The Business and Society Relationship

Business and Society Relationship

Article by Peter Drucker

In the article “What is Business Ethics” by Peter Drucker, the forms of the ethical behavior within the organization have been defined which provides as to what are the ways in which the business ethics could be based on the on the behavior of individuals working in the organization. The article written by Peter Drucker is considered to be the effort that he made for clarifying the scope, purpose and nature of the business ethics. Moreover, it is also taken as the charge for his response to the business ethics. In the article, the author has blamed the ethics for being singling it out for the treatment of particular ethics that are unfair from every dimension. He also blamed the subordination of political and ethical concerns and for becoming ethical chic instead of just being ethics in the business environment. The first and most basic principle for Peter Drucker was that of serving the consumers. Secondly Peter insists that there should be a practice of fair management in every organization. Thirdly, Peter Drucker was gifted with the ability to reduce the complexity of a matter into simplicity. Moreover, article presented by the Drucker took into account the responsibility of leaders towards their management. In the article written by Peter Drucker, he identified the correlation that exists between the business and ethical philosophies. However, the critical observation made by Peter Drucker was that of the recognition of the limitation that is related to the appropriateness of ethics with a distinct discipline. In this article, Drucker provided views about the business ethics that are considered to be part of the business, society and individuals framework. According to Drucker, the business ethics could not be used in the organizations as the organizations are the individual unit and its ethics could not be judged from the viewpoint of morality thus the business ethics are considered to be the illegal concept that could not be applied in the business organizations. Moreover, the ethics of business are considered to be the social trend and is planned to be interfered with the market system that has free competition and is faced with various processing complication in its operations. Friedman Article

In his article, The Social Responsibility of Business is to Increase its Profits”, Milton Friedman, (1970) has provided that the business ethics could not be applied on the organizations as the term “ethics” is particularly related with the behavior of individuals. Thus, the relationship between business ethics and social responsibility of the business is contradictory. According to Friedman, “business ethics” is the old term for the social responsibility and thus makes the businesses socially responsible towards their society as to what they are doing should be the best for society and individuals surrounding it. The social responsibility of the business implies that the business professionals would be working ethically while utilizing the organizational resources and they would not be ethically eligible to use the organizational resources for ...