Business Philosophy:
Ethics and Corporate Responsibility Automatic translate

Modern business philosophy is a synthesis of moral principles, management strategies, and social obligations. Its core is formed by the concepts of business ethics and corporate responsibility, which have moved from theoretical discussions to practical tools of global management. Ethical norms are intertwined with economic goals, creating value systems that affect the reputation of companies, relationships with stakeholders, and long-term sustainability. The evolution of these ideas reflects the struggle between profit maximization and the need to take into account the interests of society.

Historical roots and evolution

The origins of business ethics can be traced to religious teachings, where honesty and fairness were considered the foundations of trade. The Protestant work ethic described by Max Weber linked economic success to moral virtues, laying the foundations of the capitalist worldview. The Industrial Revolution of the 18th and 19th centuries exacerbated the contradictions between profit and working conditions, leading to the first attempts at regulation – factory laws and trade unions.

The 20th century was a turning point: the growth of transnational corporations required new approaches. In the 1970s, the concept of corporate social responsibility (CSR) emerged, shifting the focus from philanthropy to the systemic impact of business on society. Crises such as the Exxon Valdez oil spill (1989) and the Enron scandals (2001) accelerated the introduction of ethical codes and international standards.

Theoretical foundations of business ethics

Utilitarian approach

Utilitarianism evaluates actions through the prism of benefit to the majority. In a business context, this means choosing strategies that maximize social welfare. For example, investments in environmental technologies are justified if they reduce long-term risks to public health, despite high costs. Critics note that utilitarianism ignores the rights of minorities - moving production to countries with cheap labor increases profits, but worsens social inequality.

Deontic Ethics

The ethics of duty emphasizes adherence to moral rules regardless of the consequences. Principles like “don’t cheat your clients” become absolute imperatives. This approach underlies anti-corruption policies and transparent reporting. However, strict adherence to norms can lead to conflicts – refusing to work with a region that violates human rights sometimes deprives the local population of income.

Ethics of justice

John Rawls’s theory requires an equal distribution of wealth and opportunity. In business, this manifests itself through gender equality in hiring, fair pay, and accessibility of products for disadvantaged groups. The practical challenge remains the balance between fairness and competitiveness — raising wages for lower-level employees often leads to higher prices.

Corporate Social Responsibility

Levels of implementation

The basic level of CSR includes legal compliance: timely payment of taxes, safe working conditions, environmental standards. The advanced stage involves investments in employee development – ​​training programs, health insurance, support for work-life balance. The highest level covers public initiatives: the fight against poverty, educational grants, restoration of ecosystems.

Directions of influence

Sustainability focuses on reducing carbon footprints, switching to renewable energy, and a circular economy. Companies like Patagonia and IKEA are implementing material recycling programs, achieving 60-80% reuse of resources.

Social projects are often linked to education and health care. Microsoft and Google fund digital literacy in developing countries, while Roche and Pfizer provide medicines at reduced prices.

Ethical management involves transparency of decisions, combating discrimination and employee participation in decision-making. Methods include anonymous surveys, independent audits and misconduct reporting systems.

International standards and regulations

The Global Reporting Initiative (GRI) sets the rules for non-financial reporting, requiring disclosure of data on 34 environmental and social indicators. The SA 8000 standard certifies compliance with workers’ rights: prohibition of child labor, freedom of association, limitation of the working week to 48 hours.

ISO 26000 provides guidance on integrating CSR into strategy, highlighting seven key areas: governance, human rights, labour practices, environment, integrity, consumer issues, and community involvement. The European CSRD (2023) requires large companies to publish third-party verified sustainability reports.

Practical implementation of ethical principles

Codes of conduct have become a key tool – 89% of Fortune 500 companies have public ethical charters. Effective codes avoid abstractions, specifying prohibitions on gifts to suppliers, insider trading, discrimination