Trying to ignore the social responsibilities might stain an organization’s image and reputation. Thus, performing social responsibility is not simply a choice; it is a need of any corporation. In the twenty-first century, businesses are in the bottlenecks where globalization, science and technology advancement and integrated knowledge are taking place in today’s society (Chan, n.d.). To gain a foothold in this economy, image and reputation play an important role to differentiate a company from one another. With good reputation, it helps firms to create competitive advantage in the business environment.
Chipotle is an example of social responsibility as is Dove. Social sustainability aims to improve the daily life for the greatest number of people, much like Dove with their “Real Beauty” campaign. A corporation’s core values is also a relevant topic to sustainability: “values are ideas that a person or a group believes to be right or wrong, good or bad, attractive or undesirable” (McKee, 30). Companies that decide to act responsibly are also more likely to attract consumers since they know the business is doing something positive for the greater good. These values stem into “a company’s beliefs, values, and practices about how employees, customers, and the environment are
We find it more beneficial to focus on the stakeholders because down the road we must ensure that we continue to increase profits. If the company is still able to create revenue, the company should keep higher positions in order to ensure a smooth order of business and job stability. It is important to think of the community and the primary stakeholders when proposing a business plan because their positive outlook of Chocoholics Anonymous is needed to create a profit. In a discussion written by Waldkirch, he discusses the models of shareholders and stakeholders. He responded that the shareholder’s model was not as strong as the stakeholder’s model because “Corporations cannot be successfully managed in the long run against the interests of its stakeholders” (Waldkirch, 2008, p. 7).
Well known economist Milton Friedman said that “there is no social responsibility for businesses other than to make profits.” According to that thesis, either corporate philanthropy is making profits for the firm or the firm should not be participating in such an activity. He also states that any social responsibility other than making profits and abiding the law is a social wrong. I beg to differ. Because I believe any variety of ethical behavior in business can fall into the realm of social responsibility, the term social responsibility is very extensive in itself. But businesses have a number of other duties, whether they're little or large in surroundings that are competitive.
Had they utilized this theory, they may have considered that although their irresponsible actions were building the appearance of economic success, they were putting the livelihoods of their employees and shareholders at risk. There are many ethical theories, but knowingly misleading and lying is not part of
Objectivism places great importance on the individual and says that most acts performed for your own benefit would be ethically correct, to that end it stresses that man must have a form of government that allows for individual liberties as well as an economic system that rewards individual achievements. I agree completely here when talking about the idea of politics respecting the rights of the individual and allowing you to pursue your own passions. My sticking point with this objectivist ideal is that any form of charity that involves self-sacrifice is unethical. Objectivism would tell me that giving money to someone that is going through a hard time would be wrong because I could be using that money to better myself. I on the other hand believe the Bible is clear in several places about the idea of charity for example in 1 John chapter 3 verse 17 the Bible reads “But whoso hath this world’s good, and seeth his brother have need, and shutteth up his bowels of compassion from him, how dwelleth the love of God in him?”
Ethics and integrity is essential and played an important role in helping the growth of the business. Behave ethically could contribute to good performance and customers’ satisfaction. This lead maintains and expands the relationship between both parties and indirectly would increase company reputation (Bandsuch, M 2009). According to the Trevino & Nelson (2010), behave in ethics and integrity not only could stronger the relationship with the customers, but also the relationship with the stakeholders. Apart from that, ethics and high integrity could also increase the confidence of customers towards the organization (Trevino & Nelson, 2010).
People choose their governments and they should operate the economy and practice its power to maintain a stable growth of business and balance the income between poor and rich. In conclusion, Friedman fights for the concepts of the soulless capitalism and shows that the benefit of the people is increasing the profits. In contrast, Colin disagrees with Friedman and argues that the arguments of Friedman do not reflect the reality how corporations act and their independence of the society is a huge logical mistake Friedman presents. Business ethics is a window dressing by corporations to advertise their brands and attract people to buy their products; a corporation can act ethically just to hide its real intentions of maximizing
It does indeed provide useful insights into who might be an ethical and unethical leader. The waiter rule is similar to the golden rule in my perspective. If a person does not treat their subordinates right, it can negatively affect a company. It also shows a person’s true character. Leaders ought to be humble.
The misconduct of code of ethics by the management level by Enron corporation has led to the another question – The ultimate responsibility of a corporation towards society ? The ultimate responsibility of a corporation is to gain profit or become a stable economic unit ? (Johnson , 2014 ) In this case , it shows that under normal circumstances the management level of a company or corporation will choose to hide the truth over honesty and integrity .In other way , profitability has override the important of ethics in the corporation .