Business Ethics in the Business World - Essay Example

? Business Ethics in the Business World The business world is surrounded by individuals who are out to benefit themselves. This creates stiff competition among all the corporations present. However, the manner in which they go about getting their profits is questionable. Society always has a difficult time trying to identify which groups are out for their immediate needs. Organizations that are in place to identify how businesses conduct their operations are also under close scrutiny. This is to measure if the work they are doing is commendable, or they fall under the same category as the perpetrators of white collar crimes. The codes of ethics are meant to measure the extent to which organizations can go in term of looking for money. The lack of a monitoring system can lead to many organizations spiralling out of control, making society feel the extent of shrewd business people. The growth and expansion of the global community is not helping matters. It becomes harder to monitor businesses that operate across the international border lines. However, government agencies are in place to ensure the safe operation of businesses to reduce crimes that arise through business operations. As humans, it is easy to come by ethical dilemmas. In order to rise above the challenges, it is critical to make split-second decisions to protect the integrity of one’s business. This will ensure that society benefits from business conducted in an ethical manner. Business Ethics in the Business World Every business organization must have a code of ethics that it adheres to, to form a conducive surrounding for its employees and clients. This behaviour is what regulates the manner in which the organization deals with groups in its midst. Business ethics dictate how a business, not only deals with international groups, but also, its single clients. Many individuals, the world over believe that businesses are only out to make a profit for themselves. This gives businesses a poor reputation among the people they intend to serve. To some extent, this may be true. However, not every business is out for their interests (Flynn, 2008). It is the manner in which they go about getting money that questions their behaviour with regards to ethics. This paper will examine ethics in the world of business, and how they may work in favour of growing businesses. For business to be considered good business, it must adhere to the code of ethics that binds every field in the world. These ethics must be part of the business. This is to allow individuals to associate themselves with something that is legitimate and honest. Business ethics that are in place should eliminate the exploitation of poor people. These are individuals who might not have a choice as to the work they do to make ends meet. The public has a tremendous role to play in ensuring organizations play their part in following business ethics (Ghillyer, 2010). They should advocate for the growth of monitoring groups that may monitor the large corporations present. As the competitive markets expand, it is becoming harder and harder to know which corporation is following correct ethics in their business dealings (Flynn, 2008). It has become a common occurrence to hear of the hefty amounts of fines companies are paying. They are paying these fines because they violate the codes that are in place to ensure a healthy competitive market. Soft drink companies usually face the full brunt of these fines. Honesty, in today’s business world, is the farthest thing from people’s minds. Insider trading in some of the top companies allows for individuals to trade and make a killing through information provided. This is at the cost of other, less fortunate people. Many folks believe that the standards in business are no longer present. There might be some truth to these claims. There is no reliable source of information about what goes on in these businesses. Corporations want to cover up and protect their own dealings so as to make more money from innocent, hardworking individuals. To some corporations, the ethical lapses that exist are considered minute. However, these small ethical imbalances add up and grow with time. They grow to become serious situations that grab the attention of many institutions around the world (Flynn, 2008). One of the most common factors that lead to a lapse in ethics in an organization is the lack of trust. This is also among the most affected principles in the business field. If there is any mistrust among partners in any business dealing, there is bound to be the breaking of ethics in the business environment. Once this principle is broken, it is hard for clients and partners in the field to ever have a trusting relationship with the perpetrators. The lack of trust can destroy relationships in and out of the organization (Ghillyer, 2010). This may be between the employer and the employee, the organization and its clients, among other elite groups. A breach of ethics in business is often between small groups of individuals, but might lead to the collapse of the business. Whenever there is a rise in ethical lapses, there is a decline in the business’s operations. Employees often become less productive whenever there is little regard for ethics in the workplace. Everyone wishes to be respected while working. If these wishes are not respected, they end up being less happy. This means their productivity levels become low. Their loyalty to their employers follows shortly afterwards. This loyalty starts to dwindle with every breach, and erosion of employee satisfaction becomes