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Strategic Ethical Issues in relation to a Holiday Park ContentsPages Assignment Brief Introduction Background to the industry Background to Holiday Park What is Ethics? Teleological Theories Stakeholder Theory Corporate social responsibility Impacts of ethical behaviour in relation to ethical decision making Costs and drawbacks of behaving Ethically Benefits of ethical behaviour Ethical Issues of climate change, energy consumption, use of natural resources and their impacts on the management of tourism parks. Ethics in relation to business systems PEST analysis Ethics in business systems Analysis Conclusion Bibliography
Appendices Assignment brief Write a 4000 word paper that provides an overview of ethical issues in relation to your workplace. Lease structure your paper with introductory, discussion and conclusion sections with headings and subheadings as outlined in the assignment guide. * A comprehensive definition of ethics; * Broad theoretical constructs of ethics, e. g. , utilitarianism and Teleology and their practical application; * An introduction to stakeholder Theory and Corporate Social Responsibility (CSR) including how CSR fits within the ethical framework and links between CSR and other business aspects, e. g. marketing; * An exploration of the impacts of ethical behaviour in relation to the decision making process and the notion of ‘ethical consumption; * A consideration of the costs and benefits of ethical business practices; * A discussion of the strategic ethical issues of climate change, energy consumption and use of natural resources (e. g. , water and oil) and their impacts on the management of tourism parks. Introduction The purpose of this paper is to discuss the need for ethics involved in running a holiday park business. The document will outline current theories and issues involved with ethics which is often a grey area.
Businesses have power through their ability to spend vast amounts of money. They have the ability to enhance or change situations that the common individual does not. As organisations affect many people, they have obligations to their employees, consumers, community and the world. They have a responsibility to conduct business in a way that is not harmful and which positively benefits as many people as possible and themselves. Although this sounds simple, it is easier said than done, as there will always be a conflict of interest between various groups of people.
Any decisions made by businesses need to be made with an informed awareness of the specific situation and then act according to some sort of system of principals which is Business Ethics. Background to the Industry The holiday park and later park homes Industry have been a big part of the British culture for over 60 years, originating from very basic camping in the 1920’s, with a later boom in the late 1940’s when holiday parks such as Butlins and Pontins started, changing the concept of holiday camps slightly and making the industry more popular (Middleton 2005).
The holiday parks Industry is explained below:- Holiday Parks come in many forms and offer very different facilities and amenities. These could include camping for tents, motor homes, caravans and trailer tents often offered with electric or without, on grass or some type of hard standing base such as concrete or compacted stones. Perhaps with the current recession there is another boom in this industry, making camping very fashionable again, this with the ever evolving world and increasing customer high expectations are all aiding camping’s latest craze – super pitches.
These have a hard base to park a caravan or motor home (the camping unit) on, a higher amp age of electric to plug their camping unit into, water and drainage all on the pitch and on some sites even a plug in sky TV point, washer/dryer machine or perhaps your own private shower and toilet facilities. This all adds to the health and safety regulation nightmare. Some holiday parks also offer various types of fixed holiday accommodation this could include static caravans, large luxurious pine lodges, apartments, chalets and hotel or motel rooms. These units may be let through a private individual park, a chain (i. . Butlins) or through an agent (i. e. Hoseasons) or sold individually by the park to private owners all for holiday purposes and not as a permanent address. Background to my Holiday Park My Holiday Park is a well established, privately owned and family run 5 star holiday park. The park is situated in a small village, located in Dorset on the south coast. It has been a caravan and camping Park for over 30 years with several private owners. There are 86 letting units in total with guests staying from 1 night to 4 weeks. Some of the letting units are let through various travel agents (Hoseasons, Holiday Cheque).
In addition to the letting units there are also caravans for sale. These caravans are sold to private owners who pay an annual Site Rent. Newlands takes more than 200 Touring units. This includes Tents, Touring Caravans and Motor Caravans. Seasonal pitches are available for touring caravan owners from mid March to mid November; these are similar to the private owners as an annual site rent is paid for the pitch. the site is host to a range of guests, however during the peak season it is predominantly families with children of primary school age.
