Major organizations possess huge amount of power, and sometimes it becomes their responsibility to act within the legal provision of business environment. Therefore, business ethics involves the study of business policies and practices concerning controversial issues in business such as corporate governance, bribery, discrimination, fiduciary responsibility, and corporate social responsibility.[1] Ethical consideration requires that firms consider the implications of their actions, thus, whatever they do must be within the ethical provision of business transactions. Primarily, the decisions made by firms should be legal, should not violate the professional and the standards of the company, the effects it will have on the people, and whether it will be considered fair based on the people it will affect. Business ethics are guided by the law. However, in some instances, the ethics may provide framework that the businesses follow to ensure public acceptance. Business ethics play a significant role in the daily business practices in various organizations. In this case, I will use my company in the explanation of the role and the application of business ethics within my job role. Currently, I work as a team leader in a service centre for the department of work and pension
Business ethics provide a cord of conduct through which all businessmen are supposed to adhere to enhance the welfare of the society. It tells what to do and what not to do in controversial business situations. Besides, it is based on social and moral value; it encompasses social principles needed in conducting business such as self-control, consumer protection, welfare, and service to the society. Various social groups are protected by ethical practices provided encouraged by business ethics, the groups include, employees, consumers, and small businesses among others. Nonetheless, it provides a social framework for doing business. It provides social, cultural, economic, legal and other aspects of business. In fact, it is a relative term that changes from one business to another and one country to the next. For instance, something considered as a good practice in one country can be considered unethical practice in another.[2] In my place of work, it would be unethical practice to begin telling my friends about the confidential information about my organization as well information of other employees due to difference that exists between me and the management of the organization. Even though I may not be breaking any law, but I shall have acted in a manner that is not in line with the ethical standard of practice in my organization. The organization has trusted me with their information, and by revealing their private information I violate the company privacy policy.
Primarily, business ethics are very important to everyone involved in any business practice. For instance, it ensures long-term growth; sustainability is achieved through long-term vision considering all stakeholders. Besides, it ensures costs and risk reduction for business organizations. For instance, companies that observe the business ethics spends less on dealing with issues that arise from internal and external behavioural risk. Members of the public have high expectation of the business organizations concerning ethical considerations.[3] Therefore, practising ethical behaviour contributes to the welfare of the members of the public. Observing ethical principles is a way of protecting business organizations from unethical employees. One of the natures of business ethics is that it has aspects of law and regulations. Examples of laws that cover the ethical practice in business include
• The finance act 2014 – Makes tax proposals from the budget into law.
• Counter-terrorism Act 2008 – increased police powers for countering terrorism.
• The Health and Safety at work act 1974 – The primary piece of legislation covering occupational health and safety in Britain.
• The Equality Act 2010 – Legally protects people from discrimination in the workplace and wider society
• The UK bribery act 2010 – established company liability for corrupt acts committed by persons on behalf of the company.
• The Pensions Act 2014.
However, as stated earlier, there are some issues that violate the regulations but are not affected by the ethical principles. For instance, as a team leader, I understand the ability of my team members, and I may delegate the responsibilities of the team based on the known attributes of the members of the team. However, in the eyes of other people, this may appear as a violation of equity act, delegating the duty to a member of the team based on their known attributes may not be considered a fair practice.
Business ethics can be explained by five major theories, and they include human rights utilitarianism, egoism, Kantian ethics, social and contract. Theory of utilitarianism was advanced by Jeremy Bantham (1748-1832) and John Stuart Mill (1806-1873). It asserts that the end justifies the means; it describes the wellbeing or pleasure derived from individual’s action. Thus, it is possible to determine if an action is ethical considering the results that it is likely to produce. Actions that bring happiness are considered morally right while those which bring sadness are morally wrong. The theory promotes pleasure and provides clear and easy understanding guideline. However, it can have negative implications, and it is subjective, hence can be misinterpreted.
On the other hands, human rights theory, which was presented by john lock, suggest that human beings have natural rights that must be protected. The rights that were initially identified in theory include rights to life, freedom and property. This is significant in conducting business since there is somebody entrusted with ensuring that the rights are protected. In the organization where I work, the rules and regulations governing the conduct of employees reflect aspects of human rights. All employees are subjected to the same treatment in all brunches of the organization countrywide.[4] Egoism theory, which was put forward by Adam Smith, indicates that an action is right depending on the determination of the person undertaking it. The theory encourages the pursuit of individual interest since it provides morally desired outcomes for the society. Primarily, the theory asserts that people should pursue what is in their self-interests. The theory assists in identifying the identity of an individual in the community, and also promotes sustainable households. However, it can destroy people relationships, and it only works when everyone practices the philosophy. In my organization of work, egoism can be very important to people who do not go out of their way to achieve. The ability to pursue courses for self-interest assists in the identification of a personality, which can be useful in achieving the objectives of the department.
