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Business ethics concerns the ethical principles which a company should actually need to follow for them to behavior in an ethical manner. Business ethics are the main principles that govern the practices that the business take part in so that the business can keep on doing what is right in the market and be able to distinguish between right and wrong whenever they encounter certain situations which will require them to make ethical decisions within the business. 3.
In order for a business to maintain good returns they should have business ethics which are to be followed within the company in order to get the business in a good condition. It is important for a company to practice good business ethics as it will help the business when it comes to having good productivity within the business and also it gives the business a good public image with regards to the consumer when they have to come to the business they ill be able to be convinced that the business at which they are purchasing goods or services from is actually doing what is right internally and externally.
The maintenance of the business in a way boils back to the part of business ethics if the company practices good business ethics they tend to have good business practices and they do everything according to the law no matter what it entails whether it will be good for the business or not but they maintain it. Business ethics offer companies a competitive advantage (MacDonald: 2009). . Business ethics reduce a company’s freedom to maximize its profit (MacDonald: 2009). When a business engages in unethical business practices they tend to be faced with serious consequences which can be in many ways depending on the actions that were taken which can lead to serious legal actions from authorities which can lead to the shutting down of the business.
The company can also be faced with bankruptcy which can be as a result of unethical business practices by employees because if the business practices things that are wrong in the benefit of the company whether it affects others or not they do it and this starts with management and the employees also take it that it is he right thing and tend to practice whatever management does.
Such businesses are seen to be self-centered as they are selfish towards other businesses within the market making it difficult for other businesses to function properly in the market with competition being tight and this may lead to serious actions being taken by government officials who are put in charge to deal with such issues. Unethical decisions push the entity towards the wrong direction and it leads to major losses to the owners of the business as their main aim will be making profits.
When genuineness make unethical decisions they tend to focus on maximizing profits rather than on doing what is right which affect the business and its images as they disobey certain principles of ethical business practice. 5. This assignment will be analyzing the role of business ethics within a business and how it impacts on the society and also the business itself and also the myths that come along with ethics and the RIMS process and how it is applied within the business. 6. Business Ethics Matter: a) Own view on Business Ethics matter: 7.
Ethics matter because they try to strengthen ethical leaders, so that they enhance evil society and civil society is a society that is ethical. All aspects of business come down to trust: A customer relationship is based on a simple transaction; they trust that your product will be worth the money they give you. If that trust is ever broken, because of a bad experience or a faulty product and misunderstanding, they return. And once a company product or brand earned a reputation of mistrust, it’s nearly impossible to repair. 8.
Most companies don’t look at its customers as individual human beings who make a conscious decision to trust the company. They make sections on board stereotype or carefully crafted demographic groups or generalized persons. But in reality, items aren’t bought by 18-34 years old urban- dwelling women. Purchases are personal, based on discussions someone has had with friends or after taking time to really find something that is best for them. 9. Every action someone takes, whether it’s in the context of marketing, sales or setting up a play date for your kids, either supports or erodes trusting relationships.
Business ethics matter because a company that has a strong ethical foundation is going to do the right thing for its customers. Ethics sustains honesty and integrity which in turn builds trust, which in turn leads to more productive client relationships which in turn adds value to your firm. 10. Business ethics matter because there are many large companies that are not being ethical in their actions. Money laundering or not complying with specific regulatory framework is some of the bad practices that have not put money organizations in the spotlight, demanding their reputation and public trust. 1. 1. Businesses should not be self-centered: Show respect: 12. Businesses should learn how to show appropriate respect in cross-cultural environments, but also have respectful attitude and how to listen with respect. Trust in cross-cultural communication challenge: 13. It is difficult for a business to admit when it is being too self-centered. They should try to avoid being perceived as self-centered in cross-cultural encounters This lack of respect makes it difficult to build trust for successful international business.
Try to see things from the other persons perspective: 14. An easy way to avoid being perceived of self-centered is to try to see things from the other person’s perspective. A little curiosity can go a long way. Become curious n: 1 Why they are as they are. 2 Why they expect different things. 3 What they expect from you. 4 Why they do different things. 5 How others perceive you. 6 What others find different in you. 7 How others react to the differences they see in you. 15. The cross-cultural mindset: 16.
