Its is always easy for morally upright companies to attract and keep customers, get the best of employees, etc because they are trustworthy. Companies with blemished ethical behaviour usually make investors to be wary of them and also endure degenerating customer base. This leads us to the question thus:
How can individuals, organizations and government agencies encourage a business with good ethical and socially responsible environment?
Although ethics and social responsibility are a bit similar in the sense that they are both needed for a business to boom, yet they are very different from each other and so there is the need to distinguish these two terms even though they are frequently used interchangeably.
Meaning of business ethics:
To be ethical means taking actions based on principles or rules that are morally upright/right in the society I.e obeying them. Therefore we can say that business ethics are those principles or rules that are right and applaudable in business context. Being ethical in business doesn’t just mean obedience to applaudable and applicable rules, principles or regulations. It also involves honesty, fair or healthy competition, running the business without harming others, putting the company’s interest above individual interests, etc. Business men and women need to be discreet and have personal conviction to always make right choices and also do what is right no matter how difficult or disadvantageous it may seem.
Meaning of social responsibility:
The social responsibility of a business is its duties with regards to it’s stakeholders such as owners, employees, customers, and the community in which the organization is situated.
How to recognize an ethical organization.
An organization with good ethical environment can be recognized by the following; treating employees, customers, investors and the public fairly, communication of core values and principles to all its members, holding every member accountable for his/ her actions, etc. Employees usually have an idea about the ethical environment of the organization they work in. Employees at companies