During the quieter months it can be a mixture of young families, senior citizens, active 50 plus and young couples. It employs 15 core, full time members of staff with up to 50 full and part time during the peak summer months. (See brochure appendix 1) What is Ethics? The word ethics is derived from the Greek ethos, meaning “character,” the pattern of behaviour or personality found in an individual or group; moral constitution, moral strength, self discipline and fortitude. The other is from the Latin mores, meaning “custom”. Business Ethics refers to what is right or wrong, or good or bad, human behaviour.
The concept of business ethics is “being able to look at your face in the mirror”(Drucker, 1996). Ethics is a code of conduct and values that is accepted by society as being right and proper. Code of ethics is simply a compilation of the rules that are meant to govern the conduct of members of a particular organization or profession. Ethics is defined by Miner (1998) as a philosophy of human conduct; reflecting prevailing values especially those of a moral nature. Business ethics is the study of business situations, activities and discussions, where issues of right and wrong are addressed. Crane, A, Mattern, D,. 007. Business ethics. 2nd ed,. Oxford. According to BNET Business Dictionary (2009), Business Ethics are defined as a system of moral principles applied in the commercial world, which provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. These behaviors or decisions in businesses normal operations often affect the organization and surrounding community in positive and negative ways. Certainly, ethical behavior has always been important for organizations and individuals; however, today more and more attention is being paid to ethical concerns.
Why? There are two basic answers to that question. One, is due to the coverage given to business through television, radio, and newspapers, we are more aware of unethical practices. For example, if an airline has a crash that kills hundreds of people and the cause is faulty equipment due to improper maintenance by the airlines, the public knows it quickly due to extensive media coverage. If a food company puts a product on the market with a food additive that may cause illness or even death, the public is informed through television, radio, and newspapers.
The result of such instances is public demand of improved safety and health regulations and management accountability. Two, is technology has advanced so far today that horrendous uses of it are possible. For example, medical science has expanded to the point that ethics are of major consideration. Some of the questions we hear debated are: Does an individual have the right to determine when to die and seek assistance with death? How long should a seriously ill patient be kept alive through artificial means? How much money should be spent on health care for the poor?
With the genetic work that is being done to determine links between genetics and cancer, obesity, and so forth, is it ever right for parents to decide to abort a fetus? Is it ethical to insert a growth hormone into children who have no growth hormone deficiency, but who seem to be on growth curves shorter than their parents would like? There is now a growing body of evidence that some criminal and aggressive behavior has a genetic basis. If science proves the linkage, is it right to abort the fetus? All are a linked to the ethics debate. Our technological communication capabilities also pose some questions.
With international communication occurring through the Internet and the World Wide Web, what privacy rights does the individual have? What constitutes sexual harassment over the Internet? Obviously, these ethical questions are only a few of the issues that we are facing. As technology continues to open new doors for all of us, ethical questions will continue to occur. The point to be made here is that great wisdom on the part of leadership in business and individuals who are employed by business is required now and in the future to face and solve the ethical issues which will confront us.
ETHICAL PRACTICES Ethics has become so important that it is the topic of numerous books, the subject of seminars, and the basis for consulting businesses. A company or organization can succeed or fail due to its ethical behavior. There should be much attention paid to the following guidelines on ethical practice in business. An ethical organization is honest. It makes its policies and procedures clear to both its customers and its employees. It is concerned about equal treatment for individuals, regardless of ethnicity, and handicap.
There should be effective practices to make sure that these procedures are upheld. Some of these are: A clearly stated policy committing to equal employment, hiring procedures that support equal employment, personnel departments with expertise in assisting people with special issues, grievance policies that are clearly stated, published, and distributed to all employees, sensitivity training for all employees in understanding how to work with diversity, so it is clear to both management and employees. CORPORATE CHANGE? From the various situations a great cause and effect situation has taken place.
