Ethics can be described as: "the activity of examining one's moral standards or the moral standards of a society, and asking how these standards apply to our lives" (11). The application of ethics in business is generally perceived as the evaluation of individual and collective moral standards, a reflection of societal morality, and then the determination of business decisions that are not only based on the efficacy of business operations, but also on these moral standards. The problem that many corporations perceive when pursuing the application of ethics in business is that ethical choices are not always the most sound business decisions. For example, when the pharmaceutical corporatio... ... middle of paper ... ...issue as a whole. Individuals have a moral responsibility to take ethical action, and there is no way of denying that corporations are made up of individuals attempting to make both business and ethical determinations.
Like some other large corporations affected by ethics and business laws, the company created a code of ethics. The company’s code of conduct or ethics is expected to be followed by its employees including the board of trustees. The code of conduct varies from following the law to acting respectably within employees and customers. In, fact the company’s motto “don’t be evil” has impacted how the public views the company. Many people are impressed that such a large company that holds ethical integrity and standards to be one of the world’s top brands.
Both of these areas are the lifeblood of the company, and any benefit to them should not be overlooked. Before a company can become proficient at corporate social responsibility, they must first know its definition. Corporate social responsibility is defined as actions that can be taken by a company to ensure they are adhering to ethical and social responsibilities of the day. These corporate social actions are self-regulatory, as a company strives to adhere to guidelines while also going above and beyond being a Good Samaritan in the business world (ECA, 2015). This can place certain businesses at the forefront in customers mind because of the example they are setting in the marketplace.
INTRODUCTION Ethics is concerned with the study of morality and the application of reason to elucidate specific rules and principles that determine right and wrong for a given situation (Crane & Matten, 2010). Since law does not necessarily cover the morality of many controversial issues, moral reflection ought to be performed on any action, regardless of its lawfulness. The growing power of business in today’s society has enabled businesses to significantly impact the world. Hence, business ethics is highly relevant as it could determine whether businesses contribute or cause harm to the society at large. Using ethical theories to guide moral reflection, business ethics can help businesses avoid scandalous conduct that could harm the society.
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. A company has an economic obligation.
Rules and regulations on ethics and behavior are affected unavoidably by basic values about the goal of company in the community. However, some organization members think the only social goal of a company is to gain benefit. On the other hand, other members consider that that the goal of a company is much wider than one of gaining profit and that all those participants who are influenced by the firm's activity - shareholders, staff, consumers, suppliers, the domestic society, babies (in particular concerning environmental protection) - have a reasonable concern and commitment in the corporate activity. Many of these commitments are important to a company whether it is domestic or international in its activity. Nevertheless, international companies face specific difficulties and requirements and above those operating only in local market.
There are firms that hire consultants and ethic experts that will teach corporate ethics, so that they can ensure that employees will behave in an ethical manner. We will see that what one culture may consider moral may not be accepted by another country as being moral (Satterlee, 2009). Between cultures, ethical differences can be complex and vast. The author Satterlee gives us the following example in “Cross Border Commerce”; he states that ethical differences can be seen in the... ... middle of paper ... ... expand globally and ethical conduct of the professionals and employees is important because the cultural diversity that is associated with their expansion(s) can undermine shared cultural and ethical values. Understanding of other cultures and recognizing the differences help, however, it may not be sufficient in providing sustainable guidelines of proper ethical behavior.
Corporate Social Responsibility (CSR), also known as Corporate Responsibility, and Corporate Citizenship Because society is fundamentally based upon performance and profit, it is necessary to impart a sense of corporate social responsibility with regard to modern commerce. The ethical approaches of purpose, principle and consequence are integral components of business social performance; itemizing these contributions involves incorporating the interests of ethics and morality within the corporate structure. These are essential concepts that are often absent from a managerial standpoint. Corporate social responsibility should exist within every company's infrastructure; however, social integrity is not something that is often at the forefront of modern day business dealings. Ethics, business and society must work in tandem or there is no purpose for any of its existence.
As the standard of living advanced so did the ways of doing business – business ethics supervened. Government introduced legislations and acts in order to shape up the business practices so that businesses and society could coexist peacefully; this has helped, however issues such as corruption, bribery and insider trading still occur thus understanding the importance of business ethic is very important. Business ethics Business ethics is a branch of ethics that guide an organisation to practice good morals and principles in its operations, business ethics examine questions of moral right and wrong when making decisions in and organisation bearing in mind that whatever one decides on behalf of an organisation will not... ... middle of paper ... ... everybody. Everybody can participate in a decision. We work together, and that's very important in leadership” – says Ted.
Organizational Ethics Issue Resolution Organizational Ethic Issue Resolution An organization that lacks a true culture of ethical compliance can create problems with integrity issues with stakeholders and customers. When a major company such as Enron, was structured their approach to ethics on the surface appeared to oppose progressive innovation. The policies and ethics programs were set up to protect the company and its shareholders. According to author Berenbeim, The Enron company had a detailed code of ethics it was not enough the organization needed to incorporate ethics and integrity throughout their corporate culture. Enron had to focus on business ethics issues raised by the conduct of the company’s directors, officers, accounts and lawyers (Berenbeim, 2002).