Business Ethicss Essay Research Paper Business Ethics

Business Ethicss Essay, Research Paper

Business Ethical motives

How to act toward oneself and toward other persons is a affair of doing picks: whether to be friendly or unfriendly ; whether to state the truth or prevarication ; whether to be generous or greedy ; whether to analyze in order to go through an test or to pass valuable survey clip watching telecasting and darnel to go through it. These, and all other inquiries about how people act toward themselves and one another are dealt with in a field of survey called moralss. Another name for moralss is morality. Because both words suggest customary ways of behaviour, they are slightly deceptive. It had to make with what should or should non be done. Divide practical wisdom into two parts: moral doctrine and political doctrine. They re defined together as a true sound province of capacity to move with respect to the things that are good or bad for adult male ( Drucker, 1996 ) . One statement of the job is concern organisations, every bit good as members of society in general, are plagued by the fact that there are prevaricators, darnels, and stealers among us. Liars, darnels, and stealers are non new nor are they likely to vanish. Peoples will make anything and travel to whatever extent to acquire what they want. This is why there s a deficiency of moralss. Definition of footings: The word moralss is derived from the Greek ethos, intending character, the form of behaviour or personality found in an person or group ; moral fundamental law, moral strength, ego subject and fortitude ( Compton s Interactive Encyclopedia ) . The other is from the Latin mores, intending usage ( Compton s Interactive Encyclopedia ) . Business Ethics refers to what is right or incorrect, or good or bad, human behaviour. The construct of concern moralss is being able to look at your face in the mirror ( Drucker, 1996 ) . Ethics is a codification of behavior and values that is accepted by society as being right and proper. Code of moralss is merely a digest of the regulations that are meant to regulate the behavior of members of a peculiar organisation or profession. Moral doctrine and political doctrine is true and sound province of capacity to move with respect to the things that are good or bad for adult male. In the day-to-day scuffle to acquire in front, earn a net income, and outwit rivals, some people don t drama by the regulations. Sometimes the perpetrators are respected and normally well behaved individuals even though they are accused of a offense or discourtesy. Unfair and unscrupulous actions hinder the development of harmonious relationships between workers and colleagues, and between workers and supervisors. A individual who can non be trusted to make the right thing, fails to win the regard of others. It should be recognized, nevertheless, that ethical quandary are faced by people at all degrees within an organisation. Assorted houses have experienced breaches of moralss. The well-thought-of concern houses suffer harm to their repute when inquiries refering ethical behaviour arise. This is one of the ground formal codifications of moralss, developed by many concern organisations, and trade associations are popular today. Code of moralss is merely a digest of the regulations that are meant to regulate the behavior of members of a peculiar organisation or profession. A recent study found that 94 % of the luck 500 service and industrial companies have a written codification of moralss ( American Marketing Association ) . Companies and trade associations expect their members to stay by such regulations as a status of their engaging in the profession. There are at least two notable restrictions to codifications of moralss. First, the written regulations are sometimes so obscure and general they prove to be of small value. Second, codifications of moralss are neither a complete nor a wholly dependable usher to one s moral duties. It is impossible for the drafters of such codifications to expect all the moral quandary which may be encountered and impossible for them to outline regulations to regulate all behaviour. Nothing wins support from external groups every bit much as attachment to strong codifications of moralss. Peoples in concerns and concerns are expected to carry on their activities in an ethical mode. Ethical motives is a codification of behavior and values that is accepted by society as being right and proper. Employers and employees pattern honestness, equity, and attachment to the jurisprudence. However, there is ever the possibility of divergency from what is considered to be ethical and what is really practiced. No one commands more respect and esteem than the worker who adheres to ethical rules and exhibits professional behaviour. Specialists in the field of Human Resource Development suggested that human relation is making to others what they would hold you do to them. In either instance, instead it s good or bad you or they should anticipate nil less than coworkers or supervisors to act in an ethical, professional mode. The public image of concern has been stealing since the 1960 & # 8217 ; s. Harmonizing to a canvass conducted in 1966, 55 % of the American people had a great trade of assurance in American concern executives ( Matthews, Washington State University, 1995 ) . In recent old ages, that per centum has dropped to about 20 % . Surveys indicate that assurance in concern leaders is low, particularly with respect to honesty and ethical criterions. Assurance in political leaders and establishments is even lower. One account is that personal and corporate ethical criterions have