Boeing and Weyerhauser are among companies that have set up offices with full-time employees devoted exclusively to business conduct. Nike, reeling in negative publicity from allegations of poor working conditions and low wages overseas, recruited a Microsoft executive earlier this year to oversee ethics issues. Other companies, such as Starbucks and Microsoft, say they train human resources personnel to address ethics complaints. STRIVING FOR ETHICAL EXCELLENCE These days, people are aware of their rights and ready to act upon those rights.
Workers now refuse to work for meager wages. With wider employment choices, they can more or less dictate their terms. They are fully aware that to compete in an increasingly sophisticated market, the corporation needs to hire the best people, not to raise the most capital. In the modern economic system, knowledge and skills are the decisive factors of production, more important by far than physical assets such as land or capital. In the old days, capital was a premium, with only a few able to get their hands on it. Not anymore.
The corporation can easily raise funds through capital markets here and abroad, as long as it has a track record of turning out quality products and services, something that only a pool of highly educated, talented workers can provide. Customers are more demanding nowadays. No longer are they satisfied with quality products and services. The more sophisticated of them require that the corporation with whom they do business furnish solutions to their problems rather than just sell them products or services. If the corporation fails to respond adequately, they are likely to go to the competition.
In a democracy, the general public has taken the upper hand. Human rights groups and advocates for this and that cause, not to mention government regulatory agencies, stand ready to hound a company that appears to exploit labor, for instance, or condone sexual harassment in the workplace. As mentioned earlier, we live in a litigious society with people taking arms against any corporation that commits imagined or real offences. Woes to the firm that exploit sits workers, promote products with shoddy workmanship upon the public, or degrade the environment. An enraged group will sue it out of existence.
If the corporation rears something though, it is not the legal sanctions but the ever-present possibility of boycott and social ostracism. That will surely lead to its untimely demise. Teleological Theories The word “teleology” is derived from the Greek word “tells” that means “ends. ” In this theory, you would consider the ends, or the outcomes of your decision. Since this theory is concerned about the consequences of the decision, it is also referred to as consequentialist. One of the most common branches of this theory is utilitarianism, which was discussed by Jeremy Bentham and John Stuart Mill in the 19th century.
A utilitarian considers an act right if it is useful in bringing about the best consequences overall. This theory can be utilized in clinical decision-making by first identifying what the dilemma entails and several alternative choices to solve it. Next you would predict what consequences would be associated with each alternative. You would then choose the solution that you believe would bring about the best possible consequence for the situation. Remember, in this theory the means justify the ends, according to The Texas Physical Therapy Association. Not all teleological theories are consequentialist.
For example, John Rawls’ theory of justice is teleological, but not consequentiality because it claims that consequences are only part of what must be considered when determining what policy is morally just. When faced with a moral dilemma, utilitarianism identifies the appropriate considerations, but offers no realistic way to gather the necessary information to make the required calculations. This lack of information is a problem both in evaluating the welfare issues and in evaluating the consequentialist issues which utilitarianism requires be weighed when making moral decisions.
Utilitarianism attempts to solve both of these difficulties by appealing to experience; however, no method of reconciling an individual decision with the rules of experience is suggested, and no relative weights are assigned to the various considerations. In deciding whether or not to torture a terrorist who has planted a bomb in New York City, a utilitarian must evaluate both the overall welfare of the people involved or effected by the action taken, and the consequences of the action taken. To calculate the welfare of the people involved in or effected by an action, utilitarianism requires that all individuals be considered equally.
Quantitative utilitarian’s would weigh the pleasure and pain which would be caused by the bomb exploding against the pleasure and pain that would be caused by torturing the terrorist. Then, the amounts would be summed and compared. The problem with this method is that it is impossible to know beforehand how much pain would be caused by the bomb exploding or how much pain would be caused by the torture. Utilitarianism offers no practical way to make the interpersonal comparison of utility necessary to compare the pains.
