Bpp learning Media is an acca approved Content Provider

'Show me'
stage required some demonstration of trust, 
'Prove to me'
required independent 
verification and assurance and the final stage of 
'Obey me'
would exist when the law creates legislation 
to cure instances of unethical behaviour. We are some way off this point currently. 
What caused this trust to disintegrate? Since the 1980s, the UK has seen a procession of corporate 
disasters including the names of 
Barings Bank
, 
Polly Peck
and 
Maxwell
. The US has seen scandals 
concerning 
Worldcom
, 
Enron
and 
Tyco
. Europe did not escape and has seen its share of problems with 
Parmalat
while, in Asia, 
Mitsubishi Motors
and 
Daewoo 
have had issues too. All these scandals have 
severely knocked public confidence and trust in major corporations. 
In an attempt to counter this lack of trust, many corporations have developed 
ethical strategies
and 
policies
to provide 
guidance
and 
training
for their employees. The strategy is set by the leadership and 
this will feed into all areas of the business and become part of the cultural DNA of the organisation.
7.1.2 Corporate Responsibility Policies and Reports 
An ethical strategy is not always visible to outsiders, and many companies now produce 
Corporate 
Responsibility Policies (CRPs)
and 
Corporate Responsibility Reports
(CRRs) 
for their stakeholders to 
demonstrate their commitment and to manage their relationships in the wider community. They reflect 
the view that an organisation has responsibilities beyond that of its shareholders. 
(a) 
Corporate (Social) Responsibility policies 
Corporate Responsibility policies are also known as Corporate Social Responsibility policies. 
These are policies in which the organisation decides how to help the local community that it is 
part of and which charities to support. However, they also deal with the wider community, and 
policies often focus on reducing the environmental impact the organisation has and where to 
recruit new employs from. These policies must be consistent with the overall aims of the 
organisation to ensure support continues even when the organisation faces its own problems, 
such as a downturn in profit. 
(b)