What if government participates in business activities,
What if companies in the world make profits always,
what if consumers always maximizes their marginal utility of good and services they pay for?
This is a case of Business, Government and society. Here business organization should have some critical areas in mind like: understanding the role of cultural, economic and regulatory issues in doing business. Also, the issue of business ethics in doing a business should be critically considered.
In response to public and government outrage which is a case study of KFC, the business community at large began to focus more on encouraging ethical behavior. Now, it is common for both large and small businesses to have a formalized listing of ethical guidelines for employees to follow. Since, the motives of every business establishment are to make profits, standardization of every product is a very important issue. However, business ethics do not allow a company to do whatever is necessary to make money. Corporate social responsibility dictates that businesses must provide safe working conditions and use manufacturing practices that do not unnecessarily harm the environment. Also read D esperate Air case analysis
As in the case of KFC, the government can regulate ethical behavior by passing laws that require businesses to take certain actions. In many ways, however, professional organizations may be the best equipped to impart a sense of business ethics onto a particular industry.
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