Accounting technicians scheme west africa
C.1.3 Arguments against Social Responsibility
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| C.1.3 Arguments against Social Responsibility 1. The primary task of business is to maximise profit by focusing strictly on economic activities. Social activities sidetrack managers from the primary objectives of business and could reduce economic efficiency of organizations. 2. Participants in social programmes give business greater power, perhaps at the expense of particular segment of society. 3. At the end of the day, society pays for the social involvement of business through higher prices because social involvement creates excessive costs for business which will ultimately be passed to customers inform or higher prices. 4. Drawing from the above, social involvement can create a weakened international balance of payments situation. The cost of social programmes would have to be added to the price of the goods and services. Thus, Nigerian companies selling in international markets would beat a disadvantage when competing with companies in other countries that do not have these social costs to bear. 5. Business has enough power, and additional social involvement would further increase its power and influence which maybe detrimental to the society. 6. Many authorities also question whether business has the expertise needed to assess and make decisions, about social problems. In short, many asserted that business lack the social skills to deal with the problems of society. That their training and experience are with economic matters, and their skills may not be pertinent to social problems. 7. There is lack of accountability of business to society. Unless accountability can be established, business should not get involved. 8. Many people feel that social problems are the responsibility of government agencies and officials, and therefore business involvement is a gross misallocation of scarce resources with its attendant consequences. C.2 Business Ethics The word Ethics" originated from the Greek word ‘ethos’, meaning, character, conduct and activities of the people based on moral principles. It is concerned with what is right and what is wrong inhuman behaviour on the basis of standard behaviour or conduct acceptable by the society. Ethics is defined as the discipline dealing with what is good and bad and with moral duty and obligations. Ethics is an individual's personal belief about whether a behaviour, action or decision is right or wrong (Griffin, 1999). What an individual considers to be right or wrong, good or bad, comes from various sources. The family is the first school in which the child learns. From the parents, the child learns behaviours, actions and decisions that are good and those that are bad. Other sources of learning are educational institutions, such as schools and religious institutions from peer influence, from professional and trade associations, etc, to which the individual belongs the individual's personal experiences and situational factors. All of these sources, define for the individual ethic standards that guide his/her behaviour, actions and decisions. 45 Business ethics refers to ethical standards that are applicable when people engage in business transactions. According to Weihrich and Koontz, (2001) business ethics is concerned with truth and justice. It is concerned with what is good or bad, right or wrong in business transactions. Most business organizations and indeed most organizations prescribe ethical standard which employees and other key stakeholders, such as suppliers are expected to adopt in conducting their activities. For example, organizations define what is fair and just, good and bad, in dealing with various stakeholders, such as employees, customers, etc. Finally, it could be reasoned further that Ethics go beyond the law because they are standards of behaviour that are expected of both the individual and the corporate legal person. Ethics define, for the individual, what is morally right or wrong. On the other hand, business ethics enables business managers to question their business activities, actions and decisions inline with moral principles concerning their products, services, managerial competences and relationships with the society they do business with. Download 3.37 Mb. Share with your friends:
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