Ethics and Social Responsibilities of Business Essay Example for Free

ethical motive and loving Responsibilities of barter EssayThe emergence of aid as a distinct and identifiable activity in the modern era has had an important jar on the orderliness with which it developed (Massie 1995). Till the early days of the twentieth century, faces were predominantly concerned with their several(prenominal) profit-maximizing activities. However, this singular intention of profit maximization of profession farms was protested by the loving activists during the later half(a) of the 20th century.They pointed out that, since the organizations drive their moving in from the society, the former must possess some obligations towards the interests and welfare of the later. The judg ment of demarcation ethics and corporal responsibility gained bulky importance after the publication of Bowens brotherly Responsibilities of Businessman in the year 1953. Bowen opines that seam corporations should have certain responsibilities towards the society in wh ich it ope regularises. Often business ethics and its societal responsibilities are regarded as their science of conduct (McNamara). Ethics is the study of morality and standards of conducts (Fred and Richard, 480). The boundary ethics is, in gener all in ally, used to refer to the rules and principles that define right and wrong conduct. The study of ethics is of immense importance in international oversight because honest behavior in a particular arena whitethorn be looked as an un ethical practice in other countries. good behavior of business has become an important aspect in todays corporate environment.Even in the united States, trading s privydals, bribes etc. have gained considerable media exposures and have aroused public concern regarding ethical practices in international business care. incorporated business ethics is primarily concerned with honesty, truth and justice and should consider several aspects like the expectations of society, fair competition, public relations, consumer autonomy, social responsibilities, adherence to the rules in the operating country, and so on. An organization should be always responsible in creating an environment that fosters ethical decision-making.Corporate social responsibility is earnestly considering the impact of the comp boths actions on society. In the views of Andrews, social responsibility means the intelligent and aim concern for the welfare of society that restrains individuals and corporate behavior from ultimately destructive activities, no matter how straight profitable and signifies the positive contribution to human betterment. tender responsibility contends that the business organizations are responsible to all the interest groups with which it interacts. All the interests groups such as employees, customers, suppliers, government and society should be given importance twin to that of the shareholders of the watch overive companies.Thus, ethical and social responsibilities signifies t hat 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 stakeholders and to behave in an economically and environmentally responsible manner (Davis and Robert, 1975).Ethical and Social state of Corporate OrganizationsCorporate organizations which are concerned about business ethics and corporate social responsibility need to identify various interest groups which may influence the functioning 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 hereinafter one by oneProtecting Shareholders InterestsThe most important res ponsibility of business organizations is to protect the interests of its shareholders. The shareholders fork up 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 healthy return on their investment, both by dint of dividends and through increase in stock value. Shareholders should be provided with adequate and timely schooling about the functioning 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 fruit 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 abruptly mandatory for the management to protect its employees interests. Government laws and regulations have now define the responsibili ties 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 healthy working environment. To protect the interests of employees, management mustTreat the employees as the introductory pillars of the organization.Develop administrative processes that promote cooperation between employers and employees.Foster a harmonious work atmosphere by adopting a progressive labor policy. This includes allowing the participation of workers in management, creating a sense of involvement, and change the working conditions and living standards of workers.Provide fair wages (not merely the one goaded by the market forces of demand and supply) and other financial benefits to workers to keep them motivated.Fair selection, training and promotion base on quality and merit without any discrimination on the grounds of sex, race, religion, physical appearance and so on.Protecting Customers In terestsIn the recent times, great attention is delivered to the customers. In the age of cut-throat competition, business firms have rightly begun to realize the importance of maintaining a healthy relationship with the consumers. The growth and development of consumerism has compelled the organizations to become more certain 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 readiness of standardized and quality goods and services.Ensuring the easy availability of goods and services, so that customers do not have to spend also a great bundle time and energy in procuring them.Abstaining from unethical practices like hoarding, profiteering or creating artificial scarcity, misleading ad and so on.Refraining from deceiving customers by making false or misl eading 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 prompt payments to creditors and suppliers.Providing them with accurate, relevant and needed information.Protecting lodges InterestOrganizations function 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. Management can do so in the following waysUsing its practiced expertise to solve local problems.Setting socially desirable standards of living and avoiding unnecessary and barbarianful expenditure. playa cting an important role in civic affairs. Helping the society in events of national calamity, famine, war, and so on.Providing basic amenities, healthcare and education facilities, thus creating better living conditions.Establishing development programmers for the benefit of economically weaker sections ofthe 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. non 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 Ethics and Corporate Social Responsib ilityIn 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 any, ethical and social responsibilities.DisadvantagesThe motive of any business is to maximize its profit. However, much ethical values 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 increasing 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 power through its social involvements and ethical behavior. This power is generally derived from the government or through other political 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 people lack the required skills to deal with the problems outside the organization. Social responsibility can be an excess burden of duty to them.AdvantagesSocial involvements and self-colored ethical behavior boost 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 favorable public image helps the business to attract more employees, customers and investors.By being socially responsible, business organizations can easily avoid the attention of regulatory agencies and earn governments trust resulting in increasing flexibility and independence in their mode of operations.Businesses can increase conservation of natural resources by being socially responsible. For example, Items that were considered as waste before (like empty 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 sooner be the source of employment in the economy for qualified and eligible people.ConclusionIt is beyond any iota of doubt that every civil 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 aforesaid(prenominal) values incorporated in it. Obviously, there are certain principles which is directed against this conclusion, but it is a of import truth that business corporations must behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and s ociety at large (Holme and Watts).ReferencesBowen, H.R. (1953), Social Responsibilities of the Businessman, Harper Row,New York, NYCorporate Social Responsibility Evolution of a Definitional lay down Carroll Business Society.1999, pp. 268-295Davis, K. and Robert, L. B. Business and Society, Environment and Responsibility, RevisedEdition, Tata McGraw Hill Book Company Inc. New York, 1975Friedman, M. The Social Responsibility of Business is to Increase its Profit, New YorkTimes Magazine, 13 September, 1970Kuhn, J.W. Issues and Analysis, Values in a Business Society, Harcourt set Jonanovich,New York, 1968Holme, L and Watts, R. The World Business Council for Sustainable Development,MakingGood 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, New Delhi, 1995Mackey, J. (adapted from) Rethinking the Social Responsibilities o f 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,Third 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