...| The Role Of Ethics in Business | | | | 1/16/2014 | | In this paper I will discuss the role of business ethics as it relates to business operations and the challenges of starting and maintaining an effective business ethics program. I will begin with Jennings' (2012) definition of ethics in business and its role from his perspective. I will then make comparisons with other authors' opinions for discussion, including Peter Drucker’s (1981) take on business ethics and Carr’s (Jennings, 2012) viewpoint as well. How business ethics' role relates to the notion of Corporate Social Responsibility (CSR) and ongoing challenges will also be discussed. I will conclude with my own comments on the relationship between personal and business ethics and my thoughts on how to start and maintain company ethical standards. Business Ethics And Its Role: Definitions and Discussion The concept of being ethical in business is a mercurial topic these days; given the expansive and rapid global reach of today's multimedia, it can take mere hours for a reputable business image to get tarnished because of one ethics-related incident. In his text, Jennings' definition of business ethics is "...not the study of what is legal but of the application of ethics to business decisions. (Jennings, 2012, p.45)" Many business leaders today focus on what is legally allowed--they are aware of the legal parameters within where they can operate, and simply execute their profit-driven...
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...The Role of Ethics in the Workplace Ron Kebul MBA 530 September 17.2012 Joseph (2000) noted that leaders who want to establish a practice of positive workplace ethics within their organizations should develop written ethics standards, provide ethics training, and ensure resources are available for employees in need of ethics advice. According to him, the list of potential benefits linked to an effective ethics program includes recruiting and retaining top quality employees, fostering a more satisfying and productive work environment, maintain the trust of employees to ensure continued self regulation, encouraging open discussion of ethical issues, providing ethical guidance and resources for employees when confronted with difficult ethical decisions and for overall mission accomplishment. We are tempted to think of ethics as something to do with our personal behaviors which is totally unconnected with how we conduct ourselves in the business world where all we worry about is the bottom line and not necessarily doing what is morally right. The fact is that they are both interrelated and intertwined. Ethics are all about the choices we make and sometimes, they may not feel good or even benefit us, but the right choices. According to the supplemental research brief by the National Business Ethics Survey conducted in 2009 in conjunction with the Hay Group on Ethics and Employee Engagement, the present economic downturn has given a wakeup call to organizations...
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...The field of business ethics manages addresses about whether particular business practices are satisfactory. Notwithstanding their legitimateness, moves made in such circumstances will definitely be judged as right or wrong, as either ethical or unscrupulous. The very way of business ethics is disputable, and there is no generally satisfactory approach for tending to these issues. Then again, governments empower hierarchical responsibility for ethics and legitimate direct. Be that as it may, people in general accounting calling has since a long time ago depended on its notoriety for respectability and veracity as legitimization for its expert status and restraining infrastructure benefits in view of cases of acting in the general population intrigue. In the event that such status and benefits are to be supported and maintained, it turns out to be morally basic for the calling to give genuine thought to what constitutes moral conduct, how such conduct is spurred, and what rights and interests of influenced gatherings may...
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...Problem The Role of Ethics and Social Responsibility when developing a strategic plan - consider stakeholder needs Ethics paper: write 700 - 900 word paper in which you do the following: explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. *include at least one example of a company overstepping ethical boundaries for stakeholder agendas, and what types of preventative measures could be taken to avoid this type of situation. Solution Loss of employment and retirement funds, double bonuses, tax evasion, and the dark side of office politics are some of the challenges affecting organizations like a virus causing professionalism and efficiency to be questioned. Walker and Lanis (2009) found that an organization influences and is influenced by the society within which it operates (Cengage, 2009); therefore, an organization needs to take into consideration issues such as product safety, regulations, legal, ethical and economic responsibilities to the society within which it functions. One of the methods which could be used to do so is to integrate ethical and socially responsible techniques in an organization’s strategic plan whilst taking into consideration the needs and agendas of stakeholders. This concept is supported by Drozdenko, and Jin (2010) who suggested core values and beliefs exhibited at the strategic level influences decision making and outcomes throughout an organization. The...
