Theory of Deontological Ethics, Reconciliation of Cultural Differences - Assignment Example

Essay Table of Contents Introduction: 3 Scenario 4: 8 Introduction: 8 Scenario Introduction: BASF is a chemical manufacturing company that had an interest of opening a new firm in U.S.A. basing on the above; they wanted a huge land of 1.800 acres. To setup this plant they require a number of cheap labor and fresh water for everyday use, which would be near about five million gallons. The company spotted the land they thought was the best for their production and transportation purposes along the seaside of South Carolina at place called Beaufort. The establishment of this company in this region was good news for the department of Beaufort because of its weak economic state. The per capita income for this county was low than average per capita income of U.S.A, and this company’s introduction was great news to them. Its establishment in this area would see a vast population benefiting from it through employment thus, boosting the county’s economy to another level that is better than the current one. Despite the above mentioned benefit, there are a number of obstacles that come along with this company’s establishment. Beaufort town is internationally famous for a variety of issues such as the famous Hilton Head resort. This hotel attracts many vacationers from all over the world who travel every year just to enjoy the beauty of Mother Nature. It is with this reason that the Management of Hilton Head got worried about the disaster that BASF as a chemical production company would cause to the environment that they depended much on for their livelihood. The existence of this chemical plant meant that air and water would be polluted because it had no plan for constructing its own dumping site or even recycling the waste products. This situation was disastrous for this resort because it would prevent millions of vacationers from traveling to this region. It is true that this was a typical situation that had arrived in front of the department of Beaufort and the people of this county (Fisher and Lovell 2006. As a chemical plant, lots of employment would be available for the people of this town and its per capita income would also rise. But the issue about pollution needed to be sorted out in order for these two companies to trade fairly because the whole situation comes under the moral and ethics of business in an environment. Many governments across the world have shown much concern on issues regarding environmental pollution. Apart from governments, NGOs are also taking part on the fight against environmental pollution which has consumed lives and interfered with the agricultural sectors. Pollution has contributed largely to global warming and other diseases to a human being; thus, resulting to prevention measures that can stop it. Despite all the policies and regulations imposed on this project, the only individuals that need to see corruption eradicated are the manufacturing industry before any business is establishes. This whole topic will carry out the business ethics and environmental ethics, which is based on the theory of Deontological ethics. It will also provide the reader with sufficient proof that show how important its project is and what can be done so that they can deal with the problem that it is facing. Lastly, this paper will provide the reader with the knowledge of business ethics and environmental ethics that should be taken by the manufacturing companies. It will help to learn about role and duty which played the BASF and its consequences. Body: The amount of damage caused by the biggest environment polluting companies can only be settled by less than a third of what they make as their profits if they are held accountable (Fisher and Lovell 2006). But because of their ignorance, many of these companies around the world have resulted into making their dreams come true. They have extended their roles in various parts of the world so that they can earn a high return on investments made. Moreover, these companies do not only want to earn more in the current competitive world, but also make their supply chain strong in order to reduce their logistic budget and fulfill the demand of the market. However, this new thinking might overlap business ethics thus, harming the surrounding environment. A lot of these companies do not have a dumping site for their wastes and for those that depend on the available natural resources such as the river and lakes dump their waste materials without any proper treatment thus, polluting the environment (Fisher and Lovell 2006). Basing on the above, this is an ethical activity that these companies have adopted, and it is high time they defected from environmental corruption if they do not have proper mechanisms of keeping the pollution free. According to a report from the united Nation, most of these companies are being established day in and day out because no government is willing to confront them. Chemical manufacturing industries such as BEFS produced lots of waste product, which contain lots of biohazard materials which pollute the environment and cause harmful diseases. In addition, companies such as Williams Energy and Northrop Grumman have been rates as the biggest environment polluters in the world. Williams Energy is a gas production company that is said to have spilt more than 250 barrels of gas in water. This resulted to soil, fisheries and freshwater pollution. Governments need to address issues such as these, by joining forces in order to come up with policies that will see this damage come to an end (Fisher and Lovell 2006). These rules and regulation stipulated under Business Ethics, which have to be followed to the later by all organizations. General Business Ethics: It is the study of principles that constitute what is rights and wrongs which concentrate on standards and which must apply in organizations. Therefore, business ethics counts as an application that measures how businesses behavior in a given region. It is important for a company to put them into practice because they help individuals to understand the correct things that they need to do while doing business. These laws are useful for a company to maintain their real image in any available market. A company may try its level best to invest in a particular environment but without putting these values into practice, the companys image in the market will hamper forcing it to suffer the consequences. These values are important because they give room for business growth, thus maintaining a good relationship with the surrounding community (Fisher