This paper will compare and contrast the various interpretations of four separate authors in respect to ethics and social responsibility as they apply to business. The four articles to be reviewed are; “The Social Responsibilities of Business is to Increase its Profits” by Milton Friedman, “The Relevance of Responsibility to Ethical Business Decisions” by Patrick E. Murphy, “What is ‘business ethics’” by Peter F. Drucker and “To Be Ethical Not To Be: An International Code of Ethics for Leadership” by Ala’ Alahmad. Each of these articles represents the author’s interpretations on the interplay between “business ethics” and “social responsibility” supported by both external and personal research. Although none of the authors represent themselves as being opposed to ethics or responsibility in general, there appears to be opposition in the attempt to silo these two topics into a separate, distinct business application rather than maintain them as applicable to individuals’ separate of any corporate (or business) relationships. Before evaluating the writing of these authors, it would seem appropriate to state the generally accepted definitions of the terms “social responsibility” and “business ethics”. Paraphrased from several different sources, business ethics can be defined as the written (and frequently ‘unwritten’) principles that guide the actions and decisions of a company. Mainly driven by the organizational culture, they determine both the good and bad behavior and set the standards for decision making. In its most basic form, business ethics comes down to knowing the difference between right and wrong and choosing to do what is right because it is right rather than simply avoiding what is wrong because of its negative r... ... middle of paper ... ...e the foundation of actions whereas social responsibilities are moving targets that seem to change with every new special interest group or political swing. It only seems appropriate that this relationship should not be grouped into the same discussion forum. Works Cited Alahmad, Ala. (First Quarter 2010). To Be Ethical Or Not To Be: An International Code Of Ethics For Leadership. Journal of Diversity Management; 5, 1; ABI/INFORM Globalpg. 31 Drucker, Peter F. What is"business ethics"? (1981). Public Interest, 63, 18-36. Milton Friedman. (1970, September 13). The Social Responsibility of Business is to Increase its Profits. The New York Times Magazine. Copyright @ 1970 by The New York Times Company. Murphy, Patrick E.. (2009). The Relevance of Responsibility to Ethical Business Decisions. Journal of Business Ethics. DOI 10.1007/s10551-010-0378-4
So before we go in greater detail on the different perspectives related to social responsibility, one might question the meaning of social responsibility. It is generally agreed that social responsibility is defined as the business obligation to make decisions that benefit societ...
Every business entity has social responsibilities. The four theories of social responsibility are the maximization of profits, moral minimum, stakeholder interest and corporate citizenship. Social responsibility goes hand in hand in regard to a company’s ethical standing. As a company, it’s crucial to have high ethical standards. The Ethisphere Institute ranks businesses annually to be named on their honorable and highly recognized list of the World’s Most Ethical Companies. These organizations are evaluated in terms of their ethics and compliance programs, corporate citizenship and responsibility, culture of ethics, governance and leadership, and innovation and reputation. One of the companies
Every business has a social responsibility toward society. That means to maximize positive affects and minimize negative affects on the society. Social responsibilities includes economic-to produce goods and services, that society needs at the price, that satisfy both-business and consumers, legal responsibility-laws that business must obey, ethical responsibilities-behaviors and activities that are expected of business by society, but are not codified in the law, philanthropic responsibilities-represent the company’s desire to give back to society (charietys, volunteering, sponsoring).
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2013). Business ethics: Ethical decision making and cases: 2011 custom edition (9th ed.). Mason, OH: South-Western Cengage Learning.
Ciulla, J. B., Martin, C. W., & Solomon, R. C. (2007). Is "The Social Responsibility of Business... to Increase Its Profits"? Social Responsibility and Stakeholder Theory. Honest work: a business ethics reader (pp. 217-253). New York: Oxford University Press.
Friedman, M. (1970). The Social Responsibility of Business is to make Profit. New York Times
Milton Friedman presents a compelling argument in “The Social Responsibility of Business is to Increase Profits” by arguing that businesses need to focus only on increasing their profits and integrating social responsibility will only hurt them as a company. Since “only people can have responsibilities” (Friedman 52), Friedman argues that businesses as a whole do not have any type of real responsibilities because there is not a singular person for these responsibilities to fall on. Corporate executives are people as well and may feel they have social responsibilities to society but these “are the social responsibilities of individuals, not of business” (51). In terms of corporations, the businessmen are the ones that hold the responsibility of the company. Friedman argues that the only responsibility these managers hold is to those who own the corporation, the shareholders. If the individuals themselves want to contribute to social responsibility they must do it with their own money in their personal lives, but they should not use social responsibility in
Ethics in business is a highly important concept, as it can affect a company’s profits, salaries paid to employees and CEOs, and public opinion, among many other aspects of a business. Ethics can be enforced by company policies and guidelines, set a precedent when a company is faced with an important decision, and are also evolving thanks to new technology and situations that arise due to technology usage. Businesses have a duty to maintain their ethical responsibilities and also to help their employees enforce these responsibilities in and out of the workplace. However, ethics and the foundation for them are not always black and white. There are many different ethical theories, however Utilitarianism, Kant’s Deontological ethics, and Virtue ethics are three of the most well known theories in existence. Each theory is distinct in that it has a different quality used to determine ethicality and allows for a person to choose which system of ethics works best with both the situation and his or her personal ethical preferences.
In conclusion, a business should act ethical and socially responsible in order to make our world a better place, just for the goodness. Acting according to business ethics may result more profits in the long process but it is not ethical to be ethical for the rewards, therefore it shouldn’t be a goal. Businesses need to build good reputation and it is possible by corporate social responsibility and ethical behavior. In this new era of a new media, unethical acts of companies don’t go unnoticed and unpunished; therefore they need to be more careful. Although they can just comply by regulations and put aside corporate social responsibility, business ethics can turn out well for everyone.
Social responsibility is the part of the framework of an organization or individual which makes up an obligation to act for the benefit of society. There are many different ways act out social responsibility. The social responsibilities of a business can be classified according to the businesses relationships to the general public, customers, employees and investors. The companies that make their product or service with the rooted mindset of benefiting the community and the world around them do this by providing things like scholarship funds, all natural products, biodegradable storage, and or just by treating the consumer as well as the employees as individuals rather than a corporate dollar sign. Businesses may exercise
Friedman, M., (2007). The Social Responsibility of Business Is to Increase Its Profits. In W.
That is what most of the people would call “social responsibility” and what Milton Friedman would define as an individual initiative to contribute to the society.
...., Fraedrich, J. & Ferrell, L. (2013), Business ethics & social responsibility. [OMM640 Custom edition] Mason, OH: Cengage Learning
Business ethics and social responsibility are two concepts many individuals believe go along together for corporations in the business environment. Business ethics are the moral values a company uses to ensure all employees action in a standard manner when completing business functions. Social responsibility is typically a conceptual theory that governments and the general public hold, believing that businesses should not conduct themselves in a manner counter to cultural or societal norms. The connubial of these concepts happens when companies introduce a written code of ethics to demonstrate that the company only acts in its greatest interest so long as it does not damage the company’s social responsibility.