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Social responsibility by business organization
Explain The Impact Of Ethical Issues On Business Activities
The link between company and social responsibility
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The common consensus within the business field is that businesses have a social responsibility to protect and improve the societies they affect. Social responsibility is the belief that businesses and their employees have a duty to act in a manner that benefits their environments and society. The concept of social responsibility stems from ethics, which are simply the moral principles that guide a person’s behavior. However, despite this, it is clear to scholars, researchers, experts, and businessmen alike that sometimes ethics and responsibility are thrown out the window in favor of cutting costs and increasing corporate profits. This tendency for otherwise good businesses to act in badly is known as the Lucifer effect, and is a very real …show more content…
In Zimbardo’s work, “The Lucifer Effect in Business”, he studies this complex concept which involves the process of good businesses beginning to turn towards evil practices, just as good people often go bad. As Zimbardo states, to understand this concept, it is imperative to first understand the psychology of evil as it pertains to the human thought process. This involves analyzing the factors that lead a person to make evil choices. Just as in the Clergy Journal’s article about the child making a taxable income, most of us would probably be okay with overlooking ethics in a similar situation in favor of the child having a little extra cash. This aspect of common culture is exactly what researchers like Zimbardo to claim that people are not inherently evil, but rather they mimic what they have been taught. Zimbardo refers to the surrounding factors figuratively as the barrel and states that it is the environment that affects decision making. This would validate the idea that ethics teaching is important in producing businessmen more likely to make choices which positively affect the common good. It also nullifies the notion opposite the barrel, which states that when people perform evil actions it is because they are just evil people, or bad apples. Often, however, common people only see these bad apples in business …show more content…
While some scholars argue for more teaching of ethics in college curriculum, others argue that a business culture or environmental change is needed. Some experts and experienced members of the field argue that business is not an inherently bad field, but that the reputation has been soiled by a few bad apples. Given all this information, I tend to agree with the argument that finance and business are not bad fields, they have just been soiled by a few evil people. I believe there are several bad businesses such as the Nestlé Corporation; and good businesses like Microsoft and the Bill and Melinda Gates Foundation that prove cases of evil and corrupt business practices can be linked to the actions of a few evil people in power. I find this argument to be relevant and interesting because unethical business practices often appear in the news, and this influences the public perspective on businesses. Many people tend to think most businessmen are evil, greedy, and corrupt. This is not always the case, and I aim to demonstrate why others should think in the same
Many organizations have been destroyed or heavily damaged financially and took a hit in terms of reputation, for example, Enron. The word Ethics is derived from a Greek word called Ethos, meaning “The character or values particular to a specific person, people, culture or movement” (The American Heritage Dictionary, 2007, p. 295). Ethics has always played and will continue to play a huge role within the corporate world. Ethics is one of the important topics that are debated at lengths without reaching a conclusion, since there isn’t a right or wrong answer. It’s basically depends on how each individual perceives a particular situation. Over the past few years we have seen very poor unethical business practices by companies like Enron, which has affected many stakeholders. Poor unethical practices affect the society in many ways; employees lose their job, investors lose their money, and the country’s economy gets affected. This leads to people start losing confidence in the economy and the organizations that are being run by the so-called “educated” top executives that had one goal in their minds, personal gain. When Enron entered the scene in the mid-1980s, it was little more than a stodgy energy distribution system. Ten years later, it was a multi-billion dollar corporation, considered the poster child of the “new economy” for its willingness to use technology and the Internet in managing energy. Fifteen years later, the company is filing for bankruptcy on the heels of a massive financial collapse, likely the largest in corporate America’s history. As this paper is being written, the scope of Enron collapse is still being researched, poked and prodded. It will take years to determine what, exactly; the impact of the demise of this energy giant will be both on the industry and the
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the only important value is the bottom line, most executives merely give lip service to living and operating their corporations ethically.
The Moral Philosophy of Ethics as defined by Cyndi Banks is defined as “a branch of philosophy concerned with the study of questions of right and wrong and how we ought to live, Ethics involves making moral judgements about what is right and wrong, good or bad.(2).” Ethics in the criminal justice department is important because it justifies ones actions. In The Lucifer Effect by Phillip Zimbardo and Hard Measures by Jose A. Rodriguez, Jr. there are many scenarios of ethical dilemmas that need to be questioned.
