Ethical Issues Of Being Ethical Essay

1228 Words Sep 22nd, 2016 5 Pages
Being ethical is an attribute that all businesses should strive to be. As being ethical reflects how reliable the company is and how high their standards of conduct are. It also indicates that the firm plays by the rules and wants to remain as an ethical company in society.
Managers always seem to be concerned about being ethical. Ethics can be explained as being a requirement for higher performance and long-term competitive sustainability (Abuznaid 2016). Establishing an ethical environment and a culture that underpins the behaviours of all employees and other stakeholders is a leader’s most important responsibility (Collins 2009). Acting ethically in business is the fundamental requirement for high performance and long-term competitive sustainability. Failing to behave ethically in an organisation can be seen to be damaging. As it can demoralise the workforce, create public distrust and can lead to organisational deterioration (Collins 2009).
Corporate Social Responsibility (CSR) is knowing right from wrong and doing right in society (Daft 2006). Robins and Coulter (2009) explain CSR as the business’s intention, beyond its legal and economic obligations, to do the right thing and act in ways that are positive for society. Social responsibility refers to what the business does, over the above legal requirement, for the benefit of the community. Social responsibility has to do with the goodness and welfare of the public (Robbins et al., 2011).
When an organisation does not…

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