When businesses systematically try to see things from the other persons perspective thus is reflected throughout their communication. Continually seeking to understand the other persons or businesses point of view is part of a strong cross- cultural mindset. This is something companies should try to do right for their first international encounters, even at the very beginning where they do not realize how important it is. And by doing this, Instead of appearing self-centered, they will appear to be moving the communication towards a real connection across-culture. 7. 2. Reputation of the business: 18. The collective assessments of corporations past actions and the ability of the company to deliver improving business results to multiple stakeholders over time. E. G. Many businesses uses corporate reputation using financial soundness, quality of management, products and services and market competitiveness as the criteria for ranking. 19. 20. The reputation of a business is essential to its survival. The trust and confidence of the consumer can have a direct and profound effect on a company’s bottom line.
Recently, the importance of reputation has become increasingly apparent, as companies have had to cultivate their responses to crises in order to maintain the reputation and standing of their companies to the world. 21 . 22. In the past, businesses relied on word of mouth by their stakeholders in order to establish, build and maintain their reputations. In this modern age of social networking, websites, and other methods of instant communication, businesses must e conscientious of their reputations on a constant basis and be responsive to any crisis that may have an impact on their reputation. 23.
Having a good reputation can benefit a business in a multitude of ways including: consumer preference; support for an organization in times of crisis or controversy; and the future value of an organization in the marketplace. 24. 25. 26. If an organization has a good reputation in the marketplace, consumers may have a preference for that company even if there are similar businesses offering the same products or services for different prices. The reputation of an organization can o have premium pricing, and can become the ultimate factor in whether a customer decides to patronize one business over another. 27. 8. Sustainability and growth to a business: 29. Sustainability is firmly on the agenda of leading companies and there is growing recognition that it is a primary driver for strategic product and business model innovation. Businesses that view such change as an opportunity and develop innovative products and business models to thrive in a more sustainable way are likeliest to reap first-ever advantage, are more relevant to consumers, capture market hare and continue to operate effectively in a changing world. 30. Many leading companies are not waiting for regulators and consumers to reshape their businesses.
They embarked on the process of engaging with and encouraging consumers on the Journey to a more sustainable model of consumption by working to implement closed loop value chains. 31 . There is a misconception that longer-term sustainability only adds near-term cost. While this may be true for less-well conceived strategy, a core element of any successful sustainability strategy should be a focus on value creation – increasing brand value, as Judged by known adjudicators, such as inter-brands “Best Global Brands” ranking-and revenue growth along with reduced risk and operating costs.
Such strategies are characterized by log-term business partnerships, a strengthened proposition for the consumer. Improved operational efficiency and increased margins and growth – all key enablers and drivers of value. 32. 3. Can the most popular myths divide ethics from business be sustained? Myth 1: Dog eat dog 33. Definition 34. This myth states the ground rule of business environment as “dog eat dog”. It paints picture of the business environment as being a loneliness surrounded environment.
This myth implies that each individual is at work for himself or herself on, and if one does not take advantage of others, therefore others will take advantage of him or her. It also implies that considering the interests of others before your own interest is the biggest mistake one can ever make. The hidden meaning behind the myth is that, once you become ethical in the business, you become vulnerable to the other people around you as it becomes a detriment of your own interest. Rows & van Oeuvre (2010:99) 35.
Alcoa-hole is a business that respects the ethics and all employees enjoy working together as a team. This myth is not applicable because the employees of Alcoa-Hole work together in making the business progress to greater stages of development, and as it is a Joint ownership entity, the ethics needs to be upheld as to ensure that the customers of the business are pleased with the way in which the entity functions and the unity within the entity. Myth 2: Survival of the fittest 36. The myth entails that only the strongest individuals in a workplace survive as the workplace is a competitive environment.
According to Rows and van Oeuvre (2013:105), the meaning of the competitive nature of business is that one cannot afford to worry about the interest of the competitor because it decreases the chances of the individual employees’ chances of survival. It entails that the workplace is an environment where individualism is highly supported whereas one should ensure by are attached to it however, which are that firstly, competition does includes ethics, secondly, ethics are a precondition for ongoing competition and thirdly, as much as competition is important, so is co-operation.
