Question

Can a firm (company) be socially responsible and not ethical, or ethical and not socially responsible?

Answer 1

No, A firm should be ethically as well as socially responsible. It has its duty for ethics and society.

Ethical responsibility- Ethics are the values and principles. A company should follow them and work under an ethical culture. Ethical responsibilities are as following:

1. A company should present true and fair picture of their financial statements so that investors and creditors can take investing decision in the company.
2. Company should not do forgery and window dressing in the financial statements, it should also avoid material misstatement.
3. Company should not indulge in any illegal activities, it should follow the accounting principles and standards. It should disclose the figures that are required to disclose.

Social responsibility- These are as following:

1. A company should take care the environmental factors, it should adopt the campaign like "GO GREEN", "SAVE WATER", "SAVE EARTH" etc. Company can arrange Marathon for creating awareness about these initiatives.
2. Companies should donate some amount as charity to the orphanage, old age home, education of poor and food and shelter for the poor women and children.
3. Company should try to make its stakeholders happy, stakeholders are the people who are directly and indirectly related to company, these are; Shareholders, creditors, employees, public, Government, society etc.