The Importance Od Ethics And Social Responsibility

3247 Words13 Pages
Ethics and social responsibility are very important irrespective of the community in which you conduct business in. All stakeholder groups are benefited from the use of ethical behavior. For one, stock holders benefit as the financial numbers used to evaluate and engage in business activities are legitimate. These numbers will therefore provide a solid foundation in which to evaluate the merits of a particular activity such as a merger, acquisition, dividend, stock buy back and so forth. Consumers benefit as they are not mislead in regards to purchasing decisions. These builds trust as the brand will become synonymous with ethics further expanding the market share of the company. This will then benefit the shareholders even further as more consumers purchase products from this trusted company. The community benefits as the company contributes to the community through the profits garnered from sales (Business, 2011). As such, all stakeholder groups benefit and flourish. Social responsibility is no different in this regard. Companies, especially during tough economic circumstances want to demonstrate their commitment to the communities in which they operate. Usually, these commitments translate into high sales figures and better customer loyalty. Social responsibility also engages associates on a personal level as they can volunteer and contribute to causes pertinent to their beliefs. These increases employee satisfaction which ultimately helps improve productivity.
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