Definition of Responsible Business - Term Paper Example

?Responsible Business Table of Contents Introduction 3 The Aspects Constitutes Responsible Business 3 Business Ethics and Corporate Social Responsibility (CSR) 3 Review and Evaluation of Ethical Business 4 Nature of Ethical Business 4 Significance and Impact of Ethical Business 5 Role of Government to Responsible Business Approach 6 Conclusion 8 References 9 Introduction The report aims to briefly discuss the significant aspect of ethical business which is regarded as one of the major constitutes of responsible business. It can further be considered as one of the imperative facets of an organisation in order to build a long-run sustainability within the domestic or global business market. With this concern, the report intends to discuss about the significance of ethical consideration and its relevance to build efficient and responsible business as compared to other related approaches such as corporate responsibility, sustainability, social enterprise as well as corporate social responsibility (CSR). Moreover, the discussion of this report will also evaluate the nature of ethical business and its importance as well as impact on business behaviour in society. In addition, the report intends to focus upon evaluating the role of government as an influencer or enabler in relation to practice business ethics within an organisation. The Aspects Constitutes Responsible Business ’Responsible Business’ can be stated as a perception where an organisation involves accountability in imposing significant impact in its different operational functions. It has been apparently observed that the organisations of different sizes employ as well as implement strategies with the intention of attaining their business objectives efficiently. In this similar context, an effective ethical consideration within the business environment assists the entrepreneurs to develop their business performances along with meeting the overall expectations of their stakeholders by a considerable level. A responsible business fundamentally aims to meet expected outcomes that generates from certain major programmes such as escalating awareness regarding any ethical issues, developing decision-making processes and lessening misconducts that prevail while performing different operational functions. Furthermore, a responsible business considerably focuses upon continuously developing the business performances by taking into concern its internal as well as external business environment. The organisations in the present day context are highly focused to conduct different environmental initiatives in order to improve their business performance that ultimately supports them to perform responsible business at large (International Trade Administration, n.d.). Business Ethics and Corporate Social Responsibility (CSR) In relation to identify the aspects that constitutes responsible business, it can be stated that the approach of ethical business and CSR are frequently implemented interchangeably. In this regard, the concept of ethical business constitutes code of moral standards and values that governs the behaviour of a person or group with regard to identify their different activities. Moreover, the perception of ethical business significantly emphasises upon balancing the business performances and the needs as well as the desires of the society where it performs its operational functions. It comprises certain moral guidelines along with principles that ensure to guide business operations as well as behavioural aspects of the organisational members in an efficient manner (Crane & Matten, 2004). In the context of CSR, it can be identified that the approach i.e. ethical business significantly involves different aspects of responsibility that include legal, economic, ethical as well as voluntary philanthropic activities both for the organisation and its operating societies. Contextually, it can be stated that the legal responsibilities of an ethical business are basically the laws and regulations that are followed while performing operational functions. Moreover, the legal accountability comprise complying with the legal norms and guidelines relating to national and international competitive regulation, protection of workforces’ human rights as well as environment. Conversely, one of the economic responsibilities of an ethical business is to manufacture products or services according to the requirements of the society for the motive of maintaining effective financial growth and satisfying the investors along with the stakeholders (Iamandi, 2007). Review and Evaluation of Ethical Business Nature of Ethical Business The notion of ethical business considerably entails various features that are significantly found to be more effective for a particular organisation in order to perform ethical practices effectively within its business environment. The nature of an effective ethical business can be demonstrated by focussing upon certain important aspects that comprise specification and justification of moral judgement, principle of dignity of persons as well as virtue and right formation of character (Serenko & Bontis, 2009). Specification and Justification of Moral Judgement Specification and justification of moral judgement can be considered as one of the major aspects relating to ethical business within an organisational context. It significantly focuses upon identifying the best ethical practices that plays an imperative part in developing moral judgements of each individual. The