Should the ethical obligation of business executives go beyond what is required by law. Discuss.

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In discussion, when people use the term ethics, they refer to a set of moral values or principles to guide behaviour. Ethical behaviour is, then, behaviour which conforms to these values. But ethics also has a more deep meaning. It is the discipline which considers the justifications people present for the values and principles they hold. (Palmer et al., 2001) The ethics of a company (in the first sense) is made up of the set of values the leader holds. But among these many principles, business executives should have those particular values that are based in society’s rationale for business. These morals are domineering; they involve a kind of contract between a company and society under which managers are to bring the benefits for which society justifies the existence of the business system. These values recognize economic performance as a good that society wants. And since they do, they impose obligations and set limits on business executives in their conduct of business. (Palmer et al., 2001) As Gene Laczniak (1983) cоncluded: “Proper ethical behaviоur exists on a plane abоve the law. The law merely specifies the lоwest common denominatоr of acceptable behaviour”. Because of their enormous social and economic power, corporations have to carry social responsibility. Companies cannot make decisions that are only economic decisions, since they are interconnected with the entire social system – business activities profoundly influence society. Therefore, society expects business to pursue other responsibilities as well. Through business activities they invest in the welfare of the societies they serve and their every day decisions have a long-standing impact on these communities. (Langtry, 1994) If a firm makes only withdrawals- from human resources, society-material resources, wealth, energy -and does not invest in society, then it

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