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Ethics and Social Responsibilities Paper

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Ethics and Social Responsibilities.
a. Ethics and social responsibility play important roles in today's business world and are impacted by movement regulations. For your paper, select one of the following statements:
1) "Since the goal of the public corporation is to maximize shareholder wealth, management should take any action necessary to achieve this goal so long as no law is violated."
2) "It is acceptable to sell products banned in the United States in other countries (i.e., where permitted by other countries due to differences in national policies)."
3) "Strict government regulations necessary to make companies behave ethically."

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1) "Since the goal of the public corporation is to maximize shareholder wealth, management should take any action necessary to achieve this goal so long as no law is violated."

Profit maximization should not be the decision criterion of the management. Instead it should be wealth maximization, which is based on the maximization of cash flows. Cash flows are more important to business as it leads to wealth maximization. The profit maximization has certain pitfalls as criterions, which are as follows:
- It is Vague
- It Ignores the Timing of Returns
- It Ignores Risk

Moreover, in new business environment profit maximization is regarded as
- Unrealistic
- Difficult
- Inappropriate
- Immoral.

Benefits of wealth maximization as a criterion

- Maximizes the net present value of a course of action to shareholders.
- Accounts for the timing and risk of the expected benefits.
- Meets the fundamental objective-maximize the market value of the firm's shares.

Importance of Societal responsibility and other objectives:

Some of the variables considered to be considered by the management are:
1. Environment
2. Community relations
3. Employee relations
4. Share holders
3. Customer relations
4. Non U.S. stakeholders
5. Minorities and Women

Thus Besides wealth maximization it should also satisfy other stakeholders as the organization is taking the resources from them. It can have following additional objectives:

- Environment looks at positive programs in place such as pollution reduction, recycling, and energy-saving measures; as well as negative measures such as level of pollutants, EPA citations, fines, lawsuits, and other measures.
- Community relations looks at philanthropy, any foundation the company has, community service projects, educational outreach, scholarships, employee volunteerism, and so forth.
- Employee relations looks at wages relative to the industry, benefits paid, family-friendly policies, parental leave; team management, employee empowerment, and so forth.
- Minorities and Women look at percent of minority and women among employees, managers, and board members; any EEOC complaints; diversity programs in place; lawsuits, and so forth.
- Customer relations might include quality management ...

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An Organization's Code of Ethics & Social Responsibility

Can you help me get started on this assignment?

A Code of Ethics is a very important part of an organization's Social Responsibility. "Since the 2002 Sarbanes-Oxley legislations, any publicly held company is required to create its own code of ethics to deter wrongdoing and to promote ethical behavior".
(Source: http://www.12manage.com/description_code_of_ethics.html).

Search the Internet for the following terms: "Sarbanes Oxley Code of Ethics" to find the SOX definition of a "code of ethics" and the requirements to meet the code.
Search the Internet for three publicly held companies and find their respective "Code of Ethics."

Review the three different codes and write a four to five page paper on the following:
1. What was in each respective code?
2. Is the code adequate to what the Sarbanes Oxley Act was requesting? Justify your answer.
3. If each of these publicly held companies were to conduct business globally, what business or cultural challenges would be best handled by the respective codes?
4. Identify what may be missing in the respective codes that would assist the company in conducting business globally.

Include a reference list. All research to be cited in the body of the document. Reports without citations will not earn as much credit report to contain an abstract, a short introduction, and conclusion in addition to the body of the paper. If a source in reference section, need to cite it in the body of the paper per vice-versa, per APA guidelines.

Objective:
Describe the opportunities and challenges of conducting business in other countries.

Explain how specific elements of an organization's culture can be leveraged by leaders to enhance organizational success.

Define the role of ethics and social responsibility in business.

Recognize situations that present potential ethical and legal issues and develop solutions for those issues.

Please include and cite all references.

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