Ethics in the Market Place - Coursework Example

Name Course Tutor Date Introduction Most businesses if not all are in existence for the purpose of making profits and maximizing their wealth to the fullest. In this quest, businesses are often faced with challenges of how they should conduct their affairs in a fair and just manner. The issue of ethics is meant to guide business in the market place on how to carry out their activities without infringing on the interests of other the business world is becoming smaller and smaller everyday as a result of globalization and liberalization of markets. The diversity that comes with liberalization and globalization also has some ethical challenges. Theses challenges are especially as a result of different cultural backgrounds of players in the marketplace. People from different parts of the world have different views on issues and perspectives, hence the probability of conflicts arising are high (Harris, Bowie and Sapienza, p, 407). Every profession has its own set of ethical issues that should guide players in their practiced. They are often faced with ethical dilemmas where ethical considerations crash with interests varying from cultural, personal or religion. As diverse are the cultures in the world, so are the ethical issues. No one ethical rule that can apply across all countries. Ethics is all about knowing what is largely accepted as right or wrong across all people. Doing what is right is not always easy and that is when unethical practices come into plays (Rendtorff, p, 397). This research paper will put into perspective the issue of different ethical issues in the market places and their possible remedies. Application of ethics Ethical issues cut across all disciplines in the market place and businesses. The fundamental areas where ethics are most observed include sound marketing strategies, professional research, quality product development, fair pricing, fair promotion and distribution, environmental and social responsibility. Intensity in competition and diversified business practice always provide temptations to market players into acting in unethical ways to gain an unfair advantage. Similar business entities have come up with codes of business ethics that cut across all boundaries, cultures and nations. Ethics start from initial business practices, such as production, and go on up to the final stages of selling and distribution. Ethical goods are produced ethically. For instance, good produced from child labor or oppressed labor are considered unethical. Free markets that allocate resources and sell their products in a just manner that maximizes utility and at the same time respects others is considered morally upright. Importance of ethics in the market place In all business practices, there are ethics that are followed and guide the way business is conducted. From this, different aspects if business in the market place have come up with a set of ethical codes of conducts that govern their codes of conduct. Collectively, there codes of conduct that govern the entire business fraternity but all aspects have their own code. Ethical codes vary from production, employment, distribution, marketing and promotion, accounting, medical, procurement among others (Jung, p, 86). The basic rules cut across all fields. There are various benefits that player in the business world can get from practicing ethical responsibility. Protection of assets A strong and reliable ethical culture in the work place can help safeguard the asset of the business and those of investors as well. Employees who abide by the laws and ethical rules will safeguard the interests of the business for their own advantage and of other stakeholders as well. When employees behave in an ethical manner, they avoid using the employers’ assets for their own benefits. They are entrusted with the security and well being of the employers’ assets. However, on the part of the employer, it is important for them to deal with employees in a respectable manner and give them the rights they deserve. Employers should observe employment laws that are meant to safeguard the interests of employees. In addition to this, employers should have schemes that give employees a sense of belonging and importance toward their work. It is a mutual and two way aspect. Employers to observe the needs of employees and in return they will have their interests safeguarded. Employers should create an environment of trust, dignity, and respect in the wok place (Icheku and Phil, p, 109). Productivity and synergy To be successful in the marketplace, businesses should form a system where their objectives are aligned with values of the employees. This can only be achieved through openness and respect for the view and opinions of others. Following a set code of conduct will ensure that everyone in their respective stations understands their responsibilities and work together as a team for the greater good of the institution. A motivated workforce is crucial for productivity and teamwork (Lefkowitz, p, 256). Public image and perception For any business to survive in the marketplace, it has to have a good image perception from the public which comprises of it consumers and other important stakeholder. No one stake holder would want to be associated with an institution that has no regard for the laws or ethical issues at large. An organization that engages in fraudulent and scandalous activities will have a dented image which will ultimately affect their business. On the other hand, an institution that