Immanuel Kant (1724-1804), a German philosopher came up with the Kantian theory of ethics, which asserts that the decision of being right or wrong does not depend on the situation but categorical imperative. He believed that the morality of an individual is continuously obtained throughout his or her life. When an individual upholds an idea, then he or she has to stick to the same. For instance, if killing is wrong, then it should be considered so even in a war situation or an event that involves saving of other lives. For instance, a terrorist should not be killed for holding a million people hostage. The theory is important since it promotes consistency and also tests the morality of people. However, it is a restrictive theory which cannot be easily related to the current times. The aspects of the theory are much evident in my place of work. Most people in my department are not consistent with e decision that they make or what they say. For instance, people who fail to meet the deadline should be served with warning letters; this is not the case in my organization.
Social contract theory also has great relation to ethics; the theory was advanced by Thomas Hobbes (1588-1679). It asserts that there should be regulation set by few people in the society, used in bringing order to the social aspect of the society. The rules should be fare and unbiased. The theory is important since it is based on individual rights, and advances actions without self-centeredness. However, in some instances, the rights provided in the society contradict one another.[5]
In my place of work, the disciplinary rules were laid by the management and communicated to the rest of the employed, who found opportunity to give their views on the same. The employees of the organization then agreed on the rules and accepted them as the guiding principles in case of disciplinary action.
The government has significant influence on the ethical business practices. The government has a responsibility to protect the people and the business interest groups from unethical business practices. For instance, the government has ensured the existence of legislations that prevent unethical practices in business. Some of the known legislations include the Anti-Bribery act 201, Health and Safety at Work 1974, sales of goods act 1930 among others. Nonetheless, the government conducts supervisory roles by monitoring the dealings of business organizations to ensure that they are in line with the set regulations. The governments also offer incentives to business firms that practice ethical conducts and punish those which do not. The influence of the government is much evidenced in my department of civil service, health and safety at work 1974 has ensured that the employees of the department and the organization are protected from harmful activities that they may encounter in the line of duty.[6]
Besides, the organization is subjected to regular government supervision through the health and safety representatives, with the duty to report health and safety standards in the organization to the government. ASDA WalMart is one of the companies facing legal battling for gender discrimination in terms of pay. It was discovered that the company pays men more money than they pay their female workers.
Business ethics is practised both nationally and internationally. Therefore, it is important to also consider the contemporary business issue in both national and international platform. National ethical issues cover areas such as discrimination, poor management of company data as well as non-adherence to the policies of your organization and the professional standards accepted in the area of work. Good working condition and fair remuneration practices are also serious national ethical concerns in business. On the other hand, business ethics are also observed in the international arena to protect those doing business beyond the borders of their countries.
For instance, unethical practices such as child labour, conducting business that affects the climate, corruption, low remuneration, bribery to receive favour in business are unethical international ethical issues worth addressing. For instance, in my department of work and pension, a national ethical issue that is likely to rise is forcing people to work for long hours and failing to pay them appropriately. Nonetheless, bribery to receive favours from the organization can also be considered as a national ethical business issue. The above-described issue will be violating anti-bribery act of 2010 as well as Workers Health and Safety Act 1974. Nonetheless, an international issue of concern would arise when the officers in the department for work and pension, were bribing their way to conduct business in the international forum. Globalization is also a major contributor to the international business ethical practices. It has reduced the importance of boundaries, and many foreign businesses are now hosted in different countries. However, major ethical issues such as cultural conflicts normally arise. Some companies advance practices that may not be considered ethical in some countries. For instance, international companies from the UK operating in Saudi Arabia may experience conflict in terms of dressing. British people may dress in a manner not accepted in the country.
Ethical practices are important to business and also ensure safety business practices that protect the welfare of the society. For instance, it is likely to attract customers towards a given firm that practices ethical business practices. It makes employees desire to stay with an organization, hence reduces labour turnover and increases practices of the firm. Most qualifies employees are attracted to work for organizations that observe ethical practices in business, this is likely to reduce the recruitment cost of the firm and enables the company to get the most talented and experienced employees to propel its growth. Nonetheless, ethical practices attract ethical investor companies, keeping the company share prices high; this protects the organization from takeover. The investors are willing to inject capital into a business that has promised to adhere to ethical standards of conducting business, both national and international. The assurance will give them confidence that their money is utilized in a way that is consistent with their faith and belief. Primarily, companies operating within ethical standards are less likely to have problems with the government regulatory authorities; they may not violate the laws for standard practice, and may not face penalties for misbehaviour. With the monitoring department in my place of work, the organization is likely to experience lawsuit and penalties when employees complain of unfair treatment and extension of normal working hours.
