Business ethics and social responsibility are not synonyms but are closely related. Substantiate.
Business ethics and social responsibility are the words that are almost used as a common parlance interchangeably. While social responsibility is self explanatory, ethics is a word that puts one in a dilemma. Social responsibility looks clearly defined and demarcated. Companies have a policy of social responsibility known as Corporate Social Responsibility whereby they commit to follow their businesses in such a way so as to benefit the community at large. But ethics is a loose term that is dependent upon a person's conscience. There are certain differences between the two and the two are not overlapping completely.
Business Ethics
To understand business ethics, first we need to understand and spell out clearly the word ‘ethics'. Derived from ancient Greek word ethos, ethics has come to mean moral character. Ethical behaviour is what is good or right. Ethical senses always make use of good, bad, right and wrong. Applying this definition to business, we come to a conclusion that though the primary objective of any business or company is to maximize by the decisions taken by the company for the operation of business.
Business ethics is the behaviour of any business that it indulges in its dealings with the community or society. For some, making money is all they are interested in, and this is capitalism in its dirtiest form. These people are least concerned with the bad effects of their business practices and the harm they are doing to the society at large. When companies do not engage in good business ethics, they are penalised by the law. But such cases are rare and the profits of companies engaging in unethical behaviour are far more than these punitive fines.
Social Responsibility
Man is a social animal and cannot live in isolation. He is expected to behave in a manner that is socially and morally acceptable to others. The same applies to businesses. Though the primary objective of any business is to earn maximum profits for the owners and shareholders, it is also expected to conduct its operations in a manner that it fulfills its social obligations also. For example, though it is not binding on any private sector company to provide employment to the disabled or weaker sections of the society, it is considered to be a part of the social responsibility of the company to absorb people from such sections of the society. Similarly though there is not written law to compel a company to engage in acts to do something to reduce pollution or to do something for the betterment of environment, taking up projects to clean up environment are considered to be a part of the social responsibility of the company. Difference between Business Ethics and Social Responsibility Though business ethics and social responsibility seem to be overlapping, there has always been a contradiction between the two.
Discuss the forces which are responsible for increasing concern of business enterprises towards social responsibility.
What do you mean by the principle derived from social values which guide and govern the conduct of businessmen? Explain the factors governing these principles and values.
"A business owes curtain obligations towards different groups."Identify those groups and explain the obligation of business towards those groups.
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Explain social responsibility of a business towards different interest groups.
What steps can an enterprise take to protect the environment from the dangers of pollution?
"Like an individual, business enterprise should also be a loyal citizen to the state."Discuss.
Which eight problems have been identified by the United Nations which cause damage to natural environment?
How can a business enterprise improve its public image by performing social responsibilities?
What do you understand by social responsibility of business? How is it different from legal responsibility?
Business is essentially, a social institution and not merely a profit making activity.' Explain.
What do you mean by the principles derived from social values which guide and govern the conduct of businessmen?
Business ethics and social responsibility are not synonyms but are closely related. Substantiate.