Ramadan Cooperation - Code of Ethics - Case Study Example

of ethics Ramadan Cooperation of Ethics Introduction Business ethics are the principles and standards that guide behavior in the business world. In organizational management, the virtues and ethics are a prerogative to the success of the business. The mission of every business institution is to make realistic profits, and this depends solely on the management of the business. The business steering personnel consisting of the chief executive officers and the board members in the management hierarchy   should diligently exercise their powers in an ethical manner. The main objective of every business institution is to make realistic profits.  Ethics are developments of standards and guides whom the society expects her members to up-hold at all times (Gensler, 2011 p.130). Ethics are based on the factors associated with the morals, values, and beliefs. The moral behavior is necessary for the growth and development of a business. The inflated remuneration packages for the senior management officials in the business institutions are common nowadays. This therefore calls for the recruitment of the persons with high integrity to the higher cadres of management in business institutions.  The organizations ethics are build basing on the ethics of the individuals involved in the running of the business. Proper mechanisms must therefore, be put in place to ensure that the management officials observe the business and the office etiquette at all times. This will eradicate some vices such as the misuse of power amongst the chief executive officers and the directors especially in the recruitments and the handling of the employees’ welfare.. A business entity strives to make profit in order to meet the expectations of its shareholders. In attainment of this goal, businesses have to go beyond products, jobs, distribution, and effects of supply and demand. This is because a business remains a member of the community in which it operates. Managers in today’s corporate world have are obliged to consider the expectations of business owners, employees, customers, and the community. Importance of business ethics The modern market place calls for ethical considerations in pursuit for profit, safety in the workplace, employee rights, social and environmental concerns. Better business performance as measured in terms of increased profits and economic progress, is achieved by business organizations that meet the expectations of their owners, customers, suppliers, investors, their employees and the surrounding environment (Jennings, 2006 p.90). High ethical standards require both businesses and individuals to conform to sound moral principles. Organizations intend on maximizing profits and at the same satisfy its stakeholders must institute a code of ethics. Its full implementation enables the organization to conduct its activities in a responsible manner. The organization has goals beyond profit that define the enterprise, inspire, and guide its employees. This is because the organization’s goals help employees to appreciate the vision behind the specific goals, measures, and actions. This understanding brings greater acceptance of and commitment to the goals especially if they are in line with societal values. Business Code of Ethics Modern day businesses see the need to uphold best practices that govern how they deal with their employees, suppliers, the community and their environmental impact. A code of ethics is a management tool used to enhance good corporate governance. It helps business owners and managers to ascertain the impact of the financial, social, and environmental aspects of the business impacts on the organizations activities. This is because managers are able to understand core beliefs, participation, responsibility, knowledge sharing, and methods of conflict resolution. The code also enhances formulation of management practices that meet stakeholder expectations. It enhances top-level management decisions. Many business enterprises have seen the need to globalize their operations. This is because a company increases its market share and reaps from the benefits of diversity in its human resources. Globalization enhances competitiveness (Ferrell, 2009). There would be need to strike a balance between emerging global norms, values, and the best business practices of the community. There are also many challenges facing businesses in emerging market economies. The formulation and implementation of a code of ethics therefore calls for great awareness to local values, norms, and standards. A code of ethics recognizes that a business is an important part of the community and is prudent enough to contain all the cultural, religious, and legal differences. This is also true with the sanctity of the rule of law. A legal framework that encompasses reliable judicial institutions is integral to a robust business environment. For example, employee theft cases at Ramadan Cooperation should be handled in a free and fair manner as per the law. The legal system oversees the formulation of contract laws, laws on privatization, labor dispute resolution, and laws on manufacture, distribution, and storage of goods. A code of ethics is a statement that stipulates the rules and regulations governing the operations of an organization. They are formulated to cater for the challenges facing the organization with respect to management styles, and organizational culture. Code of Ethics for Ramadan Cooperation Disclaimer to the Code of Business Ethics It is imperative that, this code does not cover all the situations that stakeholders may encounter at Ramadan Cooperation. It is a guide highlighting key issues and identifies policies and resources to help stakeholders to arrive at responsible decisions. Management All management levels should always strive to minimize business risk, use business resources prudently, engage in legal and ethical behavior. They should also be responsible to the community and the environment. Customers The company has the following responsibility to our customers in line with our policy of providing quality products and service (Achua & Lussier, 2009 p.78). The company always strives to provide quality, safe goods, and service. We work diligently to represent products and services by communicating clearly, so that there is no misunderstanding. The information you as the esteemed customer provide, such as credit information, is treated with utmost confidentiality. In addition, we ensure accurate billing procedures. Employees and the company In respect to the responsibilities and relationships between the company and its employees, there should be mutual respect for one another. Promotion is on merit based on equal opportunity. Employees have a right to privacy. Personal communication including internet and email conversations are deemed private and personal unless information which would hurt the company’s business or relationships with other stakeholders. Such information should be availed to the management. The company reiterates its commitment to workplace safety. There should be maintenance of skills and qualifications. There is regulation of gifts and entertainment in light of rampant theft of company property. Company property must be respected and contravention of the code of ethics attracts penalty in accordance with the law. There is protection of human rights and protection from harassment of any nature. Partners, suppliers, and service providers All suppliers are accorded fair treatment. There is protection of proprietary data and consultants and suppliers should legally and ethically. Conclusion A code of business ethics is a valuable tool in setting standards, procedures, and expectations for all levels of the organization. Core beliefs and reasonable stakeholder expectations set the fundamental aspirations of the business. The main objective of setting up any business is to make as huge profits as possible and therefore proper mechanisms of leadership styles must be put in place to ensure smooth running of the business. The manager is the main key in decision making regarding the daily running of the business activities and therefore should ensure that the employees’ welfare is well catered. A good manager should be very versatile and should be able to administer the appropriate leadership style accordingly. Therefore, it is important that all the business organization consider all factors that enhance the positive trend of the organization. It is important to note that the performance of the business organization depends on the nature of the people who run it. The manner in which the employees relate to each other in an organization and the manner in which the clients are treated, determines the amount of profits made by the company with respect to the customer base. The code of ethics set by the organization, therefore, forms the bottom-line of the organization’s trend. References Achua, F.C, & Lussier, R.N. (2009). Leadership: Theory, application &skill development. Cengage Learning. Ferrell, D. (2009). Business Ethics. Ethical Decision Making and Cases. Ohio, USA: Cengage Learning. Jennings, M. (2006). Business: Its legal, ethical and global environment. Ohio, USA: Thomson/South-Western Mason. Gensler, J. (2011). Ethics: A Contemporary Introduction. New York, NY: Routledge. Read More