...Social Responsibility: Toward the Moral Management of Organizational Stakeholders, Business Horizons, July-August 1991 For the better part of 30 years now, corporate executives have struggled with the issue of the firm’s responsibility to its society. Early on it was argued by some that the corporation' sole responsibility was to provide a maximum financial return to s shareholders. It became quickly apparent to everyone, however, that this pursuit of financial gain had to rake place within the laws of the land. Though social activist groups and others throughout the 1960s advocated a broader notion of corporate responsibility, it was not until the significant social legislation of the early 1970s that this message became indelibly clear as a result of the creation of the Environmental Protection Agency (EPA), the Equal Employment Opportunity Commission (EEOC). the Occupational Safety and Health Administration (OSHA), and the Consumer Product Safety" Commission (CPSC). These new governmental bodies established that national public policy now officially recognized the environment. employees, and consumers to be significant and legitimate stakeholders of business. From that time on, corporate executives have had to wrestle with how they balance their commitments to the corporation' owners with their s obligations to an ever-broadening group of stakeholders who claim both legal and ethical rights. This article will explore the nature of corporate social responsibility (CSR) with...
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...Business Ethics Concepts & Cases Manuel G. Velasquez Copyright © 2012 Pearson Education, Inc. All rights reserved. Chapter One Basic Principles: Ethics and Business Copyright © 2012 Pearson Education, Inc. All rights reserved. Ethics and Morality • Ethics is the study of morality. – Morality = The standards that an individual or a group has about what is right and wrong, or good and evil. • Example: B.F. Goodrich A7-D Fraud – Moral Standards = norms about the kinds of actions that are morally right and wrong, as well as the values placed on what is morally good or bad. – Non-Moral Standards: The standards by which we judge what is good or bad and right or wrong in a non-moral way. Copyright © 2012 Pearson Education, Inc. All rights reserved. Five Characteristics of Moral Standards • Involve significant injuries or benefits • Not established by authority figures • Should be preferred to other values including self-interest • Based on impartial considerations • Associated with special emotions and vocabulary. Copyright © 2012 Pearson Education, Inc. All rights reserved. What is Business Ethics? • Broadly, ethics is the discipline that examines one’s moral standards or the moral standards of a society to evaluate their reasonableness and their implications for one’s life. • Business ethics is a specialized study of moral right and wrong that concentrates on moral standards as they apply to business institutions, organizations, and behavior. ...
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...Exploration Into the Different Aspects of Ethical and Unethical Leadership Richard Borashan Randall Carter Jr. Ting-Jung Hsu Ya-Hui Hu University of La Verne October 12, 2011 Table of Contents * Abstract * Introduction * What is the moral responsibility of a leader * Why is the moral responsibility of a leader important * Principals of ethical leadership * Five ethical behaviors * The impact of unethical leadership in organizations * Examples of unethical leadership * Conclusion * References Abstract The purpose of this paper is to understand the principals and the differences between ethical and unethical leadership. The research area includes areas of the characteristics of ethical and unethical leaders, how they operate, what places them in either category, and how the theories translate into the real world. Some examples of questions raised are as follows: What it means to be ethical and unethical, how can one distinguish between the two, and do people like this exist in the real world. Based on the research and the answers a guideline is set to define the difference between the two types of leaders. Introduction There is no question that many companies have prompted to carry out the ethics issues, and they are also making a set of the organizational cultures. In the mean time, some companies, which have further view, are also providing ethics training to managers. Nowadays, business always needs to pay attention to ethics...
