Systems Theory Over the Last

Systems Theory Over the last decade the role of business and society, have become more connected than at any other time in recorded history. This is significant, because it highlights a shift that is occurring in the world of business, where both society and businesses are dependent upon one another for survival. As a result, this increasingly integrated role has meant a change in the way that both entities would view the world. To fully understand this role between society and various corporations requires: examining how it is evolving.

At which point, it will be obvious, as to how the two are interdependent upon each other. The capitalist system is based off of the principal of: businesses providing various good and services to consumers, at the prices they demand. In exchange for providing these different goods / services to consumers, the business and the owner will make a profit because of this. This is the basic formula that has been running the capitalist system for centuries.

Yet, when you look a little further, it is clear that the ethics of business owners and executives will play a role in determining, the well being of society. This is because society is dependent upon these businesses in making money, to ensure that everyone is able to support themselves. At the same time, the businesses are dependent upon customers purchasing their different good and services. If one piece of these elements is disrupted, it could have a dramatic impact for everyone.

A good example of this relationship can be seen in the area of business ethics. Where, ethics was originally created from religion and because society wanted some kind of standards, for dealing with various individuals. As a result, various codes of ethics were created that would specifically define the role that business and executives would have within society. (Gandz, 1988) However, many different MBA and undergraduate programs; have been placing less of an emphasis on business ethics.

This is problematic, because the ethics that someone is demonstrating in regards to the problem; can make the situation worse. As the lack of ethics could cause them to engage in actions that could have severe negative consequences for: consumers and society. To rectify this situation, business schools need to begin implementing some kind of ethics training, in the undergraduate and graduate school levels. This is because the corporate and social responsibility that students are taught; will have a dramatic impact upon how they view the world.

Where, studies have shown that in college, students do not have any kind of understanding of being ethically and socially responsible. (Arlow, 1991) This is significant, because one could infer that all of the different corporate scandals that have been occurring, over the last ten years are: because of a lack of ethics in business. In many ways, one could imply that the reason why this is a problem is occurring, is students are being not taught the difference between ethical and social responsibility.

To rectify this situation, it is advisable that all graduate and undergraduate schools implement some kind of corporate and socially responsible ethics courses. This will improve the interconnected relationship between society and business. Where, the amounts of increased corporate / social responsibility; will have a dramatic upon the community, by avoiding those actions that benefit the business (while hurting the society / consumers). (George, 1987) Clearly, the relationship between businesses and society is continuing to evolve.