Iron Law of Responsibility

What is the Iron Law of Responsibility and how is it applied to Stakeholder Expectation

Iron Law of Responsibility refers to the fact that for years, organizations have the responsibility to utilize their power to do positive things for the society instead of abusing privileges power and harming the society. Business powers are always excess and without control, and it is of course out of equilibrium about responsibility. This is to say that, Social Contracts are a mutual understanding between businesses and societies. All businesses always find that some customers are more valuable as compared to others. Successful businesses identify these customers; build robust relationships and work to bring new customers with a similar purpose. Iron Law of Responsibility is applied to stakeholder’s expectation by improving the communities in which the business is set and at the same time maximizing the profits. Helping the communities builds good will and trust for the organization which makes it acceptable in the society. At the same time, the community reaps double benefits of services and products as well as corporate social responsibility initiatives.  Hence, it becomes a mutual interest among the stakeholders.

Profit is the sole objective of business. Agree or disagree and defend your answer.

From my personal view, profit maximization cannot be the sole objective of a business firm. Usually, the main aim of any business in the world is to achieve higher profits. At the same time, this cannot be the only objective as businesses need to meet the demands as well as the requirements of different parties with interests in the business.  Hence, the business must put some focus on the performance of every area to survive in the market.  Because of this, there must be objectives like the fulfillment of social corporate responsibility, efficient use of natural resource, innovation among others.  Hence, businesses must have multiple objectives.  Usually, organizations put their sole focus on products forget about what is best for the society.  This ends up compromising on quality and processes as they put money greed ahead of everything. As a result, they only flourish in the short term.  Hence, multiple objectives help the organization to pursue long-term ventures that are both profitable to the organization as well as the communities and the environment.

Why can’t you just accept ethics? If there are no universal standards of ethical behavior, then how can an organization determine the appropriate level of ethical behavior to be achieved and be maintained within the company?

Personally, I can’t just accept ethics. The reason is that we come from diverse backgrounds with sharp differences when it comes to ethical code.  Hence, what might be right in others might be wrong from my moral point of view. As a result, accepting other people definition of good and evil can be difficult. Despite this, organizations have the ability to come up with ethical behavior to be maintained by its employees.  This is achieved through designing standard based on what is common among cultures. Organizations also arrange its ethical standards based on professionalism which cuts across different cultures. This involves elimination of hindrances that affect performance in an organization. In the organizational level, people melt their cultures into a common culture tailored to company objectives. Similarly, joining an organization means agreeing to comply with its standards. This is how organizational always manage to come up with its ethical standards that cut across people

Sherry Roberts is the author of this paper. A senior editor at Melda Research in nursing paper writing services if you need a similar paper you can place your order for medical essay writing service online.