Business Ethics and Social Responsibility - Term Paper Example

of Ethics al Affiliation) A of ethics ensures that there are certain guidelines within which an organization operates. In this way, the employees are aware of the manner in which they are to carry themselves whilst working for the company. It outlines the mission that an organization aims to achieve, the values and the standards used to assess a professional. Codes of ethics ensure that employees maintain the upmost level of morality and professionalism while working in a certain field. While a code of ethics is usually set regarding the convenience of both the organization and clients, it is of extremely importance that it is in accordance with the legal requirements of the nation in question (Dimauro, 2006). This paper’s focal point is to create an appropriate code of ethics that would be perfectly suited for any business. Statement of Values Professional and Personal Integrity All the staff, board members, and volunteer members that work within an organization must encompass virtues that illustrate integrity in their personal and professional relations. Honesty and transparency are the most important virtues in this regard. Mission The focal point of existence for an organization needs consideration. For instance, in an online banking organization, this could be to ensure that clients receive banking service provision of the highest quality from the comfort of their homes. Governance The organization should contain a board of directors. They should primarily ensure that; 1. The members of the organization have the necessary skill adequacy that is required to meet their obligations. 2. All dealings as well as transactions are carried out in regard with integrity and transparency. 3. The organization’s activities are well in line with meeting the goals it has set for itself and the client. Legality The organization’s code should be well within & aims to fulfill all the requirements sets within the State’s /Country’s Constitution. It ought to regard of the necessary laws and regulations (Bailey, 2011). Disclosure Information concerning financial and social dealing of an organization should be provided to the media, public, and all stakeholders in an efficient and timely procedure. Any variations in management or strategies are to be provided to the parties stated with immediate effect (McCloskey, 2006). Inclusiveness An organization should be conscious to ensure that there is no discrimination in the processes of hiring, firing, retention, and promotion. All the staff, volunteers, clients, as well as board members of the organization ought to be accorded, given equal opportunity. Fundraising’ While in the process of solicitation, an organization must maintain truthfulness when relating with its donors. The organization must respect all the concerns of donors, with regard to privacy, and only expect funds that are in direct inclination with intents of the donor. The statement of values regarded above is based solely on humanity. Formulation of the principles occurs after incorporation of the process of social imagination. This is whereby one considers the positions of other people before determining how they should act. The Organization’s statement of values is comprehensive of all the issues that staff, management, and clients encounter in their day-to-day relations. The main issue of concern in this stamen of values is honesty. Many a time because stakeholders have varying interests, they tend to operate with each other in a dishonest manner in a bid to have the upper hand. However, the resultant occurrence is usually a long-term damage to the relationship between the subject and the dishonest party. Furthermore, this threatens the survival of the business. If the organization is going to remain relevant in an evolving domain of competition, honesty, and transparency must be embodied within its operations (Ferrell, 2013). The issue of bias is one that usually threatens many businesses. Bias can occur either directly or indirectly. In some cases, bias occurs unknowingly; the biased party is unaware of the actual bias. Therefore, it is important that there be guidelines within an organization that fight the occurrence of bias. The statement of values provided above ensures that bias is not a likely occurrence within the organization. The occurrence of bias, whether knowingly or unknowingly is prevented within the statement (Bailey, 2011). Notably, the statement of values focuses more on humanity and morality rather than professionalism; it is meant to be the moral foundation. Communication and Training Communication 1. It is of extreme importance that every employee is in a position to get a copy of the code of conduct. If this proves difficult, they should be able to access it online using a code. 2. It is important to ensure that employees are well aware of the role that they play in ensuring that the standards laid out within the code are abided to by the letter. 3. The organization should ensure that its own determination and commitment in the provisions laid out are clear and unambiguous in order to give it the utmost solemnity. 4. It is important to ensure that the employees are aware of the various ways in which the utility of the codes comes in otherwise it could be unnecessary (Johnson, 2008). Training 1. The first step is to ensure that each end every employee evaluates the manners in which the code is in appliance with their own responsibility. This also eliminates the occurrence of confusion and ambiguity. 2. The employee is to be informed the decision-making process and behavior strategies that the organization would rather they employ when dealing with challenges as well as conflicts. 3. If the employee notes any ambiguities, they are to be allowed to have a platform of question and expression from which things could be cleared out for him. It is this way they garner a clear sense of direction. 4. They should be given a chance to carry out application of the code to typical; situations in which it is required. The strategies listed above are meant to ensure that the employee has confidence in applying the stipulations of the cod in their day-day practices. The Role of Leadership Setting the Pace As a leader, one must lead by example in following the code of ethics. If one shows any signs of deviation from it, the likelihood is that employees will do the same. All the values and principles stated within the code should therefore be followed at whatever cost. The leaders should embody honesty because honesty is the most important element within a code of ethics. In this way, employees will find it easier to approach said leader if they are finding it hard to interpret or employ the code of ethics. The leaders should also ensure that employees that do not follow the standards of the code suffer consequences (Ferrell, 2013). This will ensure that the others learn from them and understand the importance of the code within the organization. The leaders should commend employees that are outstanding in their appliance of the code of ethics; it is motivated to the other employees to be compliant in order to receive recognition. Acknowledging Ethical Dilemmas The very first step in this regard is to identify situations from which ethical dilemmas arise. In this way, the employees learn which situations are most dire with regard to the application of the code. If the leader teaches the employees to be able to identify ethical dilemmas, then they know when to apply the code. This ensures that both the leaders and the employees are adequately prepared for the occurrence of ethical dilemmas and are not caught off guard. The leaders should ensure that they carry out a reevaluation of situations before taking up an action. This will ensure that the actions they take up are the very best they can. Corporate Social