Ethics and social responsibility and its affect on organization - Essay Example

? BUSINESS RESEARCH PRESENTATION Contents BUSINESS RESEARCH PRESENTATION Contents 2 Executive Summary 3 Introduction 3 Body 4 Present the Information gathered 4 Analyze the information gathered 5 Recommendation 7 Conclusion 7 Reference 9 Executive Summary This project report is based on the topic of ethics and social responsibility and its affect on organization. The project highlights the main issue of business ethics and social responsibilities of an organization towards the customers, investor and employees. It deals with the situation as how ethics and social responsibility practiced by an organization leads to an increase in efficiency of work by the employees and management; how the practice of ethics can create a good reputation of the organization and lastly builds a strong and healthy relationship among the firms employees, customers and investors. The paper aims to discuss on these issues and lastly provides a recommendation, as the management should promote the practice of ethics, the policies, procedures should follow the code of ethics which would leads to competitive advantage for the firm. Introduction A Business enterprise is portrayed as an entity doing business to make a profit and forms an integral part of the community, society and market. The social responsibilities of a business are to improve performance, make profits and fulfilling the expectation of its stakeholders. Responsible business addresses the issue on ethics and social responsibility which is faced almost every day in the economy. Programs on business ethics provides the business with management and leadership practices helps in complying with the rule and regulation, minimizing the risk and bring value to the stakeholders (ITA, n.d, p.31). Thus the purpose of the report is to state the benefits of adopting the ethical and social responsibility practices in businesses. The main idea behind the report is to analyze the claim that by practicing ethical and social responsibility in business leads to increase in efficiency in the work place. Practice of ethics leads to good reputation of the company and the effect that ethical and social responsibilities have on the relationship with employees, customers and investors. The scenario talks about being ethical in business and practicing the habit of social responsibilities. The audience constitute of the CEO of the company, the HR, marketing manager, operation manager and also the employees. This is because the field of business ethics has changed as firms had recognized the benefits of conducting ethical conduct. Ethics contributes to firm’s commitment towards its employee, customer’s satisfaction and also towards the investors. It is necessary to practice ethics as most of the organization today aims to create a core competency against its competitors by way of practicing ethics and social responsibility. Organization with unethical practices are usually not looked a strong business organization and investors and customers often hesitate to invest in such organizations. Therefore organization with ethical value often tends to stay ahead from the unethical firms. Even employees would deliver high performance when they work in a good corporate culture which ultimately leads to the success of the firm. Body Present the Information gathered Ethics and social responsibilities help the organization to increase efficiency. Managers always try to make the best use of the resources in order to increase the level at which organization perform. Pressure to increase performance is often regarded as healthy as it allows managers to question the way organization works and thus bring changes by practicing social responsibilities and ethicality (Jones, 2009, p.39). Business ethics and social responsibility can affect the reputation of the company. Practice of ethics can help in building reputation among employee, the customers, stakeholders and the general public (Ferrell, Fraedrich & Ferrell, 2008, p.25). Business ethics and social responsibility can affect the company’s relationships with employees, investors, and customers. It is one of the most challenging tasks for the organization to maintain and sustain a steady relationship with its stake holders (Griseri & Seppala, 2010, p.28). Analyze the information gathered Ethics is related to trust and to develop trust behavior should be ethical. In a business, ethical behavior is an essential aspect to gain trust. Trust ultimately leads to efficiency of business which is one of the key findings. Lack of ethics often leads to unethical practices (Fernando, 2009, p.8). It is necessary to overcome the myth of efficiency is important and is one of the important concepts in business ethics (Solomon, 1997, p. 155). When an organization does its work in an ethical way, the employees also tend to follow the practice and since there is an absence of misconduct, it ultimately leads to efficiency in the employees and also the