stakeholder groups include customers, employees, suppliers, investors, regulatory bodies, and local communities. The decisions and processes outlined affect them in various ways:

• Customers: Will benefit from safe, ethical, and sustainable products. Transparency builds long-term trust.

• Employees: Will work in a purpose-driven environment, enhancing job satisfaction and retention.

• Suppliers: May face stricter entry criteria, but partnerships will be more stable and reputation-enhancing.

• Investors: May initially see increased costs due to sustainable practices but gain from long-term brand strength and risk reduction.

• Communities: Will benefit from a cleaner environment and philanthropic support.

• Regulators: Will observe compliance, reducing risks of sanctions or legal penalties.

The only risk of alienation lies in suppliers unwilling to adapt to stricter sustainability standards. However, we see this as a necessary trade-off to protect the brand and uphold values.

V. Impact

Community

Business ethics and regulations can positively shape the communities we operate in. At EcoGlow, ethical sourcing and green policies improve both environmental and social conditions in our supply chain.

For example:

• By choosing local suppliers in the UK and Africa for ingredients like shea butter, we support local economies and ensure traceable, fair wages.

• Our commitment to plastic-free packaging reduces waste in local landfills and teaches conscious consumption.

• Through workshops and school campaigns, we educate young people about sustainable choices, building long-term societal change.

Best practice example: The Body Shop’s community trade model, which has become a blueprint for ethical sourcing, shows how businesses can uplift communities while building a strong ethical brand.

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