Business Ethics and Social Responsibility in a Pluralistic Society
Administration and Society: External Environment, Social Responsibility, and Ethics
Pluralistic Society
A pluralistic society is one where many organized groups represent various interests.
External Environment
Economic Factors
This issue involves not only businesses but also many types of organized enterprises.
Technological Factors
Its main influence is on how things are done, such as the design, production, distribution, and sale of goods and services.
Representation of Technology: Benefits and Problems
Technology is reflected in new products, machinery, tools, and innovative new services.
Benefits
- Increased productivity
- Higher standards of living
- More time off
- Variety of products
Problems
- Pollution (due to a greater number of cars)
- Energy scarcity
Social Environment
It consists of individual attitudes, expectations, and education.
Political and Legal Environment
This is the group including the laws which affect all types of enterprises. Laws are passed as a result of pressures and social problems.
Political Environment
Their attitudes and actions change with the ebb and flow of demands and social beliefs.
Legal Environment
Every manager is surrounded by laws and regulations. Some are made to protect workers, consumers, and communities, while others are created to enforce compliance with contracts and protect property rights.
Sensitivity and Social Responsibility
Corporate Social Responsibility
This is to seriously consider the repercussion of their actions on society.
Social Sensitivity
This is the ability of a company to link its operations and policies with the social environment, making it beneficial for both the business and society.
The Mission of the Company
The production and distribution of goods and services. The public expects and deserves the accomplishment of the company’s mission. The company’s survival depends on successful interaction with environmental elements.
Reaction or Proaction?
No business operates to respond rapidly to unforeseen events. It must implement ways to foresee these events.
Social Audit
A commitment to systematic assessment and reporting with significant scope.
Ethics in Administration
Ethics
Defined as a discipline that deals with good and bad, and with moral duty and obligation.
Personal Ethics
The rules under which a person lives their personal life.
Accounting Ethics
The code that guides the professional conduct of accountants.
Business Ethics
Relates to truth and justice.
Institutionalization of Ethics
This is to implement and integrate ethical concepts into daily actions. Administrators have the responsibility to create an organizational climate of ethics.
Code of Ethics
It is a statement of policy or rules that guide prompted behavior. Codes of ethics should guide the behavior of people in all organizations and in everyday life.
Factors that Raise Ethical Standards
- Public expositions and advertising
- The growing concern of an informed public
These are closely related, and steps should be taken to make them effective.