facet of moral judgement signifies the way of achieving higher morality through identifying appropriateness of individual as well as business performances. In the context of business organisation, it can be stated that the moral judgement of any enterprise should provide much attention on logical reflection with regard to various business practices within the organisation. Moreover, the moral judgements should be based on real facts that intend to reflect adequate moral standards. An effective judgement of morality is important for an organisation in order to practice effective business ethics in an efficient manner. In this similar context, the moral judgement of an individual can be identified from evaluating his/her attitude and behavioural conducts. In this perspective, the concept of ethical business is significantly designed for specifying and justifying moral judgement in order to develop individual performances by improving their attitude and behavioural aspects (Colby & Kohlberg, 1987). Dignity of Persons The principle of Dignity of Persons is regarded as one of the most primary and universally respected moral principle that is observed across various cultural, professional as well as geographical boundaries. It appreciably provides philosophical foundation for establishing various ethical principles within an organisation that ultimately promotes effective ethical business by a greater extent. This natural worth signifies that every individual are valuable of possessing equivalent ethical considerations within an organisation. Therefore, it can be stated that respect for person’s dignity can be expressed in various methods in different cultures and societies that is quite essential to concede and respect any individual differences (American Psychological Association, 2008). Virtue and the Right Formation of Character The nature of an ethical business is also based upon the principal of virtue and the right formation of character. In this regard, this principle can be typically considered as one of the fundamental components of determining moral values of individuals that supports them to perform authentic ethical business in an organisation. It has been viewed that developing human value as well as advancing moral concepts is regarded to be essential facets in the formation of individual character. Virtue ethics within the context of ethical business addresses an in-depth sense of the different activities that perform by the individuals while conducting ethical business. Furthermore, the idea of virtue ethics emphasises more upon constructing an authentic character of individuals in order to increase their living and thinking standards by a considerable level (Warner & DeCosse, 2009). Significance and Impact of Ethical Business After acquiring a brief idea about the perception of business ethics, it can be stated that it imposes significant impact upon business behaviour in society by forming loyalty and benevolent environment amid the different members within an organisation. However, the significance of an ethical business can be identified by focusing upon certain important aspects that include ethical motivation, global challenge and employee retention (Viriyavidhayavongs & Yothmontree, 2002). Ethical Motivation Ethical business intends to develop both operational as well as business performances through constructing an efficient working atmosphere and resolving different ethical issues. The aspect of ethical motivation is one of the most successful methods to create well-organised business that eventually enhances the business behaviours in society by a significant level (Viriyavidhayavongs & Yothmontree, 2002). Global Challenge Due to increased level of globalisation in this present competitive market, it became highly important for the organisations to maintain effective ethical business. In this context, the organisations must practice effective multicultural based ethical practices that would ultimately support them to face the global challenge as well as sustain in this competitive business market (Scribd Inc., 2012). Employee Retention In the context of employee retention, ethical business plays a vital part within an organisation by establishing feasible and productive business culture that ensures to make appropriate business decisions. Moreover, an effective ethical consideration can also motivate the employees to build a long-run relationship with the organisation and reduce employee turnover rate by a greater extent (Scribd Inc., 2012). The concept of ethical business imposes considerable impact upon the business behaviour in society by large extent. In this similar context, it has been viewed that an ethical business module pose extensive impact upon different business segments of an organisation that comprise sales and marketing, pricing and advertising activities of the products or services. According to the modern and competitive business scenario, minimising cost and maximising profit are considered to be the prime objectives of an organisation. The organisations strongly believed that an ethical business can assist them to fulfil the aforesaid objectives by a greater extent. . In order to attain the expected business goals, it has been viewed that the organisations practice ethical business modules within their business environment at large. This is due to the reason that the concept of ethical business is viewed to be a comprehensive approach that involves business morality and corporate policies that pose considerable impact upon