Business Ethics - Research Paper Example

Business Ethics Part 1 There is considerable evidence of the issues relating to working in unsafe conditions. Ferrell & Ferrell (2011) explain that the biggest risks and dangers that workers and employees are exposed to when working in unsafe conditions are health risks. Evidence points that there is an increasing likelihood for workers to contract illnesses and get injuries because of working in unsafe conditions. Unsafe working conditions may also result to the death of a worker during work. Unsafe working conditions include; Working with the wrong type of tools and equipment Working with tools and equipments that a worker does not have training on Working long hours without shifts Lack of proper maintenance of tools, machines and equipments Lack of warning systems such as warning posters and the fire alarm system Lack of consistence inspection of the working conditions Lack of maintaining injury records and that of other work related illnesses and injuries Failure to advice the workers of the risks and dangers they are exposed to, as well teaching them on how to ensure safety at work (Bonn & Fisher, 2005). Working in unsafe conditions has been found to result into fatigue, as well as an increase in the number of errors among employees Trevino & Nelson (2010). This could mainly result from having employees use equipments and tools they have very little or no training at all on their usage. Working in strenuous conditions, and for long hours exposes the workers to mental fatigue and physical problems. It is impossible to have a sustainable livelihood while working in unsafe conditions. There is a need for all companies and employers to promote the adoption as well as improvement of the set ethical standards and practices in the working place. It is important to enact and ensure that there is a legislation to make employers provide safe working conditions for their employees. It is also essential to consider the relevant ethical standards related to the enhancement of safety at work while enacting such rules and legislations. Enacting clear ethical standards is the first step in ensuring the provision of safe working conditions for all workers. This is important because it does not only prevent injuries and illness to the workers, but it also ensures that the workers enjoy the freedom of their rights as employees (Crane & Matten, 2007). Every worker has the right to work in safe conditions. Ethical standards involves ensuring that there is proper maintenance of the working equipments and tools, proper training of workers on how to use the machines, functioning warning signs and systems. Employees also have the right to say no to working in unsafe conditions until. Part 2  Business code of ethics Business code of ethics indicates commitment to high ethical standards in all that the Jericho construction company does. The business codes of ethics are also an indication of the integrity of the company in delivering quality and adhering to its course in the construction business. They define the conduct standards that the company expects from the management, workers and employees in order to help in making the right decisions in the course of work performance. One of the most important and crucial business codes of ethic in this company is conflict of interest (Schwartz et al. 2005). All employees and management of the company should ensure that there is overriding personal interest and business interest. In such a case, the workers or the management having a conflict of interest should step aside and resign. This is because they make decisions against the interest of the company for their own sake. The directors, managers and employees should disclose any potential or actual conflict of interest to the company management. The management may hence advice the individual on the course of action to take. All employees and the management should recuse themselves from any company discussions that affect their personal, professional and business interests. Conflict of interest arises because of the company's interests and relationship with several clients, suppliers and counterparties. The employees should bring to the attention of directors, any conflict of interest; the employees are also responsible for remediating and identifying conflicts in accordance with the policies and regulatory framework (Crane & Matten, 2007). Another business code of ethic is related person transactions. Every employee and the members of the executive are required to abide to policy on related person transaction. This sets onward the consent of transitions that involve the directors and executive officers of the company (Bonn & Fisher, 2005). As such, the officers should ensure that they observe this policy at all times. Personal borrowing and lending is a related party transaction that the executive should observe. The company cannot extend credit to the executives unless in certain limited circumstances. The company also permits involvement of the members of the company management to involve themselves in political interests to the extent that the law permits. Nevertheless, the company prohibits contributing to political officials if the intentions of the contributions are to influence award of tenders, contracts or retention of the company business. In addition the company code of business ethics prohibits the employees and more so the executive members from giving gifts and entertainment. While the entertainment and gifts may foster the business goodwill of the company, concerns arise when they appear to compromise the proprietary of the company business relationships thereby creating potential or actual conflict of interest. The company officer may give or receive gifts to a certain level as the code of ethics dictates. The company does not entertain any form of bribery. In actual practice, the company does not allow promising, offering or authority to others to give anything of value to any party directly or indirectly in order to gain unfair business advantage. It is the company policy to maintain accurate records and books. The legal and professional requirements provide that the company must maintain accurate