Behavioral Economy and Efficiency Relationship

Any companies need to consider the social responsibility during which are the pursuits of profit and meeting the needs of wider group of stakeholders incompatible. Without this self interest, there will be little motivation for firms to provide better services, workers couldn't earn better salaries and clients couldn't aspire for a high level of consumption. Hence, self interest which helps markets work more effectively for the benefits of all. Hence, companies should adopt a code of behavior and conduct and ethical behavior which would not influence any stakeholders groups' benefits to pursuit their profit honestly. Corporate social responsibility is a form of corporate self regulation integrated into a business model. It aims to give responsibility for corporate actions and to encourage a positive impact on the environment and stakeholders including consumers, employees, investors, communities and others and it is titled to aid an organization's mission as well as guide to what the company can give the best benefits to serve its customers. I shall use body shop company as one example to judge whether what extent are the pursuits of profit and meeting the needs of wider groups of stakeholders will be incompatible. Factually, body shop could adopt a code of behavior and conduct and ethical behavior which would not influence any stakeholders groups' benefits to pursuit their profit honestly. Such as, one of the major and most successful initiatives which body shop used an effective supply chain for their products and body shop made use of their sustainable chain supply strategy to ensure that there was the promotion and the maintenance of the social ethical behavior in its business. Hence, it seemed that body shop could be compatible to achieve an effective supply chain to deliver to different countries' stores to meet clients who had more need to buy different kinds of skin care products to provide them to choose to buy in the reasonable price choices in the short time. It is therefore in the best practices and interests for body shop to reach out to the communities in their businesses to provide raw materials to help the manufacturers of the beauty products. It also partook in the development of the market for such small scale suppliers. In many cases the body shop tried to outsource its raw materials to its customers. This had ensured the sustainability of its customer base this included it's sensitivity to its environment and the required standards of the labor practices of its partners.