On the other hand are three compelling arguments for holding business executives to certain responsibilities m addition to profit maximization and to compliance with the letter of the law. First, a growing percentage of businesses are related to technology, and haws often lag behind advances in technology. As a result, new technology-based products and services might pose potential harm to consumers even though they conform to current laws. For example, Internet commerce is still largely unregulated because our lawmakers are slow to react to the paradigm shift from brick-and-mortar commerce to e-commerce. As a result, unethical marketing practices, privacy invasion, and violations of intellectual-property rights are going unchecked for lack of regulations that would clearly prohibit them.
Secondly, since a nations laws do not extend beyond its borders, compliance with those laws does not prevent a business from doing harm elsewhere. Consider, for example, the trend among U.S. businesses in exploiting workers in countries where labor laws are virtually non-existent in order to avoid the costs of complying with U.S. labor laws.
Thirdly, a philosophical argument can be made that every business enters into an implied social contract with the community that permits it to do business, and that this social contract, although not legally enforceable, places a moral duty on the business to refrain from acting in ways that will harm that community.
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