In the case of the bomb exploding, it at least seems highly probable that a greater amount of pain would be caused, at least in the present, by the bomb exploding. This probability suffices for a quantitative utilitarian, but it does not account for the consequences, which create an entirely different problem, which will be discussed below. The probability also does not hold for Mill’s utilitarianism. Mill’s Utilitarianism insists on qualitative utilitarianism, which requires that one consider not only the amount of pain or pleasure, but also the quality of such pain and pleasure.
Mill suggests that to distinguish between different pains and pleasures we should ask people who have experienced both types which is more pleasurable or more painful. This solution does not work for the question of torture compared to death in an explosion. There is no one who has experienced both, therefore, there is no one who can be consulted. Even if we agree that the pain caused by the number of deaths in the explosion is greater than the pain of the terrorist being tortured, this assessment only accounts for the welfare half of the utilitarian’s considerations.
Furthermore, one has no way to measure how much more pain is caused by allowing the bomb to explode than by torturing the terrorist. After settling the issues surrounding the welfare, a utilitarian must also consider the consequences of an action. Stakeholder Theory Who are the stakeholders? Table 1 Stakeholders. The Stakeholder Theory is defined as having three dimensions. The first dimension is that the stakeholders must contribute valued resources to the firm.
The second dimension is how the stakeholders use these resources and the risks involved that could affect the success or failure of the firm and the relationship with that firm if it is terminated. The third dimension deals with the power that the stakeholders have within the firm. While one can be considered a stakeholder by possessing one of these dimensions, it is essential to possess all three dimensions to be considered a true definitive stakeholder. This theory differs from the shareholder theory in that a shareholders primary duty is to maximize returns and deal with no other aspects of the company.
Basically advocating profitability by any means necessary bringing in a very moral issue. Many believe the stakeholder theory seems to disregard the interests of the shareholders’, however this point is misinterpreted because by using the stakeholder theory to ensure long-term sustainability of that company in itself takes account of the interests of the shareholders. Stakeholders’ theory focuses on management decision-making whereas shareholder theory is more financially based decision-making. Corporate social responsibility
Along with the rise of the importance of understanding the wants and needs of society, firms began to be concerned with their relationship with society as well as with the environment. Thus, social responsibility approaches, which is a recent trend, became an obligation for the companies. Corporate Social Responsibility has become such an important and popular concept as the consumers have growing expectations of businesses linked to ethical values, compliance with legal requirements, and respect for people, communities, and the environment.
Not only producing excellent goods and services and making good profits, but also being concerned with the relationship with society is becoming a major issue. As it’s not an easy task because of the immediate expectations of the changing market, organizations have been struggling to understand their social responsibility roles. Furthermore, in order to create a strong brand communication, increase the awareness and loyalty of the brands which gives them a competition power within the others, companies give more importance and allocate more budget on social responsibility projects.
In the last few years the interest in the concept of corporate social responsibility has grown and received increasing attention, with leading companies developing sophisticated approaches. Impacts of ethical behaviour in relation to ethical decision making In recent years, the issue of ethical decision-making and ethical behaviour has received much attention. The popular press are replete with examples of the ethical disaster of the week: Nortel’s accounting practices…. behaviour of US soldiers in Iraq…. insider training…. s representations by politicians…. just to name a few. Confronting ethical situations is part of normal daily life. How individuals come to define, recognize, and resolve ethical dilemmas has been the focus of considerable theoretical and empirical inquiry in the social sciences. An ethical dilemma can be defined as a conflict of two or more ethical principles, such that any possible solutions will result in the violation of at least one of the conflicting principles (Kitchener, 1984). However, this definition has been regarded as fairly restrictive.
As a result, much of the psychological community more broadly defines ethical dilemmas as involving any situation in which at least one ethical principle has the potential to be violated (Young ; Baranski, 2003). In order to understand the determinants of ethical decision-making, a major focus in the literature has been on the formulation and testing of ethical decision-making models (e. g. , Hunt and Vitell, 1986; Trevino, 1986). Rest (1986) posits a decision-making process consisting of four stages: (a) recognizing a moral issue, (b) making a moral judgment, (c) forming a moral intent, and finally, (d) behaving in an ethical manner.
