Final answer:
The essence of socially responsible business behavior revolves around balancing a company's financial success with its social and environmental duties, rather than merely focusing on profit maximization. It includes following a code of ethics that aligns with societal values and compliance with laws.
Step-by-step explanation:
The essence of socially responsible business behavior is not about maximizing profits at any cost, ignoring the impact on society, or pursuing personal interests without considering the consequences. Instead, it is about balancing financial success with social and environmental responsibility. This involves assessing how much responsibility corporations should take for social, economic, and environmental problems and establishing ethical practices, even in the face of the challenges presented by emerging technologies. The views on corporate social responsibility are diverse, with Milton Friedman's perspective emphasizing the primacy of profit maximization within the bounds of the law and others advocating for a broader, moral responsibility that includes caring for societal welfare.
Businesses often establish a code of ethics to outline permissible actions, addressing issues such as bribery, discrimination, and whistleblowing, while also detailing guidelines for accomplishing environmental and social goals and maintaining trust and goodwill. This comprehensive approach reflects the values of the societies in which these businesses operate and ensures compliance with relevant laws and regulations.