Question

How does a lack of social responsibility and ignoring ethical behavior hurt a business?

Please explain in detail.

Answer 1

Relating Business Ethics and Social Responsibility :

Business leaders and organizations can examine how their decisions relate to social responsibility, which is a general concept that can include social as well as cultural, economic and environmental issues. By integrating business ethics and principles of social responsibility, organizations can make a difference in the world and enhance their reputation.

Some companies have adopted the social entrepreneurship model of business that focuses on applying practical, innovative and sustainable approaches to benefit society. The shoe retailer TOMS is one of the most popular examples of the social entrepreneurship model. For every pair of shoes sold, the company provides a new pair of shoes to children in developing countries.

Another example of combining business ethics and social responsibility is by focusing on benefiting the environment. Forbes notes some of the reasons why Seventh Generation, a Burlington, Vermont-based company that produces and distributes green products, was recognized as the best company for the environment.

• Selling products such as biodegradable, vegetable-based cleaning products, chlorine-free tampons and paper towels and natural lotion baby wipes.
• Developing an employee bonus program that awards workers who figure out how to make the company’s goods even more sustainable.
• Having an LEED-certified building where more than a quarter of the company’s fleet is comprised of low-emissions cars and more than a quarter of the energy burned in manufacturing its products comes from renewable energy.

Business Ethics And Corporate Social Responsibility :

Corporate social responsibility is similar to ideas of social responsibility for individuals and businesses. Some sources provide similar definitions for the two terms, but corporate social responsibility is a specific business approach that began in the 1950s and 1960s, with definitions expanding in the ensuing decades.

There is no universally accepted definition of corporate social responsibility, according to the Journal of Business Ethics, but two features can be used to differentiate corporate social responsibility from other activities: 1) They partly or entirely benefit society and/or general interests; and 2) they are not obligated by law. Other aspects of corporate social responsibility can vary.

• Domains include environmental friendliness, community support, local products promotion, fair employee treatment and more.
• Stakeholders include employees, suppliers, customers, communities, the environment, investors and regulators.
• Policies and activities include cause-related marketing (marketing programs that combine sales objectives and helping worthy causes), sponsorship (connecting worthy causes to a brand or organization for money) and corporate philanthropy (charitable donations).

Some organizations engage in corporate social responsibility activities for intrinsic reasons: to help out and make societal contributions. Another motive is extrinsic, which relates to a company expecting financial or other benefits for socially responsible behavior. Many studies reflect positive organizational outcomes for corporate social responsibility activities, the Journal of Business Ethics reports. Finally, a third motive for corporate social responsibility activities is meeting societal expectations and stakeholder pressure.

Applying Ethics to a Career in business :

Business professionals should have a solid grasp of ethical practices for their careers. Grace College’s business programs are rooted in sound moral and ethical approaches to business, with a focus on Christian servant leadership.

Grace’s fully online Bachelor of Science in Business Administration focuses on the skills and tools graduates need to adapt and excel in the business world. This GOAL (Grace Opportunities for Adult Learners) program is designed for students balancing personal commitments while pursuing an education. It is priced substantially below most degree completion programs and can be completed in as little as 16 months.

Grace’s fully online Master of Business Administration provides students with a strong foundation in marketing, accounting, finance and human resources as well as coursework in entrepreneurship. This program can help graduates pursue leadership opportunities in business...