5.7 Putting It Together: Ethics and Social Responsibility

In this module we’ve covered a range of different corporate ethical challenges, legal requirements, and opportunities to contribute to social good. Every year, a company called Ethisphere provides a thorough review of businesses seeking to gain recognition for being upstanding corporate citizens. (See the full list of the World’s Most Ethical Companies honourees and Maclean’s List of Canada’s top 50 Socially Responsible Companies).

The review process captures company performance in five areas, but in order to be honoured, companies must address ethics and responsibility holistically across five key areas that align closely with this module:

1. Ethics and Compliance Program
   Companies are evaluated on the structure and oversight of their ethics programs, the resources provided, and the tone set by executive leadership.

2. Corporate Citizenship and Responsibility
   Firms are assessed on sustainability, community involvement, philanthropy, environmental stewardship, workplace well-being, and responsible supply chain management.

3. Culture of Ethics
   A strong ethical culture permeates all levels of an organization, ensuring accountability, integrity, and alignment of employee values over time.

4. Governance
   Governance includes oversight systems, executive leadership, and diverse, engaged boards of directors that strengthen transparency, accountability, and innovation.

5. Leadership, Innovation, and Reputation
   Companies that integrate ethics into their brand identity build stronger reputations among customers, employees, and the public, enhancing trust and long-term performance.

New Solutions with Different Corporate Structures and Business Models

As Corporate Social Responsibility (CSR) has evolved into Environmental, Social, and Governance (ESG) standards, new business models have emerged to embed social good into organizational purpose.

• Non-Profits and NGOs: NGOs, first named in the United Nations Charter of 1945, operate globally as citizen-based groups independent of government, serving social or political purposes cooperatively rather than commercially.^[1] Examples include Oxfam and World Vision.

• Social Enterprises: Unlike charities, social enterprises pursue a social mission while generating sustainable revenue to support operations. A Canadian example is Hope Blooms, a Nova Scotian

  

  initiative that gained national recognition.^[2]

• B Corps: Established in 2006, B Corps are certified businesses that meet rigorous standards of environmental and social performance, transparency, and accountability. In Canada, examples include Danone, Bullfrog Power, and the Business Development Bank of Canada.

View the video on how B Corps work around the world.

Conclusion

Taken together, these five dimensions of ethical evaluation and the rise of new organizational forms highlight that ethics and social responsibility are not optional add-ons but core drivers of long-term business success. Whether through strong governance, culture, and compliance programs or through innovative structures like NGOs, Social Enterprises, and B Corps, businesses are finding new ways to align profit with purpose. The evolving ESG framework shows that organizations are increasingly judged not only on what they produce but on how they operate—and that trust, accountability, and social value are central to competitiveness in the 21st century.

Creation note: This content was updated with the assistance of ChatGPT, a language model developed by OpenAI, and was subsequently reviewed and edited by the author for clarity and accuracy.