Many factors lead to a business’s success, and business ethics and social responsibility are some of those factors if led and appropriately followed.
Business Ethics vs. Social Responsibility
The concept of business ethics is to know what is right or wrong for the company and its workers, while social responsibility is knowing what impact one’s business is making in society and whether it is right or wrong.
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Business ethics include following the proper behavior that benefits the employees of the company as well as the shareholders, stakeholders, customers, etc.
Social responsibility refers to doing business keeping the benefits of their communities in mind. There are a set of duties and norms in a society that is acceptable, and a company should always follow them.
Comparison Table
| Parameters of comparison | Business Ethics | Social Responsibility |
|---|---|---|
| Definition | Business ethics include what a business needs to follow to profit its employees and stakeholders harmlessly. | Social responsibility ensures all societal norms are adequately followed while building a business. |
| Aim | To profit the employees and company. | To benefit society. |
| Nature | They are used in a business sense. | They are used in a general sense. |
| Involves | Involves corporate and companies | Involves society or individual |
| What is it about? | Business ethics is about knowing what is good or bad for the company and its employees. | Social responsibility is about seeing and keeping the morals of a society and environmental targets in mind. |
What is Business Ethics?
Every business has a set of rules the employees have to follow, including business ethics. Business ethics include policies and regulations regarding subjects such as discrimination, bribery, responsibilities as an employee, etc.
Ethics means moral character and discipline. The word ‘Ethics’ comes Greek word ‘ethos.’ It means knowing the difference between what is the right thing to do and what is wrong.
A business should be led by keeping the profit of its employees, stakeholders, and everyone related to it, but also, it should be shown to support its customers in mind. Giving customers honest and good service comes under business ethics.
What is Social Responsibility?
Social responsibility means the behavior expected from a man in the workplace. An employee’s conduct should always be according to social and community norms.
A business is not supposed to make a profit jeopardizing the community around it. It should be built keeping the people and surroundings in mind. This is the primary meaning of social responsibility.
To ensure a company’s profit and success, business ethics and social responsibility go hand in hand. If a business is being built on being honest and ethical as well as keeping social responsibilities in mind, it tends to be more successful and loved by people around.
Main Differences Between Business Ethics and Social Responsibility
- Business ethics are for a company and its employees, while social responsibility is for everyone in a community.
- Business ethics benefits a company, while social responsibility benefits everyone and businesses.
- https://books.google.com/books?hl=en&lr=&id=jwQB_XWs0TkC&oi=fnd&pg=PR11&dq=business+ethics&ots=2ZDixyfWh5&sig=9YIa-JgUTSZWTAuaX8zpoc5B8zs
- https://journals.aom.org/doi/abs/10.5465/AMLE.2006.22697016
- https://www.sciencedirect.com/science/article/pii/S0148296318303588
- https://www.emerald.com/insight/content/doi/10.1108/02621710010308135/full/html
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Chara Yadav holds MBA in Finance. Her goal is to simplify finance-related topics. She has worked in finance for about 25 years. She has held multiple finance and banking classes for business schools and communities. Read more at her bio page.
