BUSINESS ETHICS AND SOCIAL RESPONSBILITY
Economic activities are generally motivated by the desire for gain, and limited by well-defined laws and customs. But ultimately business cannot thrive and bring well-being unless it is accompanied by unenforceable ethical values of trust and consideration for others. The study of ethics attempts to discern what values and institutions are needed to harness the profit motive as a constructive force for human well-being.
There are two main areas of ethics of economic activity. One is business ethics, which generally regulates the conduct of firms with their direct contacts such as employees, suppliers and customers. Common areas of concern are: worker relations; honest dealing; truth in advertising, etc.
The other is social responsibility, which considers to what extent all individuals have to take responsibility for the well-being of society as a whole, including individuals who may not have any direct relationship with the company. Common areas of concern include: providing for the needy, equal opportunity, and conservation of natural resources and the natural environment.
THE JEWISH CONTRIBUTION
Since the times of the patriarchs, Jewish tradition has always acknowledged and validated the importance of economic activity and commerce, yet simultaneously insisted on the need for high ethical standards. The book of Genesis tells us that Abraham "was very rich in cattle, in silver, and in gold." (13:2) But it also tells us that God knew him "to command his children and his household after him, to keep the way of God, to do righteousness and justice."(18:19)
Likewise, the Torah is filled with promises of prosperity and worldly goodness, but these are promised to those who fulfill its demand for upright behavior: "Do what is straight and right in the eyes of the Lord your God, in order that He will be good to you and you will inherit the good land which the Lord promised to your fathers." (Deu/ 6:18.)
Jewish tradition's legitimation of the pursuit of gain combined with its unrelenting demand that this pursuit be in accordance with eternal principles of justice make it an insightful guide for our modern society, which to an unprecedented extent wants to enjoy the fruits of economic
activity but at the same time is concerned with human dignity and the spiritual dimension of life.
Business ethics in today's environment:
In the past, it was easier to for management to lead by example in matters of ethics. Top management was fairly stable and corporate culture generally uniform. Today management turnover is at an all-time high, and firms are discovering that a uniform corporate culture is
hard to enforce in a diverse and globalized job market. As a result, there is an increasing need to consciously formulate and enunciate ethical principles, through codes of ethics, mission statements, training programs and so on.
This is one reason business ethics has evolved from a business approach to a field of study. The BESR is a leading center for research and teaching in the area of business ethics and social responsibility.