...Business Ethics: The Responsibilities of Employees and Employers Debra J. Scott Columbia Southern University Business Ethics: The Responsibilities of Employees and Employers Ethics are an extremely important aspect of every successful business; they are crucial on the end of the employer as well as every employee. Employees and executives need a clear definition of business ethics and a clear explanation of the significance of ethics in relation to the position and to the business as well. It is shown to be beneficial to employees and executives to use a decision making process in the development of making important decisions; there are many approaches as well as many consequences to making ethical decisions. Good ethics start with the employer and how they handle and execute their ethics and provide a good working example for their employees. There are many viewpoints on what ethics are, especially in relation to business, “Ethical obligations are a set of “ought to” standards that define a moral course of action and draw a line between right and wrong” (Lohrey). Business ethics can be comprised of written and formal guidelines in relation to an organization’s morals. Many businesses use their code of conduct or credo as their guidelines to communicating their organizational ethics, “Business ethics manifests both as written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ...
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...View of Business Ethics Summary Paper of My ‘Ethical Position’ From My Experience, Knowledge And What I Have Gleaned From The Business Ethics Class. ABSTRACT The ability to recognize and deal with complex business ethics issues has become a significant priority in twenty-first century companies. In recent years, a number of well publicized scandals resulted in public outrage about deception and fraud in business and a demand for improved business ethics and greater corporate responsibility. The publicity and debate surrounding highly visible legal and ethical lapses at a number of well known firms, including AIG, Countrywide Financial and Fannie Mae, highlight the need for businesses to integrate ethics and responsibility into all business decisions. The field of business ethics deals with questions about whether specific business practices are acceptable. For example, should a salesperson omit facts about a product’s poor safety records in sales presentation to a client? Should an accountant report inaccuracies that he or she discovered in an audit of a client, knowing the auditing company will probably be fired by the client for doing so? Should an automobile tire manufacturer intentionally conceal safety concerns to avoid a massive and costly tire recall? Regardless of their legality, others will certainly judge the actions taken in such situations as right or wrong, ethical or unethical. By this very nature, the field of business ethics is controversial...
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...Organizational Design & Business Ethics: A Literature Review Abstract A review of the current literature regarding business ethics was conducted analyzing scholarly peer-reviewed articles about business ethics and their relation to leadership, managerial decision making, corporate social responsibility and overall corporate structure. Increased corporate scandals and the discovery of a rise in unethical business practices have thrown the topic of business ethics into the spotlight. Organizations are expected by their stakeholders to implement strong ethics within their corporate structure and culture. This expectation could be accomplished through strong ethical leadership, formal structures and regulations that place emphasis on ethics, and by making a commitment to corporate social responsibility. Using these guidelines will help organizations overcome the various challenges allowing the business to build a strong ethical foundation that will ultimately benefit the company through increased customer and employee satisfaction, which could result in increased profits, organizational sustainability and social status. The review of the literature reveals that there is still plenty of room for exploration on the topic of business ethics and particularly with the topic of ethical leadership. It is recommended that more focus be placed on understanding the influence of strong ethical leadership within an organization and how this influence flows down the organizational...
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...Introduction Ethical behavior is generally expected to be conducted within a business by its managers and employees. When business ethics is spoken by business people of it usually means one of three things (1) avoid breaking the criminal law in one’s work-related activity; (2) avoid action that may result in civil law suits against the company; (3) avoid actions that are bad for the company image (Erwin 2011). . Ethical issues in business will occur but can be solved and avoided in many cases that can help a company continue to be successful. Using an ethical decision making process will guide companies and its employees in the right direction to success and respect within the communities they serve. Most people involved in business whether functioning as a small business owner, employee, or chief executive officer of a multination company eventually face ethical or moral dilemmas in the workplace. Such dilemmas are usually complex, for they force the person making the decision to weigh the benefits that various business decisions impart on individuals including him or herself and groups with the negative repercussion that those same decisions usually have on other individuals or groups. What is Ethics? Business ethics is a subject that can be difficult to define. Any discussion of business ethics is a subjective one, for everyone brings different concepts of ethical behavior to the table. These moral standards are shaped by all sorts of things, from home environment to...
