Business ethics ensure that a certain required level of trust exists

between consumers and various forms of market participants with

businesses. For example, a portfolio manager must give the same
consideration to the portfolios of family members and small individual
investors. Such practices ensure that the public receives fair treatment.

Business Ethics is the VERY broad field of study concerning good

ethical decision-making in commercial contexts. CSR is more
narrowly about a companys SOCIAL obligationsthat is, a
companys obligations to society in general. So, business ethics is
concerned with not just social obligations, but also obligations to
employees, customers, suppliers and competitors. CSR is about the
extent to which companies owe something to society at large (i. e.,
those who do not have a direct involvement with the business).

Transcript of Chapter 3 Business Ethics, CSR, and Profit

Why is there a need to balance profit with business ethics?
- Profit is the lifeblood of the corporate machinery, of all business
expansions, of many development projects and charitable
contribution.
- In the absence or lack of profit, any economic organization will
hardly be able to fulfill its obligations to its stakeholders and no
business contributions to social development is possible to say the
least.
What happens when profit maximization is accompanied by the
driving force called greed?
- The disregard of moral values and social responsibility in doing
business usually leads to the undesirable.

- Greed, for lack of a better word, is good. Greed is right because it

works. Greed clarifies and captures the essence of the evolutionary
spirit. Greed will not only save our paper company, but will also save
another malfunctioning corporation called USA.

Wicked CEO named Gordon Gekko (Michael Douglas), Wall Street

What do you mean by governance by governance of profits based on
legislative standards?
- Legislative standards are important to ensure the governance of
profits.
- Transparency is a must in business operations. It measures such as
certification of business profit reporting systems by signature, honest
reporting, and embedding integrity in business information systems
are becoming imperatives, the objective of which is to ensure
transparency, accountability, and integrity.
Social justice is a concept of fair and just relations between the
individual and society. This is measured by the explicit and tacit terms
for the distribution of wealth, opportunities for personal activity and
social privileges.