Premium Essay

Ethics and Social Responsibility

In: Business and Management

Submitted By eric3533
Words 707
Pages 3
Ethics and Social Responsibility

MGT/498

Strategic Plan, Ethics, and Social Responsibility

Ethical values and social responsibility serve an important role in the strategic planning process. According to Milton Freidman, “[t]here is one and only one social responsibility of business—to use its resources and engage in activities designed to increase its profits so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud” (Wheelen & Hunger, 2010, p. 72).

With social media and the internet, it is difficult for companies only to focus on profits. Today, companies need to follow Archie Carroll four responsibilities of business. Those responsibilities include economic, legal, ethical, and discretionary. The priority starts with economic and ends with discretionary. According to Carroll, “a business firm must first make a profit to satisfy its economic responsibilities” (Wheelen & Hunger, 2010, p. 73). Once the company’s economic responsibilities have been met they can worry about the social responsibilities—ethical and discretionary.

When a company decides to take responsibility for their actions by doing the right thing, this is called business ethics. In business a company or business has a social responsibility to the consumers and stock holders to make sure they are practicing proper business ethics to not only promote doing the right thing but to show that they are doing the right thing at all times. The pressure of social responsibility is even more important today than in the past because of big business like Enron not being socially responsible or having any business ethics at all. This is why more than ever that it is important for a business to practice proper ethics and social responsibility. A good company will focus on getting profits up,...

Similar Documents

Premium Essay

Ethics and Social Responsibility

...CHAPTER 6 Leadership Ethics and Social Responsibility The purpose of this chapter is to examine important issues about leadership ethics and social responsibility. The focus is on leaders rather than on a general treatment of business ethics, and includes a summary of the theory of ethics. Skill building is also incorporated into this chapter. CHAPTER OUTLINE AND LECTURE NOTES Being ethical and socially responsible is part of being an effective leader even if many financially successful executives are unethical and socially irresponsible. I. PRINCIPLES OF ETHICAL AND MORAL LEADERSHIP Ethics is the study of moral obligations, or separating right from wrong. Also, ethics are the accepted guidelines of behavior for groups or institutions. Morals are an individual’s determination of what is right or wrong and is influenced by his or her values. A moral leader will practice good ethics. Edwin H. Locke argues that ethics is at the center of leadership because the goal of a rational leader is to merge the interests of all parties so that everyone benefits and the organization prospers. A. Five Ethical Leadership Behaviors 1. Be Honest and Trustworthy and Have Integrity in Dealing with Others. Trustworthiness contributes to leadership effectiveness. It appears, however, that trust in business leaders is low. Integrity refers to loyalty to rational principles, thereby practicing what one preaches regardless of emotional or social pressure....

Words: 3791 - Pages: 16

Premium Essay

Ethics and Social Responsibility

...Abstract Ethics and social responsibility occupy an important place in our personal value system. Customer confidence in how business operates has been severely shaken by recent corporate scandals and collapses, such as Enron and bank failures. Hence it is important for companies to consider incorporating ethics and social responsibility into their strategic planning. This applies whether a company is involved with customers one-on-one, such as a Taco Bell or Dell, Inc., or their involvement is indirect, through their relationship with their clients, such as newspaper distributor Pogo Distribution Company, or wholesale food seller, Del Monte. This paper analyzes what are ethics and social responsibility, how each applies to a company’s strategic planning, and the overall impact on stakeholders when ethics and social responsibility is considered in strategic planning. The paper will conclude with how my ethical perspective has evolved throughout the program. The Role of Ethics and Social Responsibility in Strategic Planning To be their most successful, companies must consider ethics and social responsibility as critical parts, inherent components of strategic plan. Ethical and social responsibility criteria must be included as part of the strategic process in before-profit decisions rather than after-profit decisions in order to receive the maximum benefit, i.e. corporate profits....

Words: 1486 - Pages: 6

Premium Essay

Ethics and Social Responsibility

...Ethics and Social Responsibility Ethics and Social Responsibility To gain further understanding into ethical and social responsibility one should begin by comparing the similarities and differences between virtue theory, utilitarianism, and deontological ethics. Through further insight of these similarities and differences one can begin to comprehend the importance ethics and social responsibility plays in personal and business success. The analysis below describes the differences in how each theory addresses ethics and morality. The analysis also includes a personal experience explaining the relationship between virtue, values, and moral concepts as they relate to one of the three theories. The conclusion explains how this information on ethics and social responsibility provides a road to success or failure, depending on the implementation of the knowledge one gains from the data and the decisions one makes. Utilitarianism Theory Working in teams is a very big part of today’s work environment. People work in teams at work as well as in the home. Teamwork is also a big part of the learning environment at University of Phoenix as well as other higher learning institutions. A good team player develops skills that can lead to successful completion of projects and helps with decision-making. Putting the best interest of the team before one’s personal interests is utilitarianism (Boylan, 2009)....