fallen. Cases of insider trading, merchandise content misrepresentations, graft, pollution, and other concern misconduct were seen as verification of the public perceptual experience. Due to increased concern about ethical issues by the populace, it is more likely that some diminution in an image is due to increased concern about ethical issues by the populace. The public expects more from concerns now than they did in the yesteryear. Ethical jobs are inevitable at all degrees of a concern and this means that it & # 8217 ; s merely good sense for companies to take earnestly the undertaking of commiting moralss in their organisations. Consequently, an of import section of corporate America has begun trusting on such tools as: statements of corporate values, codifications of behavior, moralss workshops, hotlines, even corporate moralss offices and board degree moralss commissions. In short, they are puting up corporate moralss plans. Formal moralss plans are comparatively new to the universe of American concern. Although a smattering of companies have had them for 20 to thirty old ages, the bulk of moralss plans are no more than a few old ages old and some have been around for merely a few months. However, their figure is turning as their usefulness becomes apparent. Why Ethical motives? The position from the top. When one looks at corporations with a strong committedness to moralss, the first thing one notices is that the leaders of these organisations are the strongest advocators of corporate unity. CEOs and Chairmen of such companies are clear and vocal, forcefully bear downing everyone in the company to look at non merely how profitable their actions is, but how ethical. To the sceptics who think that moralss and concern go together every bit good as oil and H2O, their message is a small short of unorthodoxy. Yet another issue cited is the consequence of unethical behavior by the corporation on its employees. & # 8220 ; If the company is unethical, that company is traveling to be cheated by its ain employees. & # 8221 ; Taking something as apparently harmless as lying to assist the company. What you may comprehend as a simple prevarication or a simple misstatement that doesn & # 8217 ; t injury anybody and protects the company, Oklahoman or subsequently will come back to seize with teeth you. It & # 8217 ; ll seize with teeth you with people in your organisation who know it & # 8217 ; s a prevarication. If you can & # 8217 ; t be unfastened and honest at all times, you & # 8217 ; re directing a signal to the organisation that you will allow them acquire off with lying on occasion. And that includes lying to you & # 8221 ; ( Walter Klein ) . More than anything else, nevertheless, the position from the top is that moralss is critically of import for the wellness of the organisation. CEO & # 8217 ; s of ethically committed corporations believe that no affair how big the fiscal addition may be from making something unethical, there & # 8217 ; s a cost someplace else in the concern ( Jerry Junkins ) . If employees are directed to make something unethical for the company or even if they merely witness dishonesty by their higher-ups, this necessarily leads to a & # 8220 ; decomposing of the organization. & # 8221 ; And there & # 8217 ; s no manner that you & # 8217 ; re traveling to be able to reconstruct credibleness with those people when you & # 8217 ; re seeking to stimulate an organisation to travel make something else. You & # 8217 ; ve created a lasting job in footings of how people view you as an person and how they view the direction of the organisation. Ethical motives is chiefly concerned with trying to specify what is good for the person and for society. It besides tries to set up the nature of duties, or responsibilities, that people owe themselves and each other. I feel that people do non volitionally do what is bad for themselves, but may make what is bad for others if it appears that good for themselves will ensue. I ve found that it s hard to specify what is good and how one should move to accomplish it. Persons and whole societies have performed hideous condemnable Acts of the Apostless on people. After research, I ve found that concern moralss now compared to 20 old ages ago has increased, and deficiency of concern moralss will likely non diminish. In add-on, every one of us must follow with concern moralss of all applicable Torahs and ordinances, and with other company policies and instructions. Our behavior is our duty. None of us should of all time perpetrate dishonest, destructive, or illegal Acts of the Apostless even if directed to make so by a supervisor or coworker, nor should we direct others to move improperly. In add-on Don T pervert from Business Ethics, policies and instructions even if making so appears to be to the company s advantage. Work Cited 1. American Marketing Association 2. Compton s Interactive Encyclopedia, 1994-1997 3. Drucker, Peter, Florida State University, 1996 4. W. Michael Hoffman and Edward S. Petry, Jr. Phi Kappa Phi Journal. Winter 1992, 10-11 5. Jerry Junkins, Florida State University, 1996 6. Klein, Walter, Washington State University, 1995 7. Marilyn Cash Mathews, Washington State University, 1995 8. Roger E. Meiners, Al H. Rinleb, and Frances L. Edwards. Legal Environment of Business, Chap.1, p.19-21 9. Ralph D. Wray, Roger L. Luft, and Patrick J. Highland. Human Relations, Chap. 17, p. 487-491 AEthical and unethical behaviour that occurs in organisations often. @ Below are a few that occur with clients day-to-day Example 1: A consumer chooses to buy a used auto and the auto mileometer shows it merely has 40,000 stat mis, although the marketer knows that the auto should hold 80,000 stat mis. What has occurred to the consumer is deceit, every bit good as misrepresentation by failure to unwrap the existent reading. The consumer likely would non hold purchased the vehicle had they knew the existent milage. It is the seller=s responsibility to inform the purchaser of any defects that might impact the

