In BBB Bank, a major issue in regards to ethics are the sales tactics of the sales staff. As their objectives were set with rewards based on sales value and volumes, their main focus was selling as many products with the highest value possible. This means that they lost sight of the customer and what it best for them. As a result, other internal departments have been impacted and it had a negative impact on BBB Bank’s reputation.
Andrews should look into changing performance objectives to putting the customer first, as this will help to ensure better customer service and customer focus. He could also look at introducing selling standards that all customer facing colleagues need to adhere to. Colleagues should receive proper training, have
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The code of conduct should encompass the following five core principles: Integrity, Objectivity, Competence, knowledge, skill and due care, Confidentiality and Professional behaviour. BBB Bank’s code of professional conduct should specifically address the miss-selling of the bank’s products, ensuring that their employees act with integrity and competence. This means not compromising the reputation of BBB Bank by being pushy or aggressive, and to concentrate on selling the right products to the right customers, instead of focusing on sales value and …show more content…
As stated in Michael McMillan’s report Codes of Ethics: If You Adopt One, Will They Behave?, there is no guarantee that colleagues will behave in an ethical manner, just because a code of ethics exists. Andrews will need to ensure that an ethical culture is created and fostered by senior leaders and the board. This means that they need to show their commitment to the ethical values of BBB Bank in their day to day behaviour and actions. Top management needs to ensure that employees will feel confident to discuss and question ethical and unethical behaviour. An ethics code cannot just be a piece of paper; it needs to be lived and enforced every day. Managers should monitor and encourage the right behaviour in their teams and correct any behaviour that does not comply with the
A code of ethics is essential in today business world, and customers honestly base a company’s reputation on these bases. Simply defined a code of ethics is a set of core values designed to help professionals manage a business that is honest and possess integrity. For example, a code of ethics document should highlight the mission and the values of a business. As well as, illustrate how professionals should approach issues, the ethical principles based on the company’s core values, and caliber to which the professionals are held. It is highly critical that a company like the Cheesecake Factory withholds an ethical and socially responsive code of conduct.
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.
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
...es, their managers, and their employees all act accordingly and fairly when selling products in the market place. According to Hekman (2011) in 2010 alone the BBB received over 25,000 complaints from consumers and success rate nearly perfect at 84% for creating a binding resolution for the consumer. This shows that it can help shape ethical behaviors in business, by working with managers and clients to create a mutual understanding of expectations from the general public of a company.
The root of Wells Fargo’s ethical breakdown lies in the company’s overall ethical culture and climate that places too much emphasis on self-interest and on the teleopathic goal of generating the most sales
...ocedures. The section deals with how to comply with the procedures in the code of Ethics. They have included steps that should be taken if there has been any violation of the code of ethics witnessed by an employee.
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).
The importance of having a code of ethics is to define acceptable behaviors and promote higher standards of practice within a company. The code should provide a benchmark for...
Seawell, Buie 2010, ‘The Content and Practice of Business Ethics’, Good Business, pp. 2-18, viewed 22 October 2013, .
To provide an example of a breach of ethical conduct in the workplace, we may remember the case of a financial manager in a corporation that decided not to pay overtime to some employees. After a deep outside investigation, the company was summoned with thousands of dollars to remedy the payment that was supposed to be paid to all employees who worked more than forty hours per week. Again, it is needed more than just a booklet stating that the company adheres to the code of business ethics. It is needed serious managers that can run the company with the most seriousness as possible. Consequently, any written codes of business ethics, regardless of how well it has been crafted, need people that adhere to its internal content with a serious desire to do the right thing.
,dishonesty ,substance abuse and absenteeism. Would all play a part in the ethical violation of
Ethics are the driving force behind good business. Every ethical choice made by a professional can and will have a much different outcome than any unethical choice. Bad ethics can ruin many aspects of a business and as (Gaye-Anderson, 2007) states how quite easily the lives and professional reputation of the employees can even be severally damaged (para. 3). Everything from morale to motivation can be severely affected by poor ethical choices. Customers will take their business elsewhere. Employees will abandon ship. Other, competing businesses reap the benefits of the bad moral choices. Ultimately, the entire business can be brought down by one poor ethical choice.
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
As mentioned earlier, ethical business communication takes different forms, such as management of staff and employees to suppliers and customers. A wide range of writing exists with the significance of ethics in business communication; most disappointments in business credit to the absence of morals in their business operation, and affirm that ethics is the basic achievement of authoritative development and achievement elements. It's basic as building associations with partners and utilizing moral practices. The believability of the association assumes a part in guaranteeing productivity. It can be said that ethics are a vital segment in business achievement. Since business contacts is likewise the center of business procedures, then, ought to be joined morals in business correspondence procedure to make certain long haul gainfulness and great relations with the proprietors of hobbies. Janet and Chaney (2012) mentioned out that there is a direct correlation between ethical business communication and customer loyalty. Ethical business communication plays a role in the development of a loyal customer base because of the ethical manners of the company when it comes to communications command. Ethical business communication helps to create a positive image of the organization in the workplace, which helps in attracting
Business ethics are a set of moral rules that govern how a business operates, how people should be treated within an organization, and how business decisions are made. They are a crucial part of employment and in managing a sustainable business, mainly because of the serious consequences that can result from decisions made with a lack of regard to ethics. Even if you don’t believe that good ethics don’t contribute to profit levels, you should realize those poor ethics have a negative effect on your bottom line in the long-run. Every business in every industry has certain guidelines to which its employees must stick to, and regularly outline such aspects in employee handbooks.