According to Rows and van Oeuvre (2013:105), for survival, it is important for one to respect the rivals and the competitors. If one behaves in an unfairly manner and there are no rules or ethics to act against that, therefore, it is seen as being meaningless to have ethics for an environment that are not followed by anyone within the environment. As much as the myth supports the ignorance of ethics and overemphasized it, it too should give credit to the co-operation because business is associated with survival of the fittest and in order for a business to survive, it should co-operate with its rivals. 8. According to Rows and van Oeuvre (2013:106), it is important for one to have a healthy competition. The myth is applicable to Alcoa-hole because the current youth generation enjoy going to places that are sophisticated and that have alcohol and entertainment. The main aim of Alcoa-hole is to make a profit so that it can give back to the community through different recreational projects as well as employment.
For example, we sometimes find that the individual within the pub is younger than the age 18 but looks older, so in supporting the myth, the ethics are ignored because either way the entity has got no knowledge of the young man/woman’s age, which finds the entity selling alcohol for someone below the restricted age. In this case, the entity will be going against the ethics with an aim of beating the rival but with no knowledge about the age of the individuals they are selling to, but assuming the person is above the age restriction. Myth 3: Nice guys/girls comes second 39.
The myth claims that it is not possible to be both ethical and successful in business. Ethics and Business are seen as the two contrasting concepts. Either one is unethical and successful or one is ethical and unsuccessful. To summarize the above statement, unethical practice is a positive contribution to success. Rows & van Oeuvre (2010:103) 40. The element of truth is signaled in this myth. Following ethics purpose; it is to regulate the ethical behavior of the individuals and entity management. Being ethically inclined poses as a threat or as an opportunity cost to the entity.
Being ethical is a cost because ethics might lead to an unborn business to not be able to get off the ground as the documentation process takes time, whereas it opens opportunities for the unethical businesses to steal the market targeted, which therefore becomes a lost opportunity. Rows & van Oeuvre (2010:103) Myth 4: Unethical conduct is not serious 1 . The myth concedes to the fact that unethical conduct is wrong, however it does not agree that it is harmful to the society. Although unethical acts may cause few certain people to be under discomfort, it will not be harm to the majority of the society.
However, the myth also indicates that even though there may be harm, there is also a benefit involved for the majority it is not harming. According to Rows and van Oeuvre (2013:108), the myth states that the money lost through the unethical behavior such as fraud has its way to get back to the economy through different ways such as spending and investment. 42. The myth is applicable to Alcoa-Hole because it is an entity that deals with alcohol and alcohol is mostly unacceptable by the minority of the society, mostly the religious groups such as Christians.
According to Cracking individuals that drink alcohol in the communities as well as the young individuals that resorts to alcohol when they experience difficult life problems. However, alcohol being sold to those under the restriction age (18) without knowledge of the seller is then regarded as being unethical. Myth 5: When in Rome, do as the Romans do 43. The myth entails that in a business you should do the norm, you should do what others around you do. It entails that, the manner in which all the other workers behave is the way the new individual should behave.
The myth is ethical if only in the workplace the employees are working hard. However, what makes this a myth is that, certain employees act against the ethics of the entity which harms the entity and its profitability. Although there’s an ethical act that happens in a workplace, the myth entails that, if people or other employees are not doing what should be done, there is a particular threat. No business would be pleased to have employees that are under pressure or working because they are threatened and no business is pleased by making a loss.
Copying the unethical behavior from the fellow employees could result in you as an employee being caught and losing his or her employment. It is a well- known fact that the individuals are prone to a group pressure which makes it easier for the individuals to perform unethical acts, according to Rows and van Oeuvre (2013:110). 44. As Alcoa-Hole, it is felt that the mutual respect should be something that should be carried out throughout the entity. It is very important that all employees are treated in a manner which shows the acts of kindness and co- operation.
However, there are only a few people that would be working for the entity and therefore, the group pressure is unlikely to occur. Our entity supports good behavior as to ensure that the customers feel welcome at all times. Myth 6: All that matters is a bottom line 45. According to Rows & van Oeuvre (2010:107), this myth stance is that the business is all about one objective and that objective is PROFIT. As an individual in the workplace, the bottom line on your accounts is the only measure of whether in a equines you’re successful or not.