eminent. This tension bubbles over to clients and the business is in jeopardy (Flynn, 2008). There is the issue of morality and political interference in the world of business. Today, most of the business and corporate world is controlled by a few minority groups, with a lot of influence. There are political angles at which many business decisions are made today. This prompts many folks to believe that businesses are controlled from these political angles, to benefit the upper class of people. The political interference has caused ethical codes to be pushed into the backburner. This is as people struggle to find a way through business dealings, so as to find out if they are honest and truthful. What individuals need to understand is that business ethics have little or nothing to do with public opinion, or beliefs about the political jargon (Ghillyer, 2010). Ethical behaviour or ethics in business is a personal issue, which should focus on helping individuals become honest and truthful in their daily operations. Corporate social responsibility is a term that is coming up in the business world. It stands for the relationship that is exhibited in the workplace. It is out to cater to the people in this working environment, and ensure their wishes and desires are met (Flynn, 2008). There are awards that are handed out to members who uphold corporate social responsibility. However, awards for members who uphold business ethics are hard to come by, and particularly rare. Over the years, ethical behaviour has not gotten the recognition it desperately desires. Advocacy groups need to come up to address these situations in the different fields available. This is to protect the image of the businesses present. There are a number of cases that have been reported on the rise by ethics surveys in many regions. They tend to recognize issues on the rise to assist employees address these scenarios. It is hard to recognize the presence of unethical behaviour in the organization, and this may be dangerous to all those involved (Ferrell & Fraedrich, 2012). In the event business is considered a game, there is a risk that all rules may not be followed. Unethical and illegal stunts are pulled by individuals in high positions so as to maximise the profits that a business may gain. Some of the aspects of business in place may determine how individuals relate to the lack of ethical practices in the workplace. These aspects include; annual revenue of the business, the business’s earnings per share, and its return on sales, among other issues. These may prompt employees to overlook the ethical boundaries that bind the operations so as to attain the set objectives. Table showing recorded unethical cases in a span of two years by the National Business Ethics Survey, 2009. (Ferrell & Fraedrich, 2012). Recorded Misconduct 2007 2009 Abusive behaviour Sexual harassment Safety or health violations Discrimination Improper hiring practices Stealing Environmental violations Internet abuse Conflicts of interest 21% 10% 15% 12% 10% 12% 6% 18% 22% 22% 7% 11% 14% 10% 9% 4% 18% 16% The evolution of business ethics depends on the setting up of ethical movements that cater to the rising needs of employees. Managers and company CEO’s are reported to having set up codes of conduct in the workplace. These codes help employees form the perfect environment to conduct the organization’s operations while maintaining an exceptional working relationship with each other. Many individuals believe that ethical behaviour and mannerism start at the top of the organization’s structure. If the business is headed by a corrupt individual, it may be hard for employees to work while bound by ethical codes. One impression, unethical leaders give their employees is that, ethical behaviour is not crucial in the workplace (Shaw, 2010). Leaders are supposed to set the tone for the rest to follow. Consistency in earning revenue must also be displayed in the following of codes of conduct. They dictate the mood by which every employee must follow, and ensure employees are consistent with their values and principles. By communicating the ethical codes in the workplace, leaders consider themselves the backbone of the corporation. This may prevent an increase in cases from members of staff about the lack of ethics in the working environment (Shaw, 2010). By following these codes, the business is considered as having put ethical practices as the backbone by which the business supports itself. It is imperative that businesses do this to facilitate exceptional results. This is in terms of revenue and behaviour in the workplace. Money and time are being spent to ensure that ethical codes are followed in the business world. Companies and their management teams are paying to have their employees taught the value of healthy behaviour in the workplace. When making business decisions, managers and company officials are often faced with dilemmas or unsettled scenarios. This may make them choose the easier way out, to save the company and some extra capital. The presence of professionals may assist them in looking for ethical solutions to their problems while still saving some capital (Ferrell & Fraedrich, 2012). These problem solvers are looking at the bigger picture in terms of saving the business’s image, and retaining their clients. The dynamic nature of the business environment is bringing new challenges to management. It is, therefore, critical to have professionals guide individuals in doing the right thing. The deteriorating state of ethics is a matter of concern. However, a survey by the National Business Ethics Surveys (NBES) established