Ethical factors are increasingly having an impact into the way businesses are run, as the businesses are frowned upon if there is little, or no, social responsibility. This creates a problem with stakeholders of businesses, as the keyword for most stakeholders, in the past, has been profit.
Businesses, now more than ever, are expected to be socially responsible and to practice ethical management and leadership styles. There are now regulations in place to ensure that all businesses are acting and trading in an ethical and socially responsible manner. This involves treating employees fairly and sourcing products that have been grown or produced in an ethical way.
Where previously companies would simply look for the cheapest option, especially when it came to the work force, they now have to employ workers who are treated correctly, and who are paid a minimum wage that is fair. They also need to source their products from reliable and well-managed sources.
These factors obviously affect profit margins, but it is seen as good practice to be socially responsible. The public persona is now one of fairness, and many people will only deal with, and purchase from, companies who are acting fairly and treating their workers and suppliers well.
People's attitudes are changing and ethics in business are extremely important, as the public will ultimately have the say as to whether a business is successful or not. The stakeholders in businesses may have to accept that profit margins may not be as high as they once were, but a small profit margin is still much more beneficial to them than no profit margin at all. The needs of the stakeholder are no longer the most important needs of a business; they have to now stand alongside the ethical and socially responsible trading of the business.
Businesses, now more than ever, are expected to be socially responsible and to practice ethical management and leadership styles. There are now regulations in place to ensure that all businesses are acting and trading in an ethical and socially responsible manner. This involves treating employees fairly and sourcing products that have been grown or produced in an ethical way.
Where previously companies would simply look for the cheapest option, especially when it came to the work force, they now have to employ workers who are treated correctly, and who are paid a minimum wage that is fair. They also need to source their products from reliable and well-managed sources.
These factors obviously affect profit margins, but it is seen as good practice to be socially responsible. The public persona is now one of fairness, and many people will only deal with, and purchase from, companies who are acting fairly and treating their workers and suppliers well.
People's attitudes are changing and ethics in business are extremely important, as the public will ultimately have the say as to whether a business is successful or not. The stakeholders in businesses may have to accept that profit margins may not be as high as they once were, but a small profit margin is still much more beneficial to them than no profit margin at all. The needs of the stakeholder are no longer the most important needs of a business; they have to now stand alongside the ethical and socially responsible trading of the business.