Can Management Be Trusted to Act with Integrity in Todays Complex and Variable Business World - Coursework Example

Can Management be trusted to act with Integrity in today’s complex and variable Business World? Student’s Name Institution Affiliation Can Management be trusted to act with Integrity in today’s complex and variable Business World? Integrity standards and business ethics must form the foundation of any business. Any successful business needs to uphold honesty, commitment, objectivity and honesty towards its various stakeholders in order to gain the reputation and integrity expected of businesses (Orts & Strudler, 2009). Ethical standards require business organizations to give all information in very clear and accurate ways possible. This requirement means that businesses are supposed to observe professional rules as well as the potential harm of being unethical towards various stakeholders (Ferrell, Fraedrich, & Ferrell, 2012). In the course of conducting business, the business people should use judgment and reasoning in resolving ethical conflicts. Thus, any business should display motivation and moral integrity in application of any resolutions pertaining to the business. Businesses stakeholders always determine whether given behaviors are ethical or not. The stakeholders comprise of investors, legal systems, the community, employees, and customers. Most businesses do not uphold integrity because they are more concerned about making profits while at the same time ignoring their social responsibility towards their stakeholders (Trevino & Nelson, 2010). Given opportunity, most businesses would exploit the public especially where they feel they will be able to get away with it. This even goes further to bigger and long-established firms. It is never a guarantee that such companies can make durable and safe productswithout moderation from the government or consumeroversight bodies. Most businesses ignore their philanthropic obligations and social responsibilities of increasing positive effect while at the same time minimizing the negative effects in the community they serve (Carroll & Shabana, 2010). Some businesses, especially monopolies do not pay close attention when it gets to social responsibilities. This particularly occurs in different areas like economic satisfaction to their investors, obeying the existing legal frameworks, or acting in expected ways. Some businesses in fact go to the extent of ignoring to give back to the community resulting to increased cases of unethical behavior by organizations (Carroll & Shabana, 2010). The society usually has expectations in terms of the right or wrong effects a business is supposed to generate. The Need for Business Ethics and Integrity Businesses heavily depend on ethical standards whether the management of the business is aware or not. Unless the creditors, managers and investors gain confidenceabout the business practices of their employees in straightforward, honest and in line with the standards in the industry, it is highly likely that their creditors or investors may be exposed to fraud risks (Hartman & DesJardins, 2008). This is bound to happen in cases where integrity and accounting ethics are not upheld. This can also undermine the larger market’s trust. It is mandatory that businesses comply with integrity and ethical business acts in order to give customers, investors or creditors a value proposition for their money. Several organizations undertake measures, which ensure that the businesses are ethical compliant. The federal government takes up preventative measures against misconduct by businesses. These are steps aimed at reduce exploitation of consumers by business organizations (Murphy, 1988). Customers, investors, and employees are big concerns for companies that intend to develop competitive advantage and loyalty. The aim of such organizations is increasing the dependence of customers and offering services and products in a fair environment of mutual respect. This would go a long way into creating relationships, which would be satisfying with the employees. Furthermore, the relationships with investors would be supported based on dependability, trust, and commitment (Murphy, 1988). Reasons for Unethical Behaviors by Businesses Many businesses opt to be unethical because of a number of reasons. These include tight business objectives, which the businesses have to meet. Businesses cheat in order to save jobs and to assist them to survive (Newell, Goldsmith & Banzhaf, 1998). Other businesses in trying to resist competitive threats usually engage in unethical behaviors, which drive them into unethical behavior. Some examples of ethical issues that have risen include increased bribery, accounting fraud, employee theft, deceptive advertising, selling defective goods, insider trading of bonds and stocks among others. Most businesses in the times modern are composed of takers. This means that their own selfish interests motivate them to act unethically at the expense of their customers. This also includes business leaders who are inspired by their ego as opposed to empathy. Some business managers are usually power driven and are quick to take other peoples work to suit their personal interests (Kasanoff, 2013). Many customer-driven initiatives assume the takers mindset. Their main interest is boosting sales or automating marketing while ignoring putting the interests of the customers first. Unless compelled by the activities of their competitors, most businesses would be reluctant to provide new services or benefits to their customers. Such businesses pretend to design customer initiatives, which they know very well, would enormously frustrate assisting the same customers. Such maneuvers would entail cumbersome procedures and policies that would steal from the customers again (Doyle, 2000). Ways in which Businesses act Unethically towards Their Customers The mentality of taking usually leads to development of systems, which harden the customer’s efforts to take action against companies, which