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Business ethics in the corporate world
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Task 1: Ethical Standards A. Corporate Policies 1. All employees of TechFite must dedicate a minimum of 16 hours per month volunteering within the community. 2. TechFite will support the growth of young leaders by holding bi-weekly classes for community members 18 and younger that will help build and develop creativity, leadership, decision making, relationship building, and communication skills. 3. TechFite executives will no longer be paid excessive bonuses. This budgeting restructure will allow funding for full-time employee benefits. A1. Rationale 1. TechFite prides itself on being actively involved in the communities that they are in and also has a primary focus to develop a strong presence as an organization in the community. By having strong community involvement, relationships between the community and the company will repair and strengthen. TechFite will provide opportunities for its …show more content…
One of the commitments that TechFite made was to support local youth leadership development programs. In an effort to follow through on this commitment, TechFite will support the growth and development of the young community members by teaching and building leadership related skills. TechFite is known for its leadership development. By putting this policy in place, TechFite will be able to follow through on commitments and build trust within the community, continue leadership development, and continuously strengthen relationships within the community by building tomorrow’s leaders. 3. TechFite identified that excessive bonuses have historically been paid to top executives during a budget review. By eliminating this pay out, TechFite will be able to budget for employee benefits and pay employees for working the amount of hours they were hired for. Without the budget to support employees, the relationship between TechFite and the community will diminish. This was proven when employees began to complain about weekly hours, benefits, and wages. A2. Ethical versus Legal
• Employees proud to work for a good company and under guided ethics will work harder. Internal society will flourish, as first-line management will spend less time on issues and more time on quality and production. At Techfite, time managing employee’s concerns about hours and benefits can now go toward building a strong workforce.
Employees protested, “that supervisors should have received a reduced bonus because they were not working as hard as they are and the company might be playing with the numbers” (Beer & Collins, 2008 p.6). A beneficial system for the new Scanlon Plan is to rearranged payout count. This will help to regain trust amongst employees and management. Equity Theory stresses integrity to all compensation arrangement and if this is effectively executed, then this will resolve the mistrust issue that employees have with their management team. The rewards should not be paid on a consistent month-to-month basis, instead, on a settled proportion plan, which gives rewards "each nth time the right behavior is demonstrated" (Bauer and Erdogan, 2013, p. 112). Traditionally, this would imply that workers are paid reward each time a specific measure of cash in permitted payroll is met. “The current permitted payroll is at 38% of sales value” (Engstrom, 2008). This requires no change. Instead, when Engstrom comes to a permitted payroll of one million dollars, then 10% of that sum should naturally disbursed to workers as rewards. This tackles numerous past issues with the Scanlon
What is NAEYC Code of Ethical Conduction and Statement of Commitment, well to understand what it does and how it works, you may need to get a little background information. For starts, the Code of Ethics was created for professions sense of identity. The primary focus was to have a day to day relationship with children and their families. They then created Ideals and Principles, they were given each a job for the code to work, Ideals was to reflect and Principles was to have a guide and something that can assist to get a resolving a dilemma.
