Ethics and Social Responsibility 1

Ethics and Social Responsibility David Bacon Managerial Finance I/FIN475 Professor Jim Eads CPA, MST, MSF October 13, 2007

Ethics and Social Responsibility 2 Ethics and Social Responsibility Ethics and Social Responsibility Paper this paper will discuss the roles that ethics and social responsibility play in todays business world. I then will discuss the context of ethics and responsibilities involved in the following statement: Strict government regulations are necessary to make companies behave ethically. Finally, I will examine what the impact government regulations have and why I may agree or disagree with the statement "Strict government regulations are necessary to make companies behave ethically." The main point is that the corporate ethical behavior as it relates to government regulation is that the government provides driving force for any changes and often will establishes the minimum standards. In addition, the private sector they conform to these standards. The government does not have to have as close involved within the corporate activity, however, there needs to be strict regulation this will push the corporate entity off the block to make gains within there ethical behavior. Ethics and social responsibility is very important to business because it gives corporations credibility. When a corporation has credibility, the consumers will trust the corporation and will tend to buy from the corporation more regularly. Several employers want many guidelines to help them with their decision making process, so the experts have come up with several approaches. They are The Utilitarian Approach, The Rights Approach, and The Common-Good Approach. It seems that Corporate Social Responsibly have an unlicensed marriage to ethics. The main idea behind ethics is that it reach and then

Ethics and Social Responsibility 3 surpasses the call of duty, and the Corporate Social Responsibility is about doing more than just making a profit Business ethics is a form of the art that applies to the ethics that examines ethical principles and moral or the ethical problems, which can arise in the business environment. The new focused marketplace of the 21st century, there is an increasing demand for more ethical business processes and actions. At the same time, there is pressure to industry, to improve business ethics through new public initiatives, laws, and government regulations. Business ethics can be both a standard and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily standard. The quantity and range of business ethical issues reflects the degree in which the business perceives to be, they are at odds with non-economic social values. Historically, in the 1980s and 1990s the interests in business ethics changed dramatically, in both the major corporations and the academic. For example, most corporate websites will emphasis on there commitment to promoting noneconomic social and ethical values under a many headings for example ethics codes, social responsibility charters. In many cases, corporations have redefined their main values in the light of business ethical considerations. The concept ethics and social responsibility has come to mean various different things to various different people, but generally, it is coming to know what it right and wrong within the workplace and then they do what is right this is concerning effects of products/services and in relationships with stakeholders. One need to explain that attention to business ethics is critical during times of

Ethics and Social Responsibility 4 fundamental change; times much like those, which are now facing businesses, both nonprofit and for-profit. In times that there is fundamental change, the values that corporation previously took for granted, corporation now question them. Consequently, there is no clear moral compass to guide leaders through complex dilemmas about what is right or wrong. Attention to ethics in the workplace sensitizes leaders and staff to how they should act. Perhaps most important, attention to ethics in the workplaces helps ensure that when leaders and managers are struggling in times of crises and confusion, they retain a strong moral compass. However, attention to business ethics provides numerous other benefits, as well (these benefits are listed later in this document). "The government's solutions to this point have been counter productive at best. Prosecutor tactics have proven repeatedly to be an ineffective solution in curbing business impropriety and this has only served to punish the innocent repeatedly. The taxpayers pay the prosecution, the employees pay with loss of income, and the public pays for the corporate lawyers through increased cost in goods and services. To keep a corporation ethical to be more effective less costly system of checks and balances must be implemented." It seems that a person cannot turn on the television today without seeing yet another business or businessperson that is being investigated by the United States Securities and Exchange Commission (SEC) or sitting before a Congressional panel trying explaining their actions. This paper has examines several questions, which should ask when discussing Congressional scrutiny.

Ethics and Social Responsibility 5 At what price should the United States Securities and Exchange Commission (SEC) and Congress try to cleanse the business world of shady deals? The Ethics and Social Responsibility is everyones business in todays business world. Finally, by examine what the impact government regulations have I believe that I may agree with the statement except that the government needs good laws to enforce this problem yet not punish the wrong business.

Ethics and Social Responsibility 6 Reference Block, S.B., & Hirt, G.A. (2005). Foundations of Financial Management, 11th Edition. New York. McGraw-Hill/Irwin