Role of Ethics and Social Responsibility
August 1, 2013
Professor Marina Skinner, Doctoral Candidate, MBA
Role of Ethics and Social Responsibility for the management of an organization is to monitor the commonly held opinions about behavior in a society. Consumer assurance in the way that businesses function has had a negative impact by recent scandals and collapses, such as American International Group, and Bank of America. Therefore, it is imperative for businesses to contemplate, including ethics and social responsibility into their strategic planning.
Ethical and Social Responsibility
Organizations have many responsibilities that need to be in perfect balance in order for an organization to become successful. The responsibilities of an organization include: economic, legal, and social responsibilities (Wheelen & Hunger, 2010). Emphasizing the ethical principles for the way of conducting business should be the primary focus of management.
Legal responsibilities are the set of rules and regulations that the governing have made them mandatory to adhere to. An example of legal responsibilities occurs when companies hire employees and promote them sole on credentials oppose to discrimination based on race, religion or gender. More companies are requiring employees to attend training that focuses on conduct, which also include discussions on company policies, and legal issues.
The economic responsibility of a business is to create value. Employment generation is incidental to the process of creating value (Bhattacharyya, Janu). A company generates value as soon as it is justifiable and produces cash flows over a lengthy period. Businesses should be loyal to the community, but the shareholders are equally important....