Ethical Business Essay Example | Topics and Well Written Essays - 2000 words

Ethical Business - Essay Example ole of the government, whether as a source of guidance and support, or as a barrier to ethical business and responsible business approaches, is also discussed. Carroll (1979) defined responsible business according to four dimensions: economic responsibility, legal responsibility, ethical responsibility, and a discretionary responsibility. This last dimension refers to volunteerism, such as corporate philanthropy, which is not exactly required by society, but is totally appreciated. (Michael & Alan, 2008) Responsible business can also refer to the commitment of the company to operate in â€Å"an economically, socially, and environmentally sustainable manner while balancing the interests of a diverse stakeholders†. (Responsible Business) Stewardship in business is defined by Hartman as â€Å"the responsibility companies have to understand and manage their impacts on the environment in any number of ways†. Managers as stewards of companies have to make profits, and at the same time, are expected to act responsibly when making decisions, respecting the rights of others (Jennifer), that is, the rights of others for a safer and healthier environment. Businesses are expected to operate within the legal framework set by the government. Some managers would rather pay fines for breaking the law in order to generate more profits for the organization (Jennifer). This is just unacceptable and does not constitute responsible business. Ethics are standards of moral behaviour (Nickels, 2010). Society dictates an ethical behaviour, since it is society that determines what behaviour is accepted as either right or wrong. Business acting ethically, and respecting consumer needs and demands, can be significant from a public relations point of view. The European Commission defined CSR in 2006 as â€Å"a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis† (Malte