and Lovell 2006). When implementing these policies, chemical manufacturing companies such as Williams Energy, Dow Chemical and BASF will be able to save much of their profits because there will be no one to sue them. Theory of Deontological Ethics: Deontology is a theory that is a virtue ethic. Virtue ethics is used to find out the conclusion between rights and wrongs action for any company in the business world. Deontological Theory state that the position to judge the behavioral activities of a company or business which is based on its faithfulness on law or rules and its duty on ethics. Issues: BASF wanted to establish a new plant in Beaufort County, but the main problem was its environmental pollution. However, the reason behind this project rejection is that the company’s past track record which was not good. The company has had several cases of pollution in Germany and in Belgium where it has not been able to settle them. One of them is the pollution of river Rhine. Most of its waste materials that are harmful to human and plants were dumped in Rhine River; thus, unethical practice exercised in the world of business. Basing on consequentiality and virtue ethics, it is important for companies to note that there are advantages and disadvantages that come alongside its implementation. Advantages • First, the virtue ethics provides a business with room for growth because the company will be able to expand its roles anytime and anywhere. Despite the companys ability to treat the polluted water by using water purifier, it also helps in preventing the industrial misfortune and in reducing emissions of injurious product. They also introduced a new technique to survey of water biodiversity. • And secondly, the implementation of business ethics allows new and the already existing companies to compete favorably with one another (Fisher and Lovell 2006). By applying consequentiality and virtue ethics, it means that BASF will be in a position to trade fairly in Beaufort County because it will not be interfering with other businesses such as the Hilton Head Resort. Solution The project that BASF wants to establish in Beaufort is of great benefit to the government and people of this society. But, the only way BASF can expand its roles in Beaufort County by following to the later the policies available that protect the environment. It is said that prevention is better than cure, and this is what the company should put as its priority before being sued for various reasons resulting from environmental pollution. Conclusion: Companies come up with crucial projects that most of the time boosts the living standards of the people around but because of their ignorance, they fail to educate them their side effect. Therefore, it would be appropriate for different governments to think twice before giving these companies the authority to pollute the environment in the name of boosting the country’s economy (Fisher and Lovell 2006). To do this, first they need to show concern about environment and surrounding areas. In addition, the government should try as much as possible to protect the existing businesses because it is through this that there can be a manifestation of fair competition. To protect the environment, BASF has to do what it did on river Rhine in Belgium city where it installed a water treatment. They should also install chimneys in their plant, to control the air pollution. Scenario 4: Introduction: A good number of countries and cultures differ in the context of values and principles for running business. Every country and society has its own laws and culture framework, which could be similar or different. These similarities or differences of values and ethics in business are solved internally by nations and societies (Fisher and Lovell 2006). Countries and societies across the world can be differentiated basing on their culture, religion, work style, philosophical literatures and tradition. Therefore, it is with the above issues that an individual should note that they contribute in the creation of different ideas and moral for an organization or business life. This forces an organization or business to have different values and ethics for its employees in order to achieve its goals. Within every nation or society, there is always a set of values that concerns the day-to-day running of the organization and business. Muslim countries have a different approach when it comes to issues of working. There are those who believe in working at a place where it is a bit modernized while there are those who want to implement tradition Islamic values in business. Nations and societies have tried to come together and share their values and ethics in order to see them do business but these policies whenever they are put in practice, they still vary. There can be a possibility for two countries to believe that bribery is immoral, but one of these nations can implement this law in order to suit its trading standards in order to beat the other. This kind of act has commonly become dangerous, and it may cause severe consequences if the two nations or societies want to work together. A number of questions will arise from both parties. Some of these questions include, • First, what are the differences and similarities in term of value and ethics between nations’ and societies’ for a business? • Secondly, what is the justification in terms of practice that ensures there is smooth running of the organization and business which is not different any a nation or society? • Lastly, are there any advantages or disadvantages in terms of values and ethics for a nation or society over international organizations taking part in the same business? Body: Basing on the contingency approach the following shows how an organization can reconcile cultural differences when conducting its day-to-day businesses. First, human resource department does not only act as an administrative body in an organization, but it also contributes to the financial decision-making processes to ensure that a business runs smoothly (Fisher and Lovell 2006). It is therefore important for an organization to invest heavily on resources that can motivate its employees rather than on issues that cannot help in its growth. It is through this that these employees will be able to make clear decisions that can contribute to an organizations success, thus reconciling their cultural difference. Secondly, an organization needs to have leaders who depict noble characteristics and are willing to abide by them just ensure that it succeeds. Ethical leadership helps in the reconciliation of cultural differences in an organization