BowmanKMGT7019

NORTHCENTRAL UNIVERSITY
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Student: Kadja O. Bowman
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MGT7019

Professor Jo Ann Davis

Ethics in Business

Assignment 1: Evaluate Ethical

Perspectives on Social Responsibility

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For this paper, I will discuss the idea of social responsibility and how it relates to
business ethics in our everyday lives. I will also cover William Cohens position on a companys
responsibility to conduct them in a way that is socially responsible to its employees, stakeholders
and the community. In addition, I will provide my opinions by evaluating William Cohen, Peter
Drucker and Milton Friedmans perspectives on the topic regarding the social responsibility of a
business and how it affects the community.
Social responsibility refers to businesses, business leaders and citizens which has a duty
to help their community in any way possible. This responsibility remains whether the tasks is big
or small. Social responsibility consists of many avenues, such as community service, recycling,
volunteering in a homeless shelter, reporting crimes and even donating blood, even something as
simple as time can be considered as community service. For instance, going to a nursing home
and spending time with an elderly person who may not have anyone come to visit. A business
may donate a large sum of money to a charitable organization or partake in a clean-up of the
neighborhood. The concept of social responsibility pertains to people, organizations, businesses,
and the government, which has an obligation to behave in an ethical manner, while remaining
sensitive to culture, environmental and economic matters.
(http://www.imasocialentrepreneur.com/social-responsibility/) As a society, we must be held
accountable for our behaviors and actions. In other words, always keeping in mind the benefit of
the greater good. It is our duty to always do the right thing, even when no one is watching. It all
boils down to treating others the way you want to be treated. Drucker believed the greatest test
of our integrity and character is the way we treat other people (Beebe, 2012).
I tend to think that social responsibility starts at home. My thoughts are that upbringing
plays a role in social responsibility. When an individual is raised, taught, and shown the

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importance of caring and giving back to others, it becomes ingrained in them that it is their duty
to help in any way they can, not only to improve their community, but society as a whole. In my
opinion, it teaches an individual to remain humble Even though, I think social responsibility
begins at home, I must consider that we all come from different parts of the world, and what one
thing may mean to one person may mean something entirely different to another person.
A persons character, rather than their economic status is a determining factor of
exhibiting social responsibility. According to Peter Drucker, ethics is a matter of the person.
(pg. 34) For example, just because a person is rich or poor does not mean they do not know right
from wrong. An example of this is when a young person sees an elderly person struggling to
carry something. Whether or not they choose to help the elderly person has nothing to do with
how they were brought up or their personal background. It has everything to do with whats right
or wrong and how that person views whats right or wrong.
It is foolish for organizations to ignore the idea of social responsibility. Although, it is a
companys responsibility to remain profitable, they must also take into account their social
responsibility. The idea of making money while not considering society and employees can
surely contribute to the demise of a business. It is not only important, but imperative for
organizations to be mindful of how their business practices affects their employees, customers,
stakeholders, investors, and even their suppliers.
Cohens feeling regarding the social responsibility of a business to its workers is first
realizing people are a valuable asset. Employees can offer pertinent information which can help
improve and continue the success of a business. They are often times the first line of
communication between the company and the customers in the community. They experience
firsthand any concerns or issues consumers may have. It is as equally important to take care of

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your employees as it is to making a profit. Cohen (2009) states, it is the duty of a corporate
leader to consider their employees both in and out of the workplace, just as they have the
responsibility for profits, growth and longevity (29). Another aspect that must be taken into
consideration is recognizing that every person is different and cannot be treated the same. A
leader may need to explore alternative approaches on dealing with different personalities.
A business has a responsibility to provide a safe and healthy working environment for its
employees. In addition, job stability, fair wages, benefits, room for advancement and
opportunities to better themselves, all contribute to the social responsibility of a business. Many
businesses now offer tuition reimbursement for any employees who would like to further their
education, which in turn not only helps the employee and employer, but society as well. There
are times where a business is faced with the difficult decision for layoffs. I can personally relate
to this concept since my place of employment was faced with this matter. However, the
employees who were laid off have the option of taking a severance package, or having first picks
at other positions that are available. More than likely, employees who were laid off were placed
in other positions within the company. For employees who choose a different route, they were
provided with similar job openings in the surrounding area for which they can apply.
According to Cohen (2009), from a business perspective, the first social responsibility
of a business is to its stakeholders, ensuring that there is enough financial means to cover future
operational costs (pg. 32). A business will not survive without adequate funds to keep the
business running. Stakeholders are concerned with making money on their investments.
Therefore, it is essential for a business to not only have stability and longevity, but demonstrate
growth. It is important for a business to reinvent them by being creative and innovative which
can help a business improve and grow. This will in turn help the business generate more revenue.

