Premium Essay

Should Social Responsibility and Business Ethics Serve a Role in Corporations

In: Business and Management

Submitted By maxr37
Words 1274
Pages 6
Should Social Responsibility and Business Ethics serve a role in Corporations?
NorthCentral University Abstract
When you turn on the television, surf the internet or browse the Wall Street Journal the terms – business ethics and social responsibility are discussed. Recently, the Gulf coast oil spill has questioned the social responsibility of British Petroleum. However, can the terms business ethics and social responsibility apply to corporations? A review of two articles - “What is business ethics?” by P. Drucker and “The social responsibility of business to increase its profits written” by M. Friedman evaluates the two ethical terms. These articles suggest both business ethics and social responsibility should not apply to corporations. The focus of this paper will compare and contrast two approaches to business ethics. The conflicting objectives between the two parties will be analyzed. Lastly, my view and definition of business ethics and social responsibility will be conversed. Research for this paper consists primarily of peer reviewed articles and published articles. Should Social Responsibility and Business Ethics serve a role in Corporations?
During the twenty- first century, businesses are confronted with many different responsibilities. Each responsibility must be address while ensuring obligations to stakeholders, special interest groups, employees and the environment. Businesses are expected to have very strong ethics, but often this is not the case. The question comes to mind, “Can a corporate entity by definition have business ethics and social responsibility?” While both Drucker and Friedman discussed social responsibility and business ethics as merely word play to societies own social conscience, Drucker explored business ethics through an historical perspective outlining western traditions while Friedman evaluated social…...

Similar Documents

Premium Essay

Ethics in Business

...pertaining to ethics in business and the various roles and responsibilities key individuals involved must initiate to ensure that the assignment, task or project is accomplished not only within the determined timeframe and budgetary constraints but more important, the actions and interactions of all parties are not compromised nor violate any prescribed regulations. Furthermore, discussion is rendered pertaining to social responsibility within the business sector and its significance in determining growth and awareness of one’s business or company. Social Responsibility and Business Ethics Introduction In today’s society, people are constantly in a mad race to either develop and implement the next product or service that becomes the flagship item that everybody seeks possess or become that individual who possesses the latest technological advancements or branded items assisting in their daily ebb and flow operations. Such responsibilities - objectives and tasks - must be accomplished in a respectable manner whereupon the integrity of the action is not subjected to intense scrutiny, criticism or penalties inflicted by the consumer and/or judicial system. Businesses should continue to establish guidelines and parameters within their respected areas to ensure that their mission, aim, vision or goals are not compromised or deceived in practice. In order to gain clarity and understanding one must first gather a sense of clarity regarding ethics and its role and......

Words: 1912 - Pages: 8

Free Essay

Ethics

...Ethics Ethics in a corporation is a matter of following the rules and conditions of the company sponsoring one for employment or doing business with different corporations. The corporations have to keep in mind that any actions or decisions they may take if for the worst to the better it will affect the company as a whole, the stakeholders, and the employees whom it involves along with other businesses that are associated with the corporation. It is mainly the social responsibility of the corporations to make such decisive actions toward the company. Ethics and Social Responsibility in Strategic Planning Ethics and social responsibility are similarities to one another in different scenarios when having or developing a strategic plan. When a corporation goes through various decisions that have to make an action toward a situation, it needs a strategic plan because it does affect the employees, the corporations as a whole and the corporation’s stakeholders. When deciding about strategic social responsibilities it “means going beyond the letter of the law to truly accomplish good in the world and reduce the negative impacts of doing business”(Ingram 2012). Ethics of course takes the big understood as the rights of doing something accordingly that will be beneficial for the whole. According to Aminah Abdullah: “Ethics refer to the fundamental principles of an individual or a group. Social responsibility is how a......

Words: 965 - Pages: 4

Premium Essay

Business Ethics and Csr in the Context of Samsung

...BUSINESS ETHICS AND CSR IN THE CONTEXT OF SAMSUNG ELECTRONICS 1.0 Introduction In the 21st century of business, there are number of factors apart from the financial figures that play a vital role for the success story of the business corporations. These factors include the culture adopted by the business, philosophy of the management of the company, code of ethics and standards followed by business. The presence of all of these factors in the business’s ethical guidelines has a significant impact on the ability of the business organisations to perform well on the long term basis. In this report the Samsung Electronics’ ethical issues are studied along with the importance of the business ethics and Corporate Social Responsibility (CSR) practices adopted by the business organisations. The upcoming sections of this report present information about the meaning and importance of business ethics which is followed by the description of the violations of the ethical issues by the Samsung Company and the also the role of Samsung management in promoting CSR and overcoming ethical issues. 2.0 Meaning of Business Ethics The primary objective of each and every business organisation is to run business for the purpose of profit as well as the maximisation of owners’ wealth. Profit can be maximized by selling goods and services at reasonable prices and as far as wealth is concerned this can only be maximized if business follows the required ethics. The term business......

