The Better Business Bureau (BBB), the mark that we all look for when researching a business. We have come to trust this organization and most of us felt that the BBB was an impartial party that was formed and existed to help the buyer make an informed decision. The BBB, like any other company or organization has had its share of controversy over the years, whenever there is a human element, there is sometimes ethical challenges and people make the wrong decisions. Ethical issue intensity comes into play when an individual or a group must make a decision whether the action they are about to take is unethical, and if so, in their opinion, how unethical. We can bring morals into the equation. What kind of moral compass does the individuals or group have? We see that there are instances in the BBB that chapters have acted on their own and created unethical environments. Most notably, a Los Angeles area branch, specifically the Southland Branch, was the target of an investigation. It was alleged, and later proven that the branch was involved in pay for play activities. Brought to light by ABC news show 20/20, in 2010, the Southland branch, headed by Kiry Peng, was expelled by the parent organization this year. In pay for play, the concept is, if you pay dues, you have a better chance of receiving a higher grade than the company that is not a dues paying member. In this particular case, some disgruntled members formed a fictitious company named, Hamas. Not recognizing the name, a designated terrorist organization, the branch awarded the company an A-, just for paying the dues. This and other examples of blatant unethical behavior has led to the expulsion. The BBB does not condone this behavior, and has shown that it will do whatever is necessary to rid the organization of branches that deviate from the ethical path.
There are other organizations that are used by the public to gain insight. Yelp! and Angie's List are two popular web sites that give customer feedback on companies that are members. The BBB does not grade on feedback, but the companies are graded on the handling of customer complaints made about them to the BBB. Angie's List and Yelp! are driven on actual customer feedback about their experience, both positive and negative.
It is important for all staff to be aware of their ethical influence and the impact it has on the organization. Having appropriate skilled staff to address finances and risks is crucial for the developments of the organization. When issues of fraud and corruption arise leadership must address the issue swiftly with interventions that will allow operation to readjust and the public and funders to refocus on the organizations mission to advance despite current complications. Successful organizations require accountability for all actions and obligations to sustain trust from
The movie “Glengarry Glen Ross” presented a series of ethical dilemmas that surround a group of salesmen working for a real estate company. The value of business ethics was clearly undermined and ignored in the movie as the salesmen find alternatives to keep their jobs. The movie is very effective in illustrating how unethical business practices can easily exist in the business world. Most of the time, unethical business practices remain strong in the business world because of the culture that exists within companies. In this film, the sudden demands from management forced employees to become irrational and commit unethical business practices. In fear of losing their jobs, employees were pressured to increase sales despite possible ethical ramifications. From the film, it is right to conclude that a business transaction should only be executed after all legal and ethical ramifications have been considered; and also if it will be determined legal and ethical to society.
In business it is important the a company establish some clear order of business when dealing with business ethics. Ethical business practices can build customer relationships. Unethical business practices can cause a business to lose customers. In this case study the reader will be come familiar with the ethical practice of a Red lobster store in Pleasant Hill, Pennsylvania.
It's difficult not to be cynical about how “big business” treats the subject of ethics in today's world. In many corporations, where the only important value is the bottom line, most executives merely give lip service to living and operating their corporations ethically.
There are even challenges of sustaining employee morale and culture in a business. Culture begins with the CEO, and executives, and is passed down through training and mentoring to managers and entry level employees. Wells Fargo’s culture seems to have been maintained for the most part, but in the context of pressure and competition it changed drastically. The fact that employees felt the need to participate due to pressure and fear that if they called the ethics hotline they would be fired, speaks volumes about how important gaining more customers meant to executives pushing the competition. According to Business Ethics: Ethical Decision Making and Cases cultural relativism is “the concept that morality varies from one culture to another and that ‘right’ and ‘wrong’ are defined differently” (John Fraedrich, L. F., 2017). In the case of Wells Fargo, their wires are crossed in their ideals of right and wrong. Most decisions are not black and white in cultures—there are always grey areas. Pertaining to cultural realativism, “by defending the payment of bribes or ‘greasing the wheels’ of business and other questionable practices in this fashion” Wells Fargo has gone above and beyond with their cultural
If Branch, Erskine, Condit, and Stonecipher took the time to evaluate their actions beforehand, they most likely would have realized the consequences of their actions, and would probably not feel too satisfied with their unethical business decisions. They would not wish for their actions to be published on the front page of the local newspaper, or fo...
