Ethical Behavior of Companies Essay Example | Topics and Well Written Essays - 250 words

Ethical Behavior of Companies - Essay Example It is evidently clear from the discussion that honoring the interest of the shareholders is the priority of any business investment. Investors expect to yield maximum profit from the venture by maximizing revenue and minimizing cost. However, balancing these parameters leads to adverse consequences that result in social or environmental conflict with other stakeholders. Therefore, the integration of a CSR framework comes in handy to solve the conflict created by the business operations. The Corporate Social Responsibility model requires the firm to be responsible for its business practices that affect the community or the environment where it operates. However, this does not come at the expense of the enterprise success. For this reason, the value optimization is the ideal practice because it embraces social, economic, and environmental accountability to its stakeholders. The responsible shareholder-value optimization principle supports ethical actions and responsibility of the busin ess to its stakeholders. Under this principle, the organization is responsible for any social, economic or environmental inconvenience caused by its maneuver. As a result, this role gives the business a mandate to ensure ethical practices that are within the expectation of the shareholders, the community, and other stakeholders.