want to steal from them. For instance, some businesses can charge their customers for monthly services, which the customers have not used for a long time (Goodman, 2008). Many businesses make incorrect statements and in this process, they create false impressions towards their customers, investors, or clients. This usually happens through false advertisements, in packaging their products, and information provided to customers by their staff common in online markets. Other businesses go a step further into making misleading statements over the media, and in testimonials contained on their social media pages and websites (Goodman, 2008). False claims made by businesses could be premised on the models, style, quality, or background of their service or product, status of their products, sponsors of their products, performance characteristics, benefits, accessories and in the use of their commodities or services. The businesses might also lie about the availability of after sales services, spare parts or repair facilities (Porter, 1996). Most businesses defraud their customers through misleading comparative advertising. This usually sends the wrong signals by making inaccurate or inappropriate comparison of products. Bait advertising usually occurs when adverts promotes particular products which are not available or in very limited amounts. False advertising is associated with exaggerated claims, ambiguous statements, concealed facts, lying, or inaccurate labeling of commodities (European Commission, 2012). Regulatory and Legal issues in Business Ethics Despite stringent measures put in place to cushion customers from unethical business acts, many businesses still boldly mislead their clients in promotions, quotation, advertisement, or other misleading statements associated with the value, quality, and price of goods and services offered. Such behavior is a breach of the law (Caudill & Murphy, 2000). The government creates laws and regulations in order to setup the standards of the behavior expected of businesses (Caudill & Murphy, 2000). Laws are necessary because businesses cannot be trusted by the society to act for the society’s good. Laws define the individuals and organization’s rights and duties. Criminal law imposes punishments and prohibits acts, which would compromise the integrity of businesses to ensure that the law is maintained. Most laws, which affect business organizations, fall into a number of categories. These include laws that regulate competition by preventing restraint of trade, protection of consumer’s safety, privacy, and disclosure. Other laws include protection of safety and equity, and laws, which protect the environment. An example of a law that protects the environment is the Federal Sentencing Guidelines for Organizations, Sarbanes-Oxley Act (Perino, 2002). Laws require that consumers should be provided with accurate information about services and products in line with safety standards. Vulnerable people particularly need special legal protection against deceptive, fraudulent, or unfair practices. Many organizations, which exploit resources and pollute the environment are to be moderated by laws which protect the environment by ensuring that businesses conduct proper disposal of wastes and toxic substances (Baron, 2003). Conclusion In summary, ethical standards require that business organizations provide all information in accurate ways possible. Most businesses do not uphold business ethics because they are more concerned about making profits while at the same time ignoring their social responsibility towards their stakeholders. Many customer-driven initiatives assume the taker mindset rather than the giver mindset. Their main interest is boosting sales or automating marketing while ignoring to put the interests of the customers first. From the analysis above, it is clear that the management cannot be trusted to act with integrity in today’s complex and variable business world. References Baron, D. P. (2003). Business and its Environment (p. 2). Englewood Cliffs, New Jersey: Prentice Hall. Carroll, A. B., & Shabana, K. M. (2010). The business case for corporate social responsibility: a review of concepts, research and practice. International Journal of Management Reviews, 12(1), 85-105. Caudill, E. M., & Murphy, P. E. (2000). Consumer online privacy: legal and ethical issues. Journal of Public Policy & Marketing, 7-19. Doyle, P. (2000). Value-based marketing. Journal of Strategic Marketing, 8(4), 299-311. European Commission (2012). Misleading Advertising. Retrieved from http://ec.europa.eu/justice/consumer-marketing/unfair-trade/false-advertising/ Ferrell, O. C., Fraedrich, J., & Ferrell, L. (2012). Business ethics: Ethical decision making and cases. United Kingdom, CengageBrain. com. Hartman, L. P., & DesJardins, J. R. (2008).Business ethics: Decision-making for personal integrity and social responsibility. New York, NY: McGraw-Hill/Irwin. Goodman, R. (2008). The luck business. United Kingdom, Simon and Schuster Publishers Kasanoff, B. (2013). How to Get Ahead: Lie, Cheat and Steal. Retrieved from http://www.linkedin.com/today/post/article/20130718122906-36792-how-to-get-ahead-lie-cheat-and-steal Murphy, P. E. (1988). Implementing business ethics. Journal of business ethics, 907-915 Newell, S. J., Goldsmith, R. E., & Banzhaf, E. J. (1998).The effect of misleading environmental claims on consumer perceptions of advertisements. Journal of Marketing Theory and Practice, 48-60. Orts, E. W., & Strudler, A. (2009).The ethical and environmental limits of stakeholder theory.Business Ethics Quarterly, 12(2), 215-233. Perino, M. A. (2002). Enron's Legislative Aftermath: Some Reflections on the Deterrence Aspects of the Sarbanes-Oxley Act of 2002. John's L. Rev., 76, 671. Porter, M. E. (1996). From competitive advantage to corporate strategy. Managing the multibusiness company: Strategic issues for diversified groups, New York, 285-314. Trevino, L. K., & Nelson, K. A. (2010). Managing business ethics. New York, Wiley.com. Read More