Ethics and Social Responsibility 1

Ethics and Social Responsibility

Managerial Finance I/FIN475












Ethics and Social Responsibility 2
Ethics and Social Responsibility
Ethics and Social Responsibility Paper this paper will discuss the roles that ethics and
social responsibility play in todays business world. I then will discuss the context of
ethics and responsibilities involved in the following statement: Strict government
regulations are necessary to make companies behave ethically. Finally, I will examine
what the impact government regulations have and why I may agree or disagree with the
statement
"Strict government regulations are necessary to make companies behave ethically."
The main point is that the corporate ethical behavior as it relates to government
regulation is that the government provides driving force for any changes and often will
establishes the minimum standards. In addition, the private sector they conform to these
standards. The government does not have to have as close involved within the corporate
activity, however, there needs to be strict regulation this will push the corporate entity off
the block to make gains within their ethical behavior.
Ethics and social responsibility is very important to business because it gives
corporations credibility. When a corporation has credibility, the consumers will trust the
corporation and will tend to buy from the corporation more regularly. Several employers
want many guidelines to help them with their decision making process, so the experts
have come up with several approaches. They are The Utilitarian Approach, The
Rights Approach, and The Common-Good Approach. It seems that Corporate Social
Responsibly have an unlicensed marriage to ethics. The main idea behind ethics is that it
reach and then surpasses the call of duty, and the Corporate Social Responsibility is about
doing more than just making a profit.
Ethics and Social Responsibility 3
Business ethics is a form of the art that applies to the ethics that examines ethical
principles and moral or the ethical problems, which can arise in the business
environment. The new focused marketplace of the 21
st
century, there is an increasing
demand for more ethical business processes and actions. At the same time, there is
pressure to industry, to improve business ethics through new public initiatives, laws, and
government regulations.
Business ethics can be both a standard and a descriptive discipline. As a corporate
practice and a career specialization, the field is primarily standard. The quantity and
range of business ethical issues reflects the degree in which the business perceives to be,
they are at odds with non-economic social values. Historically, in the 1980s and 1990s
the interests in business ethics changed dramatically, in both the major corporations and
the academic. For example, most corporate websites will emphasis on their commitment
to promoting non-economic social and ethical values under a many headings for example
ethics codes, social responsibility charters. In many cases, corporations have redefined
their main values in the light of business ethical considerations.
The concept ethics and social responsibility has come to mean various different
things to various different people, but generally, it is coming to know what it right and
wrong within the workplace and then they do what is right this is concerning effects of
products/services and in relationships with stakeholders. One need to explain that
attention to business ethics is critical during times of fundamental change; times much
like those, which are now facing businesses, both nonprofit and for-profit. In times that
there is fundamental change, the values that corporation previously took for granted,
corporation now question them. Consequently, there is no clear moral compass to guide
Ethics and Social Responsibility 4
leaders through complex dilemmas about what is right or wrong. Attention to ethics in
the workplace sensitizes leaders and staff to how they should act. Perhaps most
important, attention to ethics in the workplaces helps ensure that when leaders and
managers are struggling in times of crises and confusion, they retain a strong moral
compass. However, attention to business ethics provides numerous other benefits, as well
(these benefits are listed later in this document).
"The government's solutions to this point have been counterproductive at best.
Prosecutor tactics have proven repeatedly to be an ineffective solution in curbing
business impropriety and this has only served to punish the innocent repeatedly. The
taxpayers pay the prosecution, the employees pay with loss of income, and the public
pays for the corporate lawyers through increased cost in goods and services. To keep a
corporation ethical to be more effective less costly system of checks and balances must
be implemented."
It seems that a person cannot turn on the television today without seeing yet another
business or businessperson that is being investigated by the United States Securities and
Exchange Commission (SEC) or sitting before a Congressional panel trying explaining
their actions. This paper has examines several questions, which should ask when
discussing Congressional scrutiny.
At what price should the United States Securities and Exchange Commission (SEC) and
Congress try to cleanse the business world of shady deals?
The Ethics and Social Responsibility is everyones business in todays business
world. Finally, by examine what the impact government regulations have I believe that I
Ethics and Social Responsibility 5
may agree with the statement except that the government needs good laws to enforce this
problem yet not punish the wrong business.

















Reference
Block, S.B., & Hirt, G.A. (2005). Foundations of Financial Management, 11
th

Edition. New York. McGraw-Hill/Irwin