Ethical Responsibilities of Companies

Short Questions Test
Cohort B

By – Chadha, Simran kaur sukhdev singh Chikkamath, Nanjundayya Sihan shawkath Ali Yeleyarmane prabhakar, Nischal
International business firms must be ethically and socially responsible." Discuss.
Many ask the question that why companies should follow social responsibilities and why should they be ethical. But ethical business helps the company to be competitive at national and international levels. Recently, multinational companies have been encouraged by many scholars to develop clear and specific codes of conduct that outline their objectives, duties, and obligations in the international markets in which they operate. Organizations ethical behaviors relates to religious, cultural and legal systems of the society. Ethics in international business is very important as it corresponds to basic needs of society, it creates values within the public’s, it helps in better decision making in the organization, maintaining the ethical standards helps in meeting their profits and desired objectives, it can be stated that ethical values protect society than law. Hence every international business should be ethically responsible to the current business world. They should maintain their ethical standards at any situations, trends and issues which arise in the business world. At any situation the organizations should not turn unethical which affects the beliefs of the public’s towards the organization. Proper ethical behavior within the organization has become the crucial part to avoid lawsuits. Social responsibilities may not be mandatory to the companies but plays a vital role in carrying on the business. It acts as a branding weapon too