Spirituality & Ethics

[Date of Submission]Spirituality & Ethics

Introduction

According to economists, maximization of profits is the main goal of a business. Always of course by obeying the laws with this maximization the task of the social responsibility has been completed by a corporation or a business, in accordance to the canonical view. However, under this consumption, the main question that arises is that whether a company must or must not behave to its customers and employees as if it was a moral and a good citizen or must be ethical (Hay & Et.al, 2005). We know that human beings are self-interested and selfish, from the theory of the psychological egoism.

Unless they have to gain something from anyone, they do not care for anyone, they are not capable of unselfish altruistic actions, and they only care about themselves. In the nature of every actions and human beings, these things are found. Similarly, not more that of another company the maximization of their profits is the only thing which the corporations care about. To satisfy their desires, they desire to improve themselves, in the case of people. By using different methods, they achieve it. Amongst them are money and work, desires and needs of an individual are mainly satisfied through money. Since money is the mean for profit maximization, therefore it is the answer to the problem, in the case of a company.

Discussion

Justification for the Model of Business Social Responsibility

There are several justifications that were provided by economics and canonical law on account of corporate social responsibility. To comply with independent legal constraints, corporate managers are required by the traditional fiduciary duties, to maximize corporate profits subject to the obligation and to further the interests of share-holders. Profit maximization is a single goal that can easily monitor and is desirable as a matter of both economics and law. The public interest goals that are not imposed on others, and for imposing a unique tax on dissenting shareholders there is no specific reason.

Taxes or liability must be imposed or regulated by an independent law if excessive harm is imposed on others by a certain conduct. However, to maximize profits is the most socially desirable things for corporations, if any impermissible harm is imposed by the conduct (Maitland, 1994). Through a contract with the corporation, other stakeholders can legally protect themselves or judicial gap-filling of such contracts can be providing them legal protection. The boundaries of the corporate law field are defined by the canonical theory. Issues regarding any effects that the corporation can impose on the external world can be ignored freely by the corporate law scholars, in accordance to the canonical theory. This can be done as other legal fields address the topics effectively, and the shareholder value can be maximized by corporate rules on more tractable models.

The Shortcomings

There were some shortcomings, and in the canonical theory each step turned out to be wrong. To sacrifice corporate profits in the public interest some legal discretion (explicit or implicit) were acquired by the corporate managers ...