After the Enron, WorldCom, Arthur Anderson fiascoes, and the effects that such major failures continue to have on the public trust everywhere, many advocated for an expanded role of the government in taming and controlling irresponsible management behavior, As an expert economist, members of Congress have asked you, speaking strictly from an economic and/or financial viewpoint (and not a political/social one) should the government have and expanded role: Why or why not? In your response, make sure you address the role of the SEC and other regulatory/enforcement agencies.
As an expert economist, members of Congress have asked you, speaking strictly from an economic and/or financial viewpoint (and not a political/social one) should the government have and expanded role: Why or why not?
It is an issue of business ethics and role of government in it.
Business ethics is the branch of ethics that examines ethical rules and principles within a commercial context; the various moral or ethical problems that can arise in a business setting; and any special duties or obligations that apply to persons who are engaged in commerce. In recent times, this word has been referred to as an oxymoron. Those who are interested in business ethics examine various kinds of business activities and ask, "Is the conduct ethically right or wrong?"
It is clearly good that businesses should seek to minimize their negative social and environmental impact resulting from their economic activity. Some of the variables considered by business ethics in coming up with its list are:
2. Community relations
3. Employee relations
4. Share holders
3. Customer relations
4. Non U.S. stakeholders
5. Minorities and Women
There is no strict "formula" for how a company is evaluated. All available measures, news articles, lawsuits, annual reports, etc. are compiled for each company -- including input from the company itself -- and a researcher.
The corporate's social responsibilities encompasses:
- The environment it operates in
- The employees with which it survives
- The Market for which it exists
- The community which provides it with the basics to grow
Corporations that treat environment with respect leave little waste for the environment to consume, have efficient processes, low energy costs, high degree of recycling, high product quality, high social standing and high levels of customer satisfaction. It becomes a win-win strategy for the corporate enabling them to improve their environmental or social record while reducing costs and/or increasing competitiveness and productivity.
Unsound financial reporting:
The corporations ...