Words: 3270 - Pages: 14

Premium Essay

Ethics Paper

...Ethics Paper Iris Dalton MGT/498 August 4, 2011 Dr. Don Wicker Ethics Paper Organizations should be cognizant of business ethics at all times and not solely focus on generating the highest returns for its owners and shareholders. Businesses should operate ethically to achieve the maximum amount of return. The business should not only focus on running the company only by law but to serve local communities and seek to help its employees lead a better life. This can be achieved by examining each decision made based of long term business values, profitability and social responsibility. Explain the role of ethics and social responsibility in developing a strategic plan Corporations have responsibilities to society that should extend past making a profit. You often find corporations are criticized for making unethical decisions because it can be differences in values between business people and key stakeholders. It is common to see that some business people may believe in profit maximization and is the key goal for the company while others have other interests for the company. Both Milton Friedman and Archie Carroll have their views on responsibilities of business firms to society. Friedman’s view of business responsibility states the company has a motive and does not think about economical responsibility and this could harm the society the firm is trying to help. Friedman refers to social responsibility of business as a fundamentally subversive doctrine.......

Words: 853 - Pages: 4

Free Essay

Business Law

...right, and prohibiting what is wrong’ (Blackstone)Functions of Law to maintain stability in the social, political, and economic system through dispute resolution, protection of property, and the preservation of the state, while simultaneously permitting ordered change. Legal Sanctions are means by which the law enforces the decisions of the courts.Law and Morals are different but overlapping; law provides sanctions, while morals do not.Law and Justice are separate and distinct concepts; justice is the fair, equitable, and impartial treatment of competing interests with due regard for the common good. | Classification of Law | Substantive and Procedural Law * Substantive Law: Law creating rights and duties. * Procedural Law: Rules for enforcing substantive law.Public and Private Law * Public Law dealing with the relationship between government and individuals. * Private Law governing the relationships among individuals and legal entities.Civil and Criminal Law * Civil Law dealing with rights and duties the violation of which constitutes a wrong against an individual or other legal entity. * Criminal Law establishing duties, which, if violated, constitute a wrong against the entire community. | Source of Law | Constitutional Law fundamental law of a government establishing its powers and limitations.Judical Law * Common Law body of law developed by the courts that serves as precedent for determination of later controversies. * Equity body of law based upon......

Words: 833 - Pages: 4

Free Essay

Ethics & Governance

...3. Corporations practicing stakeholder management will be more sustainable. Discuss. Over the years, social and ethical concerns have brought attention to the community that caused much bitter conflict to the relationship between business and society. As people become better educated and more affluent, rising expectations naturally follow for major institutions and these developed a backdrop against which criticisms towards businesses have grown. Therefore, these created the need for them to assume greater societal responsibilities rather than mere ruthless pursuit of own profits. Many businesses today share the same viewpoint that making profit for profit’s sake no longer leads to sustainable performance, stakeholder management has become an increasingly important aspect of a business’ operation integrating traditional economic considerations with environmental and social concerns (Jones 2012). While doing well and doing good are no longer seen to be mutually exclusive, corporations practicing stakeholder management is highly debated to be sustainable to a large extent. With all the benefits that it brings, this approach however also has its fair share of limitations to be discussed later in this essay. Outlining the term ‘sustainability’ Sustainability is the capacity to endure. One of the best known general definitions about sustainable development was expressed as “meeting the needs of the present without compromising the ability of future generations to meet......

Words: 2049 - Pages: 9

Premium Essay

Multinational Corporations and Moral Obligations

...Although academic business ethics is relatively recent, its intellectual roots are found in the corporate social responsibility (CSR) and business and society literatures originating in law and in business in the early and middle 20th century (Marcoux). The corporate focus is evident in the titles of early works of academic business ethics that have done much to shape the subsequent discussion in the field. Velasquez’s "International Business, Morality and the Common Good" 1992 paper takes business ethics to be concerned centrally with questions about the corporation's proper role in and relationship to the social order. These questions are said to surround the moral status of the corporation: Is the corporation a moral agent? Do multinational companies have any moral obligations to contribute to the international common good? While dominant management thinking is steered by profit maximization, this paper proposes that sustained organizational growth can best be stimulated by attention to the common good and the capacity of corporate leaders to create commitment to the common good. However, the complex process of re-orientating corporate priorities towards the common good requires alertness and concerted effort if both business and society are to truly benefit. In our contemporary post-modern context, it has become increasingly awkward to talk about a good that is shared by all. This is particularly true in the context of multi-national corporations operating in global......

