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However, organizations are lagging behind these changes or simply ignoring business ethics all together. Recent companies have failed to practice business ethics and social responsibility as their primary aim remains on making profits. The issue is that in fact, management have been blindsided by their need to make monies under whatever circumstances necessary which usually constitutes for foregoing ethical practices. The most credible of organizations and employees have indeed professional integrity and have been reliant on a code of ethics for the organizations principles and tankards Of practice.
The plight Of society continues to surround business ethics and corporate social responsibility which is yet to surface most organizations. The subject of Business Ethics and Social Responsibility introduces current issues experienced in organizations and provides guided analysis to enable a better understanding and appreciation of these issues. Illustrations Of consequent economic costs having failed to practice ethical behaviors and social responsibility by the organization and individuals within have been provided also.
Presented in this paper, with the aid of an example organization- Amoral Distribution Limited a family owned and operated Hardware and Auto supplies wholesale distribution company, are a wide array of ethical issues recognized within its business activities with proposed solutions in order to address the aforementioned issues. TABLE OF CONTENTS 1 . Introduction…… 3 2. Defining Business Ethics and Social Responsibility…. …….. 4 3. A lack of business ethics and social responsibility at Amoral Distribution Limited …… 4. Addressing the issues Of Amoral Distribution Limited……… . .. 7 5. Conclusion …….. 10 6. References …. 12 7. Appendix………. 13 1. Illumination The relevance and necessity to which business ethics and social responsibility hold within any organization is inordinate compared to the practices of most organizations presently. Therefore, the wellbeing of society and today’s business world is at stake since it lies in the hands of business leaders who fail to exercise ethical procedures.
The confidence in business operations once held by customers have been drastically shaken due to the collapses and corporate scandals surrounding mom of the most pioneering and respected companies such as Arthur Andersen, World, Tycoon and the most famous Enron (Studded. Com, 2012). Hence the urgency and necessity for the incorporation of ethics and social responsibility in business decision-making and strategic planning is heightened together with the compulsory provision Of pertinent education to forthcoming business leaders in order to operate a sustainable and protected organization.
I believe that business ethics goes beyond the laws and legality, instead it teaches positive attributes such as respect, honesty, politeness which should be adopted into business practices (Inc. Com, 1996). Furthermore, Chillier suggests in his book Business Ethics Now that there is a choice guidance for persons by ways of either moral standards or the moral compass of others in determining suitable behavior which has influences stemming from cultural backgrounds or traditions to the norms of the environment in which we are positioned (2012).
On the other hand, the social responsibility of a company deals with the management of its business processes so that a holistic positive impact on stakeholders and society is assigned (Malingerer. Net, 2004). The social responsibility of a company is often associated with the triple bottom line profit, people, and planet which can be theorized as the stewardship of the economy, society and the environment are at the organizations concentration (Zipping. Net, 1 953 Lexington, 1998).
This paper aims to satisfy the requirements of firstly defining business ethic and social responsibility. Subsequently, unethical issues encountered in Amoral Distributions Ltd will be identified and addressed. 2. Defining Business Ethics and Social Responsibility Business ethics refers to he underlying framework for carrying on business by adhering to generally accepted standards of right behavior (higher. McGraw-hill. Com n. D. ). Let involves discernment of right, good and propriety from wrong, evil and propriety thereafter taking actions accordingly to the choice made.
The World Business Council for Sustainable Development in its publication Making Good Business Signified Social Responsibility as the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well s Of the local community and society at large (Holmes and Watts 2000) it focuses on the quality of their management regarding both processes and persons alongside the nature and extent of impacts on society. Although the terms social responsibility and ethics are used interchangeably, meanings differ.
Business ethics relates to an individuals or a work groups decisions that society evaluates as right or wrong, whereas social responsibility is a broader concept that concerns the impact of the entire businesses activities on society (higher. McGraw-hill. Com n. . ). These definitions were chosen mainly because, they added to the scope of business ethical behavior and societal responsibility, it brings clarity to the concept of values and morals and overall contribution to society as individuals and businesses. Ethical standards helps to the shape both the internal and external construct of any organization .
