Ethics and Social Responsibilities

Introduction

In a private-enterprise(prenominal) market, the measure of success is the maximization of shareholder wealth and maximized profit. These inclinations are what drive the economy and effects to a greater extent than just the corporation in and of itself. Regulatory issues are in place to protect competition and stimulate the economy. Without the regulations competition is inhibit leading to a move away from a capitalistic market. The statement, Since the goal of the public corporation is to maximize shareholder wealth, vigilance should take any action necessary to achieve this goal so long as no law is violate rings true for many corporations. Maximizing profit allows for harvest-tide and possible implementation of line of reasoning ethics after survival of the corporation is no longer a concern.

Social Impact

In contrast to the frugal impact of the above ethical statement, the social impacts are actually different. Many possibilities of the outcome of decisions made regarding operating to maximize internet exist. Regulations faculty exist to contain known social issues that might be faced by decisions made by a corporation. If these regulations are out of date or inadequate, it must be the responsibility of the corporation to self regulate. If it doesnt, the corporation runs the risk of proper viewed as un-ethical.



However, a companys directors have a responsibility to mitigate all expenses that are non direct costs and related to to the operation of the company.

Regulatory Impact

There exists a large impact on business and profitability resulting from regulations placed on businesses due to ethical concerns. For instance, inunct companies are investing large amounts of money to build young tankers that conform to the requirements for double hull containment. This requirement must be met by 2015 (www.panda.org, 2005). This places a large burden upon the oil companies. Undoubtedly, the companies would not be expending the great amount...

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