Responsible Enterprise And How It Effects Almost Every Business

The Responsible Company is written by Yvon Chouinard who is founder and co-owner of Patagonia and Vincent Stanley who was a sometimes Patagonia employee. In their book, they raise the point that no companies could be found in this world, but they are doing the best job to protect their stockholders. This book is really helpful for those people who wants to become more successful in their business career life. It shows us what the company has studied and what strategies has used although the book is not really about the story of the Patagonia company.

What is ethically responsible management? How can a corporation, given its economic mission, be managed with appropriate attention to ethical concerns? These are central questions in the field of business ethics. There are two approaches to answering such questions. The first one is Milton Friedman’s shareholder theory of management and the second one is Edwards Freeman’s “Stakeholder” theory of management, two different views about the purpose and aims of a business.

Many believe that business entities should have an ethical duty to be socially responsible, to work towards increasing its positive effects on society while decreasing its negative effects. Many organizations look for opportunities to be socially responsible while also creating shareholder wealth.

When an organization partakes in “proactive behavior…for the benefit of society,” it is deemed as socially responsible (P. 155). However, prior to labeling a organization as socially responsible, it is important that we first identify what specific elements of proactive behavior constitute a socially responsible business. To begin, for an organization to be considered socially responsible on the highest level, it must take a proactive approach to doing business. This is defined as “[taking a] approach to social responsibility in which an organization goes beyond industry norms to solve and prevent problems” (P.155). In addition, it is standard for a socially responsible organization to incorporate a larger scope of stakeholders, to include external stakeholders, in their business decisions to create positive externalities, and mitigate negative ones, to benefit society as a whole.

In the world today, the meaning of business and its relations to society has evolved greatly from the industrial revolution and before. Before the industrial revolution, most business was conducted on a micro scale, with the relationship between demand and supply being much closer and more integrated than it is today. During and directly after the industrial revolution era, business became more focused on profitability, and more often than not, the benefits to society were more or less equal to the harm created in terms of labor relations and environmental harm. Today, however, consumers have become sufficiently informed to care about the way in which business conduct their affairs. To maintain good customer relations and profitability, businesses have been obliged to adopt actions that adhere to the concept of corporate responsibility. This means that they must adhere to a certain set of business ethics and customer relations in order to gain the benefit of profitability from these.

Corporate Social Responsibility (C.S.R.) is a theory practiced in the business sphere since fifty years. It refers to the duty of business organizations to adopt certain activities that will benefit the society in some way. Charity, health-awareness campaigns are few examples that a business undertakes to fulfil its objectives of C.S.R. According to this ideal, it is important for various corporations today to undertake such social activities, apart from merely focusing on their objective of profit maximization. But, is it an obligation that is most important than other objectives of business? This thought further leads us to another significant question – In contemporary settings, should corporations be guided by the concept of C.S.R.?

According to World Business Council for Sustainable Development, “Corporate social responsibility is the continuing commitment by business to contribute to economic development while improving the quality of life of the workforce and their families as well as of the community and society at large”. A social responsible company may be defined as a company which integrates and takes in active parts the social and environmental concerns of one’s community and society. Acting in a socially responsible manner is more then just an ethical duty for a company nowadays, it is something that essentially has long term interest in both the company and the community. The motive is to produce economic value for the company but as well for the society as

It is the responsibility of companies today to promote responsible business practices at every level of the company. Business should be conducted ethically and honestly. Companies should also foster environments that promote ethical conduct and comply with all requirements of the law that they fall under. This paper will examine the ethical practices of PharmaCARE. Stakeholders will be identified, and several scenarios will be evaluated and critiqued.

Ethics and social responsibility are important areas within Chipotle Mexican Grill’s business. Both areas have an interactive relationship that plays a role in building profitable businesses as well as a well-rounded community. Ethics refer to sets of beliefs about right and wrong; and business ethics involve the application of these issues in the workplace. The universal ethical standards, which involve trustworthiness, respect, responsibility, fairness, caring, and citizenship, are standards that apply to all people and should definitely be held high within the workplace. Social Responsibility is the obligation of a business to contribute to society. Chipotle’s social responsibility affects

In past years, organizations believed business ethics was only a way of managing compliance of legal principles and adherence to internal regulations and policies. Today the situation is different. Attention to business ethics is on the rise and many companies realize that in order to succeed, they must earn the respect and trust of their employees and clients. Presently organizations are being pushed to better their business performance to stress legal, ethical and socially responsible behaviors. Organizations are held responsible for their actions as demand grows for higher standards of social responsible behavior. With that being said, what are some of the ethical responsibilities companies have with their employees, and why are they

There are two factories and an explosion at each of them: both result in the same cost in damages and casualties, but one was caused by a bolt of lightning and the other by a corroded pipe and a smoking employee. One is considered as an act of God and the other is negligence. After these events occur the only difference is who is responsible and thus who will pay the bill. In the end, responsible actions should have been taken in both cases because when lives and money put in the hands of others, ethical steps should be taken to protect these assets.

Is the deception of consumers worth making a profit? The Ford Pinto, popular car of the 1970s, made a profit off of a vehicle that endangered the lives of hundreds of people. In his essay “Pinto Madness” Mark Dowie, author and Pulitzer Prize nominee, exposed the unethical decisions made by Ford Motor Company. When it came to their customer’s safety and profit for the company, Ford made a decision that led to consequences their customers had to pay the price for. Should the business be held accountable for these actions? In his essay “The Social Responsibility of Business Is to Increase Its Profit” Milton Friedman, powerful economist, discusses what a business should prioritize in the economic system. Friedman declares what a business is responsible for and the guidelines they must follow. Due to Friedman’s view, he would not have condoned the actions and decisions that the executives at Ford Motor Company took.

The expectations of what businesses should be responsible for has changed over time as the consumer’s social awareness has grown. For many businesses, especially those in the United States, change in their approach to corporate social responsibility (CSR) is necessary in order to satisfy customers and to stay competitive. Dannon should communicate to consumers about its Corporate Social Responsibility initiatives because the benefits of communicating far outweigh the risks. The European Union has a history of holding companies to a higher CSR standard which non-US corporate (Danone) requires Dannon to follow.

According to Kenneth w. Johnson (1999-2015) responsible enterprise is one of the most important parts of the market economy. He said it is a responsibility to serve the needs of customers while making sure you make a profit for the owners. However Friedman (1970) stated that business do not have to be socially responsible and they should just concentrate on making the most profit. One of the essential disciplines of responsible enterprise is business ethics, which we will be covering in this report.

What is needed to help ensure that a business is ethical and socially responsible, and why are these essential to a thriving business?