Task 2
Corporate business responsibility is a standard business practice that is required of all business entities globally. Therefore, in this report, I will discuss its impact in the decision-making process, and the relationship with the stallholders. Primarily, CSR is the way companies account for their activities in reference to the environment and social aspects of the society. Businesses exist in the society.[7]
The business needs the society just as the society also needs the business. Thus, the relationship between the business and the society should bring positive results both to the business and the society. For instance, the business offers employment to the society and also pays taxes to the government, which is used in the development of the sectors that benefit the public. Conversely, the society offers market and infrastructure such as railroads, needed to advance the activities of the business organizations.
Corporate social responsibility is enhanced through some principles. For instance, business organizations must ensure that no harm comes to the people they serve or from the goods that they produce. That is, business should create value; when they knowingly inflict harm to the society, they undercut the utility of the value that business is meant to create. Business must practice corporate accountability to the stakeholders. The major stakeholders in a business include the community, the government, and the customers. It is the responsibility of the business concerning the consequences of their decisions. For instance, Volkswagen installed software in millions of their cars and tricked the environmental agency that their cars were environmental friendly more than they are.[8]
The investors of the company deserted the organization for the wrong decision, and they had to take the full responsibility for their actions. In fact, it is reported that the company lost approximately $20 billion in terms of market capitalization as the investors committed on compensating customers for selling cars that did not meet the standards of environmental regulation agency. Besides, the company had to contend with the potential regulation fines and the reputational hit that severely affected their global market. In my place of work, corporate social responsibility may occur though in small measure. For instance, when the employees are not paid extra for achieving given targets established by the organization, the issue is assessed, and the payment is made appropriately since it is one of the policies of the organization to award employees who meet their objectives within a given period.[9]
Social responsibility is also an integral principle of corporate responsibility. Globalization has made companies to expand their operations in various countries; the companies have to abide by the laws and the cultural practices of the communities in the country of their operations. Besides, it is within their corporate responsibility to improve the social status of the people in the community by engaging in activities such as construction of schools and health centres. On the other, they have to protect the environment as they conduct business in the community. For instance, they have to adopt an effective waste management strategy to prevent waste from contaminating the environment
Corporate social responsibility impacts business in many positive ways. For instance, it enhances atrium, the act of being a good citizen. Besides, it is important for recruiting and maintains employees. Practising corporate social responsibility improve the public image of business organizations, consumers are comfortable shopping at institutions that help to improve the lives of people in the community. It increases media coverage, which also helps sin advertising the business enterprise. Nonetheless, being closer to media outlets increase the possibility of covering stories that is given to them by the business organization. Corporate social responsibility increases the possibility of corporate partnership. The partnership is important concerning the activities that a business entity could do in the community, especially the organizations that may not have sufficient funds for conducting marketing activities. Moreover, it increases positive workplace environment. Organizations that engage in philanthropic behaviour are likely to create a positive workplace environment for their employees. However, other organizations argue that taking social responsibility has serious financial impacts to business entities and, therefore, not economically driven. Businesses that take social responsibility may not compete favourably with those who do not share the same view. However, the advantages of corporate social responsibility far much outweighs the disadvantage views expressed by organization not feeling obliged to protect the society.
Stakeholders’ engagement in social responsibility is essential in creating strategic value to the entity. The major stakeholders include the customers, employees, partners, media, government community and shareholders. Stakeholders are important in the decision-making process of the company. The engagement of stakeholders in enhancing social responsibility is a positive sign to the company. In fact, it shows the willingness to be involved in discussing important issues of the company with those who are part of the organisation.[10] The organisation must, therefore, learn to change how it operates based on the decision of the stakeholders. For instance, the management of the organisation consulted the stakeholders on the percentage of the local people, who were to be employed by the organisation. The outcome of the meeting with the stakeholders was adopted as a policy of the organisation. This is an indication that stakeholders’ engagement enables an organisation to align itself to the needs of the society
Task 3
Diversity is the state of exhibiting different characteristics and features; For instance, people can be different in terms of race, religion sex and age.[11] Diversity can form basis for discrimination in business, especially during the recruitment. In this case it becomes almost impossible to achieve equality and equality opportunity as is expected in the ethical standards of practice. However, there are legal policies that ensure no discrimination is witnessed in the business environment by adopting positive approach to diversity. For instance, the equity act 2010 has been put in place to protect people from victimization, harassment and discrimination as well as other diversity emanating from marriage, gender, civil partnership, race, religion and belief.
