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THE IMPORTANCE OF ETHICS AND SOCIAL RESPONSIBILITIES TO A BUSINESS ORGANISATION

CHAPTER ONE

INTRODUCTION

       The critical concern of every society has been the ethical and social responsibilities of businessmen and their organisations. Each society strives to ensure that those who engage in any form of business are always moral in their daily activities. These two words are twin’s concept (Ethical and social responsibilities) that focuses on the moral conscience of business. The concept of ethical responsibility has to do with those issues and problems that are pertaining to business people’s loyalty to their organisations are as well as their customers. While social responsibility on the other hand concerns to the problems, interests and needs of the society of larger.

It is carryout the most obligations and duties of business to the society at large.

        Therefore, it is of first interest that anybody or organization that engages in any form of business ranging from manufacturing to agriculture and soon should be ethical and socially responsible to the society and the environment where he exists and do business. This therefore means a solid foundation for continuous existence and customer’s relation, as well as a satisfied society.

The importance of ethical and social responsibility to business and organization is vital to a lot of areas in the organization and also to policy formulation and organisational objectives.

    However, customers, the society and government don’t take it legally with the unethical business conduct and lack of social responsibility of business organization, it is seriously affecting them. This had lead to a lot of companies and organisations being short down and customers drain. Government now takes it seriously with business organisations namely out spillage, by oil companies, air pollution by manufacturing companies, water and noise pollution just to mention a few.

        Therefore, business has to compeciate to find ways to prevent the above mentioned traits to likes and properties in the society.

Business have revised their ribs and duties to the society and are now living up to that responsibilities. But most business organisations have adopted this doctrines of social and ethical responsibilities to the general public as well as the society were the operate. This doctrines appeals to the consistence of business people to the intent that they might meet the expectations of those who are affected by their actions.

 1.1     GENERAL BACK GROUND TO THE SUBJECT MATTER:

Since ethical and social responsibilities in becoming too popular sterm in business and (therefore critical look into the meaning of ethics and social responsibility is vital to this work at hand. What does ethics and social responsibilities mean? In order to understand the meaning of this term, we have to first know the meaning of ethics.

The word “ethics” is surd that deals with moral or the standard of right and wrong in human behaviour.

In every profession, there is rules and code of conduct guiding its members, eg. The Army, Police, Lawyers. Businessmen etc. Ethical codes can be written or unwritten. These rules are known to the members of the professions. To be ethical is to abide by these rules in our’s dealings with others. While unethical behaviour is the one which falls below the standards or expectations. As tom concepts ethical and social responsibilities are the focus on the worst conscience of business.

The concepts of ethical responsibilities has to do with those issue that concern businessmen’s loyalty to their organisations as well as this customers. While social responsibilities has to do with the duties or obligations of business to the problem, interests and needs of the society at large. It is carrying out the moral duties or delegations of the businessmen or business to the society.

From the explanation above the distinction between ethical and social responsibilities, contributed very well to its background.

This tells us that while ethical responsibilities has to do with business, people’s obligation to be true to their customers as well as their organization, social responsibilities has to do with their being good to society as their customers.

But concepts are appeals to the conscience of business people to the intent they might meet the expectations of those who are affected by their section.

 1.2     PROBLEMS ASSOCIATED WITH SUBJECT MATTER:

The aim of every business is to make profit. But it will be stated here that it will be unwise for any business organization to spend all its profits and resources on social responsibilities. Business organisations should be careful in carrying out social responsibilities especially as it involves finance. This saying that a business should not run at loss and go bankrupt because it wants to live up to expectations.

The implementation of social responsibilities should be a Management function, properly analysed and planned, so that the organization does not become unprofitable. Business organisations, when it comes to social responsibilities.

Other problems that associates with ethics and social responsibilities are:

A)    Ignorant business organization.

B)   Finance (insufficient funds)

C)   Lack of government control

D)   Unethical business management.

E)    Lack of planning and analyzing

F)    Dormant society.

G)   Illiterate consumers.

 1.3     PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH:

CHANGING SOCIAL ROLE OF BUSINESS:

Today, business organisations is constantly changing and is surrounded by thousands of environmental problems. An organization can change to its environment in any of the 2 ways.

1.  It can change the environment.

2.  It can adjust to the environment

Hicks and Anllet (1981). This means business is changing society and environment. Therefore a good organization know how its obligations/objectives are, and knows which environmental factors are affecting it on its progress. Therefore business organization should have a changing social role which enables it to adopt and shape its environment, so that it can become and remain viable. The goal is to have a healthy interrelationship of the organization and its environment, for their mutual benefit.

