More handpicked essays just for you.
Value of ethics in a business
Corporate social responsibility in an organisation
Value of ethics in a business
Don’t take our word for it - see why 10 million students trust us with their essay needs.
DBQ Social responsibility is an obligation to act for the benefit of society at large. One of the many social responsibilities of a business is to maximize profits but this is not the only social responsibility of business. There are many social responsibilities to take into consideration when striving to expand and maximize your business. Wanting to maximize profit and minimize cost can be perceived as greed but this assumption is wrong. A man with a straight forward mindset , a man that won a nobel prize for his extensive knowledge and studies in business stated that there's one and only one social responsibility of business and that is …show more content…
to maximize profits. Milton Friedman was not completely accurate in that statement but if we look at the quote as a whole and carefully dissect where he says “in that so long as it stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.” He states unclearly and briefly that you have to play with in the rules of the game, if you break it down he’s talking about. The game, who plays it, what are the rules and who makes the rules. It is very hard to agree with Friedman's position in business, it has more than one social responsibility and the way Friedman states his position also can be perceived as greed. Outsourcing is when a business contracts it’s on internal activity to another business .As Milton Friedman stated that you can make as much money as possible as long as it’s within the rules of the game.
The question at hand hat are those rules, which he later elaborates in says which are engaging in open competition without deception or fraud. Said as Morgan Friedman there is a way in business to make the most amount of money without deceiving or lying so those companies that choose not to follow the rules can be considering greedy. According to the article “. For instance, a company might pay someone else to handle their customer services, or a manufacturer might buy some parts from another factory.(children’s rights and business explained). Outsourcing is a way to make a profit but will you get the best product possible. And when we choose to put money over the basic rights and social responsibility we have truly …show more content…
become. There is more than One responsibility.
If you make a large profit without supplying the needs of your customers you should be considered lucky. Customers are very big part of the business use to market to the minds of customers yet to make sure that your products are made to their liking because if you have no customers you have no income and if you have no income you won’t hav customers are very big part of the business use to market to the minds of customers yet to make sure that your products are made to their liking because if you have no customers you have no income and if you have no income You have no profit. And if you don’t Play by the rules of the game it will not only cost you morally and financially it’ll cost you legally. According to reports “financial service providers take reasonable steps to identify, monitor and mitigate customer risks such as fraud or inadequate handling of customer data”. So if you were to falsify prices and or products it will have consequences. There is always more than one social responsibility to business than making a
profit. I disagree with Milton Friedman‘s position the only social responsibility of business is to maximize profits. I don’t accrue with him because he is forgetting key elements of making a business grow such as customers, happy employees, and a good quality products. By us outsourcing we are making it easier for other economies to grow faster than ours, Like Mexico for example. According to the text “the limited number of skilled and certified manpower was a major constraint for IT industry growth. The lack of a skilled workforce is a key challenge facing many developing countries”(Moving Toward a Knowledge-Based Economy: Improving Competitiveness in Mexico’s Information Technology Industry). Milton Friedman would be right if he said to maximum profit was the biggest social responsibility of businesses but it is not the only. In conclusion burning and abating about this topic has shown me that business is very complex then. That there’s no right answer, not in trading in the worst of very Smart man he knew what she was doing and he knew what he was saying. But I do not believe that he fully elaborated on what he meant when he said The one in only one socialist what’s ability of business is to maximize profits. He’s forgetting important parts of creating the income lake with they need and the steps that they need to take which also crucial to having a successful business. Outsourcing companies may seem greedy but they just trying to maximize their profits to the greatest extent. When they outsourced they just happen to be supplying jobs to people who can’t come to America to get them.
Social responsibility is the ethical foundation and guiding principles we are to live by. This trickles down from organizations, to the individual level. It’s the duty of everyone to help in need. By doing so, helps keep the balance in our society as well as our ecosystem.
What is social responsibility? Social responsibility is an obligation to act in a way that benefits society at large, people can do this through working to help improve Earth’s sustainability through processes such as recycling, composting, and being polite to others. Thanking a police officer or veterans for their service, or confronting consequences and accepting them are just a few examples of social responsibility. Sadly, the vast majority of individuals are not socially responsible. We are often fueled by fear, and the fear of losing power is so devastating that we make irrational and socially irresponsible decisions. Then, when those individuals work in a business or group themselves into corporations, those corporations are not socially responsible either. I have made the following promises to myself about my individual and social responsibility: Be economically responsible, be socially friendly and be a good influence on others.
“There is only one and only one social responsibility of business- to use its resources and engage in activities designated to increase its profits so long as it decides to stays within the rules of the game, which is to say, engages in open and free competition without deception or fraud.”
