Business Ethics Law And Social Responsibility Commerce Essay


Having defined business ethics in terms of issues of black or white one might truly natural question whether this is in any way distinct from the law there is considerable overcome between ethics and law while the law is essentially an institutionalization or codifications of ethics into specific social rules, regulations and proscription. The best way of exploring about ethics and law is in terms of two intersecting each other. However many morally constables issues whether in business or elsewhere are not explicitly covered by the law in some countries there is no legal issues preventing businesses from testing their products on animals, selling landmines to oppressive regimes or preventing their employees by joining the union in these cases the law prescribes whether we should drive on the right or the left side of the road.(pg 5 business ethics by Andrew Crane Dirk matten)

Corporate and Social Responsibility:

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CSR is concerned with the ways of in which an organization exceeds its minimum obligations to stake holders to stake holders to specified through regulations and the legal regulatory frameworks under which business operate pay uneven attention to the rights of different stakeholders like contractual stakeholders such as customer, suppliers or employees have a legal relationship with an organization an community have a legal relationship with an organization and community stakeholders such as local communities. Different organization take very different stances on social responsibility these different will also be reflected in how they manage such responsibilities ( pg 146 chp 4 exploring corporate strategy by Gerry Johnson, Kevin Scholes, Richard Withington)

Corporation perceived as being socially responsible might be rewarded with extra and more and satisfied customers, whilst perceived irresponsibility may result in boycotts or other undesirable consumer actions for examples, oil giants Exxon Mobil has experienced an international consumer boycott throughout the 2000s co-ordinal by Greenpeace arguing that the company is the world's no 1 climate criminal which has done more than any other company to stop the worlds tackling climate change and there is campaign don't buy Esso campaign encourages consumers to avoid buying Exxon Mobil has products and to tell the company and other consumers similarly employees might be attracted to work for and even be more committed to corporation perceived as being socially responsible while getting voluntary is to be committed in social action and programmes may forestall legislation and ensure greater corporate independence from government. Making a positive contribution to a society might be regarded as a long term investment in a safer, better educated and more equitable community which subsides benefits by creating an improved and stable context in which to do business.(pg 47 Business Ethics by Dr. B.H. Agalgatti and prof. S. Krishna)

Economic responsibility

Companies have stakeholders who demand a reasonable return on their investments employees who want job security and fairly paid jobs they have customers who demand good quality products at a reasonable price. This is by definition the reason why businesses are set up in society and so the first responsibility of business is to be a properly functioning economic unit and to stay in business. This first layer of CSR is the basis for all the subsequent responsibilities on strong basis.

Legal Responsibility

The Legal responsibility of corporation demands that business abide by the law and play the rules by the game as we have seen in chapter one are the codification of society moral views and due to this instance the standard abiding is necessary prerequisite for any further reasoning about social responsibilities like in last few years a number of high profile firms have been convicted of anti-competitive behaviour as a result of illegal strategies aimed at maintaining market share and profitability that is focusing excessively on their economic responsibilities.

Ethical Responsibility

These responsibilities oblige corporation to do what is right just and fair even when they are not compelled to do so by the legal framework for example, when shell sought to dispose of the Brent Spar oil platform at sea in 1995. It had the full agreement of the law and the British government to do so yet still fell victim to a vigorous campaign accordingly to create a ethical environment against the action by the Greenpeace as well as a consumer boycott. As a result the legal discussion to dispose of the platform at sea was eventually reversed since the firm had failed to take account of society with a wider expectation of ethical environment.

Philanthropic Responsibility

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Lastly at the tip of the pyramid the fourth level of CSR looks at the philanthropic responsibilities of an organization. The Greek word `philanthropy' means literally the love of the fellow human by using this idea in a business context the model incorporates activates that are within the corporation discretion to improve the quality of life of employees, local communities and untimely society in general and the aspect of CSR address a great of issues including things such as charitable donations, building recreation facilities for the employees and their families, support for local schools or sponsoring of arts and sports events defined as by Carroll (pg 49,50 Business Ethics by Dr. B.H. Agalgatti and prof. S. Krishna)

Business Environmental responsibility

In laissez-faire system business can be discussed as ethical responsibility concerning the natural environment. Traditional departments of liability and negligence can be readily applied to business elements can cause environmental harm such ecological issues such as air and water pollution and toxic waste as well as the depraved cases of love canal, Bhopal and the Exxon Valdez speak to a wide range of environmental efficiency for business in some cases business has ethical responsibility to natural world while comparing profits and ethics together to generate the customer demand and attraction into their products or services while using the recycling techniques to maximise some ethical responsibilities to the society at the same time different motives of a same organization creates another plans for maximising profits to sustain with the competitors in real market. These elements creates a huge difference in ethics and profits to go vice versa.(pg 280 A companion to business ethics by Robert Frederick)

Ethical Dilemmas

Conflicting objectives

In some cases managers play a vital role in boosting the economy of an organization in which severe methods and procedures occur to defend the economic stability of a firm and due to lack of opportunities of funds issues like profitable operation or ethical operation goes vice versa. For example a mining firm is surviving on small profits and in mining there is always a issue of health and safety while working in that case the conflict between profit and safety interprets while the managers advised to supreme authority for some health and safety issues and the reply was if a firm will apply these operation on health and safety the organization will be uneconomic or by closing a mine will make employment and political issues.