Words: 1463 - Pages: 6

Premium Essay

The Boundaries of Social Corporate Responsibility

...The Boundaries of Strategic Corporate Social Responsibility Geoffrey P. Lantos Professor of Business Administration Box D-55 Stonehill College North Easton, MA 02357 June 2001 Phone: 508.565.1205 Fax: 508.565.1444 E-mail: glantos@stonehill.edu 1 The Boundaries of Strategic Corporate Social Responsibility Keywords Corporate social responsibility (CSR), Roles of business, Stakeholder theory, Ethical CSR, Responsibilities and duties, Altruistic CSR, Strategic CSR, Abstract Reviews the development of the corporate social responsibility (CSR) concept and its four components: economic, legal, ethical, and altruistic duties. Discusses different perspectives on the proper role of business in society, from profit making to community service provider. Suggests that much of the confusion and controversy over CSR stem from a failure to distinguish its ethical, altruistic, and strategic forms of CSR. On the basis of a thorough examination of the arguments for and against altruistic CSR, concurs with Milton Friedman that altruistic CSR is not a legitimate role of business. Proposes that ethical CSR, grounded in the concept of ethical duties and responsibilities, is mandatory. Concludes that strategic CSR is good for business and society. Advises that marketing take a lead role in strategic CSR activities. Notes difficulties in CSR practice and offers suggestions for marketers in planning for strategic CSR and academic researchers in further clarifying the boundaries......

Words: 20025 - Pages: 81

Premium Essay

Ethics

...Ethics and Social Responsibility Andrea Clark MGT 498 May 15, 2012 Thomas Moore Ethics and Social Responsibility “The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.” (Wheelen & Hunger, 2010 p.72) Social responsibility considers the customers, employees, shareholders, communities, interests and social- environmental consequences of their business activities. A strategic approach, companies can determine activities to devote to being socially responsible and choose activities which will strengthen their competitive advantage. Companies develop strategies with voluntarily integrated social and environmental concern in their business operations (Padala & Suryanarayana, n.d.). The purpose of this paper is to explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Ethics Ethics is described as the control over dealing with the bad and good with moral duty and obligations and business ethics is concerned with the justice, truth and a variety of other aspects including the expectations of fair compensation, society, public relations, consumer autonomy, advertising, social responsibilities, and corporate behavior within the home country as well as abroad (Padala & Suryanarayana, n.d.). Managers and top level management have a responsibility to establish ethics by creating a code of ethics for an......

Words: 1224 - Pages: 5

Premium Essay

Corporate Social Responsibility

...Corporate Social Responsibility by Your Name name of the module module number word count =1,519 Tutor/Professor Name University Name Department 16th December 2010 Corporate Social Responsibility Corporate social responsibility (CSR) reports provide stakeholders with valuable information about the relationship between a given corporation and society; additionally these reports may serve as a public relations vehicle. CSR reports improve communication between a corporation and its local constituents as well as the greater society. CSR reports and accounting data combine to offer investors and other stakeholders a larger picture of a corporation’s strategy and financial condition. By merging the two, stakeholders have a better understanding of how a corporation’s social initiatives improve its overall health. For example, when energy conservation programs allow a corporation to cut spending costs and cause the development of a new product while at the same time increasing jobs the CSR report acts as a financial statement and a public image enhancer. CSR reports provide information that is valuable for different reasons to different people. Employees and prospective employees can decide which companies they want to work for based on safety information about the workplace contained in these reports. Corporate managers can use the reports to monitor how successful they are in attaining their stated goals. They can also examine the......

Words: 1743 - Pages: 7

Premium Essay

Ethics Paper

...Ethics Paper The role of ethics and social responsibility aids organizations in developing a strong strategic plan while addressing the needs of stakeholders. Ethics and social responsibility require social awareness to address the needs of the environment and to increase the knowledge of employees which will lead to a corporation focused on supplying the customer with what is needed, managers equipped with solid decision-making abilities, and employees who believe that he or she are an asset to the business. It is the executive manager’s responsibility to establish a clear vision for the corporation and place a specific focus on understanding stakeholders needs. In an effort to support these requirements agendas and regulations will be developed to maintain and enforce business ethics within the organization. It is vital for an organization to establish a firm code of ethics for employees and managers to agree and adhere to equality within the organization (Wheelen & Hunger, 2010). Establishing a universal understanding of ethics and expanding the knowledge and of ethics will strengthen the corporation socially by enforcing respect toward everyone, respect for the organization and a corporation working together to form a universal business. Ethics are the morals, values, and beliefs of individuals it is the right and wrong behavior and believes of individuals. The importance of establishing and maintain an ethical business is to prevent various types of......

