Sample Essay on Ethics and Social Responsibility

Ethics and Social Responsibility

There is a growing anticipation that businesses ought to carry out their activities in a socially responsible and ethical approach toward every stakeholder. Business ethics denotes adherence to moral principles of management roles while social responsibility signifies the obligations that an organization has regarding its legal accountabilities to the welfare of the society, workers, clients, and other stakeholders, in addition to the environment. The practices of businesses in the realization of their ethical and social responsibility may be gauged via the application of Key Performance Indicators, as well as the Triple Bottom Line, and the monetary, environmental, and social performance of an organization. Social responsibility necessitates businesses to participate actively in social aspects of their endeavors (Chell et al., 619-623). Through the comprehension and application of social responsibility, morality, and ethics in business, managers and workers may be well prepared to realize a sustainable competitive benefit whilst preventing unethical and illegitimate actions. Successful managers must not just be skillful and proficient but have to act innovatively, resourcefully, and uphold social responsibility at all times.


Organizational ethics signify the moral standards that direct the manner in which business is carried out (Turker and Altuntas 137-145). Upholding ethics in business requires differentiating between what is wrong and what is right and seeking to endorse the favorable choice. It is reasonably simple to discover unethical practices in an organization. For instance, it is unethical for businesses to apply child labor, illegally employ patented materials and methods, and take part in bribery. In business, ethics make sure that a given extent of trust is achieved between customers, managers, and different kinds of market stakeholders. In this regard, ethics create a condition where everyone in an organization is treated fairly. The idea of ethics in business came up in the course of 1960s when organizations became more cognizant of a growing consumer-oriented community that expressed concerns about the environment, social grounds, and shared responsibility. In an organization, the concerns of ethics go past just a moral code of conduct; they seek to establish what businesses have to do lawfully to uphold competitive benefit over other companies.

The U.S. Sentencing Commission acts as an independent agency of the judicial division of the federal government of America and is accountable for the expression of the sentencing rules for the federal courts. In line with the United States (U.S.) Sentencing Commission, businesses may be compelled to pay a fine of up to 300 million dollars for the unlawful activities of the workers. The calculation of the fines is done through the multiplication of the base fine with a blameworthiness score. Guidelines for Organizations offer guidance to businesses and support internal management approaches through undertaking penalty and likely restitution in a case where the company’s internal mechanisms fail. Both US Sentencing Commission and Guidelines for Organizations promote ethical conduct and punish unprincipled behavior by businesses. In this regard, businesses that embark on compliance programs to promote ethical conduct can prevent the likelihood of punishment or fines (Nica 9-12).

Managers hold a status of authority that offers them the capacity to take practical steps to improve ethical decision making (Turker and Altuntas 137-145). Managers can undertake such practical steps by ensuring that workers are conscious of the ethical code of conduct and have the chance of asking questions to enable them to enhance their understanding and, consequently, performance. Managers as well assess the conduct of the workers in line with the anticipations and set code of conduct in the organization. They are necessitated to react fast and appropriately in an effort of reducing the influence of suspected unethical behavior. Moreover, managers have to make themselves an accessible resource for advicing and helping workers who experience ethical predicaments or act on suspected ethical violation. It is evident that managers have a vital task in the promotion of ethical approaches in their endeavors and judgments. Over and above adhering to the business’ code of ethics, managers might be required to follow the professional manner of operation in accordance with their roles, accountabilities, objectives, and training. Fiduciary responsibility is an instance of the requirements of most managerial tasks where managers have to make the interests of the stakeholders a priority while protecting them from harm.

Managers have the duty of collaborating with external stakeholders, for instance, suppliers, clients, government representatives, and community agents in an attempt of improving ethical decision making. In such interrelations, managers could be required to clarify decisions and intended actions with respect to ethical deliberations (Nica 9-12). In addition, managers might be accountable for the creation and implementation of transformations to the company’s ethical guidelines and set standards. Such changes might occur in reaction to an internal determination anchored in the experience of workers; for example, additional elucidation might be required concerning the occurrence and prevention of nepotism and unmerited partiality in hiring. Similarly, new rules, changes in public view and concerns, and other external aspects might result in businesses making crucial adjustments.

