Date Course Social Responsibility 1. Introduction Social responsibility is defined as an approach that is adapted by organizations to address the social and environmental issues prevailing in the society for the welfare of mankind…
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Maximizing profits should not be the main focus of any business. 2. Argument for Social Responsibility There are many stakeholders in an organization. Some of the important and direct ones are; shareholders, customers, employees, vendors. The usual approach that is adapted by corporations (and advocated by Milton Friedman in the chosen article) is to increase the value for the shareholders and maximize profits as much as possible. John Mackay stated in the chosen feature that maximizing profits would not be the objective of stakeholders like employees and customers. Therefore, a business model should aim to provide value to all of their six stakeholders; customers, employees, shareholders, suppliers, societies, environment. This forms the basis of social responsibility. The following are some of the benefits of an ethical approach to manage business: Increases the motivation of the employees Produces better service and products for the customers as per their requirements Earns a positive image for the company Attracts new employees Benefits the communities and environment ‘Capitalism’ has been made notorious due to the concept of maximizing profits at all levels. This concept can be marketed in a better manner if it is realized that all constituencies need to be catered in the management of any business.
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According to the task, these ethics can be explained in many different theories of ethics that include virtue ethics, rationality, utilitarianism, communitarianism, social ethics and normative ethics. Hence, international business ethics and corporate governance can be explained in various ways (Casson 95).
Business ethics are rules as well as standards which an organization is required to follow while performing its activities or operations. It mainly consists of moral standards which vary among organizations and it also helps in determining the right and the wrong decisions.
For example, according to the limited knowledge of the researcher, Magna Carta of 1215 was the first legal reference for ethics in UK (Holme, 2008). However, magnitude of importance for ethical perspective of business operation has been increased manifold in recent years after the financial scams by corporate such as Enron, Lehman Brothers, Worldcom, Nortel and many others came to the light.
Business ethics theories are often adopted by organisations seeking to curb practices that are deemed as corrupt. They usually have moral principles that organisations can implement to make sure that all the workers operating in the company conform to accepted codes of behaviour
Examples of ethical issues concerning three different issues have been explained along with their alleged law suits that have flagged these issues in the United States.
Business ethics are the moral eternal, abstract, and the
To some, the suggestion that an orderly and analytical process of decision making, not only on a personal level – but more so in business, should include the discussion of highly controversial ethical issues, about which
The other group of business people takes it as avoiding activities that portray bad image of the company. If the above are not considered as business ethics the business institutions may suffer loss or may earn the business bad reputation.Business people believe that if good business ethics are adhered to then the business will experience an upward trend with a lot of profit.
A similarity between ethics in the United States and ethics in Asia is that they address a variety of similar factors such as pollution, corruption, fraud and contracts among others. Although approaches to dealing with
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