Words: 755 - Pages: 4

Premium Essay

Management

...Today’s global marketplace presents ethical dilemmas for multinational corporations. Research has shown that ethical decision-making process becomes particularly challenging when the ethical standards in the company’s home country are higher than those in host markets. While ethical issues have become a current theme recently, organizations must continue to focus on improvement. Multi-National Enterprises need to make this a high priority within their organization. Ethics include basic human interactions: respect for differences, trust that our counterparts will work with us in a truthful manner, honesty in communication with others, and expectations that each of us will keep our word and maintain credibility (Olaru, 2009). Very few companies were established globally and little attention had not been given to the issue of ethical guidelines in a global setting. Global business ethics and social responsibility have now become a significant problem for many multinational companies. Attitudes toward ethics are rooted in culture and business practices (Caliskan, 2010). Ethical issues have become an interesting part of MNE’s focus. Literature has found that ethics is associated with levels of morality and general conduct of a person or business. Olaru (2009) states that nearly every company will maintain openly that their policies and procedures are ethical, but truth be told, they don’t always. Business exist to create money for the owners and other investors,......

Words: 2865 - Pages: 12

Premium Essay

Jjt2 - Social Responsibility

...Social Responsibility The basis of social responsibility is corporate commitment to the development and adherence to business processes that produce a positive impact on society. This impact should benefit not only their individual employees, but all shareholders within the global environment. Corporate Social Responsibility is analogous to Corporate Citizenship, which is defined as “The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities place on them by shareholders.” Investopedia explains, “The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders.” (Investopedia, 2014) In today’s market, there are numerous applications of individual acts that define a Corporate Citizen and reflect positively and negatively on how a corporation is perceived. A corporation’s Social Responsibility level can be beneficial or detrimental to the sustained profitability and growth of the corporation. When corporations fail to acknowledge their own need for social responsibility, profitability and growth suffer. Implementation of socially responsible business practices and strategies show that a corporation is focused on helping and improving society and the environment. This social responsibility serves to increase profits and good will of shareholders in the long run. Corporate Social Responsibility......

Words: 3274 - Pages: 14

Premium Essay

Implications of Health South and Scrushy

...Michael Novak: Capitalism and the Corporation Course ID: MGT7019-8-4 BY Allen L. Ray North Central University Dr. George Kalidonis Assignment #4 | | | | | | | | | | Introduction Modern businesses are facing major challenges if they plan on meeting that sensitive balance between business demands and customer satisfaction. The problem that exists is how to use the current guidelines in place that will provide a better business market without totally corrupting the fabric of moral integrity. While the concerning objective for most businesses is to make money, it is a delicate balance to do so without causing too much of an uproar within the economic structure. The problem to be investigated is where the beginning of industrialism starts and where capitalism ends and what factors should be addressed to ensure that the business industries do not yield totally under the invisible existing economic pressures. This paper will examine Michael Novak’s outlook concerning capitalism and the corporation and take an even closer look on what, if any, pressures will take place in shaping the modern business corporation. More so, this paper will attempt to answer the questions provided in the reading to help interpret basic concepts between capitalism and corporations. How long has the corporation existed? Business corporations have existed for many centuries and over an even longer period of time. By definition, a corporation is an entity that......

Words: 1704 - Pages: 7

Premium Essay

Acc 511 Corpporate Governance & Accountability

...the company’s operations, functions and financial performance; hence, corporate governance aims to involve the quality assurance of the operation of the board itself. The concern is for the welfare, good performance, corporate ethics and morality, as well as social and public responsibility for the good corporate citizenship. Corporate governance also involves in system to ensure that the organization’s obligations to its major stakeholders. The relationship among the many stakeholders and the way of corporation is directed and governed is therefore created. Stakeholders might include customers, employees, creditors, suppliers and distributors, the community and the owners at large. The principle stakeholders are the board of directors, managements and shareholders. The first model of corporate governance implementation is often involves three groups: – executive board, supervisory board, and advisory board whose are appointed by shareholders to run the company except last group are bought in as independent experts to assist the company. Hence, what are good practices of corporate governance? How to ensure the directors act in the interests of the shareholders? As a result, the reform of corporate governance has developed debating the directors should act in the interests of all those to whom they owe duties, or the stakeholders. A more complex regulation of company law has developed to prevent recurring scandals. In modern days, corporate governance has been defined as the...

Words: 8715 - Pages: 35