International Business Essay

786 Words Jun 14th, 2014 4 Pages
Ethical and Social Responsibility in Business

1. Define business ethics. How ethics affects business?

Business ethics is the study of proper business policies and practices. Ethics affect business in almost every aspect (financially, socially, etc.). The lack of ethics in a business can have catastrophic results. For example: poor professional and ethic behavior in a company will not only affect their business financially, but will also create a bad reputation for the company. There has to be trust between the company and the clientele. If business is done with ethics principles in hand, the public will be satisfied and, therefore, the company will be as well.

2. Define Social Responsibility. How important is
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3- Functional area ethics: happens in all functional levels of a company.

4. Explain the different views of Social Responsibility.

According to the traditional concept of business, a firm exists to produce quality goods and services, earn a reasonable profit and provide jobs. •Economic view: the economic model of social responsibility holds that society will benefit more when business is left alone to produce and market profitable products that society needs. To the manager who adopts this traditional attitude, social responsibility is someone else's job. After all, stockholders invest in a corporation to earn a return on their investment, not because the firm is socially responsible and the firm is legally obligated to act in the economic interest of its stockholders. •Socioeconomic view: some managers believe they have the responsibility not only to stockholders, but also to customers, employees, suppliers, and the general public. It places emphasis not only on profits but also on the impact of business decisions on society. Recently, increasing numbers of managers and firms have adopted the socioeconomic model and they have done so for at least three reasons. First, a business is dominated by the corporate form of ownership and the corporation is a creation of society. Second, many firms are beginning to take pride in their social responsibility records. Third, many

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