Social Responsibility and Business Ethics
Business ethics define acceptable conduct and set the standards for managing an organization. Ethical behavior in a leader is considered to be the most important characteristic. Businesses who ethically conduct themselves carry on moving their morals, beliefs, and values forward to the customers and employees. A clear sign of it can in community centers, local schools, and other groups. You might want to read Management VS Administration
The use of ethics in business means making an impact, which can create a noble image in society. Associating business ethics with social responsibility makes sense as the two can be related when applied properly. A lot of customers conduct extensive research on the company’s ethics and business values before relying on them that makes business ethics a part of commercial success.
Ethics and Business Ethics
Ethics is a system of moral principles. It draws the line between what is right and what is wrong. Businesses that follow ethical practice value the presence of integrity and honesty in their employees. Unethical means are socially and legally unacceptable. Some businesses are concerned about the damages done by it to the environment. Business ethics means performing all business activities under the policies and practices deemed appropriate. It implies only in individual practice, but in the entire organization. Business ethics include:
Being ethical while managing a business means being truthful in every interaction and avoid any form of deception. Being dishonest hampers the goodwill that can’t be fixed easily.
The presence of ethics in business requires you to be worthy of trust. Commit to your words and forthcoming with delivering information. Keep away from creating any sort of misconception.
Ethical businessmen show loyalty to their clients and employees, they show devotion to their work and do not use personal information as an advantage.
Being ethical asks that you show conviction and stand by what you believe is right. People with integrity in business do not sacrifice their principles at the cost of anything. They’ll take business decisions that they believe are right even if there are others against them.
Another trait for being ethical is showing respect to the law and order. There are laws set by the constitution both inside and outside business practice. Strengthen your ethical practice by being lawful.
Ethical businessmen treat people with respect and dignity regardless of their age, sex, gender, nationality or race.
When you’re managing an organization, showing kindness and benevolence doesn’t mean you’re weak. It only helps you to build a better relationship among your employees who see you as a helpful manager.
Ethical businessmen accept the responsibility of management and hold themselves accountable for their decisions.
The business comprises an organization’s values, principles, and norms that may originate from individual, organizational rules of conduct or from the legal system that sets the standards of how to behave in a business environment.
Social responsibility is an ethical theory for individuals to fulfill their civic duties. Organizations are actively focusing on social responsibility, whether it is protecting the environment, providing better facilities for the underprivileged or chaperoning for women’s rights. These responsibilities can execute through various processes including taking actions for community development, raising awareness, working towards people’s betterment and the society, etc.
Companies with effective social responsibilities are successful in building a positive brand image and attracting more customers and shareholders. Along with that, social responsibility in business can empower employees to use organization resources which are at their disposal to do good for themselves. This sort of empowerment and encouragement from other socially responsible programs can boost confidence in employees leading to better productivity. These companies who are socially responsible can cultivate positive brand recognition in society, increase customer loyalty, and attract top-tier employees.
Ethics and Social Responsibility
Many regard business ethics and social responsibilities as the same concept. But social responsibility is an aspect of business ethics. Business ethics consists of social responsibilities that business is supposed to towards its community, responsibility towards the shareholders and investors, stakeholder protection and the fundamental practices of the company. Having business ethics is important for maintaining public image and investments.
As for social responsibilities, it is said to build better internal and external relationships by bringing consumers and producers closer. The social responsibility of business takes into account all that a business does or does not do to solve the problems of society.
Ethics and social responsibility in business indicate how businesses respond to concerns about the environment and laws associated with it and tell us about their ethics or commitment to doing what is right. When running the business, enforce these policies for better practice of ethics and social responsibility:
- Decide fixed hours of work for the employees, leave room for flexibility if possible
- If you ask your employees to do overtime, pay them for those extra hours
- Minimum wage should be the number fixed by the government
- Grant your employees holidays and vacations
- Give equal amounts of wages and salaries to male and female workers
- Before terminating someone, send them a notice of termination of employment
- Arrange severance payment
- Conduct employee benefit plans
Decisions that are driven by business ethics impact the lives of employees and consumers. Try to consider the lives of those people before taking any step or enforcing any rule.
To conclude, an ethical way of running a business can bring benefits to the organization as well as the business. Whereas unethical practice in business can have the opposite effect on your customers and can drive them away.
False advertising, harsh treating of employees, ignoring safety concerns and disregarding protecting the environment can result in your organization’s reputation being tarnished. Which can cause your business to face losses and even legal notice? By integrating business ethics with social responsibility, you can make a difference with your organization in society and motivate others to do the same.