Introduction The aim of this paper is to discuss the challenges of values-based decision-making ethics in the current marketplace. This discussion will include the research findings on the four markets for potential expansion and an assessment of the current social and political climate of each. A recommendation will offer three best fits based on a comparison of company values, and will include detailed rational for these choices. Content and Analysis Background According to Ferrell (2004), “Organizations create ethical or unethical corporate cultures based on leadership and the commitment to values that stress the importance of stakeholder relationships. Establishing and implementing a strategic approach to improving organizational ethics is based on establishing, communicating, and monitoring ethical values and legal requirements that characterize the firm's history, culture, and operating environment” (p. 129). Ethics programs ensure satisfactory relationships with all stakeholders by aligning with all of their demands and needs, and determine conduct with customers and relationships with regulators, shareholders, suppliers, and employees (Ferrell, 2004). Values are a core set of beliefs and principles by one or many. A number of factors contribute to the development of values. These include membership in a community or culture, attitudes, beliefs, and behaviors. Values determine what is important in decision-making. Ethics involve conduct, the ability to determine right and wrong. All organizations face ethical dilemmas. Organizations develop corporate social responsibility in reaction to the values and expectations of society. Corporate social responsibility initiatives aim to protect public health, safety... ... middle of paper ... ...). The new Japanese consumer. McKinsey Quarterly. Retrieved from http://www.mckinseyquarterly.com/The_new_Japanese_consumer_2548 Sargent, C. (2006). From buddy to boss: effective fire service leadership (p. 153). Tulsa, OK: Penwell Corp. The pc isn’t dead but it is no longer the only (computing) game in town (2011). Deloitte. Retrieved from http://www.deloitte.com/view/en_CA/ca/pressroom/ca-pressreleases-en/2e9fc1ca8f49d210VgnVCM3000001c56f00aRCRD.htm?src=caen_home_pred Trade regulations and standards in France (2011). Globaltrade. net. Retrieved from http://www.globaltrade.net/international-trade-import-exports/f/business/text/France/Legal-and-Compliance-Trade-Regulations-and-Standards-in-France.html Watson, C. (2010). Ensuring value-based decision making. FEMA: U.S. Fire Administration. Retrieved from http://www.usfa.fema.gov/pdf/efop/efo44281.pdf
The ethical code of an organization illustrates the importance of being honest, acting with integrity, and showing fairness in decision making (Bethel, 2015). Ultimately, “laws regulating business conduct are passed because some stakeholders believe they cannot be trusted to do what is right” (Ferrell, Fraedrich, & Ferrell, 2015, p. 95). In the last couple of years, culture has become the initiator for compliance, which means from the top down there has to be a commitment to act in a way that represents the company’s core values (Verschoor, 2015).
Personal, cultural, and professional values and ethics drive the decision making process for most individuals and businesses in our society. Ethics reflect our conscience, morality and how we apply these concepts in deciding right from wrong (Covey 66). Ethical awareness is critical for how we conduct our lives and make choices in the workplace; by defining personal and ethical values, individual and business alike can become more productive members of society. a
In today’s global society, a Code of Ethics policy is used to label established, acceptable behaviors among that industry’s business associates, potential investors, and the corporation’s executive officers and employees, and most important, the consumer (Ethics Resource Center, 2003). In an attempt to promote an increased efficiency and productivity potential level, among employees and prospective clients, a corporation’s standard Code of Ethics should guide its members toward a more in-depth examination of their personal moral activity, and how these actions affect the people or acquaintances they encounter. A company should utilize this strategy as a model for the professional behaviors and responsibilities of its constituents, and proves the occupational advancement of that business. Ethics are important in every level of a corporation, but specifically in the day-to-day actions of its members, and the image the company broadcasts to its associates is fundamental in building a stable business foundation. These pledges are a vital communication tool used to covey the firm’s standards for business operations, and predominantly, its relationships with the surrounding communities (Ethics Resource Center, 2003).
Ethics are the principles and values used by an individual to govern his or her actions and decisions and it is very important in an organization. The code of ethics within an organization must be developed to help guide the organization in its decisions, programs, and policies. Having an ethical organizational culture that consists of leaders and employees adhering to ethical standards can guide leaders in determining organizational procedures and outline acceptable behavior among staff. Ethical leaders can also help employees meet standards of good quality work, accomplish organizational goals, adhere to policies and rules within the organization, and enhances the organization reputation within the community.