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...of Marketing Ethics O.C. Ferrell, Ph.D. Professor of Marketing Creative Enterprise Scholar The Robert O. Anderson School And Graduate School of Management MSC05 3090 1 University of New Mexico Albuquerque, NM 87131-0001 Phone: (505) 277-3468 ocferrell@mgt.unm.edu Nature and Scope of Marketing Ethics INTRODUCTION Marketing ethics is viewed as important because of marketing’s interface with many diverse stakeholders. Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace...
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...Ethical Decision Making Ethics are principles that define behavior as fair and proper and they are concerned with how a moral person should behave when it comes to making an ethical decision (Josephson Institute of Ethics, 2002). Evaluating and deciding among competing options is often key in making a fair choice since principles do not always dictate a single "moral" course of action. The decision of whether to lay off workers to enhance profits or to cut corners on quality to meet a deadline are examples of some choices regarding ethics business owners may face (Poznak Law Firm, 2003). The use of extremely low-wage foreign workers, like in the Nike organization case, is a current concern and the subject is a complex one. There are many valid differences of opinion regarding what constitutes ethical behavior and how ethical decisions should be made and the subject is a complex one (Poznak Law Firm, 2003). There are always pros and cons involved with any choice and the decision itself can be quite time consuming. When it comes to deciding whether or not to use cheap labor to cut costs, businesses must examine the ethics behind their decision-making processes. Four approaches that business owners commonly use to analyze ethical dilemmas are the utilitarian approach, which focuses on taking the action that will result in the greatest good for the greatest number of people; the moral rights approach, which is concerned with moral principles, regardless of the consequences;...
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...of Marketing Ethics O.C. Ferrell, Ph.D. Professor of Marketing Creative Enterprise Scholar The Robert O. Anderson School And Graduate School of Management MSC05 3090 1 University of New Mexico Albuquerque, NM 87131-0001 Phone: (505) 277-3468 ocferrell@mgt.unm.edu Nature and Scope of Marketing Ethics INTRODUCTION Marketing ethics is viewed as important because of marketing’s interface with many diverse stakeholders. Marketing is a key functional area in the business organization that provides a visible interface with not only customers, but other stakeholders such as the media, investors, regulatory agencies, channel members, trade associations, as well as others. It is important when addressing marketing ethics to recognize that it should be examined from an individual, organizational, and societal perspective. Examining marketing ethics from a narrow issue perspective does not provide foundational background that provides a complete understanding of the domain of marketing ethics. The purpose of this chapter is to define, examine the nature and scope, identify issues, provide a decision-making framework, and trace the historical development of marketing ethics from a practice and academic perspective. DEFINITION OF MARKETING ETHICS Ethics has been termed the study and philosophy of human conduct, with an emphasis on the determination of right and wrong. For marketers, ethics in the workplace...
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...Evaluating a Business Code of Ethics Michelle Leonhardt University of Phoenix Ethics in Management PHL/323 Dr. John Rhome Evaluating a Business Code of Ethics Businesses in today’s society share a purpose, a vision, that relates philosophy and principles of ethics to better meet the needs of the organization and stakeholders, including customers, employees, shareholders, suppliers, and communities. Without professional ethics, businesses and its programs would not have the ability to be successful. This paper will examine Humana, its business code of ethics, and its mission statement that assists in organizational values and goals of the company. The type of ethical system used by Humana will be explored, along with examples that support this system and its attributes. In addition, how the code of ethics is identified and used within the company will be addressed as it pertains to employees, management, and its board of directors. Upon further evaluation, this paper will explore the need for modification, if any, to their existing code of ethics. Reactions to the code of ethics, its effects of organizational culture on the code of ethics, and its effects on the organization will be defined. Lastly, this paper will provide an analysis of Humana’s business code of ethics and how the analysis exhibits significant key concepts to maintain and promote ethical decision making and business success. Business Code of Ethics and its Mission Statement Businesses developed codes...