Further important view Hicks and aullet (1981) is that business must play an active social role in the society in which it functions. In part this is the result of business success. Many business are large and powerful economically, therefore their decision and polices have vital impact on the society. The more the changes in economic growth of business the more the society expects, form that organization. The equation should always balance. Therefore any business organisation that wishes to hold on to its power must, therefore be sure that it is exercising an equivalent amount of changing social role to the society.

According to Davis and Robert (1980) for reasons for the growing role of social responsibilities are:

1.  The changing needs of people business, has done organizing good job of meeting economic needs in society. Now social expectations of people must be met as well.

2. The changing business and economic system. Many firms have grown large and powerful in our society. Perfect competition as described by the economist Adam smith two centuries ago is an accurate model of today’s economic system since an increase in economic power means an increase in social responsibilities to the society.

3. The changing role of Management: As the ownership and Management of business have been separated, Managers have come to see owners as only one the groups they must serve. The Management role is changing from that of ownership to true ownership for arise range of claimants.

4.  The changing role of society: Modern society is much more inter- dependent than it once was. Actions of business can influence life styles of large segments of society. This means business can influence employee’s satisfaction availability of goods and services to customers, the economic health of the nation and the quality of our environment.

Society does not only expect economic performance from business, they also expect social performance. With the emergency of special interest groups in the society pressing their demands upon business. This has eventually led to the changing social role of business organization

1.4     THE IMPORTANCE OF THE STUDY TO THE AREA:

The importance of ethics and social responsibilities is of great important to business today. Modern business organization have realised the importance and are now making use of such importance to expand their business enterprise. Only ignorant business organisations still now run away from ethics and social responsibilities.

Some of the importance of ethics and social responsibilities to the Area are:

A.   Continues existence of business.

B.    More customers (increase patronage).

C.    Promotion of corporate image.

D.    Social power in the society

E.     Profitability.

F.    Better environment to operate and do

business.

G.    Availability of labour force.

H     Government support

I      Better relationship between organization and  

       customers.

J.    Dedicated staff and employees.

 1.5     DEFINITION OF THE IMPORTANCE TERMS

Types of organization: An organization is defined in a number of ways. In the study of management it can be refers to the structure of relationships among individuals concerned with changes or growth. Organisations are primarily complex good seeking units which in order to survive must accomplish secondary task eg. They must maintain their internal system to co-ordinate the human side of enterprise and must adopt to and shape the external environment. Applie by (1981) stresses the fact that an organization is made up of individual workers and management. And that sometimes conflicts arose between workers and the management goal attainment. This could be solved by the theories propounded to allow for medication of interest.

It was in this, Elthon Mayo and his associate saw that the human affiliation of man could be a activating force and viewed the industrial/organization as a social as well as an economic mechanical system. What is of importance now is that, the conflict between management and individual permits organisations to perform their social responsibilities and Ethics.

TYPES OF ORGANIZATION

  1.   Formal organization

  2.   Informal organization

     According to some organisational theories eg. W.Brown another classifications of organisations could be profit making organisations eg. companies and on-profit making organisations eg. Government establishment. Types of organisations based on structure are:

   1.  Line organization

   2.  Staff organization (sometimes called tined and staff).

  3.  Functional organization.

Whatever an organization perform or whatever type it is, either profit making or not or informal or formal. Even if its structure is line or not it is important that the general principles of organization is supplied to it.

The principles of organisations.

 Appleby (1981) are:

1.  UNITY OF OBJECTIVE: Every part of the organization must contribute to the attainment of the objective of the enterprise.

2.    SPAN OF CONTROL: Considerations need to find the number of persons an individual can effectively manage. The number varies for many reasons, but a figure often quoted is that six subordinates is the largest number a person should supervise.

3.  DELEGATION: Authority should be delegated as far down the level as possible.

4.   UNITY OF COMMAND:  Instructions from two or more supervisors may conflict. This is why each subordinate should have only one boss/supervisor.

5. SCALAR PRINCIPLES: Someone must have ultimate authority and a clear line of authority should be existence all the parts of the enterprise.

6.    RESPONSIBILITY:  The responsibility of a subordinate to a supervisor for delegated authority is absolute and responsibility should be proportionate with the amount of authority given.

 1.6      REFERENCE

Davis and Roberts (1980) Business, society and Environment, New York    Me Graw Hill Inc.

 Edoga P.N. (1995) Successful solling; Enugu, Te-Rol Publishers p.80, 81.

 Pits Ejiofor(1989) Foundation of Business Administration and Management New York Nigeria publisher p. 52, 56, 60.

 Keith, Lyman A. and Gubellini, Card E (1982);

Introduction to Business Enterprise, 4th ed. International student Edition Tolkoyo McGraw Hill Koyakusha, Ltd.

 Ugheoke, E. Opeleye, (1988) The role social Responsibilities and Etics, Development outlode, July- August.

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