has regard for ethical codes of conduct will have a positive feedback from consumers, government and even competitors (Rendtorff, p, 260). For instance, a company that has a corporate social responsibility of reducing pollution in their areas of operation will have a better image in the eyes of the public and this will improve their image. The public image is largely based on valuing the concerns of others and doing something to safeguard it. Building trust with the public creates strong brands and increases consumer bases by significant amounts which help businesses to stay afloat. Ethical conduct and decision making Often in the market place, players are faced with the constant challenge of ethical dilemmas. The process of decision making should be fast precise and considerate of underlying issues. Proper comprehension and respect for set ethical codes of conduct act as perfect guidelines when making important decisions. This way the consequences of any one decision can be known beforehand and hence the best cause off action is always taken. Furthermore, this will help managers and leaders to delegate duties without fear of contradiction or confusion. Curbing malpractices When a business conducts its affairs in an ethical manner like, black markets, hoarding, weight alteration, bribery, duplication and unfair trade, they risk losing their business and endanger the public. One way of curbing such practices is to have a clear and concise ethical code. This way illegal and unfair business practices are taken out. Exposing such businesses will also enable honest and integral businesses to earn a fair and competitive advantage. Consumer rights are also protected and safeguarded as they have the liberty to choose from a wide variety of fairly produced commodities (Monippalli and Kathawalal), p, 238. Examples of ethical practices in the market place As mentioned earlier, ethics start to apply immediately a business venture commences. All aspects of the business have ethical aspects that should be followed to ensure a fair and level playing field for all in the market Production and sales ethics In the production industry, producers are expected to produce ethically sound products. For instance, the acquisition of supplies fro suppliers should be done in a transparent and open manner. Ingredients, materials and machinery used should produce safe products that are user friendly and can cause no harm. Workers should also be hired in a transparent manner according to merit and no discrimination in terms of race, color or gender. For instance, people have been encouraged to boycott products that have been produced through unethical means such as employment of minors or through child labor. Right from the very beginning, ethics matter. When dealing with consumers, they expect to get the best value for their money and rely on mutual trust that should exist between the two parties. Sellers should sell quality products that are not harmful in any way to consumers. F they are I any way harmful, this should be disclosed beforehand in form of instructions or guidelines. Fair pricing is also an ethical issue which requires sellers not to exploit buyers an offer fair prices that are equal to the value of the commodities. Advertising and promotional ethics When it comes to advertising, every seller in the market place wants to give their product the best competitive edge possible. This often provides a temptation to give false information to give the perception of a better product that it really is the code of conduct is that players in business should not knowingly give false information in an attempt to enlarge their consumer bases. In order to keep up with advertising ethics, players in the marketplace should ensure that the information they give t the public is always current and accurate. The language used should be clear and concise in such a way that it is not ambiguous. Claims of their products should be accompanied by proven facts and truths. Promotion should also not have statements or acts that seek to disorient competitors by disapproving their products unfairly (Spence and Van Heekeren p,24). Accountabilities and responsibilities This mainly applies to persons who have been entrusted with positions of leadership, administrative and management. These people are entrusted with huge amounts of resources and are expected to conduct themselves in integral, honest, and transparent ways. All their actions should be accompanied by supporting evidence which support their actions at any one given time. This is very crucial especially for investors and shareholders who have huge stakes in such businesses. Stakeholders will often ask for disclosure of information and supported by documented evidence. High positions in organizations are prone to fraud and scandals which are driven by temptations to have more. Administrative positions are also expected to maintain high levels of confidentiality where crucial information is only given to parties that are entitled to it at the right time (Forsyth, p, 353). Conflicts of interest Conflict of interest is an ethical issue that many have to face while in the market places. Normally, such interests would see one benefit at the expense of the business. To avoid such instances measures such as; not holding similar business premises elsewhere, decline gift, and favors that may seem to affect the process of decision making, raising such issues with management and seeking prior advise on what one should undertake and what not to. Ethical challenges in the market