customer=s decision. Example 2: Price-fixing-Managers of firms manufacturing paper bags used for packaging foods, coffee, and other goods were fined for getting together and conspiring to fix the prices of those paper bags. When firms are operating in an oligopoly market, it is easy enough for managers to meet secretly and agree to set their prices at artificially high levels. Example 3: Manipulation of Supply-When hardwood manufacturers met periodically in trade associations, they would often agree on output policies that would secure high profits. Firms in an oligopoly industry might agree to limit their production so that prices rise to levels higher that those that would result from free competition. Example 4: Price Discrimination-Used by one organization in an attempt to undersell another organization, which may have taken away all of their business. In 1960, Continental Pie Company attempted to undersell Utah Pie Company, which had managed to take away much of its business. The Supreme Court found such pricing practices Apredatory.@ Prices should be based on true differences in the cost of manufacturing, packaging, marketing, transporting, and service goods. These things often occur because most industrial markets are dominated by what is known as an oligopoly (control of a commodity or service given market by a small number of companies or suppliers). Most of the markets are shared by a large number of firms that can have some influence on prices. AOrganizational Business Ethic Awareness Survey@ Some of the principles you will find in companies with well defined Business Ethics are listed below. Are you aware of the following principles in your current organization? Answer the following question by circling the appropriate choice. 1= Not Aware 2= Somewhat Aware 3= Aware 4= Very Aware 1. We earn customers= business and build relationships with them by representing our products and services honestly. 1 2 3 4 2. We select suppliers based on the merit and value of their products and services. 1 2 3 4 3. We don=t accept gifts, entertainment, or favors that could cloud our business judgement. 1 2 3 4 4. We compete vigorously, rely on the merits of our products, services, and people. 1 2 3 4 5. We support involvement in the communities where we live and work. 1 2 3 4 6. We protect the environment in many locations where we conduct business. 1 2 3 4 7. We notify Corporate Security whenever we suspect, observe, or learn of unethical business conduct or the commission of any dishonest or illegal act. 1 2 3 4 8. We comply with applicable laws that govern the company=s operation. 1 2 3 4 9. We create and maintain workplace characterized by: Open communication and sharing of ideas 1 2 3 4 Respect for individuals and freedom from unlawful discrimination 1 2 3 4 Safe and healthy working conditions 1 2 3 4 Respect for employee privacy. 1 2 3 4 10. We never let our business dealings on behalf of the company information be influenced by personal or family interest. 1 2 3 4 11. We don=t take advantage of non-company information to which we have access. 1 2 3 4 12. We ensure that proprietary information is never improperly revealed. 1 2 3 4 13. We safeguard and make proper and efficient use of company funds and property. 1 2 3 4 14. We follow proper record keeping and financial reporting procedures. 1 2 3 4 Calculate you company=s total score by adding the numbers circled for each statement. Ethical Scenarios These are different types of ethical scenarios you could be challenged within your companies. If you were challenged with any of these type scenarios do you think you would have handled them the same way? Answer all questions as ethically as you know how, by circling the appropriate choice. 1= Ethical 2= Less Ethical 3= Unethical 1. A sales representative for a line of women=s sportswear offers a 10%-to-15% discounts to a few favored buyers; other buyers are not informed of any discounts. 1= Ethical 2= Less Ethical 3= Unethical 2. Invited to come to New York for an interview with all expenses paid, a recent graduate with heavy student loans decides to stay with a cousin in the area and report that he stayed in a $100-a-night hotel; he is not asked to provide receipts. 1= Ethical 2= Less Ethical 3= Unethical 3. A battery manufacturer, concerned about the effect of lead on the fetuses of pregnant women, adopts a policy barring women of childbearing age from jobs in areas where lead is present. 1= Ethical 2= Less Ethical 3= Unethical 4. After learning that a chemical it manufactures can cause cancer, the company institutes new safety procedures and monitors workers for the onset of the disease, but it does not notify workers of the cancer-causing potential of the chemical. 1= Ethical 2= Less Ethical 3= Unethical 5. A bank loan officer routinely passes the names of people applying for home improvement loans to her brother-in-law in the home improvement business for contacting as prospects. 1= Ethical 2= Less Ethical 3= Unethical 6. Upon washing a new dress according to the manufacturers directions a woman found that the garment faded and the colors streaked. The retailer refused to return the customers money. 1= Ethical 2= Less Ethical 3= Unethical 7. A customer returned a car to a dealer several times during the 1-year warranty period to correct transmission problems. In the 13th month the dealer overhauled the transmission and charged the customer the full price. 