Peter Robinson, CEO of Mountain Equipment Co-op, was correct when he said that “Ethics is the new competitive environment.1” Honesty, integrity, and transparency consistently rank at the top of qualities that employees and the public desire from corporate entities1. Matters of integrity and responsibility in multinational corporations are often complicated and, when poorly implemented, can be potentially damaging to a firm. Practically applying ethics and corporate social responsibility to business practices is a multifaceted challenge that requires both awareness and vigilance. Execution of ethical and responsible business practices necessitates consideration of international standards such as the UN Global Compact as well as structuring of company policy in order to best address the most pressing issues and violations. However, the application of the Compact can often be complicated and confusing. Expectations for firms emphasize attention to four major areas: human rights, the environment, labor practices, and corruption. I will be outlining business’ responsibility in these four areas, as well as analyzing the most important human rights, environmental, labor, and corruption issues and the potential challenges to implementing responsible practices in these areas. In order to look at these theories in practice, I will be considering how these issues apply to the diamond industry. Companies in all places, regardless of their size or sector, have the standard obligation to respect human rights. Respecting human rights is the basis for responsible business practices, and human rights issues affect all other actions taken by firms. The first and second principles of the United Nations Global Compact address human rights... ... middle of paper ... ...o benefit businesses and consumers alike by leading to lower costs. Companies must look for possibilities within their own supply chain to develop cleaner processes. This leads to the last environmental call of the Compact: to develop sustainable technologies. These are technologies that make the business process less polluting, protect the environment, use resources sustainably, recycle more, and produce less and or cleaner waste2. Pursuing sustainable technology can be costly, but it is an investment into the future of the company, giving it a reputation as a company that is innovative in looking for opportunities to better the world around them for future generations. These technologies can also be beneficial to people at the beginning of the supply chain, who benefit economically and health-wise from initiatives to use less pesticides or grow organically6.
Fasterling, Björn, and Geert Demuijnck. "Human Rights In The Void? Due Diligence In The UN Guiding Principles On Business And Human Rights." Journal Of Business Ethics 116.4 (2013): 799-814. Business Source Complete. Web. 30 Nov. 2013.
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).
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
Kidder, R, M., (2010), Center for corporate Ethics, Institute for Global Ethics, retrieved on August 08,2010 from www.globalethics.org/ reserve reading from ethics news line
Without doubt the XXI century has changed our priorities, especially when it comes to the way we do business. Popular sustainable business models, as advertised in the media, have evolved into much more than a moral obligation or an external requirement to generate money. Essentially, are forcing companies to reinvent the systems and approaches with which they generate value and profitability to the company.
A company's code of ethics is very important to establishing the expectations and quality of its brand. The code of ethics are concrete expectations for employee behavior, accountability and communicates the ethical policy of a company to its partners and clients. A good business practice is to have sound ethics. Having good ethical practice is knowing the difference between right and wrong and choosing what the right thing is. Though good ethical behavior is something that should be done automatically, a company needs to have a set of rules in place that holds everyone accountable. Over the last twenty years, the country has been bombarded with company scandals and unethical behavior; though morally wrong, the punishment does not fit the crime. The punishments have been overkill. A murderer, rapist, or child molester commits violent crimes and potentially is out of jail in 10 - 20 years. The CEO’s that commit white collar crime receive 25 years to life; this paper will discuss how this punishment for committing nonviolent crimes, such as breaching a company’s code of ethics, are disproportionate to violent crimes that plague the country today.
The notion of ethics deals with people’s behaviors within a company. Social responsibility involves a company’s moral obligations and the manner in which the organization makes its decisions. Although ethics and social responsibility are similar on a conceptual basis, each has its own unique characteristics that express their differences and its independence of the other. Ethics and social responsibility have to be present and coincide with one another for a business to be ethically sound.
The role that globalization plays in spreading and promoting human rights and democracy is a subject that is capable spurring great debate. Human rights are to be seen as the standards that gives any human walking the earth regardless of any differences equal privileges. The United Nations goes a step further and defines human rights as,
This paper discusses the role of ethics in corporate governance. I seek to show the application of moral and ethical principles in corporate governance. Ethics is a topic that has generated a lot of interest in the last decade especially after high profile scandals. The failures of prominent companies such as WorldCom, Enron, Merrill lynch and Martha Stewart portrays the lack of corporate ethics. The failure of such business has seen an increased pressure to incorporate ethics in corporate governance. The result of corporate scandals has been eroding investor and public confidence. The entire economic system has experienced some form of stress from loss of capital, a falling stock market and business failures.
The next, major international business issue is human rights. In many nations today basic human rights are not respected. In much of the developed world are basics rights are taken for granted such as freedom of speech, or freedom of movement. It is often questioned by the international business world if we should...
According to Carol Padgett (2012, 1), “companies are important part of our daily lives…in today’s economy, we are bound together through a myriad of relationships with companies”. The board of directors remain the highest echelon of management in any company. It is the “group of executive and non-executive directors which forms corporate strategy and is responsible for monitoring performance on the behalf of shareholders” (Padgett, 2012:1). Boards are clearly critical to the operation of companies and they are endowed with substantial power in the statute (Companies Act, 2014). The board is responsible for directing and steering the company. The board accomplishes this by business planning and risk management through proper corporate governance.
Since the adoption of the Universal Declaration of Human Rights (UDHR), the discourse of international human rights and its importance has increasingly become indoctrinated in the international community. In the context of political and economic development, there have been debates on how and which rights should be ordered and protected throughout different cultures and communities. Though there is a general acceptance of international human rights around the globe, there is an approach that divides them into civil and political rights and social and economic rights, which puts emphasis where it need not be.
The sustainability of ecosystems on which the global economy depends must be guaranteed. And the economic partners must be satisfied that the basis of exchange is equitable” (World). This quote demonstrates the complexities of sustainability. Another thing corporations should focus on when trying to be sustainable is their environmental impact. Annie Leonard in her book The Story of Stuff says that companies can significantly reduce their toll on the environment by changing their design. The design determines “the amount of energy used in making and using the product,” “the length of the product’s life span” and “its ability to be recycled” (Leonard). All these things determine the amount of resources a company must use, so simply changing a product’s design is one way a company can have a large impact on the sustainability of the environment in which it operates. One example of this is that “Wal-Mart attributed more that $100 million of its 2009 revenue to a decision to switch to a recyclable variety of cardboard in shipments” which it sells to a recycler instead of paying to send it to a landfill
Business ethics and social responsibility are two concepts many individuals believe go along together for corporations in the business environment. Business ethics are the moral values a company uses to ensure all employees action in a standard manner when completing business functions. Social responsibility is typically a conceptual theory that governments and the general public hold, believing that businesses should not conduct themselves in a manner counter to cultural or societal norms. The connubial of these concepts happens when companies introduce a written code of ethics to demonstrate that the company only acts in its greatest interest so long as it does not damage the company’s social responsibility.
Ethics is the study of right or wrong and the morality of the choices that individuals make. That basicly means the set of morals or responsibility that a person, group, or field have. Ethics can also be classified as code of morals. In business there are ethics that portray to business. These are called business ethics, business ethics just happen to be the application of ethics, morals, into the business field. Some examples of business ethics are obeying all rules and regulations even when nobody 's looking, which is pretty self explanatory, you shouldn’t be breaking rules. Even if it is as simple as washing your hands after you use the restroom or straight up lying to your customers, they are the ones making you money so if they find out