In Bruce Frohnen and Leo Clarke’s essay, "Scandal in Corporate America: An Ethical, Not a Legal, Problem" they discuss their views of American businesses and the little honesty that these businesses have. They claim how important honesty is within businesses and how it will help our public’s well-being and corporate America. They view American business officials to be greedy and many of their jobs just consist of helping businesses find their way around the laws. Frohnen and Clarke then conclude their essay with suggestions on how to change business ethics with education and simply being honest (113-119).
In Stephen Benet's fictional story "The Devil and Daniel Webster," the social values that are being taught are that you should never cheat your way to the top and that America was built on good and evil, which I believe are presented by the author through the setting, the character's and the actions of the characters. The first value taught in the story was to never cheat your way to the top. This value deals with human choice because it gives the reader an understanding on that you have a choice on how to be successful in something but, it all depends on what you do to get you there. You can choose the easy way, by cutting deals and cheating your way to the top or you can do it the hard way by labor and honesty. In "The Devil and Daniel Webster,"
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.... ...
One Flew Over the Cuckoo’s Nest takes place in a ward of a mental institution. The biggest conflict throughout the film is the fight for power, which is a reoccurring theme. If you’ve ever seen the film you probably thought to yourself there is a very corrupt ruling system in place. If you know anything about The Lucifer Effect by Philip Zimbardo then you begin to realize the evil elements shown in the film.
The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
It seems obvious that large corporations have a tendency to ignore the negative effects of their actions in favor of profit. This example, although sensationalized, still says to me that with power comes responsibility. It affirmed my belief that a corporation’s goal cannot be just to provide profit to shareholders, but there must also be an element of social responsibility.
As a student interested in one day starting a firm, learning the business models and its advantage is prepping me for the real world. Those models like the SWOT Analysis are bringing me closer to my dream of running my own business. Professor Sheldon’s experience in the business atmosphere has opened my mind to the experience of running an enterprise. This has helped me slowly develop my plans on what nature of business I want to enter and the stakeholders I’m obligated too. Apart from obligation I am also subjected to the laws of the land and a social responsibility. I must consider ethical behaviour in doing business as a lack of it has negative effects. Look at Enron for example, where the firm lied to their stakeholders just to keep stock prices up and later crashed the company. This resulted in many investors losing their pension and savings and now the board is serving long jail
The global recession that was experienced in 2008 to 2009 revealed some mysteries of unethical behaviors from Wall Street executives and their financial assistors. A research conducted to determine the cause of cheating in business operations was attributed to a lifestyle that was adapted in business classes. The article articulates that 86% of business students cheat in their course work compared to 77% of non-business courses. The findings were of great concern to the dean at Rocky University as he decided to gather a hypothesis from this learning institution. Many professionals argue that cheating and dishonesty is widespread in business course at Rocky University compared to other non-business courses. In order to determine the extent of cheating and dishonesty, the dean commissioned a research to determine current ethical behaviors among business studies.
Business Ethics are much more than the buzz word stories on late night news. The Corporate Social Responsibility of a company goes well beyond that. “Business Ethics are moral guidelines for the conduct of business based on notions of what is right, wrong and fair.” (Bellow, 2012). Individual backgrounds play a huge role in person by person code of conduct can vary from employee to employer. To help solve some grey areas in what is ethically correct, companies now make a code of conduct that is over everyone in the company. This code of responsibility helps employees have better understanding of what is required of each and every one of them. “Corporate Social Responsibility is a business philosophy which stresses the need for
The category for discussion will be the view of good and evil. The group is chosen because human beings often rely on a benchmark to distinguish between moral vices and virtues. There is no distinctive mechanism of discerning between vices and virtuous. There are varying approaches with other people focusing on religion paradigms to determine good and evil.
Business nowadays encounter with a lot of moral challenges in today’s global economy. Everyone is thriving to be more successful than their competitors, to make their next profits, to keep their job, to earn a big bonus, or to compete effectively. There exists temptation to bend lines, omit information, and do whatever it takes to get ahead of their competition. Many business employees and executives succumb. Sadly, the theme becomes...