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...Managing Ethical Decision Making in the Workplace James E. Gleason BUS 275-H01 Calhoun Community College Abstract Business leaders struggle to balance the desire for profit and maximum shareholder return with corporate ethics and social responsibility. Unfortunately, short-term financial bottom line has taken the place of maintaining strong moral character in today’s business practices. In the United States alone, about two-thirds of the top corporations have been guilty of some type of corporate malfeasance. In the face of both damaging and publicly embarrassing litigation, business leaders now recognize the need for sound, straightforward ethics management programs in their companies that makes ethical business practices a top priority at all times. Top executives must lead by example and actively and willingly encourage ethical behavior in their peers as well as employees. The need for stronger ethics in business has prompted business schools to critically examine their business curricula and place greater teaching emphasis on ethics and social responsibility to ensure future generations of new business graduates enter the workforce with the highest moral standards. Keywords: ethics, social responsibility, malfeasance, business schools, business curricula Managing Ethical Decision Making in the Workplace Introduction Ensuring that the necessary steps are taken to create and foster a high level of ethics in the business practices of the workplace is critically...
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...| Good Business Ethics | [Type the document subtitle] | | [Type the author name] | | Table of Contents Table of Contents------------------------------------------------------------------ 1 Executive Summary-----------------------------------------------------------------2 Introduction--------------------------------------------------------------------------3 Research Finding #1 Why strong ethical decisions are important to companies. ----4 Research Finding #2 How Ethics affect the bottom lines---------------------------------5 Research Finding # 3 How does a Company Keep Everyone on the Same Ethical Road? ----6 Recommendations-------------------------------------------------------------------9 Conclusion---------------------------------------------------------------------------10 References----------------------------------------------------------------------------11 EXECUTIVE SUMMARY * Business ethics have a strong impact on all companies. When a company is written up for unethical performances the profitability of the company will be affected in a negative way. Every business needs to have a code of ethics that relates to its mission statement. An employee code of ethics does not tell an employee how to handle or micromanage every situation that may arise. A good code of ethics starts with the company’s mission statement. The company can take its mission statement and intertwine the company’s...
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...CAN BUSINESS ETHICS BE TAUGHT? “It takes 20 years to build a reputation and five minutes to ruin it” claims billionaire Warren Buffett. “If we think about that, we will all do things differently.” Bernie Maddof and Martha Stewart had their reputation permanently ruined in the business world due to poor business decision making, likewise their involvement in financial crime and unethical business practices. If the above mentioned people had the opportunity of turning back the hands of time, they would have done things differently and be more ethical in their business practices. Sarbanes-Oxley Act of 2002 is a United States federal law that set new standard for ethical business practices for all U.S public company boards, management and public accounting firms. The bill was enacted as a reaction to a number of major corporate and accounting scandals which cost investors billions of dollars. Many experts think business Ethics can be thought and examined in business schools, but the question is, is it possible to enforce or instill the act of doing right things and making right decisions at all times in the business world? Ethics is a branch of philosophy dealing with values relating to human conduct with respect to the rightness and wrongness of certain actions and to goodness and badness of the motives and ends of such actions. Where as, Business ethics is the study and examination of moral and social responsibility in relation to business practices and decision-making...
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...Nathan Schmidt Discussion Week 1 What is the difference between morals and ethics in the workplace? Might something be ethical but immoral? What about unethical but moral? Which is more important to an organization, to be ethical or moral? Why? Morals and ethics relates to individual character, ethics, and morals but also applied in business world. Ethics stresses a social systems to which application of morals that influences ethical behavior at work whereas morality consists of rules of human behavior and specifies that certain behavior or actions are wrong or immoral and others are right or moral (De George, 2010). The decision’s one makes, whether it is for personal or professional reasons falls into either an ethical or moral decision making category. Morals define personal character. Moral decisions are based upon the beliefs of the individual while ethical decisions are guidelines, standards, and laws that affect the business professional’s decision-making process. In an ethical climate, people are held accountable and decisions are made based on what is in the best interest of the company or its employees and not what nets the greater financial gain for an individual at the expense of the company’s ethical fiber. Issues that arise in business can sometimes be ethical but immoral or vice versa. Business organizations face ethical and moral decisions daily. Ethics in business are central in the organization as it provides standards that form the moral integrity...