The legislation covers direct and indirect discrimination and discrimination by perception. Primarily, the burden of proof is with the employer to explain that discrimination did not occur in the organization. Those who feel discriminated can make a claim with the employment tribunal for their cases to be hard. The Equal Pay Act of 1970 prevents the employers from paying people doing the same job different salaries. People are subjected to equal pay regardless of the gender, sex, religion and other disabilities. The Race Relation Act Of 1965 was implemented to prevent racial discrimination in the UK; it ensured that people from other races were subjected to equal opportunities.
Diversity has both negative and positive effects on workplace; it makes it possible for the company to employee people from different parts of the world. Diversity makes it possible for new forms of communication to sprout in an organization. However, this has disadvantages as it can lead to frustrations due to missed communication. Nonetheless, it offers multicultural landscape that offers good problem-solving abilities. Employees with experience in dealing with people from diverse culture are likely to have good problem-solving skills. Diversity helps in building a stronger brand, making the organization a desirable employer; a diversified workforce makes the organization to have good reputation with the clients since it will be seen as having a fair employment practice. Additionally, it encourages personal growth and development, experts with international backgrounds can help employees and perspective as they connect professionally with different people. Diverse staff develops the ability to work in diverse environments, with different personality, style and culture.
However, diversity also has negative effects on the organization. For instance, cases of discrimination have been reported in most diversified organization. Managers are more likely to discriminate against subordinate, and employees may also discriminate against themselves. Aspects of discrimination include race, religion, and qualification among others. The implementation of diversity workplace plan has both direct and indirect cost.[12] Thus it increases the cost of operation of the organisation. In some cases, the organisations are forced to use consultants and outside professionals to enhance the existence of diverse people in the organisation.
Bibliography
Grosser, Kate, Jeremy Moon, and Julie A. Nelson. "Guest Editors’ Introduction: Gender, Business Ethics, and Corporate Social Responsibility: Assessing and Refocusing a Conversation." Business Ethics Quarterly 27, no. 4 (October 2017): 541-567
Hsieh, Nien-hê. "The Responsibilities and Role of Business in Relation to Society: Back to Basics?." Business Ethics Quarterly 27, no. 2 (April 2017): 293-314
Thomas, Rosamund M. 2015. Business Ethics and Corporate Social Responsibility : Cambridge-Gourlay-Trinity Lectures. Edmunds, England: Ethics International, 2015
Zarezankova-Potevska, Marija, and Vesna Potevska-Kolevska. "Enhancing Business Ethics through Social Responsibility." Economic Development / Ekonomiski Razvoj 19, no. 1/2 (July 2017): 265-278
[1] Grosser, Kate, Jeremy Moon, and Julie A. Nelson. "Guest Editors’ Introduction: Gender, Business Ethics, and Corporate Social Responsibility: Assessing and Refocusing a Conversation." Business Ethics Quarterly 27, no. 4 (October 2017): 541-567
Ibid 547
[2] Hsieh, Nien-hê. "The Responsibilities and Role of Business in Relation to Society: Back to Basics?." Business Ethics Quarterly 27, no. 2 (April 2017): 293-314
[3]
Ibid 301
[4] Hsieh, Nien-hê. "The Responsibilities and Role of Business in Relation to Society: Back to Basics?." Business Ethics Quarterly 27, no. 2 (April 2017): 293-314
[5] Thomas, Rosamund M. 2015. Business Ethics and Corporate Social Responsibility : Cambridge-Gourlay-Trinity Lectures. Edmunds, England: Ethics International, 2015
[6] Thomas, Rosamund M. 2015. Business Ethics and Corporate Social Responsibility : Cambridge-Gourlay-Trinity Lectures. Edmunds, England: Ethics International, 2015
[7] Zarezankova-Potevska, Marija, and Vesna Potevska-Kolevska. "Enhancing Business Ethics through Social Responsibility." Economic Development / Ekonomiski Razvoj 19, no. 1/2 (July 2017): 265-278
[8] Zarezankova-Potevska, Marija, and Vesna Potevska-Kolevska. "Enhancing Business Ethics through Social Responsibility." Economic Development / Ekonomiski Razvoj 19, no. 1/2 (July 2017): 265-278
[9]
Ibid 268
[10] Grosser, Kate, Jeremy Moon, and Julie A. Nelson. "Guest Editors’ Introduction: Gender, Business Ethics, and Corporate Social Responsibility: Assessing and Refocusing a Conversation." Business Ethics Quarterly 27, no. 4 (October 2017): 541-567
[11]
Ibid560
[12] Grosser, Kate, Jeremy Moon, and Julie A. Nelson. "Guest Editors’ Introduction: Gender, Business Ethics, and Corporate Social Responsibility: Assessing and Refocusing a Conversation." Business Ethics Quarterly 27, no. 4 (October 2017): 541-567
