Business Ethics And Corporate Social Responsibility Analysis Essay Example

outcomes for a company. In this situation, Normandale's actions have had an adverse impact on Mathis's company. Hence, it is essential that Normandale faces legal punishment for their unethical business conduct. These actions have led to sales and profit decline in Mathis's company, potentially leading to employee layoffs.

Mathis may have suffered significant damages, particularly in terms of loss of profit, due to Normandale's unethical actions. According to the concept of Proximate Cause, Mathis is vulnerable to such damages because it states that "recovery damage for loss of profits is subject to the general principle that damages must be proximately caused by the wrongful conduct of the defendant" (Don, Robert L., Recovery of Damages of Loss Profits, 5th edition, 1988). In this situation, Normandale would be considered the defendant. It is crucial for companies to adhere to corporate social responsibility as it involves achieving long-term goals that positively contribute to society.

Conducting business ethically and in the interest of the wider community is crucial. Normandale believes that selling Mathis's products at a lower price would be advantageous for consumers in the communities. Although there are opposing views on businesses addressing social issues, the free market perspective emphasizes creating wealth for shareholders. However, corporate social responsibility advocates for businesses to address social issues.

To ensure compliance and offer legal guidance, ethical codes are implemented. Normandale can adopt an ethical code to prevent potential issues, such as price fixing, by refraining from agreeing to manipulate prices or any related factors like discounts and credit terms. Ethics forms the fundamental basis of a business, as stated by Henry Craft: "The stability of the foundation prevents

the collapse of the building." The absence of ethics would lead to failure in numerous organizations, businesses, or corporations.