Ethics in Business - Case Study Example

Business Ethics Understanding Business Ethics through the Environmental Care that Lubchem Company Needs to Face Background of The Case Bethany is Lubchem's newly hired personnel within their chemical plant. In an aim of producing lubricants, Lubchem is certainly under definite crisis of handling their environmental responsibilities. Especially that they are located near River Don. It could be noted that this particular situation involves the existence of permit to operate. Although the government agency handling sanitation and environmental concerns approved the company's operations besides knowing that they are to dump considerable amount of chemicals in the river. Hence, as response to the given permit, the plant supervisor of the company admitted that they are indeed dumping the chemicals easily to the river. His excuse was that the agency that approved their business permit knew what is at stake with the business and still allowed the company to operate within the said vicinity. Bethany though, upon observation of the operations of the business knew that there are some things that could still be done to reduce the amount of chemical waste that the company is throwing into the rivers. It is undeniable that the process of change though would create several risks for the company. And if in case Bethany would pursue the aim of changing the system for the sake of better environmental results might even endanger her job. Now, Bethany is torn between doing what she knows is right and doing what is required of her to be done by the company she is currently giving service to. A Background on Understanding Ethics and Business Correlation Ethics and business rules always go together. The fact that business policing is based upon the different measures of complete recognition of social norms and social limitations, ethics is indeed a large part of the ways by which business organizations try to strive to be able to become more effective within their operational engagements with regards their aim of being able to influence the society as well. It is indeed certain that the rules and regulation that a business puts up should be able to meet certain standards of social compromises. Any business organization could not afford to be questioned simply because of the fact that the business procedures that they are adapting to are not meeting the set standards for business organizations. (Kuhn, 2005, 12) To be able to have a clearer view of the matter being reported herein, it is first most importantly to be given attention to as to how management is indeed in relation with the actual application of ethical standards within the society. To be able to do this, there are three major points to consider. The said points are as follows: The effect of organizational culture on ethical operation The roles and responsibilities of executive management in fostering an ethical operating environment The impact of ethical standards as they are used in business operations Through the consideration given to these particular sections of the said matter, the continuous advancement of the report shall be completed as to how it could relate to the actual practice of several business organizations who are actually applying ethical management in creating the policies for their own businesses. The Essence of Organizational Management Organizational management involves several serious tasks that concern not only the whole company but also its stakeholders. This is the reason why the need for the fine application of ethical leadership is essential for the pursuance of rightful managerial policing processes. Management, as known to many is a performed function in every organizational set up that is essential for arranging the activities of certain business groups. The said act of organizing a business group indeed requires a high level of leadership skills. As for this reason, governance then is considered a responsibility that demands effort and patience in dealing with other people (Humes-Schulz, 2002, 15). As the present human society advances to being economically global, the need for management especially on commercial business organizations is heightened. Hence, there are necessary points of consideration when good governance is being talked about. These major concerns of the modern management system are indeed based upon the growing need of the organizations today. Since the business companies are considerably large, it undeniable that the responsibilities are also equally large for the governing committee of any business organization.(Begun, et al, 2003, 24) Certainly, such serious responsibility involves the application of high-leveled skills for supporting an organization's growth. Through application of the enlisted managerial concerns above, the success of creating policies that would not only provide the company with the profit that they aim to have, but to also provide their people and the society as well with the support that they need in terms of organizational provisions. Concerning the fact that business organizations today go for larger scale or scope of market, it could be noticed that the managerial applications and concerns as mentioned above are to become more complex in terms of actual realization of the tasks. There are different issues that are sure to overtake the field of business management, especially concerning ethics and the social acceptance of the company. Bethany and the Lubchem Company As noted from the discussion noted above, ethical standards naturally characterize the right approach to rightful business operations. Hence, anybody in the position to ensure that business operations are going smoothly for the sake of the business organization itself and the society in particular. It should be noted that caring for the ethical measures particularly given attention by the organization today should identify the kind of reputation that they are to get in the future. Consider then the fact that Bethany could be in the perfect position to alert higher administration personnel about the issue that they are under because of the kind of environmental practices that they have are adapting to. Through a strategic approach of alerting the authorities, they might as well hear what she has to say. How could the approach be strategically presented Primarily, the said matter of consideration should first be given careful planning. A better approach should be based upon the facts and the possibilities of gaining organizational benefits from the process to be suggested so as to change some operational practices of the company that primarily hurts the environmental health of the society where the company is located. Certainly, in terms of ethical measures, the process by which Lubchem Company operates is naturally dangerous for the people living within the location by which the company's factory is located. Even though the administrative personnel may reason out that the government department that is involved in the said process of approval has approved these procedures. Long-time effects of the situation should be well considered. Hence, to do so, the ethical measures of acting now should be well considered. It may indeed cause Bethany's job, however, with the right approach to change as per suggested in the process of addressing the situation, she may be able to at least find a better process that needs to be applied for the sake of the betterment of the operation of the organization and better yet save the environment as well. Conclusion Commerce, as the major sector of the society that makes up about the 40 percent of the social development at present has a great responsibility in giving close attention to the needs of the company, its people and its society.(Cragg, 1997, 87) Certainly, managers who are able to scale the situation and the essentiality of their role in the companies that they work for are the ones who are able to complete their tasks without any disappointments in themselves. It should then be recognized that among the best pattern of systematic approach to management and the implication of managerial policies, ethical measurement of values should be applied well in the organization. Ones ethics is given a close attention; it is by no doubt a successful progress for the whole organization and the society as well. Meeting the challenges of ethically managing a particular business organization is not that easy to face. But with the ample regulation that the management try to implicate to the entire business organization, ethical management is not even that impossible to be gained by any business organization. In the case of Bethany and her connection with the Lubchem Company, it is certain that through effective application of ethical standards, better chances of operating for better relationship with the society. References: Begun, J. W., B. Zimmerman and K. J. Dooley (2003). "Health Care Organizations as Complex Adaptive Systems" in S. M. Mick and M. Wyttenbach (eds.). Advances in Health Care Organization Theory, pp. 253-288. Cragg, W. (1997). "Teaching Business Ethics: the Role of Ethics in Business and in Business Education". Journal of Business Ethics, Vol. 16: pp. 231-245. Cragg, W. "A Stakeholder and Values Identification and Ethics Tool Kit". Humes-Schulz, S. (2002). "Business Schools Suffer Post-Enron Soul-Searching". Financial Times (London), July 12, Friday London Edition 1. Section: The Americas; pg. 9. Kuhn, J. S. & V. Marsick (2005). "Action Learning for Strategic Innovation in Mature Organizations: Key Cognitive, Design and Contextual Considerations". Action Learning: Research and Practice, Vol. 2 (1), pp. 27-48. Read More