Business Ethics In Business

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Ethics in Business A free market is a market where prices of goods and services are arranged completely by the mutual non coerced consent of sellers and buyers which is determined by law on supply and demand without any government interference (Daleka 2009). Given that consumers are increasingly becoming sensitive with current issues, as such, social responsibility has aggressively pressured to be promoted in and out of the companies, and that include of management and workers relationship. Accordingly, business strategies and business environment have intertwined relationship. One should not action not in accordance with the other because there might be some technical changes that would make them to out form. Taking risks to initiate business strategies has now become more interesting due to attachment of social responsibility of firms. That is, it highlights the focus of interest of firms as to their initiative to take action in social and environmental concerns within and out of firm’s premises. Edersheim and Drucker agreed upon effective business strategies “embraces external realties and opportunities and provides the context to help ensure that every decision, priority, and allocation of resources is geared to value creation (2007).” Thus far, corporate practices which affect the well-being of societies in turn must also be reversed; as such, the society’s concerns which affect corporate activities must also be the source of company practices towards social responsibility. The free market approach is affected by the consumer needs and also the demands in the market. Without interference from the government, the buyers and sellers can mutually consent on a price of the product within the market. As a free market, the seller ... ... middle of paper ... ...e their services. Stakeholder power, business management, organizational culture, and business ethics are factors that impact corporate social responsibility. In this regard, these factors challenged business firms to create positive impact to society and conform to the overriding expectations of consumers at large. Companies receive rising pressure from governments, competitors, and stakeholders to play the leading role in social responsibility by addressing a wide range of environmental, public, and governance concerns – varying from climate change to obesity to human rights – in a company’s supply chain (Bonini et al 2011.). These growing concerns of social groups in political and environmental issues has led companies to generate mechanisms as well as contract between business and society of addressing these issues and entering into a free market agreement.

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