Question

The textbook discussed several regulations to keep businesses in-check such as the Dodd-Frank Wall Street Reform, Consumer Protection Act, and the Sarbanes-Oxley Act. Discuss the differences between mandatory ethical requirements verses voluntary ethical compliance. Why should businesses go beyond what is regulated if there is a cost associated with acting in an ethical manner? 1-2 paragraphs

Answer 1

Mandatory ethical requirements for business are defined by law.Following regulation regarding environment also the minimum wage policy and restrictions imposed regarding insider trading and collusion.Business are expected to follow certain ethics, maintain trust of government as well as Moreover they mandatorily require to follow fairness proper good behaviour and maintain a standard of their own.these principles ethics values and norms will guide the business and its future.there are 8 ethical principles of business:
1) Justice
2)Beneficience
3)Normalefficience
4) Accountability
5) Fidelity
6) Autonomy
7)Veracity
8) Fairness
These are mandatory for business.
Whereas voluntary Ethical compliance refer to those which are at option to the business.they themselves by their will decide to comply by the norms.these ethics follow 5 codes:
1)Integrity
2)objectivity
3) professional competence
4) confidentiality
5) professional behaviour.
These principles are very important continuing maintaince of unity also harmony and paying honour.
Acting in an ethical manner has many benifits whereas business go beyond what is recommended.1)these yield higher revenues which creates demand from consumers with a positive support.
2)brand awareness along with business awareness tends to improve.
3) employees are motivation and new employees are recruited.
4)new sources of earning