Business Ethics and Social Responsibility

The term 'business ethics' refers to a set of moral values that guide members of business society in their actions. Businesses exist within the normative system and thus are subject to ethical standards whether they want to be or not. In general, companies try to follow ethical standards in order to establish trust with their customers and avoid punishment from the law for deviating from these standards. For example, few people would do business with a company who has been shown to exploit child labor.

Business ethics is important because it protects consumers, employees, and other stakeholders involved in a business venture. It also dictates how businesses interact with each other through competition.

Social responsibility emphasizes the impact a business has on its local and global community while considering the long-term and short-term impacts. This allows the company to maintain a positive relationship with its stakeholders and society as a whole.

Business ethics and social responsibility are tightly linked because businesses must operate in a manner that is effective, efficient, and ethical.

Three common types of business ethics include consequentialist, deontological, and virtue theory. Consequentialist theories focus on the positive results or ends of business actions such as increased profits or happiness for everyone involved with the business transaction. Deontological theories focus on specific rules rather than the positive outcomes of those actions such as whether an action is legal or not. Virtue theorists believe people should act in accordance with general virtues which will bring about good consequences for all parties involved regardless of their intentions.

For example, consequentialist theories would emphasize that the law should not prohibit prostitution because it reduces rape rates and improves worker safety. Virtue theorists would say that an individual who refuses to pay taxes is unethical because he or she is depriving the government of the funds they need. We will explore all three types in greater depth later in this article.

Business ethics and social responsibility are forces that define a company's relationship with its stakeholders and society as a whole, establishing a positive reputation for itself while improving conditions for everyone involved. Social media has made these ethical relationships more prevalent than ever before due to the ability for anyone to openly comment on an organization's practices.