Introduction
The paper deals with the ethical issue of free will in business. The writer has opted for the social responsibility of organizations in conducting their business. It is considered a business ethic to follow the corporate social responsibility (CSR). The writer has chosen this ethical issue because this is the need of the hour. We have lost so much in our daily routine that we have forgot the humanitarian side of humankind.
It’s good to progress but it is better progress along with the society. In the ensuing paragraphs, the ethical issue has been defined. It has also been discussed as to how the ethical issue has changed over the years. Describing the cases where this ethical issue is involved in business, the writer has also shared his personal experiences related to this ethical issue. The writer has also put forth his recommendations and suggestions.
The Ethical Issue
There are certain things or features that are not under the control of human beings. The happenings of the past cannot be altered. We cannot change the kind of universe in general and the society in particular that we live in. Talking about the physical features of human beings, a person’s height, colour of eyes, colour of hair, skin colour etc., are not controllable. Such things depend on the genetics.
There are certain things that are hereditary. Such things include human behavior and certain diseases like arthritis, diabetes etc. In other words, we can say that human beings can’t have certain physical features as per their liking or their will. One more thing that is certain and doesn’t depend on the human will is death. We cannot control death as per our will. The same applies to the nature and different climates.
On the other hand, there are certain things that human beings can control. Our actions, not the past ones but the present and future ones are under our control. We can change our present and future actions as per our will. Some examples of our present and future actions are: Do we want to stay at home or go out for a party? Do we want to go to office or take a leave and stay at home?
What subjects do we want to study? What profession do we want to choose? Do we want to participate in electing our political representatives? Where do we want to go for a holiday? Things like these and many more are under our control because they depend on our premeditated or intentional actions.
In other words we may say that if the actions of a mentally sane person are not influenced by the nature, other people’s actions or any prior event then the person can be said to be acting as per his/her free will.
According to Jared Tanner, “Free will is standing out in the sunlight and denying that the sun is shining. Free will can be defined as choosing one’s actions or course. Free will also is frequently defined as indeterminism” (Tanner, 2009).
Talking about free will, Matt Slick suggests that, “There are two main views: compatibilism and libertarianism” (Slick). Elaborating on the two views, Slick further says that, “The compatibilism view is the position that a person’s freedom is restricted by its nature as is described in Scripture. Libertarian free will says that the person’s will is not restricted by his sinful nature and that he is still able to choose or accept God freely” (Slick).
Nicholas Rescher includes the nature’s aspect while writing about free will, “The conception of free will makes good, intelligible sense, and is, in fact, perfectly consistent with natural science’s standard view of reality as a manifold whose events are subject to the laws of nature” (Rescher, 2009, p. 8).
In this paper, we shall discuss and understand the importance of free will in the sphere of business. We shall concentrate mainly on the need of organizations to follow the ethic of social responsibility. In any kind of business, customer is of utmost importance. The universal trend and liking of customers are kept into consideration while developing and launching any new product.
As such, organizations conduct surveys in order to take the feedback from the masses. Their opinion is very crucial for the success of any product. People participate in the surveys at their will and answer the questions according to their personal feelings and opinions.
No pressure works in such cases. It might be possible that some people, out of fun or disliking for the brand or company, might give wrong answers. This has a very huge impact on the organization.
If we talk about the business ethics on part of the customers, this is wrong. If people agree to participate in any survey, their conscious should be clear and without any prejudice. But if they give wrong answers it means that their actions are being influenced by some previous event and this is totally unethical.
They should understand that the organization conducting the survey has huge finances at stake and their wrong information would jeopardize the organization’s plans. It might happen that relying on the information from the survey, the organization launches a certain product but since the product was based on wrong information, it might back-fire and the organization might have to bear heavy losses.
Change in this ethical issue over the years
In earlier days, when there was not much technological advancement and industrialization, people did not have much choice. Manufacturers did not feel the necessity to conduct surveys. They produced what they felt was profitable. Moreover, there were limited customers for their products. Like a company manufacturing cars targeted only the affluent. Also, there were not many companies that manufactured cars.
This means there was less competition among the organizations. There was no question of free will on the part of customers while buying something. They had to buy what was available. But as the technology advanced, new inventions were made and there was vast industrialization. During the years, there was an economic growth of nations and as a result, the buying power of the masses also increased.
Since the performance of organizations and business houses depends on the economic conditions of their respective nations, they also experienced economic growth. But somewhere down the line, organizations forgot that their success was due the society where they were conducting their business activities. Organizations were concerned mainly about their profits.