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...ETHICS AND THE ROLE OF ACCOUNTANTS According to (Finn, 1994) ethical behaviour is a base which is required in the accounting profession to provide a proper and professional service to a client who just relies on the information provided by the accountant. This helps to build a reputation and in as well in the eyes of the client that the accountant is reliable and adds to their degree of trustworthiness for the client. The reason it has become so important to monitor the ethical behaviour of accountants is because of the recent scandals by corporate and accounting firms like Enron and WorldCom as mentioned by (Chan, 2006). It was further mentioned that ethical problems are a part of any business due to the interaction of the accountants with so many people with different interests that it leads to conflict of interests. Many different people have different views about ethics. The basic meaning of ethics is the authority of custom and tradition (Svensson, 2003). It was further stated that ethics is more of a mix of philosophical thoughts over a period of time as compared to being a fixed concept and each culture has its own norm of what is acceptable and what is not. Another view point by (Duska, 2011) stated that ethics is related to analysing what is right in the eyes of the person and the law. It consists of a set of moral principles that vary between individuals that distinguish between good or bad. While some of the ethical behaviour is implied, the professional framework...
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...The Role of Ethics in Business Evolution Reconciling works of Managerial Literature, Business Ethics Writer and Catholic Social Teaching, Domènec Melé argued that a firm should be considered as a wholesome person and suggested the ethical implications of his view (Melé, 2012). The concept that a firm should be regarded as a legal person, and not just a profit seeking entity, was brought forth by the House of Lords in the (Salomon v. A. Salomon & Co. Ltd., 1897) case, paving the way for modern firms. Melé’s argument was revolutionary in that he considered the firm a wholesome person, bearing moral responsibilities for communities that it may potentially affect. This response paper aims to analyse Melé’s paper, further discuss his ideas, and finally incorporate the role of ethics in human evolution to project the possible direction of business evolution. The article started by suggesting that there are two views of the firm. The former views the firms as a nexus of contracts, implying that the firm functions as an aggregate of agreements. The latter views the firm as an aggregate of interests, adding a human element of desire to the soul-less assembly of agreements. Extending the addition of human element into the firm, Melé argued that the main constituent of a firm is social bonds, and thus, a firm should be regarded as a community. Personally, I think that the progression of arguments is well organised. Contracts stem from self-interests, and self-interests are derived...
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...University of Phoenix Nana Offei MGT498 Strategic Management The role of ethics and social responsibility August 30, 2012 Abstracts Ethics and social responsibility occupy an important place in human value system. Customer confidence in how business operates has been severely shaking by recent corporate scandals and collapses, such as Enron and bank failures. Hence it is important for companies to consider incorporating ethics and social responsibility into their strategic planning. The (term) ethnics are derivative from the Greek word ethikos, which meaning tradition or character. In philosophy ethical behavior is that which is respectable in the area of moral, philosophy involves in developing, defensive and also recommending concept of right and wrong behavior. These ideas do not change as one desire” and inspiration This applies whether a company is involve with customers one-on-one, such as apple or Dell, Inc.; there are various ways to define ethics the simplest may be to say that ethics deals with right and wrong. However, it is difficult to judge what may be the right or wrong in a particular situation without some frames of reference. However” this paper will illuminate the role of ethics and social responsibility in developing a strategic plan while considering stakeholder need and agendas. In addition apple Inc. will be the example of organization drive that will overstepping the ethics boundaries for stakeholder agendas and the types of preventative...