that there has been improvement in the manner in which businesses are handling their issues. Some of the practices that businesses conduct may give them points among people who value their business operations. Among these practices include things like; recycling, using energy that is renewable, and the use of minimal packaging, among other things. All these give consumers of products by businesses to be more invested in the company’s operations (Ferrell & Fraedrich, 2012). This leads to the growth of the business corporation, and its gradual expansion. Graph showing consumers’ favourite practices by businesses by the National Business Ethics Survey, 2009. (Ferrell & Fraedrich, 2012). The choices that a company opts for may be the difference between increasing customer loyalty, and losing them to competitors. When a company is unethical in some of its practices, say disposal of waste, they run a high risk of losing their clients. This is because; the environment in which individuals live in is at a vital phase. Preserving this environment is tantamount to the growth and development of future generations. If companies do not value this, clients and customers opt for choices that are clearer about their waste management policies. In this changing environment, people want a safe environment. Presently, almost every company is coming up with policies that are environmentally safe (Ferrell & Fraedrich, 2012). They know that individuals are keen on preserving the environment, and will be drawn to companies that do the same. The dynamic approach companies are taking on the issue of ethics is influential in the results of their operations. Hiring ethical compliance officers ensures that every employee in the company adheres to the rules and regulations at the workplace. Documents are being created that offer assistance to the many employees about ethics that have meaning. Failure by any member, regardless of their position, to follow the required rules may lead to consequences. By determining the areas that are most prone to ethical dilemmas, the experts hired may train, coach, and prepare employees on the mannerism to uphold when faced with such scenarios (Shaw, 2010). Once these areas are identified, the proper messages may be sent out to ensure people react the way they should at the workplace. In recent times, businesses have been wondering of ways in which they can measure ethical behaviour. Many institutions are wondering whether this behaviour can be measured as productivity, efficiency, and consistency often are. If this is possible, employees may be highly motivated to uphold ethical behaviour at the workplace. It may act as any incentive that is present in the working environment, such as bonuses or promotions. Innovation must come up to measure the levels of ethics by individuals (Ferrell & Fraedrich, 2012). This may work to the company’s advantage and the leaders of the company. The presence of the compliance officers may improve the relations in business. Introduction of hotlines that assist in reporting any unethical behaviour must begin in businesses. The presence of such measures in the workplace may act as a notice to all associates in the organization. They might consider staying away from unethical practices for fear of the consequences. It may be a warning that ethical violations, by any party, will be prosecuted. The number of cases is bound to reduce after the introduction of such practices. Being proactive when it comes to the company’s operations may restrict members from acting out, hence; identifying and preventing unethical behaviour before it taints the business’s image. With the presence of the hotlines in the workplace, employees may have channels to discuss the situations that may constitute to unethical practices. They will do this discreetly to avoid uncomfortable situations with fellow workmates (Ferrell & Fraedrich, 2012). Many companies are taking the step to make ethical behaviour part and parcel of their operations. As they do this, they will get familiar with the idea of dealing fairly in the business environment. Every field in the world today needs an ethics approach to any of their operations. This may guarantee them safe access to the expanding market while ensuring their growth and continuity. Companies should borrow a leaf from firms that have made ethical behaviour their daily bread. An example of such firms includes accounting firms that are bound by ethics in their everyday operations (Shaw, 2010). In the event, they go against these codes; they are likely to get shut down for illegal business trading. In conclusion, to improve all fields in the world, it is imperative to incorporate ethics in the working environment. Starting business ethics classes may create an avenue for individuals in the working environment to better understand what is required of them. Ethical dilemmas are easy to come by; handling them is the hard part. To better manage the situation, everyone needs to get involved (Ferrell & Fraedrich, 2012). Ethical decisions need to be made in split seconds to allow the firm to stand on solid ground. This should be the foundation every business organization should be founded on, and everyone must take responsibility for their actions. References Ferrell, O. C., & Fraedrich, J. (2012). Business ethics: Ethical decision making & cases. New York: Bantam Books. Flynn, G. (2008). Leadership and business ethics. London: Routledge. Ghillyer, A. (2010). Business ethics: A real world approach. New York: PULP. Shaw, W. H. (2010). Business ethics: A textbook with cases. 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