management. The reputation of the organization plays a major role for organization in maintaining relationship with the employees, customers, investors, and other members of the organization who has the potential to affect the business. The key findings meant that building an ethical reputation among the members of the organization provides benefits such as increase efficiency, employee commitment, increase willingness of investors to entrust fund, generate customers trust and better performance both in terms of financial aspect and non financial aspect (Ferrell, Fraedrich & Ferrell, 2012, p.25). At the same time, reputation of organization can be damaged due to ethical misconduct. Stakeholders who are directly involved would be affected and develop a negative reputation about the organization (Ferrell & Hartline, 2010, p.62). The basic area which is of concern to the managers is the relationship of firm towards its employees, employee’s relationship towards the firm and towards other economic agents like suppliers, customers, investors and competitors (Maheshwari, 1997, p.48). The key findings suggest that the more a company takes care of its employee; the employees are likely to take greater care for its organization. Perception of employees regarding the firms ethical cultural would eventually lead to performance outcomes within the organization. The ethical practice of the organization matters to the employees, investors and customers to a great extend as they feel more loyal towards the organization. When the investors are highly concerned about the ethics, reputation and social responsibility of the organization they are likely to invest in the company which actually follows code of ethics. The investors believe that an ethical culture often provides a solid foundation of efficiency, profit and productivity (Ferrell, Fraedrich & Ferrell, 2012, p. 19). In order to build a positive relationship between the customers and employees, ethics plays an important role; it builds trust within the employees and customers. With respect to customers, a reputation of practicing good ethics often reduces the cost of doing business with the respective firm (Barringer, 2008, p.200). Recommendation Ethics and social responsibility are essential in doing business and thus every organization should follow the practice of ethics while performing business. It is recommended that in order to improve the efficiency in work among the employees, organization should comply with the practice of ethics and towards social responsibility, as employees tends to deliver satisfactory results. The management should promote the practice of ethics and also demonstrate it so that employees comply with the code of ethics. Management policies, practices along with their procedures should promote the ethical conduct. The management should follow up appropriate procedures and sanctions should exist in order to deal with misconduct. It is necessary to have appropriate resources which would help to monitor, investigate and report to the top management and reduce misconduct. The logic behind recommendation is the organization would be able to achieve competitive edge and more investors would find it reliable to invest in the organization. Conclusion Companies with ethical practices are trusted more by the investors, customers and mainly by its own employees. In the competitive world, practicing ethics can gain a competitive edge over the competitors. It provides an edge over the competitors and creates trust and loyalty with the customers; it aims to create a culture of honesty which is important in a business; it attracts the top employees who prefer working for a company which has a high standard of working. Therefore the CEO, HR, operations and the employees would benefit with the practice of ethics by utilizing the resources, as they would be able to invest in social initiatives which would improve the corporate image, reputation and goodwill. . Reference Barringer, B. R. (2008). Entrepreneurship: Successfully Launching New Ventures. Pearson Education India. Fernando, A. C. (2009). Business Ethics: An Indian Perspective. Pearson Education India. Ferrell, O. C. & Hartline, M. (2010). Marketing Strategy. Cengage Learning. Ferrell, O. C. Fraedrich, J. & Ferrell, U. (2008). Business Ethics: Ethical decision Making and Cases: Seventh Edition. Cengage Learning. Ferrell, O. C. Fraedrich, J. & Ferrell, U. (2012). Business Ethics: Ethical Decision Making & Cases. Cengage Learning. Griseri, P. & Seppala, N. (2010). Business Ethics. Cengage Learning EMEA. ITA. (No Date). Responsible Management and the Responsible Business Enterprise. Retrieved on February 10, 2012 from http://ita.doc.gov/goodgovernance/adobe/bem_section_1/chapter2.pdf. Jones, G. R. (2009). Contemporary Management 5E. Tata McGraw-Hill Education. Maheshwari, R. P. (1997). Principles of Business Studies. Pitambar Publishing. Solomon, R. C. (1997). It's good business: ethics and free enterprise for the new millennium. Rowman & Littlefield. Read More