Ethical behavior, in a general sense, is a definition of moral behavior in regards to lawfulness, societal standards, and things of that nature. In the business world, ethics commonly refer to acceptable and unacceptable business practices within the workplace, and all other related environments. The acceptance of colleges regardless of ethnicity, gender, and beliefs, as well as truthfulness and honesty in relation to finances within the company are examples of ideal ethical business conducts. Unethical business behavior would include manipulating procedures based on bias or discrimination, engaging in activities that promote political gain, as well as blatant fabrication of monetary factors within the company and “can affect organizational performance and is costly to employers, employees, shareholders, and other organizational stakeholders” (Cox 263). When a corporation practices proper ethics, it is representing not only itself in a positive manner, but its partners, shareholders, and clients as well. On the other hand, when an organization partakes in unethical activities, all parties are negatively affected. The collapse of Enron is a major case of unethical conduct in the corporate world, because the circumstances surrounding the firm’s chaotic plunge where so scandalous that it left “creditors wrangling over Enron's skeletal remains” (Helyar) long after the company had seen its demise. There are numerous instances to be mentioned, including deliberate failure to properly report fiscal losses, insider trading, and overall relentlessness. The inclusive purpose of this paper is to further explore the underlining factors that contributed to the downfall of the once powerful Enron, and how a new way of approaching business ethi...
Obviously, one goal of every company is to make a profit. Without a profit, Erickson and his employees would not be able to make as large of a positive social and environmental impact. It is very clear, though, that this company values much more than just profit, which was made apparent when Erickson denied selling the company for $100 million because he wanted to retain the vision and values that he held for the company (183). Erickson’s “ethics and values-based approaches to leadership,” shown through his mixture of authentic and servant leadership, allows Clif Bar Inc. to have a very ethical climate. “Authentic leaders exhibit a consistency between their values, their beliefs, and their actions,” and they also take actions that concentrate on relationships, social responsibilities and performance standards (169). Erickson also practices servant leadership by emphasizing the importance of building community and giving his employees opportunities to grow (171). Erickson has successfully integrated his values with his leadership and his organization, allowing Clif Bar Inc. to have an ethical climate “in which ethical standards and norms have been consistently, clearly, and pervasively communicated throughout the organization and embraced and enforced by organizational leaders
When someone is unethical, they lose their moral way. Ethics is a “set of moral principles” (Merriam-Webster.com.) These principles guide our personal decisions. But when more than one individual loses sight of their moral judgement, a whole company can go down. Moral conduct can be applied to organizations. A good movie that shows the difference between an ethical, privately owned organization and a larger, sleazy franchise is Good Burger. Good Burger shows the difference between a small shop, Good Burger, and a larger franchise, Mondo Burger, and the way they do business.
I have also learned that the automotive trade is in the top 3 for service for complaints, and top 10 for customers inquiring about automotive service businesses. I didn’t realize that a business had to pay fees to be in the BBB, and pass a set of regulations to be eligible.
Gallagher, S. A. 2005. Strategic response to Friedman’s critique of business ethics. Journal of Business Strategy, 26(6), 55-60.
In 1934 the Securities Exchange Act created the SEC (Securities and Exchange Commission) in response to the stock market crash of 1929 and the Great Depression of the 1930s. It was created to protect U.S. investors against malpractice in securities and financial markets. The purpose of the SEC was and still is to carry out the mandates of the Securities Act of 1933: To protect investors and maintain the integrity of the securities market by amending the current laws, creating new laws and seeing to it that those laws are enforced.
would like to put you in a situation and show you how a consumer can
To conclude business organizations do not have the right to deceive individuals and consumers in specific because Albert Carr’s claim that business is a game cannot be justifiable and supported with reasons that may harm or the community and its people. However, I do believe that business organizations should be socially responsible and that would help them maximize profits in the long run (Lauren, 2011)
The term “ethical business” is seen, by many people, as an oxymoron. This is because a business’s main objective is to make as much money as possible. Making the most money possible, however, can often lead to unethical actions. Companies like Enron, WorldCom, and Satyam have been the posterchildren for how corporations’ greed lead to unethical practices. In recent times however, companies have been accused of being unethical based on, not how they manage their finances, but on how they treat the society that they operate in. People have started to realize that the damage companies have been doing to the world around them is more impactful and far worse than any financial fraud that these companies might be engaging in. Events like the BP oil