Business Ethics And Social Responsibility Commerce Essay

Business Ethics And Social Responsibility Commerce Essay Generation of maximum returns for its stakeholders is the ultimate purpose of any business establishment but over the last decade, there has been an ongoing dialogue about the role of business as responsible stewards. Though profit motive for any organization is well understood and accepted, people do not accept it as an excuse for ignoring the basic norms, values, and standards of being a good and responsible citizen. Standards, Norms Procedures and expectations to define values of responsible business conduct are emerging worldwide. In the past few years, ethical problems in business have been reported several times by leading newspaper and magazines. The term ‘ethics’ is mainly used to refer to the rules or principles that define the right and wrong conduct. According to Clarence D. Walton and La Rue Tone Hosmer, â€Å"business ethics is concerned with truth and justice and has a variety of aspects such as the expectations of society, fair competition, advertising, public relations, social responsibilities, consumer autonomy, and corporate behavior in the home country as well as abroad.† Practically speaking it can also be considered to be a value system which is â€Å"concerned primarily with the relationship of business goals & techniques to specifically human ends†, It also means viewing the needs & aspirations of individuals as a part of society. In the present day scenario it is one of the major task for the management to inculcate values & impart a sense of business ethics to the employees and organization, Managers, especially top-level managers, are responsible for creating an environment that fosters ethical decision-making in organization. Theodore Purcell and James Weber suggested three ways for applying and integrating ethical concepts: 1. Establishing of a policy regarding ethical behavior or developing a code of ethics in organization 2. An ethics committee in organization to resolve ethical issues 3. Teaching busine ss ethics and values in management development programs. These concepts should be applied taking into consideration the Social, Cultural, Political and Economic factors that affects the state of personal value and business ethic within different industries. Types of Managerial Ethics Archie B. Carroll, an eminent researcher, identified three types of management ethics, depending on the extent to which the decisions were ethical or moral: moral management amoral management immoral management Types of Managerial Ethics 1) Moral management Moral management strives to follow ethical principles and doctrines. Moral managers work to succeed without violating any ethical standards. They seek to succeed remaining within the bounds of laws. Such managers undertake such activities which ensure that though they may engage in legal and ethical behavior, they also continue to make a profit. The law should be followed not only in letter but also in spirit. Moral managers always seek to determine whether their actions, behavior or decisions are fair to themselves as well as to all other stakeholders involved. In the long run, this approach is likely to be in the best interests of the organizations. 2) Amoral management This approach is neither immoral nor moral. Amoral management simply ignores ethical considerations. It is broadly categorized into two types – intentional and unintentional. Intentional amoral managers do not take ethical issues into consideration while making decisions or while taking any action, because in their perception, general ethical standards should only be applicable to the non-business areas of life. Unintentional amoral managers, however, do not even consider the moral implications of their decisions or actions. Amoral managers pursue profitability as the only goal and pay very little attention to the impact on any of their social stakeholders. They do not like to interfere in their employees’ activities, unless their behavior can le ad to government interference. The guiding principle of amoral management is – â€Å"Within the law of the land, will this action, decision, or behavior help us make money?†