Exploring Business Ethics and Stakeholder Responsibilities

In understanding business ethics it can be problematic in the sense that, this area is vast, often surrounding many concerns such as corporate social responsibility, difficult decision making to name a few. Furthermore, it generally addresses the entire scope of responsibilities and obligations that a company has to each of its stakeholders like consumers, employees, shareholders, suppliers and the society. Business ethics is the study and examination of moral and social responsibility in relation to business practices and decision-making in business (Author Unknown, n.d.).

A stakeholder is a group of individual who can affect or is affected by the achievement of the decision-making organization’s objectives (Howitt, 2012). Stakeholders influenced

Ethics officer has to be responsible for compliance, for creating and maintaining ethics culture and for being they key knowledge and contact points (Author Unknown, n. d.). Compliance Officer is responsible for ensuring that all aspects of organizational requirements are managed properly. They have to oversee each function are in compliance such as legal, financial, human resources and etc. Each of these functions has responsibilities to be in compliance and they are also the matter of expertise in that function (Gnazzo, 2011). Furthermore, ethics officer is a part of the company that is responsible for ensuring that a company’s thought process always has values. Business ethics is establishing the values and culture of an organization (Gnazzo, 2011). They are there to preserve these cultures although it’s challenging but rewarding. To preserve the culture of a company it must start with leadership, who are ultimately responsible for the company’s behavior. They should set an example and established culture in a workplace. Organizations that have ethical culture established are more engaged and committed. Organizations should practice to being a role model and be visible to the employees. When leaders of a management are doing the right thing they are more likely to send a positive message to the employees. Also, communicating ethical expectations can reduce unethical behavior.

They should also participate in initiatives that benefit the society (Fallon, 2015). The company should manage their business and conduct their efforts to create a positive impact in the society. This business practice is called corporate social responsibility (CSR) (Popa & Salanta, 2014). "Sustainability isn 't just important for people and the planet, but also is vital for business success," said Maw, consumers are more aware about global social issues today. With that being said, the importance of corporate social responsibility in business has more value than before (Fallon, 2015). Human beings are social animal and we cannot live in isolation. We are expected to behave in a manner that is socially and morally acceptable to others. This also applies to in business; corporates are expected to conduct its operation in a manner that fulfills its obligations to the society (Olivia, 2011). Being socially responsible is not only respecting the legal system, but also going beyond them through environmental management, investing in human capital and having a relationship with all stakeholders (Popa & Salanta, 2014). According to Gond and Moon CSR is associated with business responsibility for society not for the wrong reasons such as compensating for a negative outcome, which is using CSR irresponsible by covering up the “doing good” to “doing bad”. Second, business responsibility to