Marketing Business Entity

In today's capitalistic global environment, the actions of a business entity, whether they be good or bad, can have wide-ranging effects. A business that chooses to act in an unethical manner can impact a large number of people. For example, consider the influence of an unethical business that chooses to manufacture paper in third world country. This business not only treats its employees unfairly through substandard wages and working conditions, but also pollutes the environment by dumping paper bleaching agents into ocean. These bleaching agents could ultimately damage aspects of the ocean ecosystem, potentially impacting fishermen, recreational divers, and even other businesses in the area. The poor ethical practices of this business could cause local governments to be wary of allowing other businesses in the area. Further, this business (like the famous Enron and WorldCom cases) misleads shareholders by juggling its financial figures, which may ultimately lead to company bankruptcy. The effect of this can be devastating, as it further degrades already weak public confidence in corporations.

This example clearly points to the need for a company such as that noted above to act as a good corporate citizen. As such, this company must always consider the larger needs of society (both locally and globally) above the desire for profit. This good corporate citizen must always adhere to this ethical code even if other companies do not. While adhering to this ethical code ultimately results in the most good created for the largest number of people, it also is the best practice for the individual corporation in the long-term. This corporation will reap the benefits of a good public image, while other corporations that do not adhere to ethical practices will ultimately be hurt, in the long-term, by their actions.

It is important to reiterate that it is always in this corporation's, society's and customers 'best interest for this corporation to be socially responsible, even when this results in potentially increased costs for customers. While customers may prefer lowered costs, the short-term potential benefits of lower costs are relatively low compared to the long-term costs to customers, society, and the corporation as a result of unethical company decisions. In essence, social responsibility is necessary for any corporation hoping to have good long-term relationships with its customers and larger society, and a long-term plan for company success.