the business behaviour in society (Maheshwari, 1997). Besides, the notion of ethical business consists of moral standards that govern the action of an individual or a group that can also impose extensive impact upon the overall expected performances of the employees within an organisation. Furthermore, the outstanding principles of product quality and service, uncompromising value for comprehending laws and regulations as well as fair compliances of ethical business can help the organisations to achieve substantial growth in the global market (Maheshwari, 1997). Role of Government to Responsible Business Approach According to the modern business scenario, it can be observed that the global organisations practicing effective ethical business are considerably facing several challenges due to augmented governmental business policies. In order to determine the governments’ role towards responsible business approach, it has been noted that the governmental intervention in ethical business is focused to provide utmost benefits as well as to protect the societal members from unintended consequences. In the present day context, the governmental regulations are significantly designed to offer significant benefits both for the communities as well as the business organisations (Coglianese & et. al., 2004). From the perspective of current global business environment, the governments of global countries have agreed to implement different policies for the organisations to conduct its business operations efficiently. In this regard, the governments composed different policies based on socialistic model where the organisations must comprehend and follow the policies for the purpose of safeguarding the interests of the societal as well as the organisational members (Maheshwari, 1997). Conclusion Ethical business is principally regarded as one of the major principles of an organisation in order to successfully conduct business performances. Effective ethical guidelines provide substantial benefits for an organisation in order to accomplish competitive position over the major business market contenders. Moreover, it also facilitates the organisation by making the employees to invest their ultimate efforts for the organisational success and also motivates them to comply with the organisational goals and objectives. The nature and scope of ethical business considerably focuses on developing not only the employees but also to encourage societal wellness within the members of the society. An effective ethical business module facilitates an organisation by providing substantial support in developing individual behaviour as well as attitude and ensures to attain competitive position within the global market. The concept of ethical business plays a major role in motivating the employees by complying with various moral standards and governance policies that further assists the organisations to reduce turnover rate of their employees at large. From the perspective of governmental intervention in ethical business, it has been noted that the modern organisations are focusing upon performing effective strategies that are needed to promote social and environmental wellness. Thus, it can be concluded that ethical business impose significant impact upon the business behaviour in society. References American Psychological Association, 2008. The Universal Declaration of Ethical Principles for Psychologists Presented at the United Nations DPI/NGO Conference in Paris. Universal Declaration of Ethics Principles for Psychologists: History and Contents. [Online] Available at: http://www.apa.org/international/pi/2008/10/gauthier.aspx [Accessed December 01, 2012]. Coglianese, C. & et. al., 2004. The Role of Government in Corporate Governance. Rules versus Principles. [Online] Available at: http://www.hks.harvard.edu/m-rcbg/research/rpp/reports/RPPREPORT8.pdf [Accessed December 01, 2012]. Colby, A. & Kohlberg, L., 1987. The Measurement of Moral Judgement: Volume 2, Standard Issue Scoring Manual: Volume 2, Standard Issue Scoring Manual. Cambridge University Press. Crane, A. & Matten, D., 2004. 2. Business Ethics: A European Perspective: Managing Corporate Citizenship and Sustainability in the Age of Globalization. Oxford University Press. International Trade Administration, No Date. Responsible Business Conduct as Strategy. Planning, Strategy, and the Business Ethics Program. [Online] Available at: http://ita.doc.gov/goodgovernance/adobe/bem_section_2/chapter_3.pdf [Accessed December 01, 2012]. Iamandi, I., 2007. Corporate Social Responsibility and Social Responsiveness in a Global Business Environment A Comparative Theoretical Approach. Romanian Economic Journal, Vol. 23, pp.3-18. Maheshwari, R. P., 1997. Principles of Business Studies Vol I. Pitambar Publishing. Scribd Inc., 2012. Lesson1: Meaning and Nature of Business Ethics. Importance of Business Ethics. [Online] Available at: http://www.scribd.com/doc/17608557/Meaning-and-Nature-of-Business-Ethics [Accessed December 01, 2012]. Serenko, A. & Bontis, N., 2009. A Citation-Based Ranking Of The Business Ethics Scholarly Journals. Int. J. Business Governance and Ethics, Vol. 4, No. 4, pp.390-399. Viriyavidhayavongs, B. V. & Yothmontree, S., 2002. Impact of Ethical Considerations. ABAC Journal, Vol. 22, No. 3, pp.1-15. Warner, K. & DeCosse, D. Lesson Six Environmental Virtue Ethics. A Short Course in Environmental Ethics. [Online] Available at: http://www.scu.edu/ethics/practicing/focusareas/environmental_ethics/lesson6.html [Accessed December 01, 2012]. Read More