Business Ethics and Social Responsibility

The development of ethical philosophy dates back to the fifth century BCE, with the
arrival of Socrates, a pagan prophet whose self-appointed task was to make his fellow men aware
of the necessity of critical thought about their values and behaviors.

Ethics can be thought of as the rules that direct our behavior so that we make the best
decisions for the benefit of everybody. In order to tell the truth, maintain our word, or assist a
stranger in need, we must follow ethical principles. Everyday decisions we make are guided by
an ethical framework that helps us avoid unjust results and helps us make decisions that have
good effects on the world. Through our decisions, ethics teaches us how to improve the world.

On the other hand, business ethics are how companies conduct themselves in their
practices and policies. However, social responsibilities is an ethical theory in which individuals
are accountable for fulfilling their civic duty. The actions of an individual must benefit the whole
of society. Therefore, social responsibilities are a crucial part of business ethics. A responsible
organization takes into account and acknowledges how its actions affect individuals and the
environment.

The importance of ethics in business and personal life is equal. Business executives play
a special role in determining the ethical climate of their companies, which has an impact on their
larger communities.

Module 1: Business Organizations

Therefore, social responsibilities are a

crucial part of business ethics. A responsible
organization takes into account and acknowledges
how its actions affect individuals and the
environment.

Business organizations are entities that aim to earn

profit by providing products to satisfy the needs of the
market. It is also an organization that was created with the
intention of conducting business. A system of law
governing contract and trade, property rights, and
incorporation is a foundation for this type of organization.
 There are two types of organizations, profit organization and non-profit organization.
Profit irganization goal was to earn profit. However, a non-profit organization is the opposite of
a profit organization since its main objective is to provide some kind of community service while
not earning at all. One example of non-profit organizations are churches, festivals and
emergency services organizations.

The three forms of business organizations are sole proprietorship, partnership and
corporation. The first one is the sole proprietor is the person who runs unincorporated alone.
Second is the partnership, it is a formal agreement between two or more parties to manage and
run a business together. There are two types of partnership, and those are; general partnership
and limited partnership. When we say general partnership, partners are equally liable for any
debts and obligations of the company. And when we say limited partnership, it is partners that
can be held liable up to the amount of capital they contributed. The third form of business
organization is the corporation, it is an organization or a collection of individuals with legal
standing to operate as a single entity
. There are also two types of corporation, and those are; stock corporation and non-stock
corporation. Stock corporations have a capital stock divided into shares and it is authorized.
While non-stock corporations, no part of its income is distributed as dividends to its members,
trustees or officers. On the other hand, the economic system describes how society distributes its
resources to produce capitalism, communism and socialism.

Module 2: Ethics and Business

Ethics and business or business ethics strengthens the law

by defining appropriate conduct that is not subject to
governmental regulations. Businesses construct business ethics to
encourage moral behavior among their employees and win over
important constituents like customers and investors. Corporate
ethics programs are now widespread, although the quality varies.

Ethical making decisions attempts to promote the company

as a whole rather than letting one individual profit from business decisions. Therefore when it
comes to synthesizing, defending, and proposing conceptions of good and wrong behaviour
ethics is somehow a subfield of philosophy.
 There are two sides of ethics, the first one is practical, it covers how we act, behave and
do things. And the normative side of ethics deals with our reasoning on how we are supposed to
act in a certain situation.

Social ethics are the activities undertaken of the moral implications of social structures,
institutions, problems and societies. A subset of applied ethics which is the application of ethical
principles to social issues.

Module 3: The Ethical Corporate Culture

Aspects of organizational culture that

encourage ethical behavior and deter unethical
behavior among employees are referred to as
corporate ethical culture. Promoting ethical
conducts and avoiding unethical conducts are
actually the two fundamental components of
business ethical culture.

The values, principles, and beliefs that

people and their companies share as a whole are
the main focus of ethical leadership in business. Business executives have a responsibility to
uphold and model the moral principles of their organizations and to represent their spirit and
soul. These managers do more than just oversee their employees.

Module 4: Foundations of the Principles of Business Ethics

Foundation is the starting point and the principles are the

standard of individuals beliefs. Therefore a set of statements or
ideals that form a framework for acceptable behavior and decision-making are known as
foundations of principles. Individuals behavior, expectations, and decision-making are all
influenced by these foundations of principles, which also help to define our culture.
Philosophical Ethics provides justifications that must be applicable to all people regardless of
their religious viewpoints.

There are three ethical frameworks in this module and those are utilitarianism, ethics of
principles and rigs and the virtue ethics. However, an ethical theory is known as utilitarianism. It
establishes the right from wrong by emphasizing the results. On the other hand, according to the
rights of ethical theory, society’s established rights are protected and given top priority. Last one
is the virtue ethics, it actually defines morally upright behavior as exhibiting virtue like bravery,
loyalty or knowledge. A desire to act, think, and feel a specific way is a virtue ethics.