Ethics And Social Responsibility : Ethical And Unethical Behavior
Companies constantly face the struggle between ethical and unethical behaviors. The line differentiating ethical and unethical actions is not always clear. An ethical company also strives to exude social responsibility. A well-developed strategic plan will help protect a company against the pitfalls of unethical behavior and increase their level of social responsibility. In 2000, the unethical behaviors at Enron became public knowledge. A strategic plan with appropriate preventive measures could have saved Enron from the crumbling effects of CEO Jeffrey Skilling and others within the company.
In the struggle between ethical and unethical behaviors is the idea of social responsibility. Archie Carroll offers the idea that companies have four responsibilities economic, legal, ethical, and discretionary. Economic and legal responsibilities are required for the operation of the company. Ethical and discretionary responsibilities are what makeup social responsibility (Wheelen & Hunger, 2010). Ethical responsibilities are actions and behaviors the community expects from a company. A company being honest with their employees so they can make informed decisions about their career is an example of ethical responsibility. Discretionary responsibilities are voluntary actions of a company. Unlike ethical responsibility that is expected by the public, discretionary responsibility is not an expectation, but will help the company earn…