The Role of Business in the economy

• The role of business in the economy is to engage in transactions that maintain a smooth flow of trade relations, attract more investment, and to provide a good environment for starting business.
• Ethical issue - an individual must decide based on several alternatives of what is right or wrong.
• Business ethics are moral principles and standards that guide business people in their transactions.
• Universalism - all people should have certain values.
• Egoism - promotes the greatest good to oneself.
• Utilitarianism - greatest good for the greatest number of people.
• Relativism - behavior of a person is based on its own and other relevant people's opinions and viewpoint.
• Virtue ethics - morality is dependent on the maturity of a person with good moral character.
• Natural - environment
• Cultural - organizational culture
• Organizational culture is commonly shared by the members of the organization
• Interpersonal - relationships
• Organizational - economic
• Social - Society
• Corporate Social Responsibility (CSR) are business operations and activities that have the welfare of society in mind.
• Welfare of society - are the many programs designed to help those people who are in need.
• Social Obligation - complying with ethical and legal standards.
• Social Responsiveness - goes beyond to the prescribe standards and implements actions that aim to make an impact on the society.
• Economic responsibility - to earn profit.
• Legal responsibility - comply with legal standards.
• Ethical responsibility - business should comply with the ethical standards.
• Philanthropic responsibility - give back to community.
• Profit, People, and Planet are known as the Triple Bottom Line of the 3Ps.