Hunt ; Vitell (1986) suggest that an individual’s recognition that they are confronted with an ethical problem triggers the ethical decision-making process. Obviously, a person who does not recognize an ethical issue cannot employ ethical decision-making schemata (Jones, 1991). Ethical intention is influenced by moral judgment, which in turn is influenced by the individual recognizing a moral issue. Costs and drawbacks of behaving Ethically An increase in cost as an ethical business may turn down cheaper supplies from a firm which tests its products on animals.
Similarly, costs may be raised by pollution reducing filters put on coal-fire power station. Firms may be forced to turn down profitable business due to their ethical stance. E. g. a business may reject a profitable investment opportunity in a company which produces animal fur. When a firm’s overall profitability comes into conflict with its ethical policy, problem may result. E. g. the shareholders of a firm may object to the ethical policy as the return on their investment is harmed. Benefits of ethical behaviour Good ethical behaviour improves employee relations and results in human resource benefits.
The factors identified include more effective recruitment; higher retention; and better morale, loyalty, motivation, and productivity. Customer relationships are also improved. Factors identified include increases in customer loyalty, enhancement of brand image, and tiebreaker effects for customer purchasing decisions. Empirical evidence suggests that customers’ sensitivity to corporate citizenship continues to gain momentum. Good corporate citizenship also enhances overall business performance, particularly improved competitive advantage, higher financial returns, and better reputation.
Ethical Issues of climate change, energy consumption and use of natural resources and their impacts on the management of tourism parks. In 1950, the world’s population was 2. 5 billion people. By the year 2050, it is expected to grow to between nine and ten billion people. During this time of population growth, the human impact on the planet is expected to increase significantly, not only because of the huge increase in our numbers, but also because of the new technical power to dig deeper, cut faster, build larger, and traverse more quickly great distances in automobiles, trucks, and planes.
As a result, serious new environmental problems have emerged. These problems include global climate change; worldwide loss of rain forests, and wetlands; decline of coastal ocean quality; and the deterioration of the world’s freshwater and ecological systems. These new threats raise critical new ethical questions for the human race. Yet even some of the most obvious ethical dimensions of emerging global environmental problems are only dimly seen by most; rarely are they part of the public debate.
In a 1999 New York Times op-ed piece on climate change entitled “Indifferent to Planet Pain,” Bill McKibben, wondering why the ethical dimensions of global warming were not more widely understood, writes: “I used to wonder why my parents’ generation had been so blind to the wrongness of segregation; they were people of good conscience, so why had inertia ruled so long? Now I think I understand better. It took the emotional shock of seeing police dogs rip the flesh of protestors for white people to really understand the day-to-day corrosiveness of Jim Crow.
We need that same gut understanding of our environmental situation if we are to take the giant steps we must take soon. ” Most ethical systems are focused on our responsibilities to people who are close by and can be directly affected by our actions. The technical power that humans now have to affect people they will never meet is a challenge for such ethical systems. Still, global environmental problems raise very serious ethical issues: for example, a global climate change will hurt the poorest on the planet, seriously reduce the quality of life for future generations, and threaten plants and animals around the world.
For example, the greenhouse effect, which allows incoming solar radiation to pass through the earth’s atmosphere but prevents much of the outgoing infrared radiation from escaping into outer space, is a natural process. Natural greenhouse gases include water vapor, carbon dioxide, ozone, and other trace gases. Without the greenhouse effect, life on Earth as we know it would not exist. Emissions of some greenhouse gases are a result of human activities, and these create an enhanced greenhouse effect. These human-induced greenhouse gases include carbon dioxide, methane, nitrous oxide, and ozone-depleting substances.
