Ethical Issues Affecting Businesses Today Term Paper

Ethical Issues Affecting Businesses Today - Term Paper ExampleThere exists a direct correlation between ethics and personal line of credites, with the yen-term benefits associated with the interaction between the two being sustainable businesses. To understand what constitutes a responsible business, it is essential to consider morally satisfactory business practices. In this regard, a responsible business behaves ethically and ethics are the moral precepts that determine the acceptable code of fashion (Riley 2012). The responsible business practice entails making decisions that are both legal and morally sound, basing on general standards of acceptable behavior in society. The other notions that work in juncture with business ethics include corporate social indebtedness, corporate responsibility, sustainable business and social enterprise, whereby it is hardly possible to separate these concepts, as they are exceedingly interrelated. This is because an ethical business must b e socially responsible, and similarly, a socially responsible business must be ethical therefore, these concepts are interlinked. Social responsibility is a broad concept as it covers the relationship between businesses and all the stakeholders involved and this relationship is defined with ethical principles and obligations. Every business is obliged to unravel responsibly, and this entails doing what is morally acceptable and right all times this calls for the establishment of principles that act as guidelines for the business. These principles define how the business relates to other stakeholders in the society such as consumers, suppliers, the surrounding communities and the government at large. Businesses must be careful to maintain good relationships with all these stakeholders for if they have to operate within the financial markets this has both long term and short-term benefits. Businesses that are able to maintain such effective relationships are thus said to be socially responsiblea socially responsiblebusiness meets itsobligations to society. For instance, businesses are expected to treat their employees with the utmost respect especially concerning employee privacy and protect employee rights such as entitlement to decent wages (Patil 2012) businesses that expose this obligation are bound to face criticism. Many businesses today have signed the UN Global Compact that obliges them to be socially responsible especially concerning environmental protection, human rights and labor standards (From Fringe to mainstream 2012). There has been a global drive to help firms become more socially responsible, especially with the initiatives of B- Lab, a non-profit organization that helps clannish firms be socially responsible (B Labs Bart Houlahan 2012). Corporate responsibility entails being accountable to the society in general, by engaging in intelligent business practices that promote the wellbeing of the world at large. In this case, businesses must ta ke responsibility for their actions, as a form of responsible business behavior as opposed to being insensitive and unresponsive. Both excellent and awful corporate responsibility influences not only on the local communities of operation alone also on the world at large. For instance, corporate responsibility has socio-economic and environmental effects in the world, and these can be either positive or negative.