Morality of Businesses
Cragg believes that the socially responsible investing (SRI) framework that came in to place after the Second World War has changed dramatically with every passing year to the level that companies and business no longer have the capacity to promote social growth, environmental conservation, sustainable development, and other ethical responsibilities to the society (207). The advancement in economic globalization and the strong influence by transcontinental multi-million companies has engineered the collapse of business institutions that were once custodians of human rights and agents of equitable sharing of wealth amongst people in different countries. Cragg asserts with the changing times, new social contracts need to be effected in order to maintain the shared responsibility to human rights and ethical undertakings by the corporate world (205).
The social contract that characterized the post second world war world entailed having the private sector as the producer of wealth while the public sector which in this case consisted of the governments were enforcers and custodians of human rights (Cragg 208). However, the desire by companies and business to maximize on profits and the aspect of globalization, the capacity of states and nations to ensure that business ethics and human rights are observed has been limited. Businesses create wealth for the benefit of few individuals and in the process violate human rights and ethics that was once their responsibility. The unrestrained profit maximization, which is a direct translation of greed is the biggest enemy towards achieving a modern ethical world.
A new social contract to contain modern challenges in the business world ought to be adopted. This will ensure that different emerging trends in the global business platform can be framed since the ancient view by the private sector that the role of protecting human rights is a governmental duty and not corporate duty is not tenable. The new social contract should incorporate a recognition that compels the business community to engage in their activities according to norms, ethics and standards set. Upholding the importance of observing human rights by both the government and the private sector collectively should also form part of the new social contract (Cragg 214). With close monitoring from civil societies, an ethical business environment will be realized. Finally, as Gandhi and many other observed, commerce without conscience is human exploitation and development.
Work Cited
Cragg, Wesley. “Human rights and business ethics: Fashioning a new social contract.” Business Challenging Business Ethics: New Instruments for Coping with Diversity in International Business. Springer Netherlands, 2000. 205-214.
