Ethics and Social Responsibility
Essay Preview: Ethics and Social Responsibility
Report this essay
Ethics and Social Responsibility
MGT/498
April 29, 2013
Ethics and Social Responsibility
The role of ethics and social responsibility in a company can be difficult to understand. A company is in business to make a profit but does that mean that a profit shall be made no matter what it takes? Management of a company must take into consideration all aspects of a decision before it is made. Decisions of management not only affect the company but also affects employees, stakeholders, neighbors, vendors, competitors, and investors to name a few. A powerful strategic plan that includes strong ethical and social responsibilities can assist management internally and externally when decisions need to be made.
Although ethics and social responsibility may differ in businesses, depending on the structure of a corporation, a basic guideline over bad and good actions are expected. Social responsibility is the responsibility that a company has to society that extends beyond making a profit (Wheelan, 2010). The ethical responsibility is a responsibility that a company has that is about the behavior in a society who expects firms to work with employees and communities. If a corporation is facing financial strain and must cut corners in the way business is currently being done, management must consider every option before closing the doors.
Mervyns Department store for instance, did not consider their employees, stakeholders, or neighbors when management decided to close several Mervyns stores. Management decided to close the doors without communicating a downsizing plan to neighbors, employees, vendors, and creditors. The doors of several Mervyns Stores closed overnight and when employees reported to work, the doors had locks on them. Employees of several Mervyns stores were instructed to enter in a door that leads to an office where the employees were handed their last paycheck.
That kind of business is unethical and neglects the social responsibility that a company has to society. Employees were without a job, health benefits, and a paycheck that contributed to their household. Several buildings were left vacant where vandalism can be done in the neighborhoods, vendors were without business from Mervyns, and creditors were left unpaid. Preventative tasks that could have been considered prior to closure of these stores include mainly management communication. Communicating a plan that management has a structured layout would have prevented the overstepping of ethical and social boundaries that is expected from such a well-known department