Companies that rely on ethical standards which includes values and morals rely less on legislation from central or state government . The belief that business ethics is an essential element in any organization influences the company’s impact towards its social responsibility. Organizations involved in the wholesale supply of goods and raw materials, such as Amoral Distribution Limited should strive to maintain or incorporate the necessary values and morals to aid in its decision making process . According to Hartman (2005,up), who made the suggestion that ethics involves judgments as to good and bad, right and wrong, and what ought to be.
This therefore will have a major impact in the dynamics of the organization. 3. A lack of business ethics and social responsibility at Amoral Distribution Limited With intentions of implementing ethical practices into the business procedures, one must firstly understand business ethics which requires the identification of ethical issues within the organization. Ethical issues are identifiable problems, situations, or opportunities that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical (higher. Craw-hill. Com n. D. ). In most cases this usually implicates much deliberation between choosing monetary gain over conducting oneself fittingly. Considering the business activities of Amoral Distribution Limited we can diagnose ethical disputes that they have encountered. As previously mentioned this organization is typically family- managed and operated with its traditional methods Of approach immutable. While remaining old-fashioned might work in favor Of some companies, it has had the reverse effect on Amoral Distribution Limited.
Quality assurance is a major facet in the operations of Amoral Distribution as the expectations of customers of this supply company is quite high together with susceptibilities to societal contribution and development. The issue arises therefore, when a lack of standard up brings in relations of values and morals are recognized. Values tend to be seen as end goals sought by individual and vary from person to person based on their desires for profit, law, virtue or charity (See Appendix). Morals tend to be seen as rules or duties that govern behavior in our personal interactions they are our personal guiding principles (Optimal. Rug 1997). Generally, ethics can be seen to be the same for people within the same culture (Hartman, 2005, up). Companies like Amoral Distribution Limited, led by its vision statement to ensure profit and continuous growth has had negative impact Of ethical behavior. This therefore has resulted in a loss of customer supplier relationship and indirectly affected its profit margin The consequences of unethical behavior and unethical business institutions are too serious to be ignored (Discarding, p. 3). As suggested by Des Sardines, business ethics are simply too serious for Amoral Distribution to ignore.
Corporate Governance or the lack thereof has certainly contributed negatively to the current situation of Amoral Distribution Limited. This is demonstrated as this profit driven organization fails to emulate the necessary attributes to generate good governance such as responsiveness values of fairness, accountability, responsibility and transparency emphasis on non-monetary aspects Of operations etc. (Kneecap. Org 2013). This is also extended to unethical leadership which constitutes employee insolence as it has been suggested that employees emulate the behaviors of those above them based on their perception of ethics observed (Davis 2004).
In addition, the company has become loyal to its Emily-run business style and as a result the recruitment process that exists within this corn panky has failed them seeing as the workforce comprises of unskilled and unqualified family members who have prevailed over a more appropriate workforce. Furthermore, due to the tolerance of staffing the company with unsuitable relatives, management deems it fitting or even a fair trade to force lower wages upon them as it releases them from some their social responsibilities.
A recent study has found this situation most prevalent in many organizations in order to lower expenditure and increase revenue I. . Fabricating their profit margin (Nobody and Ghana 2013). Subsequently, as a result of the of poor business ethics, Amoral Distribution Limited has done little in the aid towards its social responsibility. While the organization has participated in community based fundraising, there has been minimized efforts towards increasing its direct involvement in larger projects, regardless of legislation from the central government which in turn acts as a tax reduction system.
As suggested from an article titled Good Corporate Governance the risk factor Of poor unethical behavior is now becoming official to avoid and must be handle in the motion of risk management (Carpenter, 2004). One can therefore suggest that its ethical behavior which includes the values and morals of the company has had a direct impact on the approach towards its social responsibility. Additionally to Morals failed recruitment system, and regardless of the fact that this company is family based, the issue of sexual harassment is still ever-present which has resulted in many legal actions taken against them.
