Final answer:
The subject touches on business ethics and corporate social responsibility, highlighting a broad view that recognizes stakeholder theory and the complexities of establishing ethical practices involving emerging technologies. Ethical activities may lead to perceived short-term lower profits but can enhance a firm's overall performance and reputation in the long run.
Step-by-step explanation:
The question revolves around the role of businesses in society, their ethical responsibilities, and the impact of social responsibility on financial performance. A common belief, as argued by Milton Friedman, is that the primary obligation of businesses is to increase profits for their shareholders.
However, an alternative viewpoint is the stakeholder theory, which posits that companies should consider the interests and well-being of all stakeholders, including employees, customers, suppliers, and the community at large, not just shareholders.
When it comes to ethical and socially responsible activities, they are often thought to result in lower profits in the short term, as they may involve additional costs. Nonetheless, evidence suggests that a broad view of the firm that incorporates stakeholder interests can enhance financial, social, and ethical performance in the long run. Additionally, adopting a stakeholder orientation helps to broaden marketing perspectives by taking into consideration the diverse interests of all the organization's stakeholders, which can improve company reputation, customer loyalty, and ultimately, profitability.
The integration of ethical practices, especially regarding emerging technologies, presents complexities. On one hand, advancing technology provides better or less expensive products, leading to increased profits and incomes; on the other hand, ethics in technology involve navigating safety, privacy, and liability concerns, complicating the establishment of consistent ethical practices.