Business Ethics & Social Responsibility
Businesses play an important part in every community today. Their position in society has changed greatly since the Industrial Revolution. At that time, business owners thought only about their personal gains. However today, they must benefit the community, and this principle must be incorporated into their business ethics codes.
Business ethics are moral principles that serve as guides for business’ behaviors. In essence, they are the same principles that should guide an individual’s behavior. However, due to their very nature, companies will have different ways of following the accepted moral principles. One of them is making sure that every one of their employees follows a strict ethical code in his or her work and everyday life.
Defining the “wrongs” and “rights” can be difficult for businesses. Some of the principles and rules they should follow are self-evident, for example, a complete ban of using child labor. The areas of ethics that relate to competition are not as easily defined. It is up to the business owner to set the acceptable limit of actions that can be taken by different departments of the company to improve the business’ position in the market. A company’s business ethics code also needs to include a postulate regarding all kinds of bribery, as this practice should be completely unacceptable.
Developing a strong set of business ethics principles is a difficult task that must be handled by experienced professionals. The main objective of a business ethics code is to ensure that both the employees and owners of the company are treated fairly. However, there is also an issue of social responsibility that must be taken into account when developing a business ethics code.
Social responsibility, in terms of business, is a set of ethical principles that suggests that a company has a duty to benefit society as a whole. This includes caring for the environment and updating its equipment and production methods to reduce carbon emissions. This also encompasses a plethora of social initiatives that businesses should participate in or establish themselves.
In order to succeed as an organized enterprise, every business must rely on a business ethics code that prevents corruption and the mistreatment of employees. Companies are also duty bound to maintain the balance between the ecosystem and economy. This care for both the welfare of society and environment combined is known as social responsibility. Every business must not only uphold its social responsibilities, but also educate its employees on how to avoid various socially harmful acts.