Business ethics and social responsibilities of the business are critical for the organizations that perform extremely well in terms of impetus and obligation towards the employees. Evidence suggests that responsibility may be an important aspect for attracting the best employees possible, and for becoming an admired company, admired not for the profit the company is generating, but for the quality of products, production, service and public involvement (Gossling, 2012). The shortcomings for the companies that do not follow the guidelines for being socially responsible would be loss of trust from the employees that may result in the best employees to leave the company. A perfect example of unethical conduct by a business can be seen by the energy companies that are moving to drill the in the heavily populated towns of Pennsylvania to manage the shale gas boom without being concerned about the possible health effects of the local people. Organizations such as Social Venture Network (SVN), Business for Social Responsibility (BSR), Social Enterprise Alliance (SEA), Business Alliance for Living Local Economies (BALLE), and more recently, B Corp, provide ongoing, effective institutional support of a far flung network of individuals and businesses that seek to use the power of business for community benefit (Hannigan, 2011). This is a good example of ethical business conduct.
The problem of getting into unethical behavior begins with greed to make quick money in short span. There is a tendency in every human to turn into evil. The tools to derive people’s behavior can be obtained when they are provided with various roles to perform. People’s aggression can also increase when they feel anonymous--for example if they wear a uniform, hood or mask (Dittmann, 2004). The organization will experience a major damage when people turn unethical. The problem can be solved when every company has investment capital to support the business growth and provide solutions to community problems as a company goal. A successful outcome can be obtained by effective trade organizations, training the people on the business ethics, applying suitable corporate structures, and creating successful business models. These criteria will help develop the business as well as create community prosperity. The corporate law now supports and protects the business development and respects the stakeholders, and many states have passed rule that favors the business to provide good financial returns. This effort has been done by the B Lab and other organizations and they are called Benefit Corporations, and this rule will be enacted in all states in United States.
All the US companies dealing with foreign markets must be acquainted with the Foreign Corrupt Practices Act (FCPA). The purpose to obtain or keep a business by paying corrupt foreign officials is strictly prohibited by FCPA. The knowledgeable foreign agents who are aware of the customs and business practices of the local country are hired by the companies that do business abroad. But even though they are knowledgeable about the local business entities and build healthy relationships they pose a FCPA risk. The anti-bribery provisions of the FCPA make it unlawful for a U.S. person, and certain foreign issuers of securities, to make a corrupt payment to a foreign official for the purpose of obtaining or retaining business for or with, or directing business to, any person (United States Department of Justice, n.d). The Commodity Futures Trading Commission and the Overseas Private Investment Corporation are eligible to suspend or debar such companies for violation of the FCPA. REFERENCES
Gossling, Tobias. (2012). Corporate Social Responsibility and Business Performance: Theories and Evidence About Organizational Responsibility. (Illustrated). Edward Elgar Publishing.
Hannigan, Mike (2011), The Future of Corporate Philanthropy: Current Do-Good Business Climate Breathes New Life into Corporate Philanthropy. Retrieved from
Dittmann, Melissa (2004), What makes good people do bad things? Vol 35, No. 9, Page 38. Retrieved from .
United States Department of Justice. Foreign Corrupt Practices Act. Retrieved from
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References
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