Hence, this has become an overwhelming task form management both in dealing with employees and gal challenges. It has had a negative impact on the financial and overall operations of the company. Overall, it has contributed negativity towards the company’s reputation and has denominated staff, resulting in the downfall of the general productivity of Amoral Distribution Limited. These key issues mentioned have had a major impact towards the organization in recent years resulting in poor management, marketing and public relations practices.
Unethical behaviors create risks for companies – legal risks, financial risks and marketing risks. Management of these risks are very crucial for any organization. There needs to be a constant vigilance regarding company ethics since ethical behavior and an ethical reputation can provide a competitive advantage, or disadvantage, in the marketplace and with customers, suppliers, and employees (Discarding, p. 4). 4.
Addressing the issues of Amoral Distribution Limited As a result of the major business ethics and cooperate responsibility problems facing Amoral Distribution Limited, it is necessary for the organization to implement a number Of measures that should aid its challenges. Firstly, the establishment Of a Code Of Ethics is vital, n setting the legal and formal instructions for all members of the company. Furthermore, having an ethics policy will act favorably on the organization demonstrating an exemplary framework of conduct for which managers and employees should shadow.
Likewise it promotes virtuous governance practice which well-run operations should trademark (Vibe. Org. UK 2013). It can also reassure investors and other stakeholders about the company’s approach to its non-financial risks. Other benefits are also extended such as the enrichment and security of corporate reputation lending itself to the management Of risks and the motivation Of staff. The Code Of Ethics directly affects Amoral Distribution Ltd as it would now give a clear representation of the businesses identity and interpretation of business ethics and corporate responsibility.
It should state policies for behavior in specific situations, and it can document punishments for violations of those policies. Developing a code of ethics would transform the company’s image positively. In addition, to a Code of Ethics effective training of all members of the organization including management should be done. Business Ethics Its All Inside cuisses the significance of not only providing instructions and such since that doesn’t repair the problem, rather stresses on the assurance Of proper and continuous implantation Of these practices (Davis 2004).
Even though Amoral Distribution Limited is family operated, this in no way should hinder the training of employees towards their personal development. Each department in the organization should mandate workshops and special training secessions so that employees can be queue piped with the necessary knowledge of business ethics and social responsibility so that they can in turn an engage in better practices. These workshops and training centers should be done with the sole intention of respecting the contribution of each employee towards the development of the organization.
Thereafter monitoring Of the behavior and disciplining unethical behavior should be a major priority. It would now enforce Morals Code of Ethics and Training activities. It is suggested that management hire an Ethics Officer in order to ensure that the newfound knowledge is being effective applied. Recruitment processes should be evaluated and altered so that the workforce Of Amoral Distribution is now better equipped. Staff should not be accepted based on family or social networking .
Where employees possess high standards, morals and values increases the company’s position as being a highly ethical business. As suggested by one article stated In light of the numerous examples of illegal and unethical behavior that have been highlighted in the media recently, managers are increasingly ensuring the they hire individuals at all organizational levels, who are trustworthy and share the organizations ethical values (Can you interview for integrity , William C.
Bahamas). Trust and integrity are both very crucial to any organizations as trust should hold precedent in the cultures Of organization and integrity within each individual (Davis 2004). In turn, this can solve the issue Of poor social responsibility in a number of ways. To illustrate, an organization in which the stakeholders, employees and managers have high values, morals and standards see the need and would therefore place a heavy emphasis on giving back to society.
This would be a key result of the previous training spoken about, thus requiring greater efforts from staff and management. Celebrating or even recompensing the regulatory ethical practices of staff will also stimulate the workforce to demonstrate ethical behavior. It indeed pays to be ethical and benefits the entirety of any organization which is why there are great urges to administer whatever necessary to attain and uphold and ethical organization. 5.
Conclusion Business Ethics Its All Inside states that associates watch and listen, the media questions, the investment community want assurance, our vendors depend on us to stand behind our words, and our customers emend quality and value this is in fact true which is why one cannot stress the utmost importance for administering business ethics and social responsibility in all business practices the trust and confidence of society and all stakeholders are gained overtime but they are lost almost instantaneously (Davis 2004).