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...My 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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...ETHICAL CHALLENGES FOR BUSINESS IN THE NEW MILLENNIUM: CORPORATE SOCIAL RESPONSIBILITY AND MODELS OF MANAGEMENT MORALITY Archie B. Carroll Abstract: As we transition to the 21 s« century, it is useful to think about some of the most impor tant challenges b u s i n e s s and other organizations will face as the new millennium begins. What will constitute "business as usualI" in the business ethics arena as we start andiiiuvc iniu intonew i^eiiiuiyr iviy uvciaii iiiijugiii I3 tiioi wethought is that we will move me the new iry? My overall win aiiu pulsate into the future on our current trajectory and that the new century will not cause cataclysmic changes, at least not immediately. Rather, the problems and challenges we face now we will face then. Undoubtedly, new issues will arise but they will more likely be extensions of the present than discontinuities with the past. A s we transition to the 21*' century, it is useful to think about some of the most important challenges business and other organizations will face as the new millennium begins. As I write this essay, the public seems to be more concerned with the Y2K problem and whether their computers will keep working, their power will stay on, their investments will be secure, there will be food in the pantry, airplanes will still fly, and that life as we know it will continue as usual. Optimistically, by the time this is published we will all look back and conclude that technology is amazing...
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...Ethics and Business 1.1 The nature of Business Ethics Ethics is the principles of conduct governing an individual or a group, ethics also called the study of morality. Morality itself is the standard that an individual or a group has about what is right and wrong or good and evil. Business ethics is a specialized study of moral right and wrong that concentrates on moral standards as they apply to business institutions, organizations, and behavior. Business ethics investigates three kinds of issues : * Systemic issues in business ethics are ethical questions raised about the economic, political, legal, and other institutions within which business operate. * Corporate issues in business ethics are ethical questions raised about a particular organization. * Individual issues in business ethics are ethical questions raised about a particular individual or particular individuals within a company and their behaviors and decisions. Corporate Social Responsibility is a corporation’s responsibilities or obligations toward society. There are several arguments that supporting ethics in business : * Ethics applies to all human activities * Business cannot survive without ethics * Ethics is consistent with profit seeking * Customers, employees, and people in general care about ethics * Studies suggest ethics does not detract from profits and seems to contribute to profits 1.2 Ethical Issues in Business New technologies from agricultural...
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...BUSINESS ETHICS * is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. * It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. * B.E. are ethics that refer to the moral rules and governing the business world. * In other words they are the moral values that guide the way corporations or other business decisions. Business ethics are based on: 1. HONESTY - ethical executives are honest and truthfull in all their dealings and they do not deliberately mislead or deceive others by overstatments, partial truths or any others 2. PROMISE KEEPING and TRUSTWORTHNESS - ethical executives are worthy. They are candid in supplying relevant information and correcting misapprehensions of fact. They wnt to fullfill all they promises and commitments 3. CONCERN FOR OTHERS - ethical executives are benevolent and kind and they help those who are in need 4. RESPECT FOR OTHERS - ethical executives demonstrate respect for the human dignity, autonomy, privacy and interests of all those who have a doubts in their decisions 5. REPUTATION AND MORAL - ethical executives seek to protect and build the company´s good reputation and the moral of it´s employees The others important areas of B.E are : - objectivity - carefulness - legality - responsible publication - respect for colleagues ...
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...the Gulf of Mexico. In fact, this case has been described as a complex accident including a variety of issues ranging from environmental to economic, politics and even ethical issues. The goal of our research is to find any ethical issues since this disaster happened is closely related to ethics which is concerned with moral obligation, social responsibility and justice (Carolyn Wiley, 1997) either individual (‘bad apples’) or organizational (‘bad barrels), which should be evaluated to verify this case. Firstly, the ethical issues can largely be divided into three categories, namely (1) technical design which has had some testing flaws before the actual usage and insufficient guidelines against the negative pressure test, (2) human factors including misjudgment, errors and a failure in duty, (3) organizational system such as taking risk procedures to save time and money and refusing the advice of staff and contractors as well as slowness to react in the accident. Thus, the ethical issues in BP oil spill case relevant to the individuals or the organization will be classified in each factor mentioned above by distributing whether it belongs to the individual level or the organizational level based on our judgments along with ethical theory to support our conclusion. 2. The importance of ethics in business world It is easy...
