Social responsibility-business ethics-business entity, Financial Management

Social responsibility

The firm must decide whether to operate strictly in their shareholders' best interests or be responsible to their employers, their customers, and the society in which they operate. The firm might be included in activities that do not directly benefit the shareholders, though which will enhance the business environment. This has a long term benefit to the firm and hence in the long term the shareholders wealth might be maximized.

Business Ethics

Related to the issue of social responsibility is the question of business ethics. Ethics are stated as the "standards of conduct or moral behavior". It can be thinking of as the company's attitude to its stakeholders, which is, its customers, employees, suppliers, community in common, shareholders, and creditors. High standards of moral behavior demand that a firm treat each of such constituents in a fair and honest way. A firm's commitment to business morals can be measured by the trend of the firm and its employees to stick to laws and regulations associating to:

  • Product security and quality
  • Fair service practices
  • Honest marketing and selling practices
  • The utilization of confidential information for personal gain
  • Illegal political involvement
  • Bribery or illegal payments to obtain business


Posted Date: 12/8/2012 6:50:54 AM | Location : United States

Related Discussions:- Social responsibility-business ethics-business entity, Assignment Help, Ask Question on Social responsibility-business ethics-business entity, Get Answer, Expert's Help, Social responsibility-business ethics-business entity Discussions

Write discussion on Social responsibility-business ethics-business entity
Your posts are moderated
Related Questions
In the 2000s the German discount chain Aldi began an expansion on the east coast of Australia. One strategy of Aldi is to encourage small retailers such as butchers, bakers, delica

What are the Corporate Bonds? Corporate bonds are issued by huge corporations while they require long-term financing. They generally make interest payments double a year (sem

Ask question #Minimum 100 words acceptedaqs #

Let us consider a bond with callable or prepayable feature. Figure shows the price/yield relationship of option-free bond and callable bond. The price yield

Explain the factors affecting the choice of a maximum cash balance amount. The maximum cash balance amount is regulated by available investment opportunities, the expected payb

They are issued in the local market, by a foreign borrower are usually denominated in the local currency. For example, Yankee bonds are USD denominated bon

The assets and liabilities of S Harrison as at 30 June 2012 are: On 1 July 2011 when the business commenced, Harrison owed $58,000 on the land and buildings and $1,200 on

It is the exercise price at which the investor or the bondholder exchanges the bond for shares.

Before tax cost of debt and after tax cost of debt; Personal finance problem. David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following inform

d iscuss the relationship between finance management,economics,accounting, and mathematics. illustrate/show through a venn diagram