Applied Ethics Week2 - Complete (3) 1 page essays needed in 24 hours or less (APA format)

The purpose of this discussion is to define social responsibility in a business environment, how it differs from ethics in business, and the importance of social responsibility as an aspect of business conduct.

     The definition of social responsibility is “an organization’s obligation to maximize its positive impact on stakeholders and minimize its negative impact” (Ferrell, Fraedrich, & Ferrell, 2017. P 36).  By being socially responsible, a company looks beyond making a profit and ventures into making a difference in society.  By making a positive impact on the community, a business not only places its stakeholders first but furthers its purpose in the world.

     Sometimes used interchangeably, social responsibility and ethical behavior are different ideas. Ethical standards are an aspect of social responsibility.  Ferrell, Fraedrich, and Ferrell define ethics as “following the standards of acceptable behavior as judged by stakeholders” (2017. P 36).  When a company follows ethical principles, it promotes the ideals of its stakeholders.  This promotion reflects an act of social responsibility by giving meaning to the values of the community.

     According to Conscious Capitalism, “the absence of purpose results in work that is devoid of meaning and therefore does not tap into our higher human capacities” (Mackey & Sisodia, 2017. P 54).   By being socially responsible, a corporation works to a higher purpose.  This objective lies outside of the original intent of the business.  For example, the initial goal of Starbucks was to sell coffee.  To help the community, Starbucks has begun using reusable and recyclable materials to reduce harmful waste.  With the use of environmentally healthier products, Starbucks furthers its purpose from being a coffee shop to becoming a company concerned with the welfare of the planet. 

     Finally, by being socially responsible, businesses improve relationships with its stakeholders and gain value with the community.  Ethical behavior is one aspect where a company shows social responsibility.  By working to better humanity, a company can achieve a higher purpose, becoming more respected and necessary to the world. 

References

Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2017). Business ethics: Ethical decision making and

            cases. Australia: Cengage Learning.

Mackey, J. & Sisoda, R. (2017). Conscious capitalism. Boston, MA: Harvard Business Review

            Press.