There has been a huge debate throughout the years of whether humans are ethical by nature or not. Despite Christian Keyser’s research evidence that humans are ethical by nature, the evidence from the Milgram experiment shows that we are not ethical by nature. Humans learn to be ethical through genetic disposition as well as environmental factors such as culture, socialization, and parenting. In order to understand if we are ethical or not, we need to understand the difference between being moral or ethical. Many people believe that being moral and ethical are the same thing, but these two terms are a bit different. “Morality is primarily about making correct choices, while ethics is about proper reasoning” (Philosopher, web). Morality is more
Ethics is “a branch of philosophy concerned with the study of questions of right and wrong and how we ought to live” (Banks, 2013). Also it involves making moral judgments about what is right and or wrong, good or bad. In the process of everyday life, moral rules are desirable, not because they express absolute truth, but because they are generally reliable guides for normal circumstances. Ethics or moral conduct, are of major importance in the criminal justice field today. If the police force condoned unethical behavior, there would be very little, if any, justice being served. A system of rules and principles helps to guide in making difficult decisions when moral issues arise. Ethics has been shown to be a central component in decisions involving ethical dilemmas. It is “concerned with standards of conduct and with “how I ought to act”, and standards of conduct may vary among different societies” (Banks, 2013). An ethical dilemma arises only when a decision must be made that involves a conflict at the personal, interpersonal, institutional, or societal level or raises issues of moral character. Richard Hare argues that we initially use an intuitive level of moral thinking when we consider ethical dilemma. There are “six steps in analyzing an ethical dilemma and they would be as follow” (NASW, 2014):
CEO compensation has been a heated debate for many years recently, and it can be argued that they are either overpaid or that there payment is justified by the amount of work they do and their performance. To answer the question about whether CEO compensation is justified it must be looked at by the utilitarian viewpoint where the good of many outweighs the good of one. It is true that many CEO’s are paid an exorbitant amount of money; however, their payment is justified by the amount of money that they bring back to the company and the shareholders. There are many factors that impact the pay that the CEO receives according to Shah et.al CEO compensation relies on more than just the performance of the CEO, there are a number of factors that play a rule in the compensation of the CEO including the fellow people who help govern the corporation (Board of Directors, Audit Committee), the size of the company, and the performance that the CEO accomplishes (2009). In this paper the focus will be on the performace aspect of the CEO.
It is important to first understand the difference between law and ethics. Ethics examines the values and actions of people. Often times there is no one right course of action when one is faced with an ethical dilemma. On the other hand, laws
When you hear the word "ethics," what is the first thing that comes to mind? Having to make the decision of doing what is right versus doing what is wrong. Some idealists say that decisions of ethics should not be conditional. However, that is not as simple as it may sound. What constitutes "right" to one person may be "wrong" to anther; what clearly distinguishes the line between right and wrong? What some may look at as being unethical does not necessarily make it illegal.
Keep in mind that the goal of sound ethical reasoning is not to reach the “right” solution but rather to rationally and systematically consider the ethical aspects of a case and to be clear about the basis on which the decision was made.
Although at the same time functional goals encourage unnecessary risk-taking and increased the probability of unethical and possibly unlawful behavior (James, 2015). All the same, the purpose of executive compensation is an incentive for well-trained executives that make the most of the firm’s value (James, 2015). Further, the benefit that is put in place for the executive is structured to remove all conflicts of interest amongst the executive and shareholders (James, 2015). Although, some workers feel as though the executive compensation is unethical; but according to James (2015) it is given to the executives that are well trained, therefore, it is ethical from his point of view. Additionally, the compensation package assists as an enticement for executives to participate in potentially risky, maximizing activities, and profits that benefit the shareholders whenever ventures are successful (James,
“Ethics is about choosing or doing the 'right ' thing, the ethics of business is about making the right business decisions, or doing the right thing in business.” (Haddad, 2007) Each person decides
4. Unknown. Ethics. Santa Clara University Markkula Center for Applied Ethics. 29th March 2004. http://cseserv.engr.scu.edu/NQuinn/COEN288/EngrHandbook_Ethics.pdf
Many managers and organisations make the mistake of assuming that what’s wrong is illegal and what’s legal is right and if it’s legal it must be ethical. Yet many ethical dilemmas present themselves before the decision makers where right and wrong can not be clearly identified. They involve conflict between interactive parts – “the individual against the organisation or the societ...
The organization is able to manage a high coverage of risks at relative low costs owing to the availability of highly skilled personnel in the company’s team of employees. This benefit also brings about another advantage of easing the financial burden of the organization (Johnson, 2016). Besides, effective employee benefit system offered by the organization could improve the general productivity. This benefit is attributed to the fact that employees tent to be more effective when they are given assurance of job security. In addition, workers become more productive when they and their families are given the desired security by the employer. The other benefit to the organization if it employs an effective compensation and benefits system entail benefits from premiums (Wayne, Shore, M., Bommer, & Tetrick, 2002). These premiums are typically tax deductibles as corporate expense. As such, a company that has an effective compensation and benefits system is likely save extra money for other