Ethical Behavior of Companies Essay Example | Topics and Well Written Essays - 250 words

Ethical way of Companies - Essay ExampleIt is evidently clear from the discussion that honoring the interest of the shareholders is the priority of any affair investment. Investors expect to yield maximum profit from the venture by maximizing revenue and minimizing cost. However, balancing these parameters leads to ill consequences that result in social or environmental conflict with other stakeholders. Therefore, the integration of a CSR manikin flows in handy to solve the conflict created by the business operations. The Corporate Social Responsibility modeling requires the firm to be responsible for(p) for its business practices that affect the community or the environment where it operates. However, this does not come at the expense of the enterprise success. For this reason, the value optimization is the ideal practice because it embraces social, economic, and environmental accountability to its stakeholders. The responsible shareholder-value optimization principle suppor ts ethical actions and responsibility of the business to its stakeholders. Under this principle, the organization is responsible for any social, economic or environmental inconvenience caused by its maneuver. As a result, this role gives the business a assign to ensure ethical practices that are within the expectation of the shareholders, the community, and other stakeholders.