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...Abstracts Ethics and social responsibility occupy an important place in human value system. Customer confidence in how business operates has been severely shaking by recent corporate scandals and collapses, such as Enron and bank failures. Hence it is important for companies to consider incorporating ethics and social responsibility into their strategic planning. The (term) ethnics are derivative from the Greek word ethikos, which meaning tradition or character. In philosophy ethical behavior is that which is respectable in the area of moral, philosophy involves in developing, defensive and also recommending concept of right and wrong behavior. These ideas do not change as one desire” and inspiration This applies whether a company is involve with customers one-on-one, such as apple or Dell, Inc.; there are various ways to define ethics the simplest may be to say that ethics deals with right and wrong. However, it is difficult to judge what may be the right or wrong in a particular situation without some frames of reference. However” this paper will illuminate the role of ethics and social responsibility in developing a strategic plan while considering stakeholder need and agendas. In addition apple Inc. will be the example of organization drive that will be overstepping the ethics boundaries for stakeholder agendas and the types of preventative measure that could be taking to avoid the situation The role of ethics and social responsibility Companies must consider...
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...The role of ethics and compliance in Starbucks is set in place to ensure that all of Starbuck’s staff from the baristas working the front counter to the corporate staff are all abiding by federal laws and regulations. Ethics in financial practices are sometimes hard to believe. The agency problem is the result of conflict of interest between stockholders and the managers of a firm (Titman & Keown, p. 15, 2011). “A conflict of interest is a situation in which a person has a private or personal interest sufficient to appear to influence the objective exercise of his or her official duties (“Business Ethics”, n.d.). An example of a conflict of interest would be if the CFO attempted to acquire a property or investment from a friend or family member without acting in the best interest of Starbucks and it’s shareholders. Corporate advisors, in this case a CEO or CFO are legally required to make fair and ethical financial decisions. The Sarbanes-Oxley Act or SOX, passed by Congress in 2002 holds corporate advisors that have access to influence company decisions legally accountable for any instances of misconduct (Titman & Keown, p. 11, 2011). The SOX act is in effect in order to protect corporate shareholders against financial misconduct and accounting fraud. According to Starbuck’s Code of Ethics for CEO and Finance Leaders are required to follow the following seven duties: act with honesty and integreity, avoiding actual or apparent conflicts of interest, provide internal...
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...Ethics Program Outline Shalonda Floyd Ethical Issues in Business and Accounting Professor Gates February 26, 2013 Ethics Program Outline In a business, an ethics program is a set of guidelines to assist with company’s values. A code of ethics is a set of principles and rules used by companies, professional organizations, and individuals to govern their decision making in choosing between right and wrong (http://reference.yourdictionary.com/word-definitions/Define-Ethics.html). This program allows the company to set standards, expectations, and consequences for every employee. This program offers an explanation of the company values and appropriate steps to take if any employee has questions. A business that has chosen not to be ethical and compliant may be confronted with a variety of consequences from numerous sources, including current and prospective customers or employees, regulators, business partners, investors, competitors, vendors, lenders, and the media. An ethical compliance program can also assist businesses to achieve their corporate governance accountability and transparency duties (Wiest, J., 2007, p. 12). The most significant factors of an ethics program are ethical leadership by executives and supervisors, official policy and procedures, training programs, reinforcement policies, disciplinary for unethical behavior and whistleblower policy. There are several factors that compose an ethics program for a company but always should include the main factors...
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...Resource Management Business Ethics: The Role of Culture and Values for an Ethical Workplace FOURTH QUARTER–2009 Whether in domestic or global companies, ultimately, the commitment to business ethics and the foundation is built through organizational culture, with ethical values reflected in the workplace. Business Ethics: The Role of Culture and Values for an Ethical Workplace Abstract An ethical workplace is established through an organization’s culture, values and leadership. To promote ethical behavior, human resource professionals, people managers and senior management need to be knowledgeable about business ethics—from leadership, codes of conduct and related legislation to compliance training, ethical decisionmaking, and cultural and generational differences around ethics. Transparency, fairness and communication are key for establishing and maintaining an ethical workplace. Introduction In the business world today, issues of trust, respect, fairness, equity and transparency are gaining more attention. Business ethics includes organizational values, guidelines and codes, legal compliance, risk management, and individual and group behavior within the workplace. Effective leadership, with open dialogue and thoughtful deliberation, develops the foundation of an ethical workplace, is woven into the fabric of the organizational culture and is mirrored in ethical decision-making. Toward this end, all organizational leaders have a key role in establishing corporate...
