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Ethics and it’s Relation with Business’

Ethics and it’s Relation with Business’ by AudreyPopa

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How much “good” does a company have to do to be deemed socially responsible? As business students, we are told time and time again that a company which is doing best for itself, should also be creating good for their communities and shareholders. Freeman’s Stakeholder Theory is just one example of how this idea is explained. As students and professors this concept would be an ideal thought to keep us motivated in our professions and every day lives but realistically, we all know this isn’t always the case. Whether it be ethical issues inside of the company, or issues with their products and how they create them, ethics will always constrain and create issues for companies. But when looking at cooperations and their roles in society, some people feel that they are often overly scrutinized. The Economist once stated that “If the business of business stop being business, everyone will lose.” So at what point is a business just good enough to keep profit and consumers, but not too good to lose their focus of profit? The reason why ethics is an important “fad” for business’ at this point in time is because if they do not maintain a certain “ethical level” they can risk losing customers and talented employees. So at the end of the day, a generalized sort of ethical scale is good for companies, because not only can they be considered “ethical” towards the public, but they can do so and gain consumers and talent.

Source: http://www.economist.com/node/10533974

Story written by AudreyPopa

 

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