Businesses are frequently tempted to earn short-term gains by ignoring what is right.

Despite codes of
behavior, regulatory failures, and rising public pressure, many businesses continually disregard ethical
concerns. Some even argue that a company only needs to follow the law and not worry about greater
ethical considerations. However, such indifference can weaken the economy as a whole and, in the long
run, result in serious damage. Lessons must be learned from the corporate failures of the past decade:
short-sighted strategies can result in profitable businesses, but impressive initial results may out to be
unreliable.

To simplify things, we might state that business ethics is the application of ethical behavior in a business
setting. In business, acting ethically entails more than simply following the law: it also entails being
honest, not causing harm to others, competing fairly, and refusing to put your own interests ahead of
those of your firm, its owners, and its employees. If you're in business, you obviously need a strong
sense of right and wrong. You also need personal conviction to do what's right, even if it means taking a
risk.

(CSR) is a self-regulating business model that helps a company be socially

accountable—to itself, its stakeholders, and the public. By practicing corporate social
responsibility, also called corporate citizenship, companies can be conscious of the
kind of impact they are having on all aspects of society, including economic, social, and
environmental.

To engage in CSR means that, in the ordinary course of business, a company is

operating in ways that enhance society and the environment, instead of contributing
negatively to them.

Stakeholders include consumers, shareholders, workers, and societies who have a vested interest in a
company's strategy and development plans. Shareholders, strategic clients, suppliers, creditors, and
workers are examples of primary stakeholders who engage in economic transactions with the firm and
are dependent on the company's financial well-being. Secondary stakeholders have an indirect link with
a firm; they are external stakeholders who are affected by the business but are not financially
dependent on it – examples include competitors, vendors, the government, the media, banks,
customers, and environmental activists. Businesses are related to the economy since stakeholders
include citizens of the country, and these citizens are affected by corporate strategy, continuous effort,
and environmental effort.

This excellent reputation ensures the company's stability, long-term viability, and financial success.
Secondary stakeholder dissatisfaction in any of the markets in which the firm operates can swiftly
spread to other markets, putting the company's business activities in markets where it will be perceived
as successful and socially responsible at risk.

The consequences of socially responsible actions are aimed not just at secondary stakeholders, but also
at the business's key stakeholders, acting as a good communication route to external groups of
stakeholders.