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...From the early rise of humanity business has been one of the most important aspect for any culture or civilization, from bargaining and trade, to the industrial revolution down to our current time. And each era was dominated by a particular pattern or a way of doing business, as we evolved so did our awareness to our surrounding and how we affect it so companies and corporation all around the world started to care not purely on profit for their shareholders but how they effected the population the environment the culture as a hall, which in its turn led to what is currently known as “social economy” (1). The social economy phenomena created two types of corporation, first the social kind which are either non-profit or for profit and the goal of their corporations is to improve humanity as much as possible and to help sustain a clean and healthy environment even if this goal overlaps with the goal of making as much profit as possible. ‘Many commercial enterprises would consider themselves to have social objectives, but commitment to these objectives is motivated by the perception that such commitment will ultimately make the enterprise more financially valuable. Social enterprises differ in that, inversely, they do not aim to offer any benefit to their investors, except where they believe that doing so will ultimately further their capacity to realize their social and environmental goals’. Historically the concept of social enterprises has been around for...
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...Social Responsibility and Business Ethics serve a role in Corporations? NorthCentral University Abstract When you turn on the television, surf the internet or browse the Wall Street Journal the terms – business ethics and social responsibility are discussed. Recently, the Gulf coast oil spill has questioned the social responsibility of British Petroleum. However, can the terms business ethics and social responsibility apply to corporations? A review of two articles - “What is business ethics?” by P. Drucker and “The social responsibility of business to increase its profits written” by M. Friedman evaluates the two ethical terms. These articles suggest both business ethics and social responsibility should not apply to corporations. The focus of this paper will compare and contrast two approaches to business ethics. The conflicting objectives between the two parties will be analyzed. Lastly, my view and definition of business ethics and social responsibility will be conversed. Research for this paper consists primarily of peer reviewed articles and published articles. Should Social Responsibility and Business Ethics serve a role in Corporations? During the twenty- first century, businesses are confronted with many different responsibilities. Each responsibility must be address while ensuring obligations to stakeholders, special interest groups, employees and the environment. Businesses are expected to have very strong ethics, but often this is not the case. ...
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...HAROLD PUPKEWITZ GRADUATE SCHOOL OF BUSINESS Project 1: role of ethics and social responsibility in business decision making Tobias Endjala 200414518 Business Law & Ethics Project 1 Dr Jacqui Meyer 14 January 2015 Part A Roles of Ethics 1. Definition of business ethics: Business ethics (also corporate 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. Or Business Ethics: can be defined as the critical, structured examination of how people and institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affect others. Why it is important to understand ethics’ role in business? * To attract customers to the firm's products, thereby boosting sales and profits * Make employees want to stay with the business, reduce labor turnover and therefore increase productivity * Attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees * Attract investors and keep the company's share price high, thereby protecting the business from takeover. Unethical behavior or a lack of corporate social responsibility...
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...Case 1 An Ethics Role-playing Case: Stockholders versus Stakeholders When an organization decides to go global, they can easily run into ethical problems. Not only do they have to worry about ethical standards of the organizations home country, but they also have to consider the ethical standards of the host country. In the case of Asian HotFeet (AHF) the decision between continuing operations and trying to cut costs or to shut down now does involve ethics. According to the International Codes of Conduct for multinational enterprises (MNE), there are many guidelines that MNE’s should follow if they hope to succeed in their global endeavors. One reason AHF’s parent company United States HotFeet (USHF) wants to close down the Sri Lankan facility is because new production technology has become available and they do not think the technology would be well suited in low-cost labor areas. In the Codes of Conduct it stated the “…MNEs should enhance the technological capacities of developing countries.” Having lived and worked in Sri Lanka for fifteen years, you have grown close with the natives and believe that they are capable of learning the new technologies. Another reason this is an ethical decision is because of employment practices. MNEs should try to increase employment opportunities in the host country and if necessary, give advance notice of plant closures. It was stated that politically it would be very difficult to fire or lay off workers, so it would appear that...
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