Corporate Ethics Governance and Social Responsibility

Therefore, it prescribes a certain amount of social responsibility that the corporate authorities should maintain according to their corporate governance. This can be termed as the corporation’s social responsibility. Today almost every company, despite their product category and revenue structure has certain social responsibilities towards the social environment in which they operate. Consequently, any form of violation to these responsibilities or immoral activities from the company is treated to be unethical. Therefore, ethics in corporate can be referred to the philosophy that a corporation perceives in order to carry out its social responsibilities.
On the theoretical basis, ethics cannot be termed directly to be a science. Rather it is widely accepted to be a philosophy of certain leading forces which helps in achieving the desired goal or optimum success and sustain in that position for a longer period. And due to its nature business ethics do get vibrated by many variables, such as the leadership, strategies undertaken, micro and macro environment, cultural bases and individual characteristics. A proper ethical commitment can enhance customer’s satisfaction and trust on the product and result in an increase in brand loyalty which in turn will help the company earn profit and goodwill. Moreover, maintaining proper ethical codes in the internal environment of the workplace shall also prove to be beneficial for the employee satisfaction level and dependability. All these in turn will up-grade the ethical culture of the organization and thereafter create investor’s trust for the company. However, regardless of such importance in the business operations, corporate are often witnessed to welcome unethical activities in order to earn higher competency and profit. A number of issues for examples are misinforming financial outlook, discrimination based on gender, race, sex, religion or