Ethics Reflection - Term Paper Example

Reflections on Business Ethics and Social Responsibility Businesses, particularly those that long established themselves as leaders in their respective markets, have always been the subject of criticisms by various interest groups that claim to represent the vast majority of the people. These have also been constantly beset with problems regarding management and employee relations. The opposition’s most common line of attack is that these are controlled by greedy capitalists who only care for their profits and who do not hesitate to employ means that are detrimental for their own employees, the public, and the environment.

This situation does create the impressions that businesses do not really have a set of ethical principles to follow as it conducts it operations and that these do not feel any responsibility toward society. Such notions may be the result of certain corporations that are indeed callously advancing activities that negatively affect people while reaping great profits at the same time. One proof is the prevalent concept that, “from an economic point of view, one can only afford to be ethical as long as one remains competitive” (Duska 2007, p.62). In order to reduce the intensity of the conflict between business and other sectors of society, as well between it and the employees, there is a need to focus on the education and reeducation of the management and the owners on business ethics and social responsibility.

Ferrell, Fraedrich, and Ferrell explain that “business ethics comprises the principles and standards that guide behavior in the world of business” (2010, p. 6). This definition emphasizes the need for companies to refer always to such moral precepts and standards as they embark on activities related to their respective businesses. In making strategic plans, concrete steps that are to be employed in every phase should be evaluated not just to ensure their effectiveness but also their sensitivity to the conditions of all the stakeholders involved.

Apparently, management would be caught in a dilemma whether to guarantee higher profits over the well-being of its employees. Adhering to business ethics should not be understood as totally compromising the basic interest of the business though, which is profit. However, this also does not mean that the interest of the employees would be ignored. Another principle that must enlighten management as it formulates strategic plans for its business is corporate social responsibility. This means that the company should also see to it that its operations do not in any way become disadvantageous to the public.

Instead, it should even be beneficial for society in the short and long terms. Kotler and Lee define corporate social responsibility as “a commitment to improve community well-being through discretionary business practices and contributions of corporate resources” (2005, p. 3). It must be clarified though that ‘discretionary’ means that the company willfully practices it. It should not be compelled by the government or by the laws. Through social responsibility, a business would become admired by the public who also are the consumers themselves.

Making this an important characteristic in a strategic plan would ultimately be advantageous for the company. I have always though that a business course’s main in concern is to train individuals to become good in managing ventures that aim to generate money for corporate or personal interests. In a capitalist society where individualism is encouraged, such impressions of the said course would certainly be easy to accept. However, when I learned about the existence of certain ethical principles that are supposed to govern companies as they conduct their respective businesses, I immediately felt that the concept is ironic, if not impossible.

Indeed, the definitions alone for both business ethics and corporate social responsibility could vary, depending on one’s perspective. This is because no matter how one businessman would see it, certain ethical principles and the concept of social responsibility always means giving up a part of his interests in favor of his employees or of society. As I learned more about the principles of business ethics and corporate social responsibility though, I realized that the sacrifices that businesses make actually benefit them in the long term.

Reference List Duska, R. (2007). Contemporary Reflections on Business Ethics. Dordrecht, the Netherlands: Springer. Ferrell, O.C., Fraedrich, J., Ferrell, L. (2010). Business Ethics: Ethical Decision Making and Cases. Mason, OH: South-Western, Cengage Learning. Kotler, P. and Lee, N. (2005). Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause. Hoboken, NJ: Wiley.