If a manager is newly appointed in a fresh firm somewhere in metro cities like London to have extensive market research on behalf of your American company couple of months passes on and you discover that a company's product cannot be sold without an approval from some authorities which is controlled by 4 of the local electricians . further inquires shows that these authorities have a link with mafia while after a short periods you been there and offer them that if you approve my products that 20% of my profits will go in your account which will be around £140,000 every six months while manager was offering a indirect bribery but the issue again conflict that if manager will not take this action company will going to suffer or can be shattered. Profits and ethics conflicts matter of future goals and revenues. Bribery is manipulating different tricks to create self profits while neglecting ethical issue to go with each other in same case bribery is one of the worst factor which is making corporate hollow and in danger.


Rationing is one of the hottest issues in public sector. You are a German doctor consulting a charitable hospital somewhere in Africa you receive medical funds from Nigerian government and European charities companies there was an accidents in which 6 persons injured badly and if blood is not transplant to them they will die in which two persons were tourist from Germany and other four were local African due to the shortage of blood they can only give to two peoples and a doctor is German .(pg 152 Exploring Corporate Strategy by Gerry Johnson, Kevin Scholes, Richard Whittington)

Sustainable development: the last trend

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The concept of sustainable development has different definition as worldwide companies with their regional offices products and brand names. The idea which came into vogue in 1980s has been until recently dominated by environmental issues dealing with current scenario relating to business ethics tree hugging or saving rain forest which is all about people, profits, ethics, and a better economic and social days for sunshine. (pg 11 a short course in international business ethics by c. Mitchell)

Business and ethics two different routes

This famous thinking of scholars always argues that business and ethics never mix or go hand in hand in practical market because of the amoral practices of business in physical world this myth also create a big difference in management and its operation in an organizational functions which is widely based on science rather than religion or ethical principles. Although this apologue may have thrived in an earlier industrializing in U.S society and even during 1960s the figuration has eroded over the past two decapods the widespread consequences of computer hacking on distant, commercial and government level that attacks the public's welfare like identity theft on the internet stealing others social security numbers and using their bank accounts and credit cards creates big ethical differences compare with profitability and individual favour. According to Richard DeGeorge has noted that the belief that business acted as a attribute because it ignores the business captivation of all of us. Business is anthropoid activity not simply a scientific one and as such can be generated from a moral perspective and if everyone in cartel acted aggressively or un appropriate way business may collapse. Employees would artlessly steal from the employers, employers would recklessly fire employees at will; contractors autocratically violate obligations makes business and ethics leads far away with the combination of business profitability. (pg 17 business ethics a stake holder and issue management approach by Joseph w. Weiss)

Ethical Collapse

Enron nation's seventh largest company pulverized into bankruptcy in December 2001 after years of accounting bluffs could no longer eclipse billions in debt or make failing ventures appear profitable. The bend wipe out thousands of jobs and more than $60 billion in pension plans. Enron founder Kenneth Lay and former chief executive Jeffrey skilling were sentence in 2006 for their roles in the company bend. Kenneth Lay, former chairman and CEO of Enron Corp is quoted in Michaels Novak's book Business as a Calling: work and the examiner life is saying, '' I was naked to not only legal behaviour but moral and ethical behaviour and what that means from the angle of leading organization and people." In an introductory statement in Enron code of ethics issued in July 2000. Enron code of ethics described in a very appropriate way to companies policies and approved by the board of directors which include a reputation for being a fair and honest was highly respected and considering that an employee's shall not conduct himself or herself in a consuetude which directly or indirectly involve in self interest and break the companies law for their own profitability.( pg 28 case study business ethics a stake holder and issue management approach by Joseph w. Weiss)

Competitive intelligence is not corporate espionage

The intelligence which work through a infinite wall of hidden profits which a secret agent can provide. Corporate intelligence becomes illegal espionage when it intersects the theft of proprietary information, materials, or trade confidential in which distinction becomes difficult to divine potential to draw lines on ethical and legal grounds. In real world, practitioners are unlicensed and the lines separating criminal activities from those more commonly associated with unlawful industrial espionage (pg 76 Economic espionage and industrial spying by Hedieh Nasheri)

Corporate Espionage

Premium of trade secrets from business competitors and industrial spying is a reaction to the achievement of many businesses to keep secret their design, formulas, manufacturing process, research and future plans. Patronage secrets may find their way into the open market through disloyal employees or through various other means. Penalties against those found accusable range from an injunction against distant use of the knowledge to substantial damages. ( 22/02/2008 00:39)