Words: 1252 - Pages: 6

Premium Essay

Ethics and Social Responsibility

...Ethics and Social Responsibilities Randall Blow PHL/320 July 14, 2016 Lela Dennis Ethics and Social Responsibility Responsibility is an act whereby an individual or organization is accountable for an action done. An individual or organization ethical responsibility is to act, recognize and interpret on certain values and principles according to given standard that exist in a locality or context (Treviño, et al., 2014). What type of behavior do ethics determine that is acceptable in a given context? What is good and what is wrong doing this process. While social responsibility is acting with an ethical framework whereby an individual or organization is required to act for the benefit of the society has a whole (Suciu & Fisher, 2014). Social responsibility requires a company or team to maximize its profits and earning while minimizing its negative impacts on society that operates it. Although individuals use these terms interchangeably there exist some difference in their meaning and how we use them in other ways. Whether the business decisions are right or wrong when it comes to ethics, but social responsibility is a broader term that relates to activities within a business or enterprise and their impact on the world and society. Social responsibility and ethics concerns have been confined to regulations, policy and the law that which encourages companies to conform to people’s attitudes, values and standard....

Words: 1209 - Pages: 5

Premium Essay

Ethics and Social Responsibility

...Being socially responsible is a mandated duty to serve society both in a general fashion, but also with financial interest Ethics and Social Responsibility of the shareholders. By determining the two distinctive groups (internal and external), a company should determine its social responsibility. Within the hospital I previously was employed with, it was the duty of our organization to meet all health needs that come through the doors. This means that all...

Words: 994 - Pages: 4

Premium Essay

Ethics and Social Responsibility

...Ethics and Social Responsibility MGT/498 September 2, 2015 Ethics and Social Responsibility Ethical behaviors offer significant advantages, society as hold benefits. Executives who behave ethically are better off and live more fulfilled lives, and unethical behavior can destroy an organization and the individuals who take part in it. Conducting business in the appropriate manner may not always generate the greatest profits however in the end it will lead to greatest personal satisfaction, fulfillment, and a successful outcome. What is Ethics? Ethics is the study of what constitute right and wrong behavior, it focus on morality and application of moral principals in the everyday life, also what is conform to our personal beliefs Business ethics focus on what constitute ethical behavior in the world of business, however it is not a separate behavior. Understanding business ethics is important to long viability to the business and the well-being of the officers and directors as well as the welfare of the employees (Merriam-Webster Dictionary). Ethical Standards and Behaviors The minimal acceptable standards for ethical business behavior are the compliance of the law. Ethical standards such as those in the company's policy and code of ethics must also guide decisions. Nevertheless, simply complying with the laws does not always does not necessarily make the business practice ethical. When can sometimes be ethical and still constitutes as being illegal?...

Words: 1185 - Pages: 5

Premium Essay

Ethics and Social Responsibility

...Ethics and social responsibility in the development of a strategic plan can have a positive impact on a company’s reputation and performance. They must be incorporated into the strategic plan in its early stages. Developing ethical standards encourages social responsibility. That creates enhanced employee ethical...

Words: 851 - Pages: 4

Premium Essay

Ethics and Social Responsibility

...What is your responsibility within your own community? Explain and provide examples of what you consider your responsibilities. DQ # 4- According to Ch. 2 of Basic Ethics, "It is inconsistent on one hand to accept the assistance of the community via schools, police, fire, roads . . . and on the other hand to deny to a reciprocal duty to give back to the community" (Boylan).  What are some ways the community asks its members to give back?...

Words: 989 - Pages: 4

Premium Essay

Ethics and Social Responsibility

...Communication and green choices are essential in SC Johnsons cross-cultural ethics. SC Johnson is a global organization with a multinational presence that has manufactured household brands for over a century. Their worldwide locations include Africa, Asia, Europe, North America, and Australia. SC Johnson formerly stated the principals in ‘This we Believe’. Which is the essence of who they are as a global organization and how they expect their employees to work with others (SC Johnson, Inc., 2013). It explains SC Johnsons values to the stakeholders they are responsible to and who’s trust they intend to keep. These stakeholders include employees, consumers and users, general public, neighbors, and world community. SC Johnson is sincere in their beliefs which encourages them to act with integrity. They are supported by a culture of fairness and inclusion to drive innovation, quality, and results. SC Johnson is a globally successful corporation. SC Johnsons offices span across the entire world. Their industry is primarily based on...

Words: 1119 - Pages: 5

Premium Essay

Ethics & Social Responsibility

...About one percent of the United States population is incarcerated. As society has become more sensitive toward human right issues the laws have changed for prisoners. Despite the laws and previsions that has been put in place to protect the human rights of prisoners and make sure they pay their debt to society, several people think that it is not enough or it is too much on both sides of the issue. Utilitarianism is an ethical theory that determines the moral value of an act in terms of its results and if those results produce the greatest good for the greatest number (Mosser, 2010). From the utilitarianism perspective the issues with prisoner may be they are treated unfairly or too well. For several years the treatment of prisoners has been very poor and inhumane. In the pass prisoners were often beaten and put to death as a form of punishment. Prisoners live in poor conditions and were denied food and water at times. Various adjustments have been made to please the ethical and moral views of society. In 1909 when the Georgia Supreme Court granted prisoners civil rights despite not have other liberties Davenport (2009). Many people feel that prisoner should not have even human rights because they violated the law that puts them in the predicament. Therefor they prisoner should accept the punishment and also the hard life of the prison system. When prisoners face abuse, rapes and violate attacks no one......