1= Ethical 2= Less Ethical 3= Unethical 8. An auditor discovers an illegal loan made by a savings and loan association. The auditor destroyed working papers involving the loan when instructed to do so by the supervisor. 1= Ethical 2= Less Ethical 3= Unethical 9. An employee uses company services for personal use. 1= Ethical 2= Less Ethical 3= Unethical 10. A manager authorizes a subordinate to violate company rules. 1= Ethical 2= Less Ethical 3= Unethical Answers 1. Unethical 2. Unethical 3. Ethical 4. Unethical 5. Unethical (it would be Less Ethical if they were not approved by her bank, but it would still not be ethical). 6. Unethical 7. Less Ethical 8. Unethical 9. Less Ethical 10. Unethical Speech Business Ethics Introduction How to behave toward oneself and toward other individuals is a matter of making choices: whether to be friendly or unfriendly; whether to tell the truth or lie; whether to be generous or greedy; whether to study in order to pass an exam or to spend valuable study time watching television and cheat to pass it. These, and all other questions about how people act toward themselves and one another are dealt with in a field of study called ethics. Another name for ethics is morality. Because both words suggest customary ways of behavior, they are somewhat misleading. It had to do with what should or should not be done. Divide practical wisdom into two parts: moral philosophy and political philosophy. They re defined together as a true reasoned state of capacity to act with regard to the things that are good or bad for man . Definition of terms The word ethics is derived from the Greek ethos, meaning character, the pattern of behavior or personality found in an individual or group; moral constitution, moral strength, self discipline and fortitude. The other is from the Latin mores, meaning custom . Business Ethics refers to what is right or wrong, or good or bad, human behavior. The concept of business ethics is being able to look at your face in the mirror . Ethics is a code of conduct and values that is accepted by society as being right and proper. Code of ethics is simply a compilation of the rules that are meant to govern the conduct of members of a particular organization or profession. Moral philosophy and political philosophy is true and reasoned state of capacity to act with regard to the things that are good or bad for man. WHY ETHICS? THE VIEW FROM THE TOP When one looks at corporations with a strong commitment to ethics, the first thing one notices is that the leaders of these organizations are the strongest advocates of corporate integrity. CEOs and Chairmen of such companies are clear and vocal, forcefully charging everyone in the company to look at not only how profitable their actions is, but how ethical. To the skeptics who think that ethics and business go together as well as oil and water, their message is a little short of heresy. Yet another issue cited is the effect of unethical conduct by the corporation on its employees. “If the company is unethical, that company is going to be cheated by its own employees.” Taking something as seemingly harmless as lying to help the company. What you may perceive as a simple lie or a simple misstatement that doesn’t hurt anybody and protects the company, sooner or later will come back to bite you. It’ll bite you with people in your organization who know it’s a lie. If you can’t be open and honest at all times, you’re sending a signal to the organization that you will let them get away with lying occasionally. And that includes lying to you. More than anything else, however, the view from the top is that ethics is critically important for the health of the organization. CEO’s of ethically committed corporations believe that no matter how large the financial gain may be from doing something unethical, there’s a cost somewhere else in the business. If employees are directed to do something unethical for the company or even if they simply witness dishonesty by their superiors, this inevitably leads to a “rotting of the organization.” And there’s no way that you’re going to be able to rebuild credibility with those people when you’re trying to energize an organization to go do something else. You’ve created a permanent problem in terms of how people view you as an individual and how they view the management of the organization. Conclusion Ethics is primarily concerned with attempting to define what is good for the individual and for society. It also tries to establish the nature of obligations, or duties, that people owe themselves and each other. I feel that people do not willingly do what is bad for themselves, but may do what is bad for others if it appears that good for themselves will result. I ve found that it s difficult to define what is good and how one should act to achieve it. Individuals and whole societies have performed outrageous criminal acts on people. After research, I ve found that business ethics now compared to 20 years ago has increased, and lack of business ethics will probably not decrease. In addition, every one of us must comply with business ethics of all applicable laws and regulations, and with other company policies and instructions. Our conduct is our responsibility. None of us should ever commit dishonest, destructive, or illegal acts even if directed to do so by a supervisor or coworker, nor should we direct others to act improperly. In addition don t deviate from Business Ethics, policies and instructions even if doing so appears to be to the company s advantage.