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Additionally, it is necessary for a business to have a plan where they set specific goals and
objectives, so that stakeholders have a clear understanding of the future direction of the company
as well as the possibly of a greater return on their investment.
Businesses have a social responsibility to society in many aspects. Every organization
must assume full responsibility for its impact on employees, the environment, customers and
whomever and whatever it touches (Cohen, 2009, Pg. 31). When an organization provides jobs
to a community, it helps to strengthen that community while offering a strong sense of purpose.
Additionally, when an organization produces a quality product, it creates an environment that the
community, as well as the employees of that company can stand behind and feel sense of pride.
These factors work hand in hand to achieve the betterment of a society. A healthy organization
cannot exist in a sick society, (Cohen, 2009, pg. 31) which means no matter how great a product
or service may be, it will not reach its full potential without the help of the public. Cohens point
of view supports Drucker as it relates to corporate leaders exercising their social responsibility.
People, whether working as an employee, a consumer or residents of the neighborhood all must
be taken into consideration
In comparing Friedman and Cohens ideology on social responsibilities, I find that
Friedman puts more emphasis on a company increasing their profits. Drucker emphasized that
the first responsibility of management was to produce satisfactory economic results (Cohen,
2009, pg. 30). The bottom line of any business is to generate income. It is the primary reason
that everyone comes to work on a daily basis. This is true because without profits, a business will
not survive and the doors will eventually close. Cohen, on the other hand, agrees that increasing
profits is an important factor, but he also puts emphasis on the fact that investing in the people,
whether that be the employees or the community is equally as important.

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In my opinion, Drucker and Cohen views best contribute to promoting a green

environment. They believe it is the organizations responsibility to implement practices that
benefit society and the greater good. An example of this would be implementing a companywide
practice that enforces strict recycling rules. Another example would be reducing the total amount
of paper that a company uses for any given amount of time. Both the opinions of Cohen and
Drucker state that it is the businesss social responsibility to have a positive influence on the
environment. This mindset may encourage other businesses to follow suit which over time would
have the greatest benefit to the environment.
Corporate leaders have a responsibility to behave and act in a way that is not only ethical,
but socially responsible. It is the responsibility of executives, leaders and persons in high ranking
positions to lead by example. It is their obligation to demonstrate to employees and customers by
their actions and behaviors in an ethical manner. There can be no substantial progress within an
organization when there lacks social responsibility from people that hold high level positions.
According to Cohen (2009), Drucker knew that nothing could be done effectively about social
responsibility without good leadership at the top of the organization (pg. 34). It is essential for
leaders to not only talk the talk, but walk the walk. In my opinion, that trickles down to every
aspect of their lives, whether professional or personal. When a leader lacks empathy, makes poor
judgements, and does not follow the standards they set out for others, the outcome of the
business can be detrimental. When a leader does not exhibit behavior that is ethical, their staff
may begin to think it is acceptable to behave in a way that is unethical. This relates to Druckers
ethics of prudence and self-development. It is imperative for a leader to look within their selves
and evaluate their character. A song that comes to mind is Michael Jacksons, Man in the

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Mirror. There is a line in the song, if you want to make the world a better place, take a look at
yourself and make a change.

References:

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Retrieved Oct. 27, 2015 from: http://www.imasocialentrepreneur.com/social-responsibility/

Beebe, G. D. (2012, June). Character Formation Foundation of effective leadership.
www.LeaderExcel.com
Cohen, W. A. (2009). What Drucker taught us about Social Responsibility.
Drucker, P. F. (1981). What is business ethics.
Friedman, M. (1970, Sept, 13). The Social Responsibility of Business is to Increase its Profits.
The New York Times Magazine. 1970.