Ethical Consideration in Business - Literature review Example

Ethical consideration in business Lecturer: Ethics represent one’s moral judgment about what is right or wrong, and can vary depending on individual, group, organization perception. In an organization despite decisions being made by either an individual or a group they are still guided by the organizational culture. Ethical decisions are often considered to be moral and when one behaves in a right way there are often very minimal cases of misconduct reported. Employees in an organization should always think about ethical considerations before acting especially because they serve a larger group and aim at profit making. Actions that could lower productivity should be discouraged. In an organization ethical consideration in communication is important, all the employees should engage in communication that is ethically legal and is sensitive to cultural beliefs and values as well. It should also be truthful and fair to propagate respect, and understanding within the organization. The customer is often the basis of the goals set by many manufacturing companies, especially because they determine the amount of sales made by the company. Manufacturers that do not meet their target sales are faced with the challenge of expenses exceeding the income. This in turn forces them to engage in deceptive sales strategies like in the case study. The case study shows that the T-shirt produced by the manufacturers has the words “American Made” yet the shirt was made in Mexico. The company’s spokes woman said that the writings on the shirt were meant for the person wearing the shirt, and not the origin of the shirt. Professional communication should be ethical, especially because dealing honestly and openly with customers helps to build stronger relationships and build trust (Guffey &Loewy, 2011). Ethical guidelines as explained by Guffey and Loewy (2011) give seven ethical guidelines that guide communication in business but with relation to this case study three apply; the importance of telling the truth, being objective and communicating clearly. The aspect of being objective, honesty and clear communication is not properly used by the manufacturers in the case study, as many consumers will buy the shirt knowing that it was made in America, and the spokeswoman will not follow each consumer to explain that the writings are made for the wearer. This could be explained as a deceptive strategy aimed at increasing sales, thus dishonesty. Solomon (1992) stresses the importance of honesty in the business environment, without which mistrust is born. Consumers need to know whether that what they are getting from the manufacturers is legitimate or not so as to make their own sound judgment with relation to purchasing the products. The second case study involves the hiring process, a manager who is interviewing prospective employees is expected to tell them that the firm is a great place to work, yet the reality is different as the work environment is bad. The morale of the employees is low and there is a high staff turnover. This can be a dilemma for the person who is doing the recruiting process. Guffey & Loewy (2011) describe this move as the “false necessity trap”, whereby one acts with the thought that what there are doing is what is necessary to achieve a certain goal. An ethical guideline in dealing with such a situation is that the recruiting officer is expected to be honest to the recruits. Telling them that the firm is great is an outward lie, but he can tell them that their input as new workers will be needed to improve the current status of the organization. This in turn will inspire an innate will in the workers to ensure that they bring out the best of the firm. New recruits might feel like there was a breach of contract once they realize that the stipulated conditions do not exist. Robinson (1996) describes this as a psychological breach of contract which he says determines employee’s trust of their employer. Thus, the case study herein dictates a similar case that might lead to a psychological breach of contract. Employers need to understand that proper communication of all facts to the new employees is important in determining their future performance. A firm should by all means avoid instances that might lead them to the false necessity trap situation. This can also be an advantage to the organization as the those who will finally be employed will know what they are getting into, and make them more committed to bringing forth change within the organization. The relationship between employer and employee is a strong determinant of performance as it becomes easier for the employees to give back when they are treated nicely. It also motivates them as they realize that their employers care about them and their needs as well. Communication is vital in an organization; it guides success as it is what those within the organization use to relate to each other (Aghion, & Tirole, 1997). Thus, many organizations do everything possible to enhance the process of communication. However this process when left too open is abused by employees. Since most instruments used in communication within the organization are costly and should only be used for official purposes only. Thus to enhance ethical consideration in the communication process it is important that employees are given guidance on proper etiquette on using communication tools. A review of a case study of an organization whereby employees use smart phones, e-mail, voice mail and text messaging instead of saving time by using face-to-face interactions. There are some ethical issues that need to be examined. The first thing notable in this case study is the fact that communication through I-phones, email and texting can be addictive and continuous, and in turn makes the workers drift off from their set duties. As a manager the first thing that needs to be done to stop such vice is to set clear policies. Policies might already be in existent, but use ambiguous language that might be misinterpreted by employees and taken to mean something else. The language used in formal communications and writing policies should be comprehensible even to the average reader (Guffey & Loewy, 2011). This will ensure that the employees know what is expected of them as the proper work etiquette. These case studies have shown that ethical consideration in the work place would greatly aid in reducing work conflicts and misunderstandings. To the managers it is a means of easing the process of communication with the employees and enhancing effectiveness. The organization can also benefit as there will be reduced labor turn over and also attract other future talented employees. The observable ethical behavior can further attract investors and help the company to retain a higher share price thus, protect it from being taken over. References Aghion, P., & Tirole, J. (1997). Formal and real authority in organizations. Journal of political economy, 1-29. Guffey, M. E., & Loewy, D. (2011). Business communication: Process and product. C engage Learning. Robinson, S. L. (1996). Trust and breach of the psychological contract. Administrative science quarterly, 574-599. Solomon, R. C. (1992). Ethics and excellence: Cooperation and integrity in business. Read More