The employees who worked day and night for their organization were also overlooked by their pay masters. Their financial and health conditions deteriorated with the years. Their children did not have the opportunity to go to schools.
There was an acute need of a beginning towards the welfare of such people. Organizations were expected to follow certain moral ethics while dealing with such people and the society in general. It should be the free will of organizations to care for the society (because people from the society are the customers).
During the 19th century big business owners who were really concerned about the social abuses and demands of labor unions, started the concept of Corporate Social Responsibility (CSR). They constructed abodes and medical facilities in order to improve the living standards of their employees. This gesture paid back. The employees were motivated and there was an increase in the worker turnover.
The main objective of environmental and social performance assurance was to ensure that we don’t practice such actions that might menace the enduring soundness of the earth and its inhabitants. Sustainability is the capacity for continuance in the long term.
Sustainability in the context of organizations encompasses the social, environmental and economic impacts of a business or other organization. These impacts are judged in terms of the extent to which they contribute to sustainable development.
Examples of cases involving this ethical issue
This ethical issue is involved in social issues like human rights, child labor, standard of living of the workers, multiplicity, etc.
It is also related to environmental issues such as pollutions, emissions, wastage of natural resources, wastage of energy, environmental management systems, etc. Economic issues like financial performance, etc. also come under its preview.
Arguments in favor of Corporate Social Responsibility
By the advent of CSR, expectations of the society have increased. People form good opinion about the companies or business houses that care for the benefit of the society. This enhances their public image. This helps them to increase their customers and greater admittance in the money markets.
Such companies or business houses are supposed to have a longer profit run. This is because of their better social relations and productive actions towards the benefit of the society. Actually this has to be a conscience decision from them.
A company is considered to be sharp if it ensures that right information is passed on to the groups. It should not matter whether the group is the one that has direct contact with the company or the one that is in the society. Such groups have the capability of influencing the company’s present and future success.
Environmental concerns are addressed properly when business houses get involved. They have better finance, technical experts and managerial qualities to support charitable trusts. This creates better standards of life and employees feel safe and obliged in continuing working.
Government imposes restrictions and regulations on companies to ensure better and safe environmental conditions. This increases the cost factor of companies. But if a company is socially responsible and works for the benefit of the society, it can expect less government restrictions and regulations.
Socially responsible companies are at less risk and are not prone to public attack or ire. The stock price of such companies improves in the long run. The stock market evaluates the public standing of that company and awards higher price factor.
Arguments against Corporate Social Responsibility
There can never be total agreement on any topic or issue. Similarly, in this case also, there are people who feel otherwise. They have different opinion and are against CSR. Any business is considered to be socially responsible if it looks after the economic interests of the society.
It is understand that any social work involves a lot of money. No one wants to pay from his or her pocket. As a result, the company will add the costs to the products and ultimately the consumer has to bear it.
Some people are of the opinion that social service is a gimmick by a company to gain popularity and subsequently capture market for its products. Organizations don’t actually care about anything except their profits. They are least concerned about the plight of the poor and the underprivileged people.
According to some people, social reforms are the duty of politicians and not the business community. They feel that since they have elected the political representatives, it’s their problem to deal with the problems of the society and the people. Companies hire professionals according to their expertise in accounts, sales, management, production, etc.
But no company hires professionals who are expert in social service. It means the people who will be responsible for any particular social service, will not be qualified for that. They will not have that skill. Then how will the job be carried out successfully?
Due to the materialistic interests, not much information is provided on the environmental; issues that are governed by accounting standards. Moreover, the standards of accounting don’t matter much because they are very narrowly focused and don’t make much of a difference.
There are so many noteworthy companies that are very aware about the environment. Such companies provide ample information along with their financial reporting. (Hannele, 2008)
Another drawback of SERA is due to indifference in the government policies. Due to the ‘free rider’ pattern, the reporting companies are at a disadvantage when compared to those that are not reporting. As a result, the government agencies are prone to pressure to review its policies. The governments are feeling a need to have regulated reporting requirements, at least for the key industry sector.
References
Hannele, M. (2008). Construction of the social dimension of CSR in corporate disclosures. Web.
Rescher, N. (2009). Free will: A philosophical reappraisal. New Jersey: Transaction Publishers.
Slick, M. (n.d.). What is free will?. Web.
Tanner, J. (2009). What is free will?. Web.
Wilson, R. Gaines, J. & Hill, R. (2008). Neuromarketing and consumer free will. The journal of consumer affairs, 42(3), 389-410.