106 Chapter 6 Economic Impact A business has an economic impact on society through the wages it pays to its employees, the materials that it buys from their suppliers and the prices it charges its customers. It would have a positive social impact on its employees if they paid fair living wages and benefits. It will have a positive effect on its suppliers that they paid fairly and on time for their supplies. The effect on its customers is positive if the business gives them good value for the price they pay for the products and services. Social Impact The social impact of corporate governance contributes to the ethical climate of society. If businesses offer bribes to secure work or other benefits, engage in accounting fraud or breach regulatory and legal limitations on their operations, the ethics of society suffer. In addition to a deteriorating ethical environment. such as corruption may unfairly raise the price of goods for consumers or the quality of the product or service compromised. Environmental Impact Environmental protection is a key area of business influence on society. Businesses that implement good environmental policies to use energy more efficiently, reduce waste and in general lighten their environmental footprint can reduce their internal costs and promote a positive image of their company. The environmental initiatives of a business leader often force competitors to take similar action for an increased beneficial effect on the environment. Impact on Business Managers The concepts and principles for the ethical conduct in business are relegated to the managers of the business enterprise. Thus, although the manager is expected to act in the bes the business, he cannot be expected to act in a manner that is contrary to the law or to his conscience. In particular, a manager should; community; acknowledge that his role is to serve the business enterprise and the prestige; avoid all abuse of executive power for personal gain, advantage