Ethic Issues

In: Business and Management

Submitted By Willwmz
Words 2688
Pages 11
Part I Intra- and Extra Organizational Ethical Issues
In prior to clarify the relationship between intra- and extra-organizational intangibles in individual cases, how these intangibles within business organizations could interact with those organizations’ various external constituents or stakeholders should be stressed in the very beginning. As the cornerstone of the corporate strategy, risk management plays a crucial role in promoting business ethics and social responsibility. Since any failure to appear in business integrity could result in a ruin of reputation, both of employers and employees should commit themselves to maximize returns to their shareholders. Therefore, how to evaluate and control the risk within corporations has become the center of business development. Strengthening customer loyalty and investors’ confidence could differentiate companies from their competitors mainly by improving intra-organizational ethics. On the contrary, ignoring business ethics from the companies could encourage their major competitors to use that against them, thus resulting in an enormous loss of share in the market. In addition, taking the initiative in business ethics could allow corporations to avoid interruption of taxation and regulation. Conversely, the dishonest business acting is possible to force the company into litigation or penalization by the law agencies of local governments.
However, merely concentrating on the intra-organizational ethics could underestimate the influence of extra-organizational force. The propriety of legal enforcement and monitor systems can also facilitate the business ethics within corporations. Without powerful reporting and monitoring agencies, companies will even more likely to undertake unethical practice in their businesses.
As mentioned, once the business integrity is entrenched into a society, corporations are better off...