Ethical Theory and the History of Ethics - Essay Example

Ethical principles in an organization guide the employees beyond the two major objectives which are increasing their shareholders. In a contemporary organization, ethical issues include fair trade, sustainability, globalization, and most importantly corporate social responsibility. According to the traditional approach, the key objectives of the entity are to make profits and come up with strategies for attaining this (Ardalan, 2008:513). The modern approach states the organization’s performance and accountability of the organization. The modern ethical organization of an entity in the twenty-first century explains that the success of the entity is determined by the combination of the 4Ps strategy.

As earlier mentioned, the organization’s main objective is to make profits for the shareholders. The major characteristic of an ethical organization puts the matters affecting the people at heart (Ardalan, 2008:514). These include employees, customers, suppliers, the community at large, stakeholders, and other parties that are interested in the company’s operations. It can be observed that stakeholders are either internal or external and have a huge impact on the organization’s ethics. The organization should take environmental issues into consideration about sustainability and fair trade (Maignan and Ferrell, 2004:45). The company has a social responsibility over the global environment and should take into account the expectations of the public. The core ethical principles of the entity are integrity, truth, and honesty. These principles have to be in line with the environment in which it operates and within the organization. This enhances the sustained success of the entity in the long run.

In the contemporary business environment, ethics should be constantly managed in an entity and it is imperative to understand the ethical value of the company (Maignan and Ferrel, 2005:34). An analysis of the elements in an ethical management framework to give a deeper understanding of the ethical status of an entity should be carried out. Firstly, the leadership and senior management have to show commitment towards the program (Maignan and Ferrel, 2004:34). Secondly, there should be an assessment of the efficiency of ethical values in the organization. Thirdly, there should be a codification of the ethics and proper communication within the entity (Maignan and Ferrell, 2005:45). Fourthly, there should be a formalization of the code of ethics through proper training and communication (Maignan and Ferrel, 2005:34). Lastly, the code of ethics should be integrated into the organization’s culture. To achieve this, the leadership should be at the forefront of ensuring the company’s ethics are upheld.

Some of the unethical considerations in the operations of the organization entail issues that are not necessarily illegal but are viewed as being unethical (Maignan and Ferrell, 2004:45). Examples of such cases include lack of transparency, exploitation as to maximize profits, environmental pollution, and misuse of power, reputation, and conflict. The organization’s activities are impacted directly or indirectly by the stakeholders (Maignan and Ferrel, 2005:34). External stakeholders include regulatory bodies, advertising agencies, competitors, consumers, and other interest groups. The internal stakeholders include the entity’s top management, employees, and other departments in the company (Maignan and Ferrell, 2004:45).

Different stakeholders are in a position to influence the company’s achievement of their norms and ethical values (Maignan and Ferrell, 2005:37). It can be noted that the organization’s values and norms are largely affected by the primary stakeholders. The major challenge facing business ethics in an entity is the failure to keep up with the stipulated code of ethics. In a nutshell, ethical decisions in an entity are affected by managers, subordinate staff, and workers (Maignan and Ferrell, 2004:45). Ethics have gradually evolved over the years, and to date, they refer to moral concepts of duty, justice, and virtue. These are the major virtues that determine the code of ethics in a given company.

In conclusion, ethics plays an important in the decision-making process in the company. This paper gives an in-depth analysis of the company’s ethical values. It also gives the difference between the traditional and modern approaches to the ethical value of the company. The company’s stakeholders have a huge part to play in the entity’s ethics.