Importance of Social Security and Ethical Business Practices

This reflective journal discusses the importance of social security in welfare states and the benefits of ethical business practices. It explores the gaps in social security policies and suggests ways for governments to bridge them. The journal also highlights the economic benefits of social security programs and the impact of ethical practices on businesses.

Running head: REFLECTIVE JOURNAL
REFLECTIVE JOURNAL
Name of the student:
Name of the University:
Author's Note:

Journal 1.
This week I have come across some of the very important questions that relates to ethical
policies of the welfare states. Among those I have found welfare security or social security to be
important in catering the needs of the common people of the country. Welfare or social security
is one of the most important factors for the benefit of the people with inadequate or no income.
In some countries this type of policies play essential part in the welfare strategies where the
governments provide monetary assistance to the people in need. In some cases, social security
benefits are availed by the retired employees along with their spouses. These monetary helps are
paid during their working years through the social security system that they receive social
security monthly benefits. Social security benefits are available to the persons who are
completely or permanently disabled which is rigid set of criteria issued by administration.
The welfare states of Europe and America along with other developed nations, accept the
need for support from the end of the government as well as agree that the society where persons
live must help for achieving all-inclusive growth. The society needs to work for providing most
of all the advantages regarding culture, social welfare and work that the government of the
country offer to them. Social security refers to the action programs arranged by the government
of the welfare state that intend to promote the betterment of the people of the state through
assistance measures (Rejda, 2015). These measures guarantee the access to all the needed
resources of food as well as shelter for the population. This is also added with the arrangements
for the wellbeing for the citizens at large as well as potential vulnerable segments like children,
sick, elderly and the unemployed.

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Through proper research on this topic I have found out that there are various arguments
on this topic of social security as some of the socialists view this approach of providing only
monetary help to the needy persons rather than allowing them to gain the security of work and
leading a healthy lifestyle. These critics ascribe with the idea that the organizations both
governmental as well as non-governmental aiming to provide Social security through mere cash
transfers need to provide security of health, employability according to the aptitudes and proper
social participation (Feldstein, 2018). They also refer to grow capabilities to face the current
social risks such as single parenthood and reconciliation of daily life along with work.
From the analysis of requirements of social security and its benefits I have identified the
gaps of the policies and how the governments can bridge this gap of what actually is needed and
what is provided. In this aspect three most important segments can be discussed which includes
social insurance, services and basic security. Through social insurance people who need support
financially, receive services or benefits the recognition of contributions to this insurance
program. This insurance service can effectively include the provides for the people with
disabilities, retired from work and unemployed persons in the country. The government can
allow some designated agencies to arrange the provisions for the needed persons (Hastings,
Hortaçsu & Syverson, 2017). This can include financial support during unemployment of the
youth along with the retired persons, medical care during sickness, health and safety at work and
in maintaining the industrial relations. Basic security is an essential part of specific insurance
program this can assist the newly arrived refuges to meet the basic necessities like clothing, food,
education, money, housing and medical care.
To Marsh, (2018) through the research on Social security I found that the people who are
retire, unemployed, sick and refugees do not get benefits but there are other advantages of Social

security that can affect the complete administrative system of the country. In the developed
countries like the United States, where there is a critical federal system of government works,
Social security can promote the income stability among the households of the country. This
system provides a steady stream if income for replacing lost wages for disability, retirement and
even death. Through this type of program, the governate of the USA has supported over 9
million jobs across the country (Koenig & Al Myles, 2018). In addition to this, it has also
resulted in gaining more than a trillion dollar of financial output. Therefore, it can be stated that
this has much greater economic benefits than any other program or policies applied by the
welfare states or other developed nations for the all-inclusive growth of its people.
Journal 2.
The importance of ethics is seen in the process of administering the citizens of the
country which the government show through applying different policies for supporting all-
inclusive growth, it is also important for the sustainability of the business. Ethical business
methods help the organizations to gain the support from all of their stakeholders which Gove
them competitive advantage in a market. The companies justify their ethical behavior through the
application of corporate social responsibilities.
These CSR activities help the companies to get profitable through various aspects. First,
it helps to attract the customers to the products of the forms that boosts the profits and sales of
the companies. Secondly, effective CSR attracts the employees greatly which enhance their
desire to get attached with their particular firms. This can reduce turnover of the employees and
reduce the recruitment costs (Crane & Matten, 2016). Effective CSR policies help the companies
to increase productivity by getting the most talented employees in one hand and retaining them.

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finally, the companies with strong ethics attract the investors that helps to keep the share price of
the company high. This reduces the risk of business takeover (Trevino & Nelson, 2016). The
investors while find that their money is being used by the companies who make promise to
operate in an ethical and responsible manner, they find peace of mind as well as confidence. This
enhances capabilities of the firms which increase the possibilities to attract more investments for
successful business.
Ethical practice of the firm’s allows them to present a clear picture to their stakeholders.
As mentioned before, the customers feel attracted to get in touch with such a company that has a
strong business ethics. The customers in current global context are more informed and their keen
to know the source from which the companies are acquiring he materials. They are also keen to
know whether the labor force has been utilized in an ethical as well as responsible way. This
allow the customers to feel ease to buy products from the companies that enhance the profit of
the companies (Chell et al., 2016). The employees also feel comfortable in the knowledge that
they are not being exploited and they are not allowing any unethical practices though their
actions in the firms.
Along with these factors, the companies promoting strong ethical and moral reputation
are less fined for poor behavior and do not find themselves in breach in any type of ethical laws
set in the market. As ethical practices of the companies increase their reputation, the companies
get the support from the government institutions when needed. It is impossible to rebuild the
reputation hence gaining wider positive consequences though practicing ethics in the operation
of the firms is essential. This makes the firms more sustainable by diminishing the possibilities
legal threats or risks present in any market in one hand and make it more appealing to the

stakeholders. Thus, the firms gain more competitive advantage which gradually leads to attain
profitability for the firms.

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References:
Chell, E., Spence, L. J., Perrini, F., & Harris, J. D. (2016). Social entrepreneurship and business
ethics: Does social equal ethical?. Journal of business ethics, 133(4), 619-625.
Crane, A., & Matten, D. (2016). Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Feldstein, M. (2018). Social security pension reform in China. In Urbanization and social
welfare in China (pp. 25-36). Routledge.
Hastings, J., Hortaçsu, A., & Syverson, C. (2017). Sales Force and Competition in Financial
Product Markets: The Case of Mexico's Social Security
Privatization. Econometrica, 85(6), 1723-1761.
Koenig, G., & Al Myles, M. (2018). Social Security’s Impact on the National Economy.
Retrieved from https://www.aarp.org/work/social-security/info-09-2013/social-security-
impact-on-the-national-economy-AARP-ppi-econ-sec.html
Marsh, L. (2018). Report on Social Security for Canada: New Edition (Vol. 244). McGill-
Queen's Press-MQUP.
Rejda, G. E. (2015). Social insurance and economic security. Routledge.
Trevino, L. K., & Nelson, K. A. (2016). Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.