As you know that ethics are the moral guidelines that determine the decision making.Corporate social responsibility is the obligations a firm accepts over and above its legal obligations eg.responsibilities to community and the enviroment. the growing importance of corporate social responsibilty has lead to businesses adopting an 'ethical code' to influence the way in which decisions are taken. Why should a manager behave ethically?1. to attract ethical investors. 2. to attract ethical consumers. 3. to attract employees. 4. to avoid unfavourable media attention.
Why should a firm not behave ethically?
1. there is no government agreement on what is ethical.
2. it can add up extra costs to a firm.
3. conflict of interests. eg. by not producing cigrettes a business has to make workers redundant.
4. it is not illegal if you dont follow an ethical code.
Ethics Vs profits
ethical behaviour may reduce a firms profits in the short run by;
1. by not accepting orders which are cheap but are from firms using child labour leads to increased costs.
2. production controls. eg pollution control
3. paying fair wages to employing in a country with no wage restrictions.
ethical behaviour may also increase profits in the long run by;
1.attracts investors
2.attracts consumers
3.attracts staff
thats all i've got........hope that its helpful