Human activities have altered the chemical composition of the atmosphere; as a result, the earth’s climate is changing With the government now aiming to reduce emissions in an attempt to halt climate change, energy usage is coming under close scrutiny. (Riding, P. 2008) Which all means a holiday park business has to take green issues into consideration and sustainability should be forefront of the business strategies. Taking David Bellamy’s conservation awards into account can not only add an accolade but also show potential guests the park is taking a great and active interest in helping the environment and becoming sustainable.
Ethics in relation to Newlands business systems Ethics means having and using morals to do the right thing. Ethics is very important in business as it gives company credibility. When a company has credibility the consumers trust the company and tend to buy from it more regularly. Many employers use guidelines to help them in their decision making process, there are many approaches to this. Philosophers have developed five different approaches to values to deal with moral issues (Velasquex et al, 2010). Here are the five main approaches explained:- 1.
Utilitarian Approach – which action results in the most good and least harm? 2. Rights Based Approach – which action respects the rights of everyone involved? 3. Fairness or Justice Approach – which action treats people fairly? 4. Common Good Approach – which action contributes most to the quality of life of the people affected? 5. Virtue Approach – which action embodies the character strengths you value? The site holds many forms of customer and employee details; therefore great care has to be taken as to how this information is processed, being aware of the third parties who can also access it.
For example the site should among other things has to be aware of who they give the CCTV codes to so they do not suddenly find themselves on You Tube. Staff training needs to be stringent in order to ensure customers details are kept confidential and not used for staff fantasising or favouritism. An issue also arises with use of the black listing function, which is illegal. The Regulations make it unlawful to compile, supply, sell or use a “prohibited list” (i. e. a blacklist). This core feature of the Regulations is termed the “general prohibition”. BIS, 2010). Adams speaks and later writes about ethics in relation to CRM programmes such as RMS. Computer ethics and its adherence to technological determinism and liberalism are problematic for understanding issues of equality and participation (Adam 1999), and moreover power structures play a large part in the making and accepting of knowledge (Adam and Richardson 2001). In this context it is our contention that a debate on the ethical issues of CRM systems, information management and call centres is perhaps overdue.
We are said to be living in a new economy, a virtual age where information is power and strategic use of IT paramount. Electronic media can enable organizations to deliver products and services more efficiently and effectively allowing for competitive advantage through internal networks and external customer management. In this context CRM is the new buzz phrase. CRM systems are about ‘allowing organizations to do a better job in contacting customers, caring for them and providing quality, service and value’ (Yourdon 2000).
The idea behind ethics is to go behind the call of duty, and Corporate Social Responsibility is about doing more than just making a profit. With the rise of multi-national corporations and the importance of ethics an International Code of Ethics was created. These day ethics has such a big impact on whether a business is a success or a failure. Ethics is the study of moral obligation and principles involving right versus wrong. The web environment is quite different from that of the traditional businesses. The very nature of e-business means there’s a need for things to be viewed from a different perspective.
An important point is whether ethics needs to be considered, and if so, the development and implementation of policies should be explored. In looking at the way business is transacted via the Web to that of a traditional business, one area of interest is privacy. Since the web is hinged on the collection of information it is a real threat to privacy. In B2B situations everything from employee records and payroll to customer accounts and payments can be handled online which makes it subject to interception which can lead to numerous problems.
At the site emails containing private information are potential problems in two unique ways. When employees send personal information and receive personal information in email, there is a possibility that some of the content may be less than professional in nature. Another potential problem is that the email could be sent to the wrong recipient within the company or without. The problem with setting policies on ethics in businesses is that the standards are unclear. There is a relatively short track record to use as a model and even that is too inconsistent because the technological advancements are so dynamic and keep evolving.
Once some procedure or rule had been set, it quickly becomes obsolete when the potential threat becomes even bigger. There used to be only viruses to contend with, but now there are worms and spam too. Some of the policies already in place have been set from government regulations. The Financial Services Authority FSA have 11 Principles which are general statements of the main regulatory obligations that apply to every business. The Principles simply set out the terms and high level standards all businesses must meet.