Milton Friedman’s view is that in a capitalist economy, there is one and only one responsibility of business: to use its resources and engage in activities designed to increase its profits. Business does not have a social responsibility to promote desirable social ends. A corporation is an artificial person. The corporate executive is the agent of the individuals who own the business and their main responsibility is to them. The directors of companies have a fiduciary responsibility to act in the best interest of the shareholders. The managers are agents of the shareholders and therefore have a moral obligation to manage the firm in the interest of the shareholders, which obviously is to make as much money as possible and maximize shareholder wealth. The shareholders are the owners of the organization and therefore the profits belong to them. In conclusion, Friedman believes that business is to maximize profits. He suggested a healthy corporation has to be not only ethically good, but also being economically good. Overall, as he stated in the article, business must gain profit without break the rules of game (D. Murphy, Class Lecture, January 17, 2014)
To supply the wants and needs of a consumer, society entrusts wealth-producing resources to the business enterprise.” (Santayana, George. Is The Tyranny Of Shareholder Value Finally Ending? So before we go into 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 society.... ...
Corporate social responsibility (CSR) refers to business practices involving approaches that benefit society, and it has become an increasing concern of the business world and Bombardier, a high technology manufacturer located in Canada. "Shaping the future of mobility responsibly" is Bombardier's statement regarding their approach to CSR which is described as business activities achieving a balance between economic, environmental and social responsibility and addressing expectation from stakeholders not only in Canada but also in developing countries.
Gallagher, S. A. 2005. Strategic response to Friedman’s critique of business ethics. Journal of Business Strategy, 26(6), 55-60.
“Only about half (53%) of employees trust their organization’s senior leaders – the people who set the tone for organizational culture and need to inspire high-performance and commitment. In contrast, three in four (75%) of employees trust their immediate managers” (BlessingWhite, 2008, p. 2). Senior leaders have the difficult task of aligning organizational culture and ethics and it has been determined that it is impossible to demonstrate trustworthiness without a personal relationship. This finding is consistent among all generations in the workplace, throughout the different business lines, and at every level. Employee engagement is dependent on the manager-employee relationship. This is important as BlessingWhite (2008) stated that bad managers are the third most common reason for leaving, behind lack of career growth and actually disliking the job (p. 2). Contributing employee are employees who trust their managers. For leaders to be effective, they need to know what engagement means, they have to experience engagement, and they need to lead engagement. “They need to be able to help their team members believe in the value of full engagement and inspire them to pursue it on a personal level” (BlessingWhite, 2008, p. 21).
In recent years, companies are becoming socially responsible and now stakeholders almost expect a company to have CSR policies. Therefore, in twentieth century, corporate social responsibility (CSR) became an important development in public life (Barnett, ND).Corporate social responsibility is defined as “the ways in which an organisation exceeds the minimum obligations to stakeholders specified through regulation and corporate governance” (Johnson, Schools and Whittington, N.D cited in March, 2012). Stakeholders can be defined as “those individuals or groups who depend on the organisation to fulfil their own goals and on whom, in turn, the organisation depends” (Johnson, Schools and Whittington, N.D cited in March, 2012). There are many purposes for this essay, the first purpose is to descried the key principles of corporate social responsibility and explain their importance for stakeholders. Secondly, is to show how far this company follows those principles in order to be accountable to at least three of its stakeholders. In this essay, three stakeholders, environment, customers and employees will be evaluated respectively and the key principles of the stakeholders will be examined.
Niall Fitzgerald, stated, “Corporate social responsibility is a hard-edged business decision. Not because it is a nice thing to do or because people are forcing us to do it... because it is good for our business.” (as cited in Elliot, 2003, para. 14) What is social responsibility? Peter F. Drucker (1981) suggests it is today’s business ethics as defined by society’s ever-changing values, values based on people functioning as a group. Milton Friedman’s (1970) view of social responsibilities is one of individual ethics. Both Drucker and Friedman interchangeably use these terms; ethics and social responsibility, in their case views on the subject. Business ethics and social responsibility are like fraternal twins, born from a womb of moral imperatives and as such, share a base genetic foot-stamp in scope and ideology. In the case views as presented by Peter F. Drucker and Milton Friedman, what ethics and social responsibility is varies between an individual and business view.
The article “The Social Responsibility of Business is to Increase its Profits” is written by a famous economist Milton Friedman. Friedman in this article implies that shareholders are the main drivers of the corporations and he believes that it is to them corporations must be socially responsible to. The goal of any corporation is to maximize profits and return the portion of these profits to shareholders for investing in the corporation. The shareholders can themselves decide which social causes to take part in rather than assigning a corporate executive to decide on their behalf. Friedman argues that a corporation must have no social responsibility to society because its only concern is the increase profits for itself and its shareholders.
Friedman, M., (2007). The Social Responsibility of Business Is to Increase Its Profits. In W.
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.
However, there can be more definitions about what Corporate Social Responsibility can be. For example, Corporate Social Responsibility can be the commitment which is continuing for a business to behave ethically and bring to economy the development to improve the workforces’ of the whole society and local community and their families’ quality of life. Corporate Social Responsibility is also known as the obligation of a company to serve the society’s interest and of course its own. With the help of the Corporate and Social Responsibility, social and environmental concerns companies can integrate into their business and stakeholders operations.
Corporate Social Responsibility is management’s obligation to protect and promote their stakeholders welfare. Social Responsibility is more than just obvious ethical issues like honesty and integrity in business dealings.