records and books of the business activities. The company must ensure financial information in the books and records comply with the relevant regulations and requirements of the professional bodies. The records and books must be accurate in all material respect. The company must compile and establish policies as well as processes that comply with retention of records and the ability of any person to retrieve the records and documents for regulatory and legal obligation (Ferrell & Ferrell, 2011). As such, the company hires employees with good qualifications and familiar with financial and nonfinancial recordkeeping procedures to handle and ensure that the company complies with the relevant regulations and requirements. It is the company code of business ethics that none of the company employees or management should profit or enable others to profit from inside information concerning the company performance, internal problems or the financial stability. Lastly, the company promotes and creates a culture of open and honest communication. The company ensures that every person feels comfortable particularly to ethical concerns. As Logsdon & Wood (2005) outlines, the company encourages managers to create a favorable supportive and open environment for the employees so that they feel comfortable. To achieve this standard the company has regular get round table sessions that bring the managers and the employees together to iron out some concerns and issues that affects their work performance and the ethical issues in the company. These sessions are very fruitful because it encourages the employees to speak out their mind on what they encounter while working and how best the company can address such issues. The human resource department has been very active in bringing out the best out of the employees. This encourages them to adhere to the company business code of ethics. Part 3 Applying the proposed code of ethics As many ethical issues arise in the workplace in the course of carrying out business. Comprehensive understanding and knowledge of the types and forms of ethical issues helps a leader to handle and identify such issues in a responsible manner and therefore maintain the essential values of the business (Bonn & Fisher, 2005). One such issue is conflict of interest. This is a very serious issue in many businesses and it arises where an employee or management have multiple interest and thereby corrupts actions concerning the other. A leader can use the code of ethics to conflict of interest. A leader should ensure that no person in the organization should be assigned task activity or function in which there may be overriding interests. Leaders should encourage every person in the organization to disqualify him or herself wherever there is conflict of interest. Leaders should also emphasive a stern warning on the consequences of multiple interests in the organization. Good use of company resources may also present ethical issues. A company may offer privileges to the employees as a sign of good work or goodwill. A leader should encourage the employees not to exploit the kindness of the company by using them unfairly and inappropriately. Workers and any person in the organization should not use the business connections and relationships to gain personal advantage. As a leader, it is very important to apply the business code of ethics. A leader can use the ethic of maintaining accurate records and books to prevent accountants and other persons from keeping or preparing two sets of books. Accountants bend rules sometimes and it is unethical practice for any person in the organization to maintain two sets of records and books. Using this ethic, a leader can help an employee to prevent such unethical practice as Logsdon & Wood (2005) pinpoints. This is because it brings in light the consequences of such practices and proper mechanism of detecting the practices early enough. Conscience is a very important mechanism that a leader can use to apply the code of ethics. Empowering the employees and creating an open and honest culture prevents unethical issues such as bribery and theft of the company resources. It also prevents unethical standards such as disclosure of information to third parties and use of company information for personal gain. As Crane & Matten (2007) asserts, a leader can use the information power to help the company employees to distinguish between what is right and wrong as well as judgment from responsibilities. Poor sense of right and wrong leans towards weak ethical standards and therefore building strong conscience is very important in preventing unethical issues and practices in the company. The character value and integrity of a leader can aid in making the proposed code of ethics a valued part of everyday work life for the company. A leader should act in the best interest of the organization thereby indicating a good example to the rest of the persons in the organization. A leader should make moral decisions concerning the business. By integrity and following thorough and careful thought of the organization business principles, the manager gives an opportunity to the persons in the organization to follow suite and achieve sustainable success for the business. A leader should have knowledge of the ethical issues and the proposed code of ethics so as not to follow them and enforce them as well (Schwartz et al. 2005). References Bonn, I., & Fisher, J. (2005). Corporate Governance and Business Ethics: insights from the strategic planning experience*. Corporate Governance: An International Review, 13(6), 730-738. Crane, A., & Matten, D. (2007). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press. Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2011). Business ethics: Ethical decision making and cases. Cengage Learning. Logsdon, J. M., & Wood, D. J. (2005). Global business citizenship and voluntary codes of ethical conduct. Journal of Business Ethics, 59(1-2), 55-67. Schwartz, M. S., Dunfee, T. W., & Kline, M. J. (2005). Tone at the top: An ethics code for directors?. Journal of Business Ethics, 58(1-3), 79-100. Trevino, L. K., & Nelson, K. A. (2010). Managing business ethics. John Wiley & Sons. Read More