Business Ethics and Social Responsibilities

Business ethics is the examination of a variety of problems that can arise from the business environment, and how employees, management, and the corporation can deal with them ethically. Problems such as fiduciary responsibility, corporate social responsibility, insider trading, bribery and discrimination are examined in business ethics.

In the handling of money and when one acts as a corporate, there is a fiduciary responsibility owed to the principal party. It is defined as a relationship imposed by law where someone has voluntarily agreed to act in the capacity of a "caretaker" of another's rights, assets and/or well being. The fiduciary owes an obligation to carry out the responsibilities with the utmost degree of "good faith, honesty, integrity, loyalty and undivided service of the beneficiaries interest."

Corporate social responsibilty's goal is to embrace responsibility for the company's actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere. Furthermore, corporate social responsibilty focused businesses would proactively promote the public interest by encouraging community growth and development, and voluntarily eliminating practices that harm the public sphere, regardless of legality.

Thirdly, insider trading. This is a very serious issue and it occurs when an individual with special knowledge of a corporation uses this knowledge to buy and/or sell securities such as stocks and bonds to make a profit.

Last but not least, bribery and discrimination are considered to be very unethical in business workplaces. To discriminate someone is to distinguish one from another usually due to social, culture, or political reasons. To bribe someone is to give beneficial items to someone else in order to obtain a certain goal.

Business ethics and social responsibilities are very important to a business.