because these leaders are not allowed to discriminate any of its employees. As a result, the employees of the company will slowly adopt the ethical policies that bring them together regardless of their cultural background. Thirdly, it is necessary for an organization or company to allow its employees to form trade unions that will ensure that the employees working conditions and their salaries are paid on time. Therefore, an organization should not allow its human resource department to take advantage of its employees because it is through them that the company can attain its goals. Lastly, the government should make an effort of reducing the amount paid by an individual in order to reconcile cultural differences for various companies within nations or societies. By doing so, different nations and societies will have an opportunity of investing in whichever place they want because of a common existing ethic and value that abide all businessmen and women among member states. Example of reconciliation of cultural differences: Uruguay Round: It started in November 1982 during the General Agreement on Tariffs and Trade (GATT) in Geneva, attracting ministers from various nations and societies. It is through this meeting that those in attendance wanted issues such as agriculture subsidiaries to be reduced; they advocated the removal of the restriction from foreign investments and to start a new process of trade in the service industry like insurance and banking. They also wanted to deal with intellectual property rights such as the World Trade Organization. Achievements: These issues came to end after the establishment of World Trade Organization (WTO). The World Trade Organization (WTO) was able to solve cultural differences by coming up with new policies and agreements for all member states. The settlements and agreements are structured into six parts: • Umbrella agreement • Services • Intellectual property rights • Goods and investment • Dispute settlements • Reviews of trade policies of governments Issues: Japan culture and values are very much different from the world. In Japan, values for traders count the same way as those of merchants, but this is different in India and China where they are opposite and questionable. Individuals in Japan work on a contract basis, the culture they trust whereas, in India and China, their working culture is based on a personal relationship between traders. Japanese traders are more interested in long-term goals whereas the Indians, and Chinese traders want immediate result, thus short term goal. The reason behind this difference is based on different values and ethics for businesses and their culture beliefs in a given nation or society. Most of Japanese businessmen and women major in exportation of goods to European and United States’ market. They have the least interest in the market of India and China because they have never shared their business strategies with overseas market. There may be possible chances for a clash between U.S.A’ and Europe’ market. However, Americans are useful in dealing and negotiation in business. Religious Issues: Religion and old tradition have had a great impact on business ethic. For example, there are certain views about business which have been expressed in Bible unlike in the Quran. Christianity has talked about the modernization model, but Islam has done nothing about this in order to follow their old tradition and implement into their own business ethics (Fisher and Lovell 2006). The Islam culture has its own financial method that works without the term of interest because it is prohibited. Muslims can be given loan from their banks but with no interest imposed to them when paying the money back. Their values are defined by human efforts which are behind transaction and exchange. They follow certain Islamic principles which make them believe that money is not for evil did; thus, they share their profit and losses with the financier in terms and condition of pre-agreed ratio. Despite the above, Muslim can make contact for loan to a western bank and economic organization based on interest which according to their principles is forbidden in Islam. Another critical problem in Islam is the Credit Card system which does not also trade with interest. However, this is permitted for Muslim through the help of “BaiMuajjal” form as a contact. In this system, the bank and financial service organization transact money for their client at an agreed fixed price which has profit percentages. Conclusion: There are a number of ways through which a company can reconcile cultural differences when taking part in business in order to ensure that it does not incur losses. As mentioned in the essay, these techniques will ensure that the company together with its employees trade favorably in today’s market (Fisher and Lovell 2006). Secondly, implementation of these policies will also help to build a company’s image in the sense that it will have created a clean rapport with the existing society. Many organizations are attempting to produce a global ethical standard in order to satisfy the ever increasing demand for goods and services. But this has not been easy because it is difficult for them to meet an influence on international business that can act as a link. Western cultures have developed in their business due to their implementation of principles and values, but this is different for developing nations which are trying to follow this strategy so that businesses can growth. It is necessary for all nations, especially developing nations to have standardized ethics and values for their companies to development. Many global standard rules and regulations have been put in place so that companies can implement, but most of them have refused to follow them. This may happen because all nations and societies have their own values and standards to measure the business. However, a country like America has a unique point of view on this, which has boosted their helps business. Countries in the Middle East also have their own values and standards that cater for their business, which mostly bounded by religious beliefs (Fisher and Lovell 2006). Lastly, American businesses believe in challenge and integration values. This new change will bring one standard of rule and rules that will be helpful for multinational companies. Otherwise, they need to show a willingness to learn about new culture of those particular countries in a suitable manner. References: Fisher, C & Lovell, A 2006. Business Ethics and Values; Individual Corporate and International Perspective, 2nd edn. London: Pearson Education Limited Read More