The intention of the myth is to explain that anything that has a positive impact on your bottom line, should done continuously and therefore anything that distracts from it. Ethics are not necessarily and primarily concerned about the bottom line and therefore the business should not bother with the ethics as they are not so important either. The myth questions the importance of the ethics in the business and use the question to prove them as being vague. The main question here is that, “if you have a done a wonderful work and acted upon the deadline, why should it be important for you to have ethics that you should abide to? It therefore implies that the importance of ethics in the business is to ensure that the employees reach the “long time” objective of the entity, which is to make a profit. Rows & van Oeuvre (2010:103) 46. The myth will apply in our entity, Alcoa-Hole, because alcohol is mostly considered to be a reason for most of the criminal activities that occurs in or country. We are promoting the sale of alcohol in the communities as we bring alcohol to the people, and through the sales of alcohol profit is generated ND if there is no one to buy alcohol, therefore the business dies.
However, the ethics of employment do apply in the entity for the employees, which shows that they are important. Even though the perception of the environment may be changed, alcohol that will always remain. According to the article by the National Institute of Alcohol Abuse and Alcoholism (2010), there are consequences of drinking too much and they add that Alcohol enters your bloodstream as soon as you take your first sip. Alcohol’s immediate effects can appear within about 10 minutes. As you drink, you increase our blood alcohol concentration (BACK) level, which is the amount of alcohol present in your bloodstream.
The higher your BACK goes, the more impaired you become by alcohol’s effects. These effects can include: Reduced inhibitions Slurred speech Motor impairment Confusion Memory problems Concentration problems Coma Breathing problems Death 47. 48. So with Alcoa-Hole already knowing these effects, for as long as the customer buys from our bar, they are treated with specialty if they don’t, then it is their choice, and as much as it is their choice, we are all about the profit and will not care about the rarer destruction of individuals as well as the criminal actions they decide to take after getting drunk.
All that matter is that alcohol must be sold in order for people serving it to get their salary. 1. Business ethics decisions: 49. Introduction to corporate remuneration structures and retrenchments 50. The remuneration structure is designed to ensure that there is an appropriate balance of fixed and variable rewards, which include both short-term and long-term incentives, and is weighted towards performance-related elements that take into account individual, functional and corporate performance (Thrived, 2003).
Fixed component: 51 . Base salary: 52. Base salary constitutes the major element of the remuneration package to attract, retain and incentives talent in a competitive market (Thrived, 2003). It is determined based on the particular Job responsibilities, duties and scope of each position. Hake’s policy is to pay a competitive base salary that is in alignment with the market median, and for key positions, it is benchmark against the upper quartile (Thrived, 2003). Variable components: 53. Performance bonus: 54.
Hake’s bonus scheme is designed to relate employees’ reward to Hike;s reference which is measured against a number of pre-determined factors including both financial and non-financial factors such as Hake’s financial performance, strategic initiatives, organizational development, market and regulatory measures (Thrived, 2003). It is awarded on a discretionary basis and is differentiated based on individual performance rating, grade level and Job function (Thrived, 2003). 55. Employees’ rewards are differentiated based on a 5-point performance rating scale (Thrived, 2003).
A performance development process is in place to help employees set performance objectives, focus on performance improvement, and raining is set out in the CARS Reports (Thrived, 2003). 56. Share award: 57. Hike operates a Share Award Scheme for its employees including the Executive Director. The Share Award Scheme is a long-term incentive for key employees, including Hake’s Chief Executive, who are identified as essential to Hake’s operations and future development (Thrived, 2003). The award is tied to the achievement of objectives that strengthen Hike for the long term rather than the current year profit.
It also serves as a retention tool for key, high performing staff (Thrived, 2003). 58. Retrenchments: 59. Employers have regularly been reminded in this column of the factors that render dismissals for operational requirements (retrenchments) fair and unfair (GALS, 2015). Despite this, employers continue to get it wrong and, in many cases they land up paying a very heavy price. In order to win a retrenchment case at the ECMA or Labor Court, the employer must fulfill its onus of proving that the retrenchment was fair in all respects (GALS, 2015).
