DB5: On the Social and Moral Obligations of Businesses
Every business, corporate or an SME has a moral obligation in its social perspectives based on a variety of moral and social obligations sources. There are three major sources of moral obligations: Business law, agreements (promise-based) and moral principles. These measures evolve from different aspects and require adaptive measures to establish social needs and ethical issues in need of addressing in the society of business operations. The concept of social and moral obligations, however, adopts different views mainly due to the changes in the global aspects and the variety of issues for consideration within it. In business practices, what perspectives should an organization draw its social responsibility principles to serve a compelling moral obligation?
Many corporate organizations consider corporate social responsibility (CSR) as a guide to a practical moral obligation in society. However, there exists a difference in how the organizations perceive the concept, with some developing their CSR strategies as a marketing practice. Kimberlee (2019) establishes four types of CSR strategies that may meet the moral obligation of businesses as philanthropic efforts, corporate diversity and labour practices, environmental conservation and support of social volunteer efforts. Philanthropic efforts are considered by many prominent organizations such as Microsoft Inc. through Melinda Gates Foundation, whose social responsibility programs are well beyond the business activities of the company. Generally, corporate social responsibility develops from a corporate culture perspective to establish social problems that the company can help to solve and inspire others to adopt similar practices.
One of the primary moral obligation sources is the law-based approach, which is a corporate decision to ensure their practices align with the legal threshold in a society. Every business has a moral obligation to ensure all the transactions and activities within its operations are lawful within the business law principles and laws of the government (Carey, 2018). Agreements or promise-based moral obligations also develop as a critical basis for businesses in developing a moral principle of meeting promises even when they aren’t legally binding. The moral principle as a source of social and moral obligation originates from Kant’s ethical philosophy in the creation of rational reasoning in every business decision based on an individual’s moral principles. Elements such as religious beliefs and intuitive moral senses enact this element in ensuring a business activity or action is aligned to values such as trustworthiness, honesty and respect for humanity. Moral principles do not occur as a legal obligation, although the concept encompasses part of it. Businesses need to examine other factors within the idea, such as moral laws within them to ensure a practical approach towards the stakeholders and society as part of its organizational activities.
Reference
Carey, J. (2018). Moral Obligation in Business Law. Smallbusiness.chron.com. Retrieved 22 March 2020, from https://smallbusiness.chron.com/moral-obligation-business-law-78910.html.
Kimberlee, L. (2019). Four Types of Corporate Social Responsibility. Smallbusiness.chron.com. Retrieved from https://smallbusiness.chron.com/four-types-corporate-social-responsibility-54662.html.