Ethics and Social Responsibilities of Business Essay

The emergence of manage custodyt as a distinct and identifiable activity in the modern epoch has had an important impact on the cab art with which it developed (Massie 1995). Till the former(a) days of the twentieth century, faces were predominantly interested with their respective profit-maximizing activities. However, this preposterous intention of profit maximization of line of work farms was protested by the fond activists during the after half of the 20th century.They pointed out that, since the organizations drive their profession from the society, the former moldiness possess some obligations towards the interests and public assistance of the later. The concept of business morality and corporeal duty gained vast importance after the humansation of Bowens accessible Responsibilities of demarcationman in the year 1953. Bowen opines that business corporations should turn in authentic responsibilities towards the society in which it controls. Often business ethics and its friendly responsibilities ar regarded as their science of conduct (McNamara).            morality is the contract of morality and standards of conducts (Fred and Richard, 480). The term ethics is, in generally, apply to refer to the rules and principles that define right and wrong conduct. The study of ethics is of immense importance in international management because good port in a particular coun try on whitethorn be considered as an un honest practice in separate countries. Ethical behavior of business has become an important aspect in todays corporate environment.Even in the United States, trading scandals, bribes etc. stomach gained considerable media exposures and come aroused public concern regarding ethical practices in international business management. Corporate business ethics is primarily concerned with h unrivalledsty, truth and justice and should consider several aspects like the expectations of society, f air competition, public relations, consumer autonomy, social responsibilities, adherence to the rules in the operating country, and so on. An organization should be al shipway obligated in creating an environment that fosters ethical decision-making.Corporate social right is seriously considering the impact of the companys actions on society. In the views of Andrews, social tariff means the intelligent and objective concern for the well- universe of society that restrains individuals and corporate behavior from ultimately destructive activities, no egress how immediately profitable and signifies the positive contribution to human betterment. Social responsibility contends that the business organizations be accountable to all the interest groups with which it interacts. All the interests groups such as employees, clients, suppliers, presidency and society should be given importance come to to that of the shareholders of the respective companies.Thus, ethical and social resp onsibilities signifies that the management should pay attention to the welfare of the workers, consumers needs and safety, the interests and rights of creditors, governments rules, regulations and policies, and the obligations of the organization towards society as a whole. Thus, in other words, Corporate social responsibility indicates the managements commitment towards upholding the interests of direct s employholders and to behave in an economically and environmentally responsible manner (Davis and Robert, 1975).Ethical and Social Responsibility of Corporate OrganizationsCorporate organizations which are concerned about business ethics and corporate social responsibility need to identify various interest groups which may influence the surgery of a firm and which, in turn, may be affected by the firms decisions. In fact, business enterprises are primarily responsible for the well being of six major interest groups which are discussed hereunder one by oneProtecting Shareholders In terestsThe most important responsibility of business organizations is to nurse the interests of its shareholders. The shareholders provide the core resource the capital that enables an organization to operate and grow. They expect the management to use the capital judiciously and operate the business in an efficient way that would ensure a sanguine return on their enthronization, both through dividends and through increase in stock value. Shareholders should be provided with adequate and timely information about the surgical process of the organization.Protecting Employees InterestsEmployees are the biggest assets of the organizations. In the early days, managers regarded employees merely as one of the factors of production and denied them the right to obtain an equal distribution of income. But, with the passage of time, the situation has changed in a considerable way.Now, it is absolutely mandatory for the management to protect its employees interests. Government laws and r egulations have now define the responsibilities of the employer ensuring equal employment rights for men and women, offering timely pensions and other retirement benefits, and providing and maintaining a secure and legal working environment. To protect the interests of employees, management mustTreat the employees as the sanctioned pillars of the organization.Develop administrative processes that promote cooperation between employers and employees.Foster a symphonious work atmosphere by adopting a progressive labor policy. This includes allowing the lodge of workers in management, creating a sense of involvement, and improving the working conditions and living standards of workers. generate fair wages (not merely the one determined by the mart forces of demand and supply) and other financial benefits to workers to keep them motivated.Fair selection, training and advance based on quality and merit without any discrimination on the grounds of sex, race, religion, physical appea rance and so on.Protecting Customers InterestsIn the late(a) times, great attention is delivered to the customers. In the age of cut-throat competition, business firms have right begun to realize the importance of maintaining a healthy kin with the consumers. The growth and tuition of consumerism has compelled the organizations to become more aware of their duties and responsibilities towards the customers. The most successful businesses put the customer first, instead of the investors (Mackey). Business firms should fulfill their obligations to their customers byCharging reasonable prices for their products.Ensuring the provision of alike(p) and quality goods and services.Ensuring the easy availability of goods and services, so that customers do not have to spend too oft time and energy in procuring them.Abstaining from unethical