In order to prevent the development of such cultures, organizations should make sure to enforce their code of conduct instead of just hoping for the best and implementing actual punishments for employees that fail to follow them. They should also be sure to incorporate and bring up ethics as much as possible in the work place, such as meetings and announcements. Meanwhile, publically committing to being an ethical organization will keep a company more in line and focused upon doing the right thing because they are now in the public’s eye and have given their word to abide by their rules.
For a company to be successful ethically, it must go beyond the notion of simple legal compliance and adopt a values-based organizational culture. A corporate code of ethics can be a very valuable and integral part of a company’s culture but I believe that it is not strong enough to stand alone. Thought and care must go into constructing the code of ethics and the implementation of it. Companies need to infuse ethics and integrity throughout their corporate culture as well as into their definition of success. To be successfully ethical, companies must go beyond the notion of simple legal compliance and adopt a values-based organizational culture.
In order for a business to be successful it must have a strong policy on business ethics in place and a culture that is developed based on core values that should be clearly defined. An organization must do everything within its control to uphold promises made to employees as well as commitments to partners, such as the community where they are located. When the culture, ethics and core values are threatened it is imperative that the organization have a policy in place to address these concerns.
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
An organization needs to adhere to ethics in order to effectively implement its mission, vision, and objectives in a way in which offers a solid foundation to management and their subordinates to properly develop and implement its strategies. By doing so, the organization as a whole is essentially subscribing to one commonality that directs all of the actions of the employees of the organization. Additionally, it assists in preventing such employees from divergence in regard to the proposed strategic guideline. Ethics additionally ensures that a strategic plan is developed in accordance to the interests of the appropriate stakeholders of the organization, both internal and external (Jin & Drozdenko, 2010). Likewise, corporate governance that stems from various regulatory parties makes it necessary for organizations to maintain a high degree of ethical standards; this is done by incorporating ethics within the organization’s strategic plan so as to foster a positive corporate image for the stakeholders and general public (Min-Dong Paul, 2009).
Weiss, J. (2006). Business Ethics: A Stakeholder & Issues Management Approach. Mason, Ohio: Cengage Learning, South-Western.
The organisation should also display ethical behaviour towards its stakeholders which is important for building long-term relationships with its customers.
Ethics are the morals principles that we obtain through various means, such as religion, culture, etc., that people live by. Values are the way we feel about honesty, wrong-doing, etc. Ethics and values help determine the way employees and members of the business should act and how they should act to show how what the business stands for. The business has a number of ways in which it helps employees can use ethics and values to show the importance in business sustainability.
Notably, ethical cultures do not just happen in organizations; they come from a strong belief in doing what is right and they are instilled in every employee throughout the organization. Effectively, organizational ethics is how an organization ethically responds to internal or external situations. Additionally, it reflects the values of an organization to its employees as well as other stakeholders ("Ethical Issues at an Organizational Level", 2017). Furthermore, organizational culture exists on two levels, the surface level, and the underlying level. On the surface level, specific behaviors are observed, while on the underlying level is where you will find the shared values, belief patterns, and thought processes that are common to the members of the organization. Moreover, the underlying level is the most critical (Crandall, Parnell & Spillan, 2013). Furthermore, employees in an organization need to share the same values to have a successful ethical culture, however, if they do not all hope is not lost there are ways to assist an organization in improving their ethical culture. First and foremost, developing an ethical work culture is crucial, however, it will rarely happen without the assistance of the management and executives, truthfully they need to be the
Ethics is the responsibility of each individual person, but starts with the CEO and the Board of Directors, setting the right tone at the top and moves down through the organization, including setting the tone in the middle. A company’s culture and ethic standards start at the top, not from the bottom. Employees will almost always behave in the manner that they think management expects them, and it is foolish for management to pretend otherwise (Scudder). One of the CEO’s most important jobs is to create, foster, and communicate the culture of the organization. Wrongdoings or improper behavior rarely occurs in a void, leaders typically know when someone is compromising the company
“Ethics can be defined as moral principles that govern or influence a person’s behaviour and values are the context in which an organisation or society’s norms are established and justified” (buzz text book).Ethics are the guidelines helping us tell the difference between the is wrong and right. Most people are encouraged by ethics to normally do the right things. Ethics and values are based on individual beliefs and standards in society that one if from, they vary from person to person. Leadership is the authority and capability for one to lead people in an organization in order to achieve goals. They are the main role players in all the organizations and are crucial to their success. Ethics in a business means taking the precise way’