The world is changing at an accelerated pace. Change driven by technological development, globalization, economic instability, and social transformation. The pace of change is speeding up, influencing social structures and entities that form society. These changes present new challenges for individuals and businesses alike, requiring a new analysis of moral and ethical frameworks to help the many moral agents navigate the shifting social landscape. The notion of moral responsibility and business has been expanding congruently with this change. The central question now emerges, do businesses have a moral responsibility?
Moral responsibility concerns action and consequences. It refers to the duty that businesses have to act in accordance with the moral principles that are important to social communities and society as a whole. Business is concerned with what is important to people’s lives, this is fundamentally a moral activity. One could argue this makes them moral agents. This implies that business, like people, should then be held to moral standards. However, there are many nuances that must be understood to dive deeper into the notion of moral responsibly (Ferrell, p. 187).
Businesses are no longer isolated social enterprises. They are important social entities that retain great influence in society. They are granted a license to operate, receiving the right to exist through a combination of social and legal mechanisms. This implies they have obligations to society. Obligations imply they have responsibilities that must be fulfilled, responsibilities concerning morality. What denotes “responsible actions” requires more investigation. Some believe that if business has become prosperous, it has a moral obligation to improve the conditions of a system that helped it succeed (Ferrell, p. 5). What it may actually be obligated to do, is another deliberation. Responsibilities are the actions one must take given their role. Obligations are implied depending on the responsibilities adopted by a social role or contract. In business, when you enter into the contract, responsibilities involved in running a business are assumed. Businesses are obligated to pay taxes, abide by the law, treat employees fairly, and respect the environment, and so on. When responsibilities are met, rewards such as customer satisfaction or employee dedication result (Ferrell, p. 5). It is argued that businesses are moral agents, hence responsibility ascriptions can be applied. Therefore, business is responsible for its actions and have moral obligations to behave responsibly to the best of their abilities, requiring a sense of moral duty (Ferrell, p. 6) Business can no longer be detached from broader society. The concept of moral responsibility is underpinned by the idea that businesses are no longer isolated economic entities. Why? For the simple fact that they are not detached from society. No theory better exhibits this than the concept of holarchy. Holarchy refers to businesses as wholes, but also as parts within greater wholes. It highlights business and society’s interdependence and networked relationship. Healthy networks are the product of active, engaged and healthy organizations. When business act as isolated entities, energy becomes bound and networks obstructed. Morally responsible businesses are critical to maintaining healthy networks. If there is moral failure, the whole system suffers (Gull, 2007). Businesses must see beyond organizational boundaries. …show more content…
Within their holon and the larger social holarchy, many moral and ethical decisions are presented. A business must be positioned to view the whole world and the future not yet born. It is about seeing the connections, seeing how decisions travel through the many networks to produce outcomes and how their actions influence all stakeholders, the environment, and society. Maintaining order and nourishing relationships among the parts is not just about identifying moral responsibility, but creating frameworks within the system that encourages moral behavior. Frameworks found in ethics (Ferrell, p. 167). Ethics are the building blocks upon which society is based. Business ethics concerns moral principles and values applied to social behavior. A reasoned set of principles of conduct applied to situations arising in a business setting, the rightness of a business actions. It 's integral to the practice of being able to conduct business that there is a set of moral standards (Ferrell, p. 171). What counts as morally obligatory for business is a principal concern here. Investor’s, employees,
Moral responsibility concerns action and consequences. It refers to the duty that businesses have to act in accordance with the moral principles that are important to social communities and society as a whole. Business is concerned with what is important to people’s lives, this is fundamentally a moral activity. One could argue this makes them moral agents. This implies that business, like people, should then be held to moral standards. However, there are many nuances that must be understood to dive deeper into the notion of moral responsibly (Ferrell, p. 187).
Businesses are no longer isolated social enterprises. They are important social entities that retain great influence in society. They are granted a license to operate, receiving the right to exist through a combination of social and legal mechanisms. This implies they have obligations to society. Obligations imply they have responsibilities that must be fulfilled, responsibilities concerning morality. What denotes “responsible actions” requires more investigation. Some believe that if business has become prosperous, it has a moral obligation to improve the conditions of a system that helped it succeed (Ferrell, p. 5). What it may actually be obligated to do, is another deliberation. Responsibilities are the actions one must take given their role. Obligations are implied depending on the responsibilities adopted by a social role or contract. In business, when you enter into the contract, responsibilities involved in running a business are assumed. Businesses are obligated to pay taxes, abide by the law, treat employees fairly, and respect the environment, and so on. When responsibilities are met, rewards such as customer satisfaction or employee dedication result (Ferrell, p. 5). It is argued that businesses are moral agents, hence responsibility ascriptions can be applied. Therefore, business is responsible for its actions and have moral obligations to behave responsibly to the best of their abilities, requiring a sense of moral duty (Ferrell, p. 6) Business can no longer be detached from broader society. The concept of moral responsibility is underpinned by the idea that businesses are no longer isolated economic entities. Why? For the simple fact that they are not detached from society. No theory better exhibits this than the concept of holarchy. Holarchy refers to businesses as wholes, but also as parts within greater wholes. It highlights business and society’s interdependence and networked relationship. Healthy networks are the product of active, engaged and healthy organizations. When business act as isolated entities, energy becomes bound and networks obstructed. Morally responsible businesses are critical to maintaining healthy networks. If there is moral failure, the whole system suffers (Gull, 2007). Businesses must see beyond organizational boundaries. …show more content…
Within their holon and the larger social holarchy, many moral and ethical decisions are presented. A business must be positioned to view the whole world and the future not yet born. It is about seeing the connections, seeing how decisions travel through the many networks to produce outcomes and how their actions influence all stakeholders, the environment, and society. Maintaining order and nourishing relationships among the parts is not just about identifying moral responsibility, but creating frameworks within the system that encourages moral behavior. Frameworks found in ethics (Ferrell, p. 167). Ethics are the building blocks upon which society is based. Business ethics concerns moral principles and values applied to social behavior. A reasoned set of principles of conduct applied to situations arising in a business setting, the rightness of a business actions. It 's integral to the practice of being able to conduct business that there is a set of moral standards (Ferrell, p. 171). What counts as morally obligatory for business is a principal concern here. Investor’s, employees,