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...Personal Responsibility GEN/200 Personal Responsibility “The U.S. Bureau of Labor Statistics reports that even though 12.5 million Americans are searching for work, there are 3.5 million jobs that remain unfilled, largely due to a lack of skilled workers” (Umehira, 2012, p. 2). Seeking higher education is the responsibility of any student; it is the individual’s accountability to maintain their resiliency to live up to the monumental tasks of achieves academic success. College students must take full control of their educational needs to achieve personal success. “A 1998 survey identified 90 percent of the American population were concerned about the decline of the moral values across the nation” (Clarkston, 2011, p. 14). The price of this success comes with the responsibility of not compromising their personal moral and ethical responsibilities to themselves and to the institution. It is a large undertaking process to manage these learning objectives while understanding personal responsibilities to earn an educational degree. “Ethical decision belongs to the individual to make the choice to do the right or wrong” (Clarkston, 2011, p. 13). Ethical and moral responsibilities are integrated standards, which defines a person’s role to maintain ones integrity. However, if a student violates these standards and rules and regulations of unbecoming a scholar student, within the universities policies. Then the student could face expulsion or may receive sanctions, due to the circumstances...
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...CHAPTER 1: THE IMPORTANCE OF BUSINESS ETHICS Ethics- Inquiry into the nature and grounds of morality where the term of morality is taken to mean moral judgments, standards and rules of conduct. The American Heritage Dictionary- Ethics- The study of the general nature of morals and of specific moral choices, moral philosophy, and the rules or standards governing the conducts of the members of a profession. Applying Ethics to business: 1.To survive, business must earn a profit 2. Business must balance their desires for profits against the needs and desires of society. Business ethics comprises the principles and standards that guide behavior in the world of business. CHAPTER 2: STAKEHOLDER RELATIONSHIPS, SOCIAL RESPONDSIBILITY, AND CORPERATE GOVERNANCE. In a business context, customers, investors and shareholders, employees, suppliers, government agencies, communities, and many others who have a “stake” or claim in some aspect of a company’s products, operations, markets, industry, and outcomes are known as stakeholders. These groups are influenced by business, but they also have the ability to influence businesses; thus, the relationship between companies and their stakeholders is a two-way street. Stakeholders provide resources that are more or less critical to a firm’s long-term success. These resources may be both tangible and intangible. Primary stakeholders are those whose continued association is absolutely necessary for a firm’s survival; these include...
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...services to small business have a responsibility to serve as the “moral conscience” of their clients. The accounting profession requires ethical behavior in order to maintain the public trust. Ethical problems and dilemma arise when there is a conflict in fulfilling the moral duties or obligations and self interest. Therefore the CPA and public accountants are required to act in the line with the standards and code of ethics. According to the Utilitarian theory the action is considered as ethical if it results in achieving the greatest good to the maximum number of people. The AICPA principle of professional conduct requires that members should act with responsibility, in public Interest, objectively and independently, with integrity and due care towards the professional and technical standards to deliver the quality services. A profession is considered as a group of specialized people who posses skill based upon their impenetrable knowledge and thus they are expected to act in the best interest of public. According to the IFAC code, the responsibility of the professional accountant is not to satisfy the needs of the employer or the client but to serve the public interest. Adhering to the above expectations and professional requirements, the CPAs should serve as the moral conscience of their clients. When the CPAs come across any activity of the client which is not ethical they should discuss the issues with their clients considering the ethical and moral standards. The professional...
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...Introduction The purpose of writing this paper is to describe the difference between ethical issues and moral issues. I will also explain the difference between personal ethics and business ethics. Then I will provide examples of common ethical problems in business for ethical issues, moral issues, personal ethics and business ethics. An ethical issue can be mirrored closely with a moral issue. According to Trevino and Nelson (2007), ethics can be defined as “a set of moral principles or values,” a definition that portrays ethics as highly personal and relative pg 13. Does that definition sound familiar? According to Merriam-Webster the definition of moral is “of or relating to principles of right and wrong in behavior: ethical”. An ethical issue has to be evaluated as a set of standards that most people deem as right or wrong however, a moral issue has more to do with the belief of an individual person of right or wrong. Ethical issues and moral issues are like walking a fine line therefore, making these issues differ is rather its personal or business. The term ethics can be described both in personal and business. Personal ethics is something that is a moral principle of a person’s belief. Ethics can be defined as “a set of moral principles or values,” a definition that portrays ethics as highly personal and relative (Trevino & Nelson, p. 13, 2007). This is based upon the personal ideals of what’s right or wrong. The choices that we make and the consequences behind them...