It is the employer who has the duty of proving that there was a genuine and valid reason for retrenching staff in the first place (GALS, 2015). 60. Retrenchment benefits may seem few and far between, however, make sure you know your legal rights in terms of what retrenchment benefits are due to you and be sure to structure your final severance package optimally in terms of income tax and also ongoing personal issues such as life cover and medical aid (Peterson, 2015). 61 . What payment/s can you expect as retrenchment benefits? 62. Severance pay should be at least one weeks remuneration per completed year of service.
Remuneration is calculated including basic salary and payments in kind (Peterson, 2015).. Outstanding leave must be paid out in full. Notice pay may vary depending on your employment contract (Peterson, 2015). 63. Does it meet the company’s standard? 64. Yes it does meet the company’s standard, because Remuneration policies are designed to support the business objectives within the larger operating environment, and the Remuneration Committee should ensure that all relevant variables are addressed, and that a balanced remuneration mix is offered within the company’s financial constraints.
Retrenchment does not meet the company’s standard because the retrenchment procedure is clearly spelt out, employers are still being caught out t the ECMA and in the Labor Court for failing to follow procedure (GALS, 2015). For example, in the case of Nassau and others v Dorsal Ltd and another 176 employees embarked on a protected strike. Thereafter, the plant at which they worked was closed down and 122 employees were retrenched (GALS, 2015). 65. The Remuneration policies increase the company’s size of the company because these policies are beneficial to the labors (GALS, 2015).
These policies empower the labors to enjoy their work and work more intensively to increase production and profit for the company. Then the retrenchments do the opposite for example, in the case of Nassau and others v Dorsal Ltd and another 176 employees embarked on a protected strike. Thereafter, the plant at which they worked was closed down and 122 employees were retrenched (GALS, 2015). 2. Applying RIMS to your Company: 67. A) Definition and discussion: world. And it is especially important for leaders to have methods to resolve such issues through various ethical decision making models.
Making such decisions is a thought provoking, reflective exercise and often there are no clean grounds on asking such decisions. Thus making such decisions based upon a well-documented established model makes the outcome easier to defend. 69. Judger Habeas, a German philosopher, developed a strategy for moral decision making in a business known as the, Rational Interaction for Moral Sensitivity (RIMS). Habeas focused on the process by which ethical decisions are made, not on the content of moral considerations.
He referred to the “ideal speech situation” the situation by which all participants in the interaction are equal and in which all forms of coercion or force have been removed. Thus the only thing of force would be the most rational argument. 70. The RIMS strategy structures a process of rational interaction between rival points of view in a moral dispute that requires morally-sensitive decisions (Russo:1997). 71. According to (Fourier:2011) the RIMS model makes the following assumptions: Diseases does not equal defeat Dialogue can produce solutions Focusing on motives is futile Only moral arguments are allowed 72.
The following rules have been set out to create the ideal speech situation: The only viable evidence considered is empirical evidence, which is objectively accessible facts only) The process of interaction is driven only by the force of the strongest rational argument (excluding personal inclination and emotions) Only experiences, arguments, and norms that attain consensual agreement are regarded as knowledge (universalistic) Any knowledge formulated in this way is always open to revision in the future (re-examination) 73. ) Implementation steps for applying RIMS in your business: 74. Step 1: Generate and evaluate all points of view 75. Any moral point of view that satisfies the following three criteria should be taken onto consideration in the decision-making process: It should be a moral argument and not selfish 76. This means that the moral point of view being communicated must not have any traits of selfishness; it must be a point of view that possesses moral argument and it must be accommodative and well fitting for everyone involved.
It should be clear and intelligible to all 77. This means that the moral point of view must be clear enough for every individual to be able to understand it, so that there are no misunderstandings when the concluded on moral point of view is to be implemented by the different businesses. It should be factually correct 78.
The moral point of view must include facts and it must not only include facts however it must include facts that are correct at all times, meaning proper research must be conducted and the correct facts are what must be included in the moral point of view. 79. Step 2: Identify implications 80. The focus should not be on the motives behind the various points of views; some of these motives may be the potential gains one would receive for considering this moral point of view. Instead the focus should be on identifying the positive and