Business Ethics and Social Responsibilities - Essay Example

?Introduction Business ethics and values is one which is continuously changing because of the dynamics of an organization and alterations which are associated with the current trends. The concept of business ethics, while relating directly to expectations in terms of basic values and defining actions also leads to more complex ideologies which businesses are required to implement. The ethical decision making process not only encompasses the basic values that are associated with the functions of a business. This also combines with the strategies for a corporation and the internal and external philosophies which relate to the ethical process. The decision making process for incorporating ethics then becomes one of the most important values that are associated with businesses and the changes which occur in terms of defining and keeping specific ethical values. Decision Making Processes Traditionally, business ethics have been defined by the basic values that any corporation decides to reflect to the public and to implement within the organizational environment. However, the term is one which is now beginning to expand based on dimensional changes which are occurring within the corporation and in the environment. The decision making process to implement or change ethics is one which is now defined by the institution of business ethics and the changes which are required for businesses. Pressure from management and the association with the internal environment is one of the ways in which the process has changed. The influence of stakeholders, environmental concerns, social issues and political expectations have continued to influence the process more with the recent trends in decision making processes. Ethical considerations not only relate to the basic foundations of a business but now also link to the internal and external pressures that are developing new standards for corporations (Ferrell, Fraedrich, 2009). The decision making process for ethics not only incorporates the various influences but also becomes based on the strategic implementation of plans, as opposed to the value and ethics which are primary for most in the business. The concept is one which leads to initiatives such as looking at the moral and value considerations and how this will affect the investments and finances. Stakeholder investments as well as the positive and negative influences are some of the areas that become primary considerations for ethical implementation. In a recent study (Hofmann, Hoelzl, Kirchler, 2007), it was noted that the moral considerations had a direct impact on the revenue which was created within the company. Moral behavior, such as the treatment of employees, had a direct correlation with the overall profitability as well as the expected dividends per share. Controlling profit, specifically when noted from this study, then directly correlates with the planning and implementation of moral treatment and ethical considerations and reflects with the stakeholder value and overall profits which are developed from a corporation (Hofmann, Hoelzl, Kirchler,2007). Processes for the Internal Environment The importance of strategically implementing the morals and values within a corporation lead to changes which occur with the internal and external environment. The effects which are created strategically are able to provide not only overall profit but also change the cultural effects within the organization. The process of ethical and moral considerations then becomes strategic for the overall quality and functions of an organization. More than having a foundation for the ethics of a business is the need to incorporate this in terms of the environment and how this will affect the different functions which one has. The process for the internal environment first begins with the decision making of having specific ethics that allow the managers and employees to follow specific rules. This is followed by reflections of the corporation that are associated with corporate responsibility which is continuously taken and a part of the employee and managerial relationships. The lack of implementation of these values is easily able to create an organizational environment that does not incorporate stronger procedures. At the same time, organizational corruption becomes easier to reach while employees and managers are able to leave the foundational considerations as a secondary element to the corporation (Moore, 2007). The institutional approach to ethics within the internal environment is one which is expected to influence and change the employee and managerial relationship at every level. The influences make the strategic and decision making processes even more important, specifically because the attitudes, beliefs and behaviors which reflect from those who are working within the corporation. It is noted that the commitment levels which one holds to an organization as well as the job satisfaction is displayed specifically from the roles and behaviors which are taken. This is followed by redefining ethics on a continuous basis within the organization. The process is one which includes an evaluation of the current ethical and moral standards and changing these through processes and policies that are associated with the organization. Ethics has now come to mean training, development, implementation and analysis of the internal organization. This also includes analyzing and responding to levels of commitment and satisfaction within the organization as a reflection of the level of morals and standards which are upheld within a company (Vitell, Singhpakdi, 2007). Processes for the External Environment The decision making processes are not only influenced by the dynamics within the working environment but also in terms of the external relationships which are created. Corporate social responsibility is now one of the main efforts which are becoming standardized for businesses. This is combined with the conscious consumer, which expects the morals and values of businesses to be at a specific level. The concept of responsibility for the consumer is becoming one of the decision making values that are used with the behaviors and approaches which are used within the workspace. This is combined with decision strategies that are used to appeal to consumers and to the external environment. Incorporating these strategies is able to develop a stronger relationship with consumers because of the consciousness and new expectations that are associated with the corporation. Concepts such as using green materials, treating employees in a moral way and having the appropriate quality with products are some of the current measurements that are used by consumers. Each of these are changing the value and the approach which businesses are taking in terms of ethics and the processes and strategies used to incorporate specific levels of responsibility (Szmigin, Carrigan, 2009). The interaction with consumers and the external environment further changes the strategy with the dimensions which are now associated with ethics and values. This no longer just relates to the basic concepts of ethics that are expected to be in a corporation. The changes have come from businesses which have held problematic features with ethics, such as large amounts of money that are taken from the corporation. This is combined with the tensions of the economy and political shifts which are being made. The programs that are now associated with ethics not only hold basic decision making processes and strategies. Corporations are now required to move into several dimensions of programs and insight that ensure the external and internal environment are able to relate to the current values. Political, economic, environmental and social programs are some of the several elements of ethics that are becoming a part of the strategies and incorporation of ethics into the workspace. The motives that are associated with businesses are not only based on ethics and values but also are associated with the ability to move into higher profits with loyal consumers through the strategies used in terms of ethics (Valentine, 2008). Conclusion The concept of ethics for businesses is one which is not only based on the basic values and interpretations of foundations for a corporation. The complexity which is now associated with businesses is moving into other dimensions and sets of values which are expected within an organization. The decision making process incorporates strategies to allow a business to become more profitable and balanced within the corporate environment. The challenge and opportunities for businesses is based on reaching the needs of the internal and external environment while having a flexible and multi-level incorporation of the ethics and values which are required within every situation and for different needs. References Ferrell, OC, John Fraedrich. (2009). Business Ethics: Ethical Decision Making and Cases. UK: Cengage Learning. Hofmann, Eva, Erik Hoelzl, Erich Kirchler. (2007). “A Comparison of Models Describing the Impact of Moral Decision Making on Investment Decisions.” Journal of Business Ethics 82 (1). Moore, Celia. (2007). “Moral Disengagement in Processes of Organizational Corruption.” Journal of Business Ethics 80 (1). Puncheva, P. (2008). “The Role of Corporate Reputation in the Stakeholder Decision Making Process.” Business and Society 53 (4). Szmigin, Isabelle, Marylyn Carrigan, Morven McEachern. (2009). “The Conscious Consumer: Taking a Flexible Approach to Ethical Behavior.” International Journal of Consumer Studies 33 (2). Valentine, S. (2008). “Ethics Programs, Perceived Corporate Social Responsibility and Job Satisfaction.” Journal of Business Ethics 57 (3). Vitell, Scott, Anusorn Singhapakdi. (2007). “The Role of Ethics Institutionalization in Influencing Organizational Commitment, Job Satisfaction, and Esprit de Corps.” Journal of Business Ethics 81 (2). Wheelen, TL. (2008). Concepts in Strategic Management and Business Policy. UK: Routledge. Read More