BLW 1001 Lecture Notes - Lecture 3: Profit Maximization, Ethical Decision, Corporate Social Responsibility
6 Feb 2017
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Document Summary
The sarbanes-oxley act requires corporations to reveal whether they have a code of ethics. Codes of conduct often prohibit accepting gifts and set hiring practices. Conduct codes could be legit attempts to foster ethical behavior or attempts to mislead the public into thinking a business is ethical. Corporates interact with different consistencies such as unions and customers. Corporations should do what is best for all constituencies. Profit maximizers may focus too much on short-term profits rather than long-term efficiency. Salaries, bonuses, and promotion decisions create incentive for short-term gains not the long-term future of the company. Balance profit maximization and corporate social responsibility. Business is good because it creates economic value. Business is ethical because it derives strength from voluntary exchange that benefits all of society. Tap into both a profit motive and a desire to benefit. The guidelines don"t guarantee happy endings to all moral dilemmas. Guidelines are not practical in all circumstances.
