by Rebecca Mikulin

Created on: November 11, 2009

Social responsibility and ethics are integral parts of a business that is based on "doing the right thing." People who strive to incorporate these into their business model recognize that there is more to the bottom line than a dollar amount, and that businesses really can contribute to the greater good of the global community. There are many benefits to practicing good social responsibility and good business ethics, and some of them may even include an increase in monetary profits.

The most obvious benefit of practicing social responsibility is the improvement one can affect in the world in general. This improvement may be a little more garbage being recycled instead of going to a landfill, or it could be a whole starving village being given a way to become self-sufficient. Whatever difference a socially responsible company makes, it combines with the efforts of other businesses and individuals for a substantial difference.

Socially responsible actions and good business ethics set a company apart from those whose focus stays on the bottom line alone. These are the companies that provide health care benefits to their employees, package their goods in recyclable materials, contribute to the welfare of the needy, or any number of other socially beneficial practices. In addition, these businesses are known for adhering to accepted ethical practices, improving their dealings with their customers and suppliers. While this may or may not contribute to bringing in additional revenue, ethical businesses tend to be better recognized and have greater longevity thanks to their application of ethics.

Ethical and socially responsible companies can have strong bonds with their customers, who have learned to trust the company as a moral, truthful organization. If customers can be sure that the company they're supporting is limiting its impact on the environment, as well as helping those in need, they're much more likely to feel compelled to continue and increase their support. In addition, customers who feel they can truly trust a company are much more likely to pass the word along to their friends and family that this business is worth supporting. Greater trust and longevity are also fostered by the fact that an ethically-run business will always stay within the lines of moral decency and legal obligation.

A huge part of social responsibility to which businesses can contribute is their employees' welfare. Better benefits packages, support during crises, and concern for an employee's family will all improve the employee's satisfaction with the company. Good employees are difficult to find and expensive to train, giving employee satisfaction a very tangible benefit to the company. Profits are improved and customers generally go away much happier if the people working for the business are positive, experienced, and generally well-informed.

Finally, businesses that practice good ethics and adhere to their socially responsible obligations are an excellent example for other businesses. This can work to slowly eliminate underhanded, cutthroat businesses that do not practice good ethics by way of a general kind of peer pressure. Companies such as Intel, Starbucks, Google, TOMS Shoes, and more are constantly held up in the media as prime examples of what a business should be, based on their degree of social responsibility. Nothing can eclipse the satisfaction of knowing you've really made a difference in the world, but there are also plenty of benefits for the socially-conscious, ethical company that must keep an eye on the dollar signs in that bottom line as well.

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