Words: 546 - Pages: 3

Premium Essay

Ethics and Social Responsibility

...HISTORY OF MANAGEMENT PAPER “Organization Culture and Environment” Innovat Rachmana 15311167 Management IP Faculty of Economic Islamic University of Indonesia Yogyakarta, 2015 PREFACE Firstly all praise to Allah and peace be upon to our prophet Muhammad SAW. Thank to the abundance of his mercy. Finally I have finished this paper with the title “Organizational Culture and Environment” that hopefully can be useful for those who want to learn about organizational culture and environment and can contribute something for my grades, and to accomplish my task. In the preparation of this assignment there were a lot of obstacles that hampered me to complete this paper and make this paper is far from perfection. But after all, at least I hope this paper can be useful. This paper is made in order to explain to the readers about the meaning of organizational culture and environment, why organizational culture is needed, macro and micro environment, etc May this paper can fulfill the readers’ curiosity and can give a knowledge contribution especially the students in Islamic University of Indonesia. Innovat Rachmana WHAT IS ORGANIZATIONAL CULTURE? There seems to be a wide agreement that the meaning of organizational culture is a system of shared assumptions, values, and beliefs, which governs how people behave in organizations or a system of shared meaning held by the members that distinguishes the organization from other organizations. This system of shared meaning is, on closer......

Words: 2040 - Pages: 9

Free Essay

Ethics and Social Responsibility

...Social Consensus 3. Probability of Effect 4. Temporal Immediacy 5. Proximity of Effect 6. Concentration of Effect We will choose two co-workers from the Women’s Against Violence Group, one town worker, and one corporate business worker. We gave each person a sheet with the Six Factors that contribute to Ethical Intensity and the scale listed on the paper and asked them to use the scale to rank the six factors. As a team, we will explore the Ethical Intensity and gage the amount of concern and importance for each of the factors using our ranking system. As a leader, I will ask my team to give a special emphasis on the “Magnitude of Consequences” for which we will determine positive and negative consequences for an alliance with the brewery company. Based on our compiled results of each factor’s importance and how each relates to the social and financial effects, and then as importantly, an evaluation of the negative and positive consequences, we will analyze the results. If the results show a higher percentage of “Positives” then we will accept the Famous Brewery and Bottling Company’s donations and fulfill their promotional requests. If the results show a higher degree of “Negative” effects, the team will discuss a different alternative to...

Words: 564 - Pages: 3

Premium Essay

Ethics and Social Responsibility

...Ethics also known as moral philosophy; it involves systemizing, defending, and recommending concepts of right and wrong behavior(Michael, 2009). There are several different types of ethical belief systems, in which one would act completely different from the other. Virtue Ethics, Utilitarianism, and Deontological ethics have some similarities, but in the same sense are very different. Virtue Ethics is a system that states; that in living your life you excel and be excellent in everything that you do, and all that others do(Michael, 2009). In a way, I can relate to that. Being taught that everything I do I had better do it to the best of my ability! When I was growing up failure was not an option. I still to this day strive to be better, at no matter what I am doing. This viewpoint has made me very competitive in almost every aspect of my life. Utilitarianism is a theory that states an action is morally right when the action is for the greater good of your group(Michael, 2009). Whether it be; your family, your job, or in some countries your town, or your village, whatever benefits all of them is right. I can relate to this being a father. I will provide for my family, and make sure that my actions benefit them. I am constantly putting my wants on the back burner to better suit my family....

Words: 434 - Pages: 2

Premium Essay

Ethics and Social Responsibility Essay

...A code of ethics serves as a central guide and this code helps differentiate between strong, wholesome practices and...

Words: 998 - Pages: 4

Premium Essay

Social Responsibility and Managerial Ethics

...Social responsibility and managerial ethics You may be wondering, “Why should I care about corporate social responsibility or managerial ethics or whether or not my employees have health care benefits? Aren’t these the types of issues philosophers worry about?” To answer this question, you only need to pick up a recent newspaper or business magazine. Everything from Wall Street trading scandals to accounting frauds at AIG, Lehman Brothers, Enron, Parmalat, Satyam, WorldCom, Tyco, and Global Crossing to corporate cover-ups and massive oil spills from British Petroleum’s offshore drilling rig explosion in the Gulf of Mexico seem to be in the press daily. For example, Citicorp lost billions in market value when it was revealed that a group of traders in the firm’s London office had manipulated the bond market: A small set of traders disrupted the European bond market by placing 188 sell orders simultaneously (approximately $20 billion worth of bonds) on August 2, 2004 in about 18 seconds. This drove the price of bonds, in general, down dramatically. The prices continued to drop even after the Citibank traders stopped selling. Just a few minutes later, the same traders then bought the bonds back at much cheaper prices than they had been sold. This new buying triggered buying by other traders, and prices rose. In the process, Citibank traders made about $20 million in profits in under five minutes....

Words: 13074 - Pages: 53