Ethics is defined as the principle a group should follow that brings benefits. Yet this concept is too vague as it does not clarify to whom should corporations benefit. The two key standpoints under the concept are social responsibilities and corporate responsibilities. The corporate responsibility for businesses is maximizing profit for its stockholders; however, it can get into conflicts with social responsibilities. Social responsibilities aim to benefit the society as a whole from sustainability, environmental, or health aspects. It does not necessary mean making the most profit, but it definitely means making profit at the lowest cost of the society.
A news article on Coca-Cola Greenwashing reported, the Plant Bottle KO has been using is actually nothing more than a fancy name. There is no document supporting whether it is environmentally friendly. Such misleading behavior is known as ‘greenwashing’. The reason why businesses do this is to set a good image and to charge higher on its ‘green’ products. Coca-Cola is not violating any of the laws by such behavior, yet cheating its own customers is unethical. The current regulation is vulnerable and not effective enough to protect the third parties, which include customers, stakeholders, environment and sustainability. The social welfare is under the threats of corporation’s unethical behavior. Sometimes a corporation focus too much on the objective of making enough profit as returns to its shareholders, and neglect the importance of integrity.
So the business ethics, or corporate social responsibilities, should be beyond the basic goal of generating returns to shareholders at the least cost of society. Companies should work for making the greatest benefits to the society and its well-beings.
