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Understanding the difference between ethics and social responsibility is a big
part in the role that a business owner plays. It is very difficult to confuse or
misunderstand both terms, but it is crucial that as a business owner you understand
how both of these terms will take part in your company. I understand that there are
no “wrong or right” answers when it comes to being unethical or ethical, depending
on your point of view, but in my opinion, there is always a better option.
If an automobile manufacturing company had to choose between the two
alternatives of contributing $1 million annually to the United Way charity or
reinvesting $1 million dollars into the company, as a business, I would go with
donating to the charity, not just for my own personal gain of “feeling good”, but for
the benefit of my company as well. Of course, donating to the charity would allow
me to be seen as a good example towards those in my community. I may also gain
the approval of many members that believe that my company is not owned by a
discussing business owner who only cares about profit, but rather someone that
cares about the people around the world. In terms of social responsibility, I would
be donating to benefit my business rather then the actual charity itself. How so?
Well, everyone pays taxes right? So when a large company donates millions to a
charity, they may just be doing it to cut down on their tax payment at the end of the
year. It is very unethical, but my company would profit on the long run and the
charity will increase in funds.
So why would I not invest the million in my company? Simple, the main
purpose of a business is to gain profit, but just like I mentioned before, taxes are a
necessary payment that must be done by businesses at the end of the year. Investing
in my own business would allow me to expand and improve the company, but tax