Issues Ethics and Compliance Many a time employees are confused on the difference between the two. While ethics are a guideline, the concept of compliance implies mandatory following of the rules and regulations. Naturally, human beings do not react very well when being forced to act in a certain way. It is important that the entire body of an organization recognize that the guidelines set in place are for their own good and the good of the organization without forcing them to comply with an organization’s desires (Jones, 2005). If this is done, they will be more willing to work by the code. Ethical Decision-Making There exists a difference between typical behavior and ethical behavior. Therefore, there is difference between typical and ethical decision-making. Typical decision-making is usually carried out by the subject of decision making to ensure that they remain on the favorable end of an outcome. Ethical decision making on the other hand is based on truth and morality. An organization’s body should be well aware that it is more important to remain ethical even if the outcome does not quite favor the organization (Ferrell, 2013). Ethical Corporate Culture Many organizations set out to follow a code of ethics but end up defying it after some time. This is especially common when organizations are new and have not yet experienced the challenges of being in a competitive domain. It is important that the organization make an effort to ensure that the standards required are set in such a way that their occurrence is on a long-term basis. it is important that they ensure that ethical behavior becomes properly instilled as a culture within the organization. The establishment of new laws that affect an organization could set it back greatly. This is because if the organization is already used to working in a certain way they may have to operate in new ways. The adaptation of an entire organization’s body into new mechanisms of operation could prove entirely difficult. The majority of times, if employees are not able to adapt quickly and efficiently to the new laws the progress that an organization may have been making stalls. There is also the temptation to stick to the old way of operation and completely ignore the new rules. Many organizations do this in a bid to ensure that they do not have to waste time shifting strategies and mechanisms so long as the law enforcers are not aware of this. This is very unethical. An organization that has done its research and has intent to be successful should be flexible. Flexibility is usually considered in terms of changing market structures while in essence, it should be flexible in all capacities. Organizations should be aware that there is good chance of regulations that affect it changing and they would have to do so. The organization should be prepared for any such occurrence and ensure that all the laws and regulations within it are compliant with the new federal laws. Employees should be well trained to ensure that they too embody the element of flexibility (McCloskey, 2006). If the management is flexible and the employees are not, then in truth, the organization is generally inflexible. This issue needs preparation because it affects an organization’s relationship with law enforcement. Monitoring and Review If an organization’s code of ethics is going to stand the test of time, there must be a monitoring system to observe its progress. There are two types of monitoring systems; a. Ongoing Monitoring and Review This is whereby monitoring is carried out every so often. This ensures that the management monitors the code of ethics observation every now and then. In this system, a variation in compliance is noted with immediate effect. It is usually carried out through analysis of firstly, appraisals. The achievements that employees have made in following the code of ethics is noted through said appraisals. The second aspect is the analysis of internal reports made by various departments. Even if an organization is not large per say it must have various subsections within it, from which progress is evaluated. The last and most important part of this system of review is customer feedback. The client is the final say on whether or not the code of ethics is being followed. b. Periodic Review This is carried out after long intervals of time. This kind of review is usually beneficial as it allows the code to be embedded naturally into the system and then reviewed as opposed to being checked every now and then. Constant review may make people either wary of pursuing certain elements whilst periodic reviews allows for channels of exploration. This kind of reviewing is especially suitable for large organizations where the workload is too heavy and there are many matters of concern. However, this review could also cause laxity and carelessness as people forget that the code even exists. This kind of monitoring and review could kill the solemnity of the code. Organizations must ensure that they embody principles that are correct by international standards. This ensures that they are suitable as a service or product provider for any part of the world. The primary principles; a. Human dignity An organization must respect the concept of humanity. The code of ethics must protect employee, management, and clients from any acts that could qualify as inhumane. There are certain elements that should be included to see to this. These are such as freedom for self-determination, right of association, identification, and enhancement of individual strengths. b. Professionalism The organization should always ensure that the conduct is well in line with the expected principles of international professionalism. The organization is to be designed in a such a way that were it to relocate to any part of the world, the conduct of the management, employee body and board would be regarded as professional by all means. It is to stay in line with the provided International Labor Organization’s stipulated code of conduct. c. Social Justice This has become a key element in all aspects of society; economics and business included. It is important that fairness and lack of bias be upheld so that everyone feels comfortable. Biases such as nepotism, tribalism, and racism should not be condoned. For an organization’s ethical foundation to be internationally qualified, it should be aligned with set standards of international conventions such Universal Declaration of Human Rights and The International Covenant on Civil and Political Rights The above are all the properties that are of the utmost importance in a code of ethics. Although codes of ethics generally differ depending on the field in question, the values and principles embodied within them are generally the same. The code of ethics laid out above is primarily suitable for a business venture and not for vocational or charitable organizations although some sectors of it are suitable in the latter regard. It has laid out its focused on the areas of common interest that come up in various business ventures. The code is also in accordance with all the specified scholarly requirements that are in provision when it comes to its creation. In summation, the code has embodied humanity, morality, and professionalism as the main themes within which it is centralized. References Bailey, J. A. (2011). Strengthening ethics and compliance programs. Internal Auditing,. Retrieved from Proquest Database Web Site. Dimauro, L. G. (2006). Ethics. Detroit: Greenhaven Press. Ferrell, O. F. (2013). Business Ethics & Social Responsibility. Singapore: South Western Cencage Learning cop. Johnson, W. (2008). The elements of ethics : for professionals by W Brad Johnson . New York: Plagrave Macmillan. Jones, C. P. (2005). For business ethics. London: Routledge. McCloskey, D. (2006). The bourgeois virtues : ethics for an age of commerce. Chicago: Read More