Ethics and Social Responsibilities

Introduction In a capitalistic market, the measure of success is the maximization of shareholder wealth and maximized profit. These goals are what drive the economy and effects more than just the corporation in and of itself. Regulatory issues are in place to protect competition and stimulate the economy. Without the regulations competition is stifled leading to a move away from a capitalistic market. The statement, "Since the goal of the public corporation is to maximize …

…money due to self imposed regulations that either restrict its movements or consume all capital, then it will cease to exist. The basic goal of any corporation is to make a profit. Capitalism drives this aspect of the market, and it demands that the most profitable companies will remain at the top of their respective fields. Arbitrarily spending capital on ethical or social responsibilities will lead to decreased investment and a decrease of investor confidence.