What do ethical responsibilities require from a corporation?

Ethical responsibilities go beyond simply adhering to legal standards and encompass a broader commitment to fairness, integrity, and social responsibility. Corporations are expected to act in a manner that promotes fairness not only towards their shareholders but also towards employees, customers, suppliers, and the communities in which they operate. This means that ethical conduct involves consideration for the impact of business decisions on a wide array of stakeholders and addressing social and environmental issues even when not mandated by law.

In contrast, compliance with legal standards primarily focuses on meeting the minimum requirements outlined by laws and regulations, which does not necessarily cover ethical considerations. Maximization of shareholder profit emphasizes financial returns at the expense of ethical considerations, while making management decisions solely based on revenue generation can lead to decisions that disregard broader ethical implications. Thus, the essence of ethical responsibilities lies in taking proactive steps to promote fairness and make choices that reflect the values and expectations of society.