The concept of marketing has shifted from owners’ interests to consumers’ interests (Kerin,

2004). To survive and thrive amidst the cut-throat competition in the market, it has become
inevitable for every organization to win an edge over the competitors. Now-a-days, customers
have started thinking beyond the price and quality of the product. They are concerned about the
image of the company whose products they are going to purchase. The organization creates a
positive impact on the community by being ethical and socially responsible.

Ethics are a person’s perception of values, beliefs and morality (Sroka & Lorinczy, 2015). Ethics
in business could be values like honesty, integrity, loyalty, care, keeping promises, respecting the
law and building reputation (Vadastreanu & Maier, 2015). An ethical organization can expand its
customer base because customers today are attracted to fair practices of an organization.
Furthermore, an organization by being ethical can attract new investors and new stakeholders.
The customer loyalty can be earned by adopting ethics in business. For e.g., Levi Strass & Co.
has adopted transparent practices in the organization and it works to enhance the development of
its workers. An organization trapped in unethical controversies spreads like a wild fire in the
media and lays down its own peril.

Social responsibility refers to businesses’ decisions and actions taken beyond the firm’s direct
economic interest (Davis, 1984). There are many areas in which an organization can deliver its
social responsibilities like education, health, livelihood creation, skill development, and
empowerment of weaker sections. Today, consumers expect that the organization delivers to the
society and they do not mind paying extra to buy a product from an organization which is serving
a noble cause. A study revealed that people find those organizations to be of good image which
are socially responsible. (Vercic & Coric, 2018). Starbucks has proved that the organization that
gives back to the society is valued more. It has partnered with EthosWater and brings clean water
to millions of people. BMW is another example of fulfilling economical and social interest as it
raises awareness on school environmental educational development.

Conclusion
Ethics and social responsibility help the organization to bring a balance between organization,
consumer, and the society. It is noteworthy that an organization can achieve gains by unethical
decisions, but it can lose a customer.
References

Davis, K., & Frederick, W.C. (1984). Business and Economics. McGraw-Hill Education.

Kerin, R. (2004). Marketing: The core. Boston, Mass: McGraw-Hill Education.

Sroka, W., & Lorinczy, M. (2015). The perceptions of ethics in business: analysis of research
results. Procedia Economics & Finance, 34, 156-163.

Vadastreanu, A.M., Maier, D., & Maier, A. (2015). Is the success possible in compliance with
ethics and deontology in business? Procedia Economics & Finance, 26, 1068-1073.

Vercic, A.T., & Coric, D.S. (June 25, 2018). The relationship between reputation, employer
branding and corporate social responsibility. Public Relations Review.
https://doi.org/10.1016/j.pubrev.2018.06.005