If the site goes against one or more of the Principles, it could face enforcement action. FSA 11 Principles of Business 1. Integrity – A firm must conduct its business with integrity. 2. Skill, care and diligence – A firm must conduct its business with due skill, care and diligence. 3. Management and control – A firm must take reasonable care to organise and control its affairs responsibly and effectively, with adequate risk management systems. 4. Financial prudence – A firm must maintain adequate financial resources. 5.
Market conduct – A firm must observe proper standards of market conduct. 6. Customers’ interests – A firm must pay due regard to the interests of its customers and treat them fairly. 7. Communications with clients – A firm must pay due regard to the information needs of its clients and communicate information to them in a way which is clear, fair and not misleading. 8. Conflicts of interest – A firm must manage conflicts of interest fairly, both between itself and its customers and between a customer and another client. 9.
Customers: relationships of trust – A firm must take reasonable care to ensure the suitability of its advice and discretionary decisions for any customer who is entitled to rely upon its judgement. 10. Clients’ assets – A firm must arrange adequate protection for clients’ assets when it is responsible for them. 11. Relations with regulators – A firm must deal with its regulators in an open and co-operative way and must disclose to the FSA anything relating to the firm of which the FSA would reasonably expect notice. (FSA, 2010)
External implementation proves to be a greater challenge. The Web is global so its reach encompasses many and crosses many borders so with that in mind a universal set of directives would never be possible. With that in mind the Data Protection Act 1998 came into force and is adhered to. These set of rules need to be enforced and regulated to ensure they are being followed. Otherwise penalties and punishment can become a reality. Business ethics is a complicated subject and its history is filled with many theories that are often disregarded by rival theories.
So arguments are expected when applying ethics to the specific practices of business. Following any approaches to business ethics brings companies closer to acceptable moral behavior. Close attention to profit motive and the moral interests of customers might generate some morally responsible decisions. Additional moral guidance is found by looking at the laws that apply to business. With all these things in mind, the Web environment requires a stringent set of ethical policies and procedures that should protect the business as well as the customer.
Business management tool In order to assess the current ethics and determine where the gaps are it is important to carry out a pest analysis. PEST Analysis A PEST analysis developed by Porter assists in showing up the political, economic, social and technological issues which can help provide an insight into current ethical issues. Table 2 Pest Analysis Political| Economic| * The change in government rocking stability * Employment legislation * Tax * HSE legislation * English tourist board grading scheme and regulations. Newlands ethics and aims at heart of company * Good reputation and grade| * Current low interest rates * Inflation rates * Good growth of the existing business * Later stage in business cycle * Family business makes management team and infrastructure strong * Skilled work force * Slightly unstable caravan manufactures could hinder the supply of new caravans and effect after sales * Good return on investment| * Mix of casual holiday makers and regular private owners creates a good atmosphere without any taboos * Good core work force of loyal, dedicated and willing team players * Seasonal nature of business * Good reputation and public opinion * Balanced team as in gender and … * Ever changing and improving technologies * Advances of internet and shift towards internet bookings, review sites * Impact of lack of technological knowledge with the team * Cost of technology * Advancing marketing possibilities | Socio-Cultural| Technological| Ethics in business systems The web environment is quite different from that of the traditional brick and mortar businesses. The very nature of e-business means there’s a need for things to be viewed from a different perspective. An important contemplation is whether ethics needs to be considered, and if so, the development and implementation of policies that would support that need should be explored. In comparing the way business is transacted via the Web to that of a traditional business, one area of interest is privacy. Since the web is hinged on the collection of information it is a real threat to privacy.
Information is shared online daily but often the designated receiver is not the only receiver of that shared information. In B2B situations everything from employee records and payroll to customer accounts and payments can be handled online which makes it subject to interception which could potentially lead to numerous problems. Within the business setting, emails containing private information are also potential problems in two unique ways. When employees send personal information and receive personal information in email, there is a possibility that some of the content may be less than professional in nature. Another potential problem is that the email could be sent to the wrong recipient within the company or without. Security is another area of concern.
