Ethics: Ethics And Social Responsibility For An Organization

772 Words 4 Pages
Ethics Paper

For an organization to remain in business they must achieve profits and find ways to keep their customers pleased. Organizations will use ethics and social responsibility as ways to keep customers happy. Every decision made, both good and bad, directly affect shareholders and their investment. Being morally right or wrong is being ethical. Many people will not want to by meat from their local grocery store if they know the animals were not treated ethically. Almost all decisions made will have either an impact on the society at large or the environment. For an organization to be socially responsible occurs when the organization is acts for the benefit of the society. This would be an organization recycling or properly disposing
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According to Wheelen & Hunger (2010), “The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.” Managers must think of all factors that might hinder their strategic plan; both inside the organization and out. By doing this and keeping the organization competitive, it protects the stakeholder’s needs and agendas.
Managers must plan on how several factors such as how employees will react to the change, projected market for a new product, finances, or even the effect this will have on the environment. Being ethical and socially responsible would consist of; will this worsen workers conditions or will this have bad effects to the local environment. If there is a risk to damaging the environment, what actions can be taken to help stop this risk? If it is harming or disrupting, it will turn away customers who are not happy with that
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According to Justin (2002), “Enron lied about its profits and stands accused of a range of shady dealings, including concealing debts so they didn 't show up in the company 's accounts.” They unethically lied about their profits. By lying about the profits, they got shareholders and potential shareholders to invest even more money. Enron failed at being socially responsible because it caused people to fear at investing their money elsewhere. It cost their own investors to lose a lot of money that hurt a lot of families.
If investors or even the government would have done a more thorough investigation on Enron’s financial reports, this could have been prevented. The United States Securities and Exchange Commission (SEC) has put in stricter laws to help prevent this kind of fraud. These laws now require organizations to share financial records with anyone. Many organizations financial records can now be found online. Organizations are now by law forced to share they financial records with anyone that wants to see them, most organizations just post them

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