BUSINESS ETHICS – PARADOX OR INEVITABILITY

Abstract

In technical-technological advanced times when information are transmitted in a split of a second and airplanes are a regular means of transport, business companies could not hold in national frames. Trade with distant areas and exchange of various products has existed ever since. Novelty is establishing organizational units not only in different countries, but on different continents. Income of certain companies overcomes national products of many countries. Traditional business approach in times of powerful conglomerates becomes unsustainable. Pressure that business cannot be led only by shareholders are increasing, while corporate social responsibility represents the sphere where capital owner and community interests collide, as well as unrestricted economic growth with just and sustainable development. The significance of this problem is proved by the fact that corporate social responsibility became the subject of international standardization and that there are hints that EU will precondition it to trade with countries that already joined it or are about to. Through the historical lenses, the ethical view of business has nearly always been negative. However, the fact that reporting on business scandals is news that provokes public reaction and unfavourably affects image to the company, means that the immoral business myth is not generally accepted. Business has found itself in focus due to the lack of social responsibility and different forms of threats to society and individual. There is no good way of doing a bad thing; business that strive long term success must respect basic moral and humane values. Classic corporate concept states that corporations exist in order to serve its shareholders and increase of their wealth. Since decisions of vast corporations influence individuals and society as a whole in so many ways it is not enough to expect corporations to provide vast offer of high quality products in reasonable prices. Caring for eco-system, limited natural resources, interest in life quality of employees are being prioritized in new millennium and lead to show die out of immoral business myth. The new understanding of corporate responsibility does not exclude management commitment to provide shareholders with investment return and profit increase, but to consider all that are being affected by certain decision. „The price of greatness is responsibility” (Winston Churchill).