Social Responsibility

Social responsibility is typically identified as the practice of businesses embarking on active tasks in the social and societal associated grounds. The sustainability advance demands a business to remain economically practicable through valuing every stakeholder. Such approaches of social responsibility and sustainability entail acting ethically and in the best interest of the organization and the community. A business cannot remain viable economically for a long period in a community that is inconsistent and corrupt (Chell et al., 619-623). For effective operation, for instance, businesses require skilled and competent workers. In this regard, formal training and edification of present and future employees are noteworthy and of supreme attention to every organizational manager. Supporting social responsibility is an important and sustainable business approach, particularly in terms of legal, economic, and ethical practices. One of the main advantages of social responsibility is that it results in workers feeling motivated, awakened, and treasured in the success of the company hence making it easy to retain a proficient and skilled labor force.

It is worth noting that social responsibility in business goes past just being engaged in philanthropy. A wide pool of studies establishes that the best means of understanding the social responsibility of an organization is through the views of the stakeholders (Chell et al., 619-623). This means that managers should seek to understand the requirements and values of workers, suppliers, clients, the surroundings, and the entire community. Businesses can uphold the stakeholders’ views of social responsibility through incorporating them in additional to the social, fiscal, and environmental interests into the company’s culture, values, policies, control, and management. The sustainability goal is to generate an overall economic significance for the business and create meaning for the neighborhood through improving the standards of living of the individuals in the society. For instance, a business may operate in a socially responsible way through giving computers to a learning institution in the surrounding community as a way of enhancing its success. In this regard, socially responsible endeavors may boost the reputation of business through influencing the perceptions of the stakeholders and government officials positively. This goes a long way to attracting additional fiscal gains through facilitated brand recognition.

Social responsibility acts as a multidimensional construct that comprises of for subsets that encompass fiscal, legal, moral, and voluntary charitable accountabilities (Chell et al., 619-623). The economic/fiscal accountabilities of a business entail the production of services and goods that the community desires and requires at a cost that can boost the success of the organization and meet its obligations to stakeholders. Social responsibility, in line with the economy, entails numerous concerns that include the manner in which businesses influence competition, stakeholders, customers, workers, the society, and the physical surroundings. The legal accountabilities of organizations are the regulations and directives that they have to follow. The society requires the business to stick to the legal accountabilities to allow the stakeholders to realize what they require from the organization, change inputs into viable outputs (in terms of services and products) necessary to fulfill the wants and needs of the customers and generate maximum profits. In this regard, for a business to follow its legal accountabilities successfully, it has to obey the existing laws, uphold the rights of the employees, ensure the safety of its customers, and protect the natural environment.

Ethical accountabilities entail the conducts or endeavors anticipated of an organization by the community though not codified in the regulations (Williams 50-55). Under the social responsibility of the organization, ethical accountabilities might be construed as articulating the fortitude of the law with regard to the business operations. In addition, voluntary charitable/philanthropic accountabilities refer to the conducts and actions required of the organization by the community and inclined on the contribution of the organization with respect to the standard of living and the wellbeing of the community, for instance, offering to benevolent endeavors and funding projects within the community. Though there seem to be minimal disagreements regarding the need for businesses to operate responsibly toward the broader community and the natural setting where they function, organizations have assumed a broad scope of situations concerning social responsibility.


Organizational ethics signifies adherence to moral codes of management roles while social responsibility implies the obligations that an organization has about its legal accountabilities to the interests of the society, labor force, clients, and other stakeholders, as well as the environment. Effective managers must not just be dexterous and adept but have to act artistically, ingeniously, and uphold social responsibility continuously. Upholding ethics in an organization demands distinguishing what is wrong from what is right and choosing to approve the favorable alternative. It is convincingly simple to determine unethical practices in business, for instance, it is wrong for businesses to utilize child labor, illegitimately employ patented materials and systems, and play a part in corruption. Both US Sentencing Commission and Guidelines for Organizations support ethical conduct and penalize unprincipled actions by businesses. Managers can embark on practical steps by making sure that workers are cognizant of the ethical code of conduct and have the ability to ask questions in an effort of enhancing their understanding and, accordingly, performance. Social responsibility functions as a multidimensional construct that consists of subsets that include economic, legal, moral, and intentional charitable accountabilities.

Works Cited

Chell, Elizabeth, Laura Spence, Francesco Perrini and Jared Harris. “Social entrepreneurship and business ethics: Does social equal ethical?” Journal of Business Ethics 133.4 (2016): 619-625. Print.

Nica, Elvira. “Social responsibility, corporate welfare, and business ethics.” Psychosociological Issues in Human Resource Management 1.1 (2013): 9-14. Print.

Turker, Duygu and Ceren Altuntas. “Ethics of social responsibility to indirect stakeholders: A strategic perspective.” International Journal of Business Governance and Ethics 8.2 (2013): 137-154. Print.

Williams, Chuck. Management. 9th ed., Nashville: South-Western