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Ethics, Discretion, and Social Responsibility

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According to Carroll (1979) business has four responsibilities:
1. Economic responsibility- Must do- Business sustainability
2. Legal responsibility- Have to do-Regulatory
3. Ethical - Should do- Beliefs about behavior
4. Discretionary - Might do-Voluntary


Ethics and discretion fall under the realm of social responsibility. What is the goal of the corporation and how does that goal fit into the realm of social responsibility?


Carroll, A. B. (1979). A three-dimensional conceptual model of corporate performance. Academy of Management.the Academy of Management Review, 4(4), 497-497.

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Solution Summary

The ethics and discretion which falls under the realm of social responsibility. The goals of the corporation and how the goal fits into the realm of social responsibility is determined.

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Ethical Responsibilities in Area of Social Responsibility
A set of behaviors and activities, which is expected by global stakeholders from the businesses, can be defined as ethical social responsibilities. According to Carroll (1979), main aim of ethical responsibilities is to initiate such activities, which are right and fair in terms of societal expectations. In this way, the inclusion in ethical responsibilities plays a vital role for this area of social responsibilities. In support of this, Gössling (2009) states that corporations are tended to acknowledge the beliefs of society behind a behavior as it helps to define what is wrong and right and to fulfill ethical responsibilities accordingly. This consideration in performing ethical responsibilities makes it a type of social responsibility.
Joyner & Payne (2009) argue and describe that ethical responsibilities majorly considers normative dimensions of a society, whereas Corporate Social Responsibilities (CSR) also consider economic or strategy of a business. It is because ethical responsibilities do not purely come under CSR realm. On the other hand, Carroll (2009) opposes the views of Joyner & Payne (2009) and depicts that ethical responsibilities include such norms, standards and expectations, which reflect an organization's concern about different stakeholders including community, employees and consumers by keeping in mind what they belief as right and wrong in terms of behavior. Its goal to consider and to include societal beliefs, while making decisions or conducting activities, includes it in the area of social responsibilities.
Hansen (2010) argues the view of Carroll (2009) and depicts that the ethical and social responsibilities and their goals are quite different to each other. Social ...

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