Business Ethics Essay

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A business is not one that lives in isolation; it can be an integral part in a community’s success or demise and has social responsibilities to; the community, stakeholders, and anyone who may be affected by a company’s actions. Corporate social responsibility is a term that is never used lightly and is a key role in the development of a successful and morally healthy business. “The objectives of a corporation are to outperform its competitors, presumably through preferred competitive strategies” (Joseph Heath 123). There are three main models by; Freeman, Friedman and Heath discussing corporate social responsibilities and all have distinct differences between their moral obligations, and the way they perceive business should be ran in a…show more content…
Friedman’s argument that a companies only social responsibility is to make money is extremely flawed and immoral. Most people would agree that the main goal of a company is to turn a profit, and to be sustainable, this Friedman is correct in saying. Where he starts to be mislead is when he does not think that there are any social obligations of a company. Friedman says that businesses must “increase its profits so long as it stays within the rules of the game” (Milton Friedman 65). What are the rules of the game, many would say it is the law, correct? Would child labour be considered within the rules of the game for a North American based company? Most people would agree that child and slave labour is wrong and against the law for these companies. What if child and slave labour was used in a different country? If a company had product made in a foreign country and imported back to North America, this would be okay because it is legal in the manufacturing countries? This is something that Friedman overlooked when coming up with his argument, saying that you must stay within the rules. This situation would be considered in the rules but is it morally and ethically correct? They are maximizing profit, but are supporting slave labour and also moving North American jobs into other countries. An executive must have the power to intervene in this situation
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