A Theoretical Approach to Ethics - Assignment Example

?A Theoretical Approach to Ethics As much as businesses want to make substantial profits they have moral obligations that are at times structured by law. This follows that businesses have an obligation to follow the law, which is both theoretical and ethical. The law is incepted in the business environment to ensure people are protected from harm or dangerous products (Shaw, 2010:16). Therefore, a business that is restricted to these laws is at a better position to serve its customers. As such, there will be fewer instances of legal actions. Most of these cases are brought in instances where businesses are involved in unscrupulous tendencies that jeopardise the health or lives of people. One of the basic ethics that should be observed by businesses is that they should not kill, steal, defraud or harass people in the course of their business. Businesses have an obligation of giving services and products to the people, which is controlled by the governing bodies. However, at times, the governing bodies are not vigilant on the activities of these businesses. As such, some businesses take an advantage and engage in other activities, which are considered harmful. For instance, some businesses do not follow the laid down procedure of manufacturing products. As such, they make the process shorter and cheaper. This is mostly done to save on costs and increase their profit levels. In the end, some of the end users are affected, and in bizarre instances, people lose their lives. Such businesses have neglected their moral obligations of ensuring no one succumbs to death after using their products. As such, they risk being driven out of business and answering charges against their business. To reduce the number of such cases, businesses are encouraged to instil moral ethics in their businesses to ensure they serve the market accordingly (Shaw, 2010:31). Similarly, stringent penalties have been structured to deal with the perpetrators. Inception of punitive measures has made it clear that businesses have a moral obligation of protecting the lives, and therefore any death occurring should be dealt with. As such, many businesses are working according to business ethics. Pollution is one of the moral ethics that should be respected by all business. In recent times, pollution is a global problem that is indeed affecting the global climate. Therefore, businesses have a moral understanding that they should reduce any pollution in their premises. This includes reduction of smoke, using recycled energy sources and using recycled materials. This will reduce the effects of pollution on the global climate. It is absurd that business concentrate on increasing their profit while on the other hand people are suffering due to their activities. Similarly, some businesses release dirty water into rivers and other water bodies without treating the wastewater. In the end, the wastewater affects animals, plants and fish that live in water. In the end, the human nature is affected as they depend on the affected food web and food chain. This makes it hard to make a comfortable living as the water bodies are adversely polluted. Therefore, such businesses have a moral obligation to ensure they do the right procedures before releasing wastewater into water bodies. The same goes to businesses that pollute the air with smoke. They should use other energy sources that are friendly to the environment. Businesses have a moral obligation in business ethics to respect both citizens and the culture of hosting countries (MacKinnon, 2010:32). This situation mostly affects multinational businesses as they work indifferent countries with different religious and cultural affiliations. In such a situation, the multinational businesses should have a moral obligation of respecting the culture and abiding by the wish of the population in the host country. For instance, when a multinational business starts its business in a country that has stringent rules against selling beef, the business has no option but to abide by the culture. As such, the people will not be affected by the daily business of an individual trader. However, the business is at freewill of selling pork in the same country, as long as it is acceptable to their culture. Therefore, it is a prudent fact to consider moral principles beyond what the law requires. The Importance of ‘Level of Interest’ and ‘Power’ Between an Organisation and Its Stakeholders Stakeholders are vital in running of an organisation, as they are part of the resources. Stakeholders ensure they provide all the possible resources that are needed by an organisation, which include initial capital, working capital and monies. As such, stakeholders are bound to either lose or gain in accordance to the performance of the organisation. When an organisation is making lucrative profits, stakeholders enjoy part of the profits. However, when a business is recording losses stakeholders risk losing part of their investment. As such, they have levels of power and interests in ensuring the organisation is making progress. Therefore, they employ the services of managers to control the organisation at all costs. It is important for stakeholders to consider their levels of interest in an organisation for several reasons. The power of stakeholders is noted as the ability of the stakeholders to make others do what they want at a particular time (Morgan, 2006:23). Similarly, stakeholders are graded according to their voting power and rights, which are mostly determined by their level of interest. Stakeholders that have high stakes in an organisation have vast control and power in an organisation than stakeholders that have low investments. Therefore, the decisions will most likely be swayed by the people with high stakes. However, when it comes to the importance of power and levels of interests in an organisation, they all look forward to making a positive impact in the results. First, power and levels of interests are important in that they dictate on the performance of an organisation. For instance, aggressive stakeholders structure different ways of tackling a particular situation or problem in the organisation. As such, they will come up with several options in dealing with the problem. With several options, they are sure that they will solve the problem not to recur in the near future. However, when stakeholders do not use their power and levels of interest to their best, they will not record positive results (Daft, 2009:19). In addition to this, stakeholders’ power and levels of interest determine their creativity in recording better performance. For instance, stakeholders with creativity in the business make sense while delegating duties. As such, they will ensure all aspects of the organisation are under effective control. This will be reflected from the results recorded in the organisation. Stakeholders with power and levels of interests are also managers in disguise. However, they are not involved in the running of the business, as they have delegated these duties. Therefore, they only have to wait for the managers to execute their duties. Therefore, stakeholders that are managers with managing skills are important in running an organisation. They will have an upper hand in detecting any miscalculations, misappropriations, omissions and single entry in books of accounts. Therefore, their power and levels of interest assist them in scrutinising the books of accounts. With such managers in an organisation, it is hard to lose resources to fraudsters. Stakeholders with power and levels of interest are particularly important in decision-making processes. For instance, when an organisation wants to make additional investments in another field, stakeholders have to evaluate the situation and give their views. If the stakeholders make a wrong decision, it is obvious that the organisation will be affected (Daft, 2009:29). However, when stakeholders make a choice on the right investment and right approach to take, it is possible that the organisation will achieve its goals. Therefore, it is an admissible fact that stakeholders that make the right decisions use their power in an organisation appropriately. The people in power and have levels of interest in an organisation have an obligation of supporting partners in the public, private and other sectors. This will make it easy to identify any areas of conflict in interest and ideas. With such ideas, the organisation is likely to prosper. Similarly, stakeholders with power in an organisation foster public interests and the public service culture. They work in liaison with other bodies to ensure conflicts in the public sector are identified and solved. As such, the business is practically abiding with business ethics. References Daft, R.L. (2009) Organisation theory and design, New York, Cengage Learning. MacKinnon, B. (2010) Ethics: theory and contemporary issues, New York, Cengage Learning. Morgan, G. (2006) Images of organisation, New York, SAGE. Shaw, W.H. (2010) Business ethics, New York, Cengage Learning. Read More