American Express: Business Ethics and Corporate Social Responsibility

Introduction: Business Responsibility to Society and Environment

Given the growing population of the world, the increasing scarcity of resources, and mounting threats to the ecosystem, it has become the responsibility of all institutions in society to play an effective role in protecting the environment. This is no longer a concern of government alone — it now requires businesses to take responsibility as well, and many major corporations have responded by initiating corporate social responsibility campaigns. Businesses are obligated to function in a way that not only fulfills their motive to maximize profit, but also serves the interests of consumers and the environment.

It is the responsibility of companies to foster consumer trust, provide safe products, and ensure affordability. These goals can be achieved by providing consumers with complete and accurate information about the nature and location of the business. Advertisements should be honest and free from any misleading claims. Businesses also bear the responsibility of informing customers about the effect of their choices on society, the environment, and the economy. One important area that companies need to address is social inclusion — it should be recognized that the products sold are affordable to all segments of the population.

To protect the environment, businesses need to comply with the rules set by the government. Waste should be properly managed: stored, treated, and released into the environment only when it is not hazardous. Paper, plastic, metal, and food items should be separated and recycled. Permission should be obtained from the relevant water authority before releasing effluents and chemicals into the sewerage system. If air-conditioning or refrigerating equipment is used in offices, firms must regularly check for leakages, undertake repairs, and adopt prevention techniques to reduce the discharge of harmful gases. Furthermore, businesses should examine the location of their offices or industrial sites, identify any protected areas nearby, and make special provisions to prevent damage to national parks, national nature reserves, national scenic areas, and similar protected zones.

Business Ethics and Ecological Responsibility

The concepts of business ethics and business ecology explain the importance of implementing the procedures described above. Everything that exists in this world is interrelated, and every element performs a function that contributes to the cohesiveness and stability of the environment. Since human beings are part of the natural habitat, their activities should complement the environment in which they live rather than destroy it. Therefore, businesses should refrain from engaging in activities that disintegrate society in the pursuit of short-term gains, and instead invest in long-term benefits for both their company and the world around them.

A competitive company plans for the future and devises necessary steps to avoid potential threats and minimize risks. It should also take environmental ethics into consideration and invest in managing natural resources that are heading toward depletion — not only for the sake of current stakeholders, but to safeguard future generations.

American Express and Environmental Stewardship

American Express has repeatedly funded various organizations working to conserve wildlife, protect endangered sites, and address global issues such as poverty. In 2010, the company took a significant initiative toward environmental protection by rewarding customers who shopped for eco-friendly products. A ZYNC card was launched that gave customers discounts and reward points if they purchased environmentally friendly goods or services. Alongside this, an eco concierge service was also provided free of charge, guiding customers toward greener shopping choices (Mother Nature Network, 2010).

The company also partnered with the New York Restoration Project and conducted a program aimed at planting 140 trees across New York City (NYCGO, 2013). It additionally encouraged people to volunteer and serve in this project (NYCGO, 2013). These initiatives demonstrate a commitment to environmental stewardship that extends beyond regulatory compliance into active community engagement.

Diversity, Employee Benefits, and Customer Satisfaction

American Express promotes diversity and values differences within its workforce. In 2001, the company earned the Catalyst Award for building a "Winning Culture" — one that recognizes diversity as a key component of organizational success. Every company has a moral duty to eliminate racial, class, and sexual discrimination and to provide equal opportunity to all. At American Express, leaders are required to complete a 24-month management-training curriculum to gain awareness of how diversity can be further integrated into the workplace. Vacant positions also remain open to candidates from diverse backgrounds and cultures. As a result, the proportion of women in senior positions increased from 19% to 31% between 1990 and 2000 (Catalyst, 2001).

The company also takes responsibility for the well-being of its workers. Even though it is not legally required to do so, American Express voluntarily provided autism benefits to its employees. The 2014 health plan of American Express included coverage for autism treatments, including Applied Behavior Analysis (ABA) (Autism Votes, 2013).

The level at which the company fulfills its responsibility toward consumers can be measured by customer satisfaction. Generally, excessive rates, high fees, and complicated terms and conditions make it difficult for credit card holders to feel satisfied with their service. However, a rise in customer satisfaction has been evidenced, with American Express ranking highest with a score of 786 (The Christian Science Monitor, 2011). One factor that contributes to this success is that the company communicates extensively with its customers, using channels such as its website, direct mail, and collateral materials to inform consumers about changes to existing products and services, and to update them on new offerings. Through this strategy, the company seeks to earn customer trust and ensure brand loyalty (UniBul, 2012). In addition, American Express goes an extra step in customer service by encouraging consumers to voice their complaints — for example, by sending them a "Thank You" note by mail (2013).

Businesses thrive because of their customers. Even companies that do not consider themselves socially responsible still need to improve customer relations, as customer satisfaction ultimately leads to profitability and long-term success. American Express functions ethically because it believes this approach results in greater profitability. By attending to its moral responsibilities, the company enjoys benefits such as enhanced brand status, stronger reputation, and a culture of innovation. Brand status is achieved when a company's market share grows. Research suggests that attracting a new customer costs five to eleven times more than retaining an existing one. Therefore, if American Express operates in a morally responsible way, it gains customer trust, which in turn reduces acquisition costs and positively affects the firm's bottom line. A focus on customer satisfaction also opens the door to innovation, as the company prioritizes consumer feedback and works to provide quality products and services to lower-income groups — not only gaining a competitive advantage but also expanding its market share by serving different segments of society.

Conclusion: Strengths, Shortcomings, and Recommendations

American Express celebrates diversity and staunchly believes in equal opportunity for all. The evidence that the number of women employed in the company has grown confirms that these beliefs are put into practice. However, the company could take an additional step forward by providing on-site or subsidized daycare facilities for the children of female employees. This policy would not only attract more female workers but would also provide relief to those already employed. Women would feel less conflicted between their professional and domestic roles, allowing them to perform more effectively. In addition, children would receive the attention they deserve and would be better shielded from psychological difficulties that might otherwise arise from inadequate care arrangements.

Overall, American Express demonstrates that ethical business practice and profitability are not mutually exclusive. Its environmental initiatives, diversity programs, employee support policies, and commitment to customer communication collectively reinforce its standing as a socially responsible corporation. The regulatory penalties it has faced, however, serve as a reminder that stated values must be matched by consistent, transparent action at every level of the organization.