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...Introduction An organisation’s ethics determines its reputation. In today’s competitive market, in view of globalisation and technological advances, it is especially essential for organisations to practice ethical business behaviour to build a strong public image to garner the support of consumers and employees. Although practicing good business ethics has many benefits, it remains as a constant challenge for organisations, as the potential for unethical behaviour is illimitable. In recent years, the cases of corporate misconduct in Singapore have been on the rise. In June 2011, Deputy Prime Minister Teo Chee Hean announced that commercial crimes, including fraud and cheating, rose by 13% as compared to 2010 (Othman, 2012). As most organisations have established codes of ethics to guide their employees regarding their ethical responsibilities, the imperative issue here is how effective is the code of ethics in regard to instilling ethical behaviour. In this essay, we will firstly look at the definition of ethical behaviour and an overview of the ethics program. Next, the effectiveness of the code of ethics and the criteria for it to be effective will be addressed. Lastly, a conclusion will be made to determine if the code of ethics is the most effective method for instilling ethical behaviour. Ethical Behaviour in Organisations Ethics as according to Wood, et al. (2006) can be defined as a behavioural code that explains what is good and right, as opposed...
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...Running Head: BEHAVIOURAL BUSINESS ETHICS Understanding Ethical Behavior and Decision Making in Management: A Behavioural Business Ethics Approach David De Cremer Rotterdam School of Management, Erasmus University London Business School Rolf van Dick Goethe University Frankfurt, Germany Ann Tenbrunsel Notre Dame University, Mendoza College of Business, USA Madan Pillutla London Business School J. Keith Murnighan Northwestern University, Kellogg School of Management, USA Abstract Management and businesses in general are constantly facing important ethical challenges. In the current special issue, we identify the widespread emergence of unethical decision making and behavior in management as an important topic for a future research agenda. Specifically, we promote the use of a behavioral business ethics approach to better understand when management, leaders and businesses are inclined to act unethically and why this is the case. A behavioral business ethics approach which relies on important insights from psychology should be a necessary addition and complementary to the traditional normative approaches used in business ethics. Understanding Ethical Behavior and Decision Making in Management: A Behavioural Business Ethics Approach The numerous scandals in business such as those at AIG, Tyco, WorldCom, and Enron have raised many concerns about the emergence of unethical and irresponsible behavior in organizations. The seemingly unending...
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...Introduction As a business it is essential to comply with the law, allowing the government to put in place regulations in which businesses may not be able to do harm to society, there are also some factors which may be of free choice or personal choice which businesses can also use. However as with their being a diverse gap between what the law requires of an organisation and the free/personal choice there is inevitably a ‘grey area’, this can be interpreted as ethics. Lewis (1985) described defining ethics will be like ‘nailing jello to a wall’ there by suggesting it is virtually impossible to pin point exactly what ethics truly is. There are many factors, which distinguish what is right, and wrong however they are decided predominantly by values and decisions of individuals, in this case managers. In order to comprehend the importance of ethics one must critically take into consideration all parties involved in the process of ethics and ethical decision-making. Why ethics is important for managers? Ethics is defined by the Oxford English dictionary to be ‘morally correct’ as well as Velasquez (2001) who has a similar definition of ethics, suggesting ethics as the ‘principles of conduct governing an individual or a group, it is the study of morality’. However it is difficult to pin point the exact definition of ethics as many authors and instructors have their own distinct meaning of the term ethics, Lewis (2008). In the face of it, it would seem it is a simple problem where...
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