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...SCHOOL OF BUSINESS LEADERSHIP STUDENT: NOZIZWE DAISY NYAMANE STUDENT NUMBER: 05153638 ASSIGNMENT: 02 LECTURER: PROF NICOLAIDES DUE DATE: 2 SEPTEMBER 2015 TABLE OF CONTENTS NO | SUBJECT | PAGE | 1.1 | Morality of the actions of JPMorgan Chase &co. | 3 | 1.2 | Should the boss bear the blame | 5 | 1.3 | Elements of moral judgement | 8 | 1.4 | Where people get their values | 11 | | List of References | 14 | QUESTION 1.1 MORALITY OF THE ACTIONS OF JP MORGAN According to Buchholtz and Carroll (2012) moral management conforms to the highest standards of ethical behaviour or professional standards of conduct, motives, goals orientation towards the law and general operating strategy. Moral management pursues its objectives of profitability, legality, and ethics as both required and desirable. Moral management would not pursue profits at the expense of the law and sound ethics. The operating strategy of moral management is to live by sound ethical standards, seeking out only those economic opportunities that the organization or management can pursue within the confines of ethical boundaries. The organization assumes a leadership position when ethical dilemmas arise. The stakeholders at JPMorgan Chase & Co. case include executives at the bank, other employees, competitors to JP Morgan and those who have accounts, funds, stocks, etc. associated with the bank. The executives of JPMorgan Chase & Co. had one major interest in their positions i.e. to maximize profits...
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...Evaluation of a Business Code of Ethics, The Hershey’s Company PHL/323 Mission Statement Hershey’s Mission Statement noted here, (Social- Responsibility/Marketplace) “Bringing sweet moments of Hershey happiness to the world every day,” Provides the focus of all operations within the Hershey’s Company. Although Hershey’s mission statement provides a simple goal that encompasses acknowledgment of global market share with the sweet moments of happiness provided in every aspect of Hershey’s daily endeavors, a strict code of ethical business conduct forms the underlying fabric that governs all endeavors. Commitments The Hershey’s company understands the scope of responsibilities included with company success as its global influence demands considerable resource utilization. These responsibilities extend past bottom line profit to supporting various charities focused on providing for the needs of children. Hershey’s Code of Ethical conduct contains detailed information as mentioned by, (Code of Ethical Business Conduct, n.d.) “Attempts to address most common legal and ethical issues that we might encounter” To Fellow Employees The foundation of Hershey’s success...
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...Global Peter Drucker Challenge Essay Contest Social Responsibility and Managerial Ethics A Focus on MNCs Prepared by: Kidus G.Mehalu Addis Ababa, Ethiopia August 2011 Social Responsibility and Ethics of MNCs The 2nd Peter Drucker’s Challenge Social Responsibility and Managerial Ethics -A Focus on MNCs . 1.1 Introductory Remarks Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of pressures from the public, interest groups, legal and governmental concerns, and media coverage. It is less clear where to draw the line between socially responsible behavior and the corporation’s other concerns, or between the conflicting expectations of ethical behavior among different countries. This essay on social responsibility and ethics set externally to international managers and thus in a sense outside their realm of control, is the expectation of appropriate behavior. This behavior is measured both in terms of social responsibility of the organization as such, as well as ethical behavior of individual managers. In addition to these expectations there is an onus on organizations and managers alike to manage the relationship with the host country. Having noted this, I shall now move on to the main issues this essay has set out to address in the following manner: 1.2 Global Interdependence Global interdependence is a compelling dimension of the global business environment, creating demands on international managers to take...
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