Business Ethics & Social Responsibility

 In the world of business, there is the possibility of choices being made that may cause strife or deceit. This entails business ethics and social responsibility. In chapter 2, we read the first paragraphs about the Enron situation as well as Bernie Madoff and his Ponzi scheme. I am sure there are many more issues that have arrived due to the nature in which ethics is applied in the business world. Excerpt from the text states “business ethics is the application of ethical behavior in a business context” I think having a sense of strong morals will help a business flourish and survive the changing market. I have not heard about social responsibility but I can get the gist of the understanding that it means we have a duty to be accountable for how we act, talk, etc in terms of representation as an employee, manager, etc. we are to act fairly, using the golden rule and taking responsibility for your actions. As I continued my reading I found this excerpt very pertinent for the future generations as well as what we face in the current climate. “The next generation entering business—which includes most of you—will find a world much different than the one that waited for the previous generation. Recent history tells us in no uncertain terms that today’s business students, many of whom are tomorrow’s business leaders, need a much sharper understanding of the difference between what is and isn’t ethically acceptable. As a business student, one of your key tasks is learning how to recognize and deal with the ethical challenges that will confront you.” 

As I am hitting my years here on earth, I look back and see a huge transition between baby boomers, and the generations in front of them. If we are not wise, we may fall into the perils of immoral, and unethical behaviors. A business cannot surpass the setbacks that unethical choices of which will take away opportunities for success and longevity. I find it true as I witness it everyday at my job. The choices I make will either lift you up or knock you down. I know the way we react to these type of dilemmas we become experienced in how to overcome them. The (5) steps introduced are great points in how to deal with them. 

1. Define the problem, and collect the relevant facts. 

2. Identify feasible options.

3. Assess the effects of each options on stakeholders.

4. Establish criteria for determining the most appropriate action. 

5. Select the best option based on the established criteria. 

I learned about ethical decisions (right-versus-wrong) where there’s a right (ethical) and wrong (unethical) and when a mistake is made there is the terminology of an ethical lapse. The official definition of social responsibility is from the excerpt “Corporate social responsibility refers to the approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions. ” I know that we may feel like we are responsible for the choices of others when it should be taken as how we influence those around us. If we choose good, most likely your neighbor will choose the same. The same goes to our leaders - managers and/or supervisors. 

It is interesting to learn about the stages of Corporate Social Responsibility so I included it in my post today. 

1. Defensive. When companies are first criticized over some problem or issue, they tend to take a defensive, often legalistic stance. They reject allegations of wrongdoing and refuse to take responsibility, arguing that fixing the problem or addressing the issue isn’t their job.
2. Compliant. During this stage, companies adopt policies that acknowledge the wishes of the public. As a rule, however, they do only what they have to do to satisfy their critics, and little more. They’re acting mainly to protect brands or reputations and to reduce the risk of litigation.
3. Managerial. When it becomes clear that the problem won’t go away, companies admit that they need to take responsibility and action, so they look for practical long-term solutions.
4. Strategic. At this point, they may start to reap the benefits of acting responsibly. They often find that responding to public needs gives them a competitive edge and enhances long-term success.
5. Civil. Ultimately, many companies recognize the importance of getting other companies to follow their lead. They may promote participation by other firms in their industries, endorsing the principle that the public is best served through collective action.

I did not know this existed so I can post this and reflect on it later in the course.