practices like hoarding, profiteering or creating artificial scarcity, misleading advertisement and so on.Refraining from deceiving customers by maki ng false or misleading claims.Protecting Creditors and Suppliers InterestsAll the inputs productions are provided by the creditors and suppliers in the form of raw materials and capital. Hence, the management must take proper care in fulfilling its obligations towards the former. This can be done byCreating a long-term and healthy business relationship with them.Making travel payments to creditors and suppliers.Providing them with accurate, relevant and needed information.Protecting Societys InterestOrganizations blend in within a social system and draw their resources from this system. Therefore, they have certain obligations towards society. The management of business organizations can fulfill their obligations toward society by preserving and enhancing the well-being of the members of society. steering can do so in the following waysUsing its technical expertise to solve local problems.Setting socially desirable standards of living and avoiding unnecessary and wasteful expendi ture.Playing an important use in civic affairs. Helping the society in events of national calamity, famine, war, and so on.Providing fundamental amenities, healthcare and education facilities, thus creating better living conditions.Establishing development programmers for the benefit of economically weaker sections of the society.Protecting Governments InterestsIn any country, the Government provides the basic requirements for the survival and growth of business organizations. Most of the rules and policies which the government imposes are generally in the favor of the businesses. Hence, the business, in turn, must have certain obligations to the businessBe law-abiding respect the rules, procedures and policies of the governmentPay all taxes and other dues fully, timely and honestly.Not bribe government employees and officials to obtain favors for the company.Not try to use political influence in its favor for own interests.Advantages and Disadvantages of ethical motive and Corporate Social ResponsibilityIn the modern era, the expectations of the consumers and the society have immensely changed and, resultantly, modern corporations have become much aware of their ethical and social responsiveness. However, opinions vary from scholars to scholars as to whether business should possess much, at least(prenominal) any, ethical and social responsibilities.DisadvantagesThe motive of any business is to maximize its profit. However, much ethical value and social responsibilities may act against this objective.Any investment (or loss) incurred by the business as a result of good social or ethical behavior are adjusted by increase the selling of its products. Hence, the motive would be socially less desirable than in the days before when business were concerned with social responsibilities (Friedman 1970).Business derives immense ply through its social involvements and ethical behavior. This power is generally derived from the government or through other polit ical means. This increment in power can lead to corruption and even conflicts with customers, governments and the society as a whole in the subsequent times.Generally, business mint lack the compulsory skills to deal with the problems outside the organization. Social responsibility can be an extravagance burden of duty to them.AdvantagesSocial involvements and strong ethical behavior encourage up the image of the business corporations in the eye of the customers. Being socially responsive, business can increase the number of its loyal customers. A social public image helps the business to attract more employees, customers and investors.By being socially responsible, business organizations can easily avoid the attention of regulative agencies and earn governments trust resulting in increasing flexibility and independence in their mode of operations.Businesses can increase conservation of instinctive resources by being socially responsible. For example, Items that were conside red as waste before (like acquit soft drink cans and plastic bottles) can be recycled and profitably used again.Society and business are equally benefited if a symbiotic relationship exists between the two. Instead of allowing high rate of unemployment leading to social crisis (which may ruin business operations in subsequent periods), businesses can preferably be the source of employment in the economy for qualified and worthy people.ConclusionIt is beyond any iota of doubt that every civilian citizen must possess some moral or ethical values and responsibilities for the society in which he lives. Business organizations, considered as artificial people, therefore, should have the same values incorporated in it. Obviously, there are certain principles which is directed against this conclusion, but it is a cardinal truth that business corporations must behave ethically and contribute to economic development maculation improving the quality of life of the workforce and their fami lies as well as of the local community and society at large (Holme and Watts).ReferencesBowen, H.R. (1953), Social Responsibilities of the Businessman, harper & Row, cutting York, NYCorporate Social Responsibility Evolution of a Definitional Construct Carroll Business Society.1999, pp. 268-295Davis, K. and Robert, L. B. Business and Society, Environment and Responsibility, Revised Edition, Tata McGraw Hill defend Company Inc. New York, 1975Friedman, M. The Social Responsibility of Business is to Increase its Profit, New York Times Magazine, 13 September, 1970Kuhn, J.W. Issues and Analysis, Values in a Business Society, Harcourt couple Jonanovich,New York, 1968Holme, L and Watts, R. The World Business Council for Sustainable Development,Making  grievous Business Sense http//www.mallenbaker.net/csr/CSRfiles/definition.htmlJoseph, L. M. Ethical and Environmental Foundations, Essentials of Management, FourthEdition, Thirteenth Indian Reprint, Prentice-Hall of India, Ne w Delhi, 1995Mackey, J. (adapted from) Rethinking the Social Responsibilities of Business, October 2005            http//www.reason.com/news/show/32239.htmlMcNamara, C. Complete Guide to Ethics Management An Ethics Toolkit for Managershttp//www.managementhelp.org/ethics/ethxgde.htmRichard, M.H. and Fred, L. Ethics and Social Responsibilities, International Management, ternion Edition, McGraw Hill International Editions, 1997Stehi, S.P, Dimensions of Corporate Social Performance, An analytical Framework, California Management Review, Vol. 17, No. 3, 1975, p. 58 64The International Seminar on Social Responsibilities of Business (as quoted by Mukharji,P.B. Social Responsibilities of Business, p. 9