Business Ethics and the Global Dimension of Business
SUBJECT: Business Ethics and Global Dimensions of Business
Previously, we developed the business framework and strategic business plans pertaining to the Human Resources and Operations Management. Next we need to address the organizations ethical and social obligations for the corporation on a global aspect for the new plant. Also, due to nearly 20% of the sales are anticipated to be within overseas markets, we will concentrate on the international management considerations connected to the international sales of ABC Complete Kitchen Inc’s products.
Business Ethics
Management needs to recognize that they have an ethical and social obligation to more than the shareholders. The organization also has a moral and ethical obligation to its stakeholders such as its workers, communities, customers, and suppliers. Not much consideration has been given to this subject. According to research done by Arnold (2013) “The obligations or responsibilities of non-state institutions, especially corporations and other business enterprises, has received much less attention from global justice theorists” (p. 126). There are different types move moral values, moral, immoral and amoral. Moral managers treat stakeholders ethically, amoral managers does not go against or for ethical treatment. Immoral managers only care about themselves. The organization needs to establish a policy to where each person is required to treat all stakeholders with integrity and follow all international and local, state, governmental rules and regulations. Managers need to keep an open line of communication with the stakeholders.
Communication
The organization can communicate with the stakeholders through the use...
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Arnold, D. G. (2013). Global justice and international business. Business Ethics Quarterly, 23(1), 125-143. doi:10.5840/beq20132315
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Generally, worldview gives us the insight to see the world around us. Grudem and Ruddell explains different principles in business ethics are moral principles that guides the way a business prosper. It’s all about making right choices distinguishing between “right” and “wrong”. Ethics derive from personal morals and standards, and also, we view other ethics. According to Ruddell (2003, PG. 42) he states the Christian foundation to business ethics, however, is different because it is a distinctive worldview. Business have to set standards and goals on how they would like see their business in the future. One day, I would like to own my own business. I think setting goals for yourself will help you to achieve and growth in life. It is very important. It is very important to have business ethics, rather than everything be about profit.
According to Ferrell (2004), “Organizations create ethical or unethical corporate cultures based on leadership and the commitment to values that stress the importance of stakeholder relationships. Establishing and implementing a strategic approach to improving organizational ethics is based on establishing, communicating, and monitoring ethical values and legal requirements that characterize the firm's history, culture, and operating environment” (p. 129). Ethics programs ensure satisfactory relationships with all stakeholders by aligning with all of their demands and needs, and determine conduct with customers and relationships with regulators, shareholders, suppliers, and employees (Ferrell, 2004).
When a company decides to execute a strategic decision, the decision will concern its stakeholders, either through the making of the decision itself or through implementation of the decision. Although strategic decisions are generally made "to attain superior performance" (Hill, Charles) improving the welfare of the internal stakeholders, the attainment of this goal may cause the entity to disregard their notion of right and wrong moral principles in order to achieve that goal.
Business ethics simply can be defined as the application of business values in the business practice of a company (Seawell 2010, p. 2). For a multinational company, business ethics is one of the critical aspects need to be taken into account in business decision-making processes. Failure to give attention on ethics may bring consequences on company’s reputation (Meyer & Jebe 2010, p. 159). The company is expected not only to pursue its own profits but also contributing to the environmental and social welfare of the community where it operates (Svensson & Wood 2008, p. 308).
An organization needs to adhere to ethics in order to effectively implement its mission, vision, and objectives in a way in which offers a solid foundation to management and their subordinates to properly develop and implement its strategies. By doing so, the organization as a whole is essentially subscribing to one commonality that directs all of the actions of the employees of the organization. Additionally, it assists in preventing such employees from divergence in regard to the proposed strategic guideline. Ethics additionally ensures that a strategic plan is developed in accordance to the interests of the appropriate stakeholders of the organization, both internal and external (Jin & Drozdenko, 2010). Likewise, corporate governance that stems from various regulatory parties makes it necessary for organizations to maintain a high degree of ethical standards; this is done by incorporating ethics within the organization’s strategic plan so as to foster a positive corporate image for the stakeholders and general public (Min-Dong Paul, 2009).
Explain the connection between the economic model of corporate social responsibility and “free market” or “neoclassical” economic theory.
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Nowadays, society is governed by the implications of rules and legal restrictions. All of these rules were created to uphold and maintain the idea of ethical and moral values. Even children growing up were taught by some very important codes of ethics at school. These lessons learned as a youth growing up carry over into adulthood, as an employee or manager. Managers and workers both follow a similar code of ethics within the work place. Today, as a management consultant, I am going to prepare a code of ethics for my clients as they have recently started a restaurant called Knox, it is important to have a code of ethics in every company for their employees and also a circular by explaining the purpose and benefits of a good ethics. And finally, a brief report on the steps of strategic formulation and implementation.
In today’s fast paced business world many managers face tough decisions when walking the thin line between what’s legal and what’s socially unacceptable. It is becoming more and more important for organisations to consider many more factors, especially ethically, other than maximising profits in order to be more competitive or even survive in today’s business arena. The first part of this essay will discuss managerial ethics[1] and the relevant concepts and theories that affect ethical decision making, such as the Utilitarian, Individualism, Moral rights approach theories, the social responsibility of organisations to stakeholders and their responses to social demands, with specific reference to a case study presenting an ethical dilemma[2], where Mobil halts product sales to a garage, forcing the garage owner to stop selling solvents to young people. The second section of this essay will focus on advice that should be given to any manager in a similar position to the garage owner with relevance to the organisational strategic management, the corporate objective and the evaluation of corporate social performance by measuring economic, legal, ethical and discretionary responsibilities. It will address whom to think of as stakeholders and why the different aspect could cost more than a manager or an organisation could have imagined.
Many laws have been put into place to make sure corporations act ethically, so they do not harm people or the environment. Corporations have a social responsibility to follow these laws and various other ethical actions; Johnson & Johnson, considered to be one of the most admirable companies according to Fortune, is one company that included their corporate social responsibilities in their code of ethics. Their code of ethics states that executive officers cannot financially benefit from unethical transactions or that their management must be competent and ethical (Code of Business Conduct, 2015). It is important for corporations to act ethically and hold up to their social responsibility, especially within the workplace; ethics are especially
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The organisation should also display ethical behaviour towards its stakeholders which is important for building long-term relationships with its customers.
Ethics is the study of right or wrong and the morality of the choices that individuals make. That basicly means the set of morals or responsibility that a person, group, or field have. Ethics can also be classified as code of morals. In business there are ethics that portray to business. These are called business ethics, business ethics just happen to be the application of ethics, morals, into the business field. Some examples of business ethics are obeying all rules and regulations even when nobody 's looking, which is pretty self explanatory, you shouldn’t be breaking rules. Even if it is as simple as washing your hands after you use the restroom or straight up lying to your customers, they are the ones making you money so if they find out