In home based e-businesses computers and files need to be properly stored and locked. In the event of any home burglary or ethically-challenged house guests, mechanisms need to be in place to guard and protect electronically stored information and files. The problem with setting policies on ethics in Web based businesses is that the standards are unclear. There is a relatively short track record to use as a model and even that is too inconsistent because the technological advancements are so dynamic that they keep evolving. Once some procedure or rule had been set, it quickly becomes obsolete when the potential threat becomes even bigger. There use to be only viruses to contend with, but now there are worms and spam too.
Some of the policies already in place have been set forth from government regulations. In his book, Ethics and the Conduct of Business, John Boatright states that there are principles that are set by Americas Federal Trade Commission (FTC) that echo the numerous documents of privacy on the Internet which is a large part of the World Wide Web (2007). “The five principles representative of the many documents on Internet privacy are: 1. Notice/Awareness. Disclose the identity of the collecting party, the information collected, the means for collecting it, and the uses to which the information will be put 2. Choice/Consent. Provide a mechanism for choosing whether to allow information to be collected. 3. Access/Participation.
Allow consumers access to the information collected about them and the opportunity to contest the accuracy or completeness of the data. 4. Integrity/Security. Inform users of the steps taken to protect against the alteration, misappropriation, or destruction of data and of the action that will be taken in the event of a breach of security. 5. Enforcement/Redress. Assure consumers that the company follows responsible information practices and that there are consequences for failing to do so. External implementation proves to be a greater challenge. The Web is global so its reach encompasses many and crosses many borders so with that in mind a universal set of directives would never be possible. With that in mind certain policies are adhered to within specific industries.
Consequently, things that might be deemed un-ethical in one arena might be acceptable in another. Some e-commerce sites require consumers to read and accept certain terms before they officially enter while others don’t necessitate an acceptance until a purchase is actually being made. Rules need to be enforced or regulated to ensure they are being followed. For some penalty and punishment are the best motivators. Keeping all of the a fore mentioned things in mind, the Web environment requires a stringent set of ethical policies and procedures that should protect the business as well as the customer. Analysis Information Systems are indispensable to the business, industry, academia and any organization to meet the future challenges.
It is not easy to comply with the data protection act and always get it right after all if Microsoft have almost been broken up by the courts in which they ended at, what hope does a small less informed business have? Microsoft and the government claimed victory Thursday after a federal appeals court vacated an order calling for the breakup of the software giant but also determined that it illegally maintained its monopoly in operating systems. (Ard and Wilcox. 2001) By citing specific cases deceptive advertising, environmental irresponsibility, or unsafe products, it can be learnt by example what we should not do. Such cases often reveal blatantly crude, insensitive, or reckless attitudes of businesses, which we can view as warning signs of unethical conduct. Conclusion
From looking at the approaches to business ethics, and noting all five have limitations. Ethics is a complex subject and its history is filled with diverse theories that are systematically refuted by rival theories. So controversies are expected when applying ethics to the specific practices of business. However, following any of the above approaches to business ethics will bring us closer to acceptable moral behavior than we might otherwise be. Close attention to profit motive and the moral interests of consumers might in fact generate some morally responsible business decisions. Additional moral guidance can be found by looking at the laws that apply specifically to businesses.
In gray areas of moral controversy that are not adequately addressed profit motives and the law, we can turn for guidance to a variety of general and specific moral principles. In addition to the above five approaches to business ethics, it also helps to examine stories of businesses that have been morally irresponsible. By citing specific cases deceptive advertising, environmental irresponsibility, or unsafe products, we can learn by example what we should not do. Such cases often reveal blatantly crude, insensitive, or reckless attitudes of businesses, which we can view as warning signs of unethical conduct. So what is Business Ethics? Plain and simple, ethics is the choice between right and wrong. Bibliography Adam, A,. (1999).
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