With the ever increasing spread of social media, news travelling faster than thoughts and businesses stepping in the shoe of globalization, maintaining a decent reputation amongst all types of stakeholders is essential. What has changed in the 21st century is the involvement of society in the decisions made by businesses since right to information (RTI), freedom of speech and many other laws have given freedom to give a voice to any decision made by the government or businesses. With this change, businesses have adapted to maintaining their relationship with the society and other stakeholders with the support of business ethics.

Ethics and business? Together? Doesn’t sound very “businessy” since businesses have been known to exploit various stakeholders at once. Well that is the past since business ethics has come into the role where businesses act and make decisions ethically. Business ethics has been a crucial department in every growing business because building upon an ethical foundation fosters a healthy relationship between the business and community and at the same time it helps the management team and employees work with integrity and honesty thus boosting the overall business morale.

Corporate Social Responsibility (CSR) is an act  towards the community done by businesses in order to show concern not only for themselves but the surroundings around them. CSR and Business ethics are closely knotted against each other since businesses not only look towards profit maximization but also towards spending their own funds for the welfare of the community through which their image of being greedy breaks down. Tata group, India’s biggest conglomerate and one of the biggest multinational has believed in business ethics and CSR since Tata was founded. With their history of showing concern and acting towards the benefit of the whole society through building schools, hospitals and research centers has made them the most reliable and trust worthy business in India. With this said, it can clearly seen how acting ethically is an important strategy in the long term to build a positive image of itself.

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WEBSITES which helped

  • http://www.investopedia.com/ask/answers/040815/why-are-business-ethics-important.asp
  • http://www.thehindubusinessline.com/opinion/india-lacks-business-ethics/article5093688.ece
  • http://timesofindia.indiatimes.com/business/india-business/Tatas-spent-Rs-1k-cr-on-corporate-social-responsibility-activities-in-FY14/articleshow/38444133.cms