Concern for Ethical and Societal Issues
An organization that want to prosper over the long term is well advised to consider business ethics, the standard of conduct and moral value governing action and decisions in the work environment. Business also must take into account a wide range of social issues, including how a decision will affect the environment, employees, and customer. These issues are at the heart of social responsibility, whose primary objective is the enhancements of society welfare through philosophies, and action. In short, business must find the delicate balance between doing what is right and doing what is profitable. In 2010, General Motor announced that it would begin full-scale production of the fully electric plug-in hybrid Chevrolet Volt. The Volt will run for 40 miles after its battery pack is charged at an ordinary household outlet. After that, an internal-combustion engine takes over-to generate electricity to power the car farther. Planning to offer the car in limited markets at first, GM hopes to woo buyers with the prospect of owning a car that can achieve an astonishing 150 miles per gallon of liquid fuel.
In business, as in life deciding what is right or wrong in a given situation does not always involve a clear-cut choice. Firms have many responsibilities-to customers, to employees, to investors, and to society as a whole. Sometimes conflict arise in trying to serve the difference need of these separate constituencies. The ethical value of executives and individual employees at all levels can influence the decision and action a business takes. Throughout your own career, you will encounter many situations in which you will need to weigh right and wrong before making a decision or taking action. So we begin our discussion of business ethics by focusing on individual ethics.
Business ethics are also shaped by the ethical climate within an organization. Codes of conduct and ethical standard play increasingly significant roles in business in which doing the right thing is both supported and applauded. This chapter demonstrate how a firm can create a framework to encourage-and even demand-high standard of ethical behavior and social responsibility from its employees. The chapter also consider the complex questions of what business owes to society and how societal forces mold the action of business. Finally, it examine the influence of business ethics and social responsibility on global business.