Business Ethics: Importance, Theories, and Stakeholder Perspectives

BUSINESS ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK -2...........................................................................................................................................3
PART -1.......................................................................................................................................3
Corporate social responsibility....................................................................................................3
Importance of business ethics......................................................................................................4
PART -2.......................................................................................................................................5
Theories of corporate social responsibility..................................................................................5
PART -3.......................................................................................................................................7
Stakeholder perspectives on business behaviour.........................................................................7
CONCLUSION................................................................................................................................9
REFRENCES.................................................................................................................................10

INTRODUCTION
Business ethics cab be defined as set of values, standards, principles and norms that help in
governing the behaviour of a person at the workplace. It refers to the study of business policies
and practices in an organization (Adeleye and et.al., 2020). It includes, insider trading,
discrimination, fiduciary responsibilities. In the present report Corporate social responsibility is
being taken and elements that are present. Carroll’s pyramid model is described, stakeholder
perspective, importance of business ethics at an academic level, business ethics theories. Various
approaches to corporate social responsibility and current values, claims of organization.
TASK -2
PART -1
Corporate social responsibility
CSR is a type of charitable trust or international business self regulation that works for the
development of society or people. Corporate social responsibility is an internal policy of an
organization that is made by managers to build good image in market or attract more customers.
It is a concept in which companies combine social and environmental concern in business and
communicate with stakeholders. It is important for every company to give some part of profit for
CSR activities so that necessary steps can be taken for development of society. The main purpose
of CSR is to build positive environment in the organization as well as among people. CSR is
giving back to the community, as companies take resources from society so they are having some
responsibility towards them. So, they give some amount for growth of organization and this
helps in increasing productivity (Asad and et.al., 2018). As there is scarcity of resources so
managers should make proper plans or strategies so that employees should use resources
efficiently. There must be minimum wastage and make productive use of resources.
Corporate social responsibility is not mandatory for organizations but they can apply it
according to their choice. In this fast moving world, as competition is increasing day by day so
all the companies want that they should provide better services. Nowadays, almost all the
companies are giving some part of their profit for CSR. In the given case of Apple’s slowed
down prices, company has deliberately slowed down older iPhones to compensate for decaying
batteries. The company had purposely slowing down old models when a new version came out in
a bid to force consumers to buy new products and this will increase sales of Apple company and
hence more revenue will be generated (Crane and et.al., 2019). This was not appropriate reason

applied by managers of Apple company to attract people or increase their sales. Every company
has some rules and policies that are made by managers and followed by every employee in the
organization. As people in society want that good services should be provided and at reasonable
price. Ethics are important in all companies as employees who are working in the company are
provided training so that they can develop skills and work effectively.
Every employee should be given equal treatment and there should be no discrimination
among employees on the basis gender, caste or income. These are some ethics which are to be
followed at workplace to create healthy and safe environment of company. Managers while
making policies, procedures, rules and regulations they should mention that every employee
should be given equal opportunity to share their views and work efficiently. As in the given case
of Apple slowed down iPhones because they want that customers must buy new product. This
step was wrong as it is unethical, to generate more profit managers cannot force consumers. For
this mistake they apologised for slowing down iPhones, calling it a misunderstanding, offer to
sell battery replacements. So, company is having some responsibility towards people and they
must take necessary initiatives to satisfy needs and wants of consumers (Davani, 2020).
Importance of business ethics
Business ethics is important in organization as it helps in creating healthy and safe
environment. It enhances law by following rules and regulations made by the government and
this helps in better control in company. There are some principles of ethics in business which
must be followed for smooth running of business such as, honesty, integrity, loyalty, fairness,
concern for others, respect for others, law abiding, trust. Business ethics plays a crucial role in
company as it provides guidelines for how an individual person has to work. Business ethics is
an essential skill as it helps in avoiding negative implications and organizations are more
focusing towards development of society. Managers are making formal structures and also trying
to create ethical workplace by recruiting right person for the right job. Business ethics drives
employee behaviour as if good working environment will be provided then employees will be
satisfied and their behaviour will change (Dierksmeier and Seele, 2018). As in the given case
Apple slow down prices of iPhones but later they realise that this was not the correct way, it was
against business ethics. So, they apologise for this thing and promise to sell battery replacement.
Business ethics is beneficial for bottom line people as rules are made that everyone should
be given equal treatment and there should be no discrimination so this will help in creating