It is a widely disputed topic that corporations have a role in society to be ethical and consumer aware of their actions and impact on the wider world. ‘Business Ethics’ can be defined as the critical, structured examination of how people and institutions should behave in the world of commerce’ (Macdonald, 2010). Pressure on organisations in recent years to be ethical and consumer aware has affected their overall constitutions, forcing them to include how they are going to deal with ethical problems such as environmental and social issues within their working environments. The question remains whether organisations have a duty towards their stakeholders and society as a whole to follow principles on values and actions that not only benefit
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Addressing ethical issues is not imperative to the success of the organisation and are therefore seen as less important than making profits; utilitarian believer Milton Friedman developed his views that the business of business was simply to make profits, Friedman believed business responsibility was solely to be profitable, his view being their duty was to make profit and their corporate ethical responsibility was irrelevant where business was concerned. Businesses were created for one purpose in his view and that it was not in the duty of the business to be ethical. Weaknesses surround his theory by claiming that businesses have only one social responsibility, to maximise their profits, Friedman is in effect saying they have no social responsibilities’ (Somerville in Theaker 2004:137) and is a widely disputed topic. Businesses must still conform to an ‘ethical custom’ and to have a reputable stance within society and to withhold profit in a competitive market where customers interests are not at the forefront will reflect badly on the reputation and where customer numbers will decrease. His theory was formed in the 1960’s over 50 years ago, where indisputably parts of the theory are still applicable today, nonetheless the growing need for professional and corporate responsibility often
Addressing ethical issues is not imperative to the success of the organisation and are therefore seen as less important than making profits; utilitarian believer Milton Friedman developed his views that the business of business was simply to make profits, Friedman believed business responsibility was solely to be profitable, his view being their duty was to make profit and their corporate ethical responsibility was irrelevant where business was concerned. Businesses were created for one purpose in his view and that it was not in the duty of the business to be ethical. Weaknesses surround his theory by claiming that businesses have only one social responsibility, to maximise their profits, Friedman is in effect saying they have no social responsibilities’ (Somerville in Theaker 2004:137) and is a widely disputed topic. Businesses must still conform to an ‘ethical custom’ and to have a reputable stance within society and to withhold profit in a competitive market where customers interests are not at the forefront will reflect badly on the reputation and where customer numbers will decrease. His theory was formed in the 1960’s over 50 years ago, where indisputably parts of the theory are still applicable today, nonetheless the growing need for professional and corporate responsibility often