Ethics in business and corporate social responsibility helps in the process of business administration; business ethics refers to a form of applied ethics or professional ethics that not only examines ethical principles and moral but also the ethical problems that can arise in a business environment. It, therefore, applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations for business success and growth. Additionally, Corporate social responsibility is a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public. Moreover, it helps a company to know the kind of impact they are having on all aspects of society, including economic, social, and environmental.
ethics in business and corporate social responsibility
THE COMPONENTS OF CORPORATE SOCIAL RESPONSIBILITY
There are four main components of corporate social responsibility. Economic social responsibility involves the profitability of a business and its sustainability. Also, it entails the transparency of a business with all stakeholders regarding the financial status of a business. Legal social responsibility involves abiding by the laws of business. This ensures the building of the consumers’ trust hence business success and growth. Ethical social responsibility, which involves ethics in business ensures ethical workplace practices that improve the business environment. Lastly, discretionary social responsibility ensures the company uses its time and resources in community building. Besides, it provides an opportunity for employees to engage in various activities.
the components of corporate social responsibility
THE IMPORTANCE OF ETHICS IN BUSINESS
Ethics in business is important in the following ways. It ensures employees make better decisions in less time with business ethics as a guiding principle hence increases productivity and overall employee morale. It also brings about honesty and integrity among business stakeholders, therefore, pushes for business success and growth. Nevertheless, it ensures corporate social responsibility whereby, the ethical operation of a company is directly proportional to profitability in both the short and long term. Moreover, ethics in business improves a business’s reputation in the surrounding community and other businesses hence attract investors to buy stocks or otherwise support the business’s operations.
the importance of ethics in business