Ethical Issues Econet Needs to Consider in Its Operational Activities - Coursework Example

Understanding Business Ethics Understanding Business Ethics Task ANSWER There are several ethical issues Econet needs to consider in its operational activities thus in this task I discuss them in a clear and outright way. One is the working conditions of the employees. It involves safety of the employees being guaranteed in their working environment by providing the necessary equipments and special attires for some unique jobs. Working conditions also should embrace the compensation of the employees for the period they have worked. Another business ethic to be considered is discrimination. Discrimination may involve harassment of the female employees based on their gender or the act of diminishing the new employees that join the organization. Sensitivity training should be conducted to limit the chances of discrimination among the employees.1 Additionally, the ethical issue of corporate governance should be considered. It is a system by which a company is directed and controlled. It is evident that corporate governance is predestined to maximize shareholders value and protect the interest of other stakeholders. Statistics has proven that improved corporate governance enhances value to the company’s operational performance. The company can rationalize management and monitor risks that a firm may face globally. Also, the company guarantee the truthfulness of the financial reports and obtains a long term reputation among key stakeholders. Another ethical issue to be considered by Econet is the legal and regulatory compliance. The managers should ensure that environmental laws, fiscal and monetary reporting principles and all applicable civil rights are complied with to ensure the smooth running of the firm.2 I am also going to evaluate the influence stakeholders exert on Econet. Some of the stakeholders in the company are the customers, shareholders, employees, suppliers and government. Employees are the internal stakeholders who are involved in the day-to-day activities in the company. Employees’ productivity influences the performance of the company in the market space. As for customers they are the external stakeholders. It is evident that customers influence the profit margins and turnover through buying products and services. Suppliers are external stakeholders who influence Econet operations by supplying various products. When suppliers avail, the product in time Econet can fulfill their customers’ needs.3 Task 2: ANSWER It is evident that companies that operate ethically are prone to certain implications in their business and their stakeholders. This is why I discuss the advantages and disadvantages in this task. One of the advantages of a company operating ethically is that it has a competitive advantage. It is apparent that consumers tend to trust ethical companies and remain loyal to them even at the difficult times. An example was Johnson & Johnson in 1982 when it spent millions of dollars recalling Tyenol. Tyenol was its best selling product and were recalled as someone had tampered with the bottles of the painkiller. The company ethical values boosted the consumer confidence in spite of the contamination scare. Another advantage is that consumers are assured of quality products and services from a company that embraces business ethics. It is apparent that by implementing ethical policies in Econet will be a way of recognizing social responsibility. This also boosts the reputation of the company.4 Business ethics in companies improves the performance of the company in its specialization. This is enabled by the screening process which results to the most capable candidate to be hired regardless of their demographic traits. Business ethics in organizations lead to the provision of an environment where employees have a voice and can learn and grow. It is evident that some ethical policies involve the employees in making of significant decisions in an organization. Another advantage is that business ethics lead to good relationships with the government. The relationship keeps the organization in a better position to be aware of the future actions. Business ethics also leads to marketing advantages over the competitors. It is apparent that customers will invest in the company’s shares and seek to establish long business relations with the company.5 Organization compliance with business has several disadvantages. One is that it reduces the freedom of a company to maximize its profits. In the instance where the company relocates its manufacturing facility to a developing country as a way of reducing costs, practices in the country may not be tolerated by an ethical organization. It is evident that improvements in the working conditions such as safety standard reduce level of the company’s savings. Another disadvantage is the lack of enforcement by the other companies who break the rules. It is apparent that low preferential tariffs are nearly impossible to enforce. Countries that impose high amount to protect their economy from certain imports face few consequences despite the illegalities.6 Task 3: ANSWER In task three I will discuss the social implications business companies face in their operations. Social implications are the actions of business that affect the society as a whole. There are different social implications of business facing Econet in its different areas of activity. Finance sector has several kinds of unethical behavior that regulations and voluntary codes tend to control. Financial department is prone to bribery which is the use of financial muscle to have unfair advantage over others. The other one is the executive pay. This may be by paying top executives rises that are unrelated to effort. Finance department is also prone to insider trading that is illegal use of privileged information in dealing on a stock exchange. Ethics in the human resource management ensures that job recruitment and selection is based on merit and not on gender or race. Worker surveillance is also important to some extent in the company. Sales and Marketing may experience several social implications from unethical means. This may be through spamming which is the use of electronic mailing system to send unsolicited messages. Also, it may be through spoofing.7 In conclusion, it is apparent that business ethics is essential to any organization, in this case Econet. Some of the ethical issues that Econet should consider are corporate governance, discrimination, working conditions, Corporate Social Responsibility, legal and regulatory compliance. An advantage of business ethics is that it keeps a reputation of the company that builds a strong brand. Also, business ethics gives a company a competitive advantage. In Econet, one of the ethical implications is the recruitment and selection process which is based on merit. Unethical practices such as bribery and spamming are prone to the finance and sale department respectively. Bibliography Carroll, A & Buchholtz, A. Business and Society: Ethics, Sustainability, and Stakeholder Management. ( New York: Cengage Learning. 2014. Print). Weiss, J.W. Business Ethics: A Stakeholder and Issues Management Approach. (USA: Berrtt-Koehler Publishers. 2014. Print). Woermann, M. On the (Im)Possibility of Business Ethics: Critical Complexity, Deconstruction, and Implications for Understanding the Ethics of Business. (USA: Springer Science & Business Media.2012. Print). Read More