Skip to content

Free Essay Ethics Social Responsibility

Ethics and Social Responsibility Essay

1738 Words7 Pages

INTRODUCTION
Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation (Crane & Matten, 2010). Since law does not necessarily cover the morality of many controversial issues, moral reflection ought to be performed on any action, regardless of its lawfulness. The growing power of business in today’s society has enabled businesses to significantly impact the world. Hence, business ethics is highly relevant as it could determine whether businesses contribute or cause harm to the society at large.
Using ethical theories to guide moral reflection, business ethics can help businesses avoid scandalous conduct that could harm the…show more content…

INTRODUCTION
Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation (Crane & Matten, 2010). Since law does not necessarily cover the morality of many controversial issues, moral reflection ought to be performed on any action, regardless of its lawfulness. The growing power of business in today’s society has enabled businesses to significantly impact the world. Hence, business ethics is highly relevant as it could determine whether businesses contribute or cause harm to the society at large.
Using ethical theories to guide moral reflection, business ethics can help businesses avoid scandalous conduct that could harm the society.

UTILITARIANISM
Utilitarianism places high emphasis on the consequences and outcomes of one’s action. It is premised on the general principle that an action is right and ought to be performed insofar as it leads to overall happiness or benefits, as opposed to pains or costs (Chan & Shenoy, 2010). However, many businesses have a sole objective of maximizing its profits and shareholder value. While focusing on the interest of its internal stakeholders, the interest of its external stakeholders is often neglected.
The subprime mortgage crisis of 2007 highlights how financial institutes acted out of their self-interests and neglected the consequences of their actions on the community and society at large. Investors pursued after higher

Show More

Essay on Business Ethics and Social Responsibility

1806 Words8 Pages

The notion of ethics deals with people’s behaviors within a company. Social responsibility involves a company’s moral obligations and the manner in which the organization makes its decisions. Although ethics and social responsibility are similar on a conceptual basis, each has its own unique characteristics that express their differences and its independence of the other. Ethics and social responsibility have to be present and coincide with one another for a business to be ethically sound.
Ethics is the application of one’s personal beliefs and the impact on how a person makes decisions regarding the relationships involving a company. The most common agents that involve a person’s decisions are owners, employees, customers, clients,…show more content…

There is a fine line between what is ethically right or wrong with an action committed by an organization. According to Audi, “sometimes ethics is compromised without dishonesty but by deficiencies in clarity or candor or both” (Audi, 2009). Being dishonest and not telling the entire truth are examples of ethical dilemmas. On the contrary, social responsibility applies only to an organization or business, whereas ethics applies to people’s behaviors and how the obligations determine whether an action is right or wrong. Social responsibility is the application of a set of ethics to a business or organization. Edwin Epstein’s definition of corporate social responsibility supports the idea that corporate responsibility is ethically based in its decisions with the agents associated with the company. Epstein stated, “Corporate social responsibility relates primarily to achieving outcomes from organizational decisions concerning specific issues or problems which have beneficial rather than adverse effects upon pertinent corporate stakeholders” (Carroll, 1996). Social responsibility contains both the responsibility to discover employee misconduct while also maintaining good relationships with those outside of the business. According to Berenbeim, it is the corporation’s responsibility to maintain those good relationships with the agents of interest paramount to the obligations to minimize the risk of employee misconduct (Berenbeim,

Show More