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A look at the ethical responsibility of a business

On Behalf of | Aug 9, 2022 | Professional Malpractice

As a business owner in California, you probably want to make a profit and keep your operations in line with your ethical standards. Any time your actions run counter to your beliefs, you might experience a twinge of regret and look for ways to improve.

If the actions of your company veer too far away from accepted standards, these actions could result in a professional malpractice lawsuit.

The meaning of ethical responsibility

Information from CHRON describes ethical responsibility as the intersection of the profit motive and the moral actions of a company. This large goal has many moving parts and how a company achieves success will differ from business to business. In many ways, this represents a movement that has different definitions depending upon each company, and it does not necessarily intersect with legal principles.

A responsible company can try to make a positive impact in many areas of society. For example, a company that wishes to engage in socially responsible practices might choose to not source materials from sweatshops that violate international labor standards or laws. A company might also choose to go above the law in efforts to meet environmentally sustainable goals or improve working conditions for employees.

The legal implications of ethics

Violating established ethical standards can run counter to the law. If that happens in your company or your profession, you could find yourself in legal peril. This could happen to a business or to professional positions such as attorneys, doctors, financial advisors and others. A look at professional conduct standards could help you gain a better understanding of your legal obligations to act ethically.