place When looking at ethics, the fundamental issues lie in more than the products, promotion and pricing. The main factors to be considered are issues to be faced when integrating fro local based business to international based ones. As mentioned earlier, culture is a big deal in ethics and its expectorations both within and without of the market fraternities. It is crucial for businesses to understand the cultural implications of their business partners before indulging into business with them. Failure to understand and master the basic cultural factors will lead to misconceptions and business failure. From the definition of ethics as the set of conducts that players in a particular class recognize, different cultures have different rules and codes that the follow. Primary values in culture translate to ethical practices that are transmitted through religion education and socialization. Ethical behaviors are also affected by secondary factors such as enacted laws, accepted management systems, professional cultures and also organizational cultures. Some cultures may view those of others with condemnation and therefore bring problems to businesses operating in cross cultural settings. Stakeholders I such situations should know how to anticipate and manage differences rooted in diverse cultures (Stajkovic and Luthans, p,126). Ethical behaviors in diverse cultures Small business are entrenched and based in their home countries. As the world transforms to a global village, they find themselves going beyond borders where operation dynamics are totally different from what they are used to. They encounter frameworks and ethical barriers that pose threats to their businesses. They are ill equipped to deal with such difficulties and ethical conflicts are often looming. To tackle this problem, research into cross border ethics has become necessary to save the business lots on money and resources coming from the management of these issues. Cultural conflicts Across most cultures in the world, there are generally accepted issues that are regarded as ethical issues. Such behaviors include, illegal campaigns, selling defective commodities, hoarding information, giving false information among other issues. This is on either an individual or an organizational capacity. When two different ethical standards meet on a business platform, the possibility of conflict and misunderstanding becomes a real problem. For example in the United States, it is considered a serious crime to obtain a business license through unscrupulous ways such as bribery. This applies to us businesses even in foreign countries. The issues may not be as strict in the other countries as it is in the United States. Offenders even outside the US are subject to hefty penalties and jail terms. The laws with other trading countries may not be equally strict. In some countries, bribery I a normal thing and it considered a way of life. Businesses from the United States, in this case, may not know who to approach in order to get their businesses running and if they did, they would be committing serious crimes in their home countries. Dealing with countries that have bribery as a tolerable act becomes a difficult aspect for those countries that do not tolerate it. Culture as a basis for business ethics It can be generally agreed that the culture of any one given country has a huge influence on the ethics set up by managers and business operators in that country. There are two main ways in which these ethical behaviors can be exhibited. First, they can be shown in the way public and corporate statements are created and secondly, by what attitudes and values are considered. Culture is generally difficult to define universally. Culture explains patterns, values and the ways of thinking of a specific group. Even with modern civilization and development, it remains as the only way that these people relate and interact with one another in a harmonious way. Conclusion The ethical issues in the market pace have wide areas of coverage that will continue being debated for long. Ethical dilemmas will continue conflicting especially with culture and personal attributes of different players. However, it remains clear that the market place cannot survive without set of codes of conduct to aid in its day-to-day operations. Businesses need ethics to survive. One aspect emerges as the biggest guidance on the path that ethics should follow, what is right and what is wrong. The main challenge however is the measure or degree of jus how wrong or just how right is an action. Some issues are generally agreed as right and wrong entirely in the world. Some other issues may seem right to others and wrong to others depending on culture, beliefs and religion. Achieving a balance between the two aspects will help to integrate ethics from different parts of the world to agreeable standards by all. Bibliography Forsyth, Donelson R. "Rules, standards, and ethics: Relativism predicts cross-national differences in the codification of moral standards." International Business Review (353): 353-361. Harris, Jared D, Norman E Bowie and Harry J Sapienza. "Ethics and entrepreneurship." Journal of Business Venturing (2009): 407-418. Icheku, Vincent and M Phil. Understanding Ethics and Ethical Decision-Making. Bloomington, Indiana: Xlibris Corporation, 2011, 2011. Jung, Corinna. The Importance of Business Ethics and Sustainability. Munich: GRIN Verlag, 2011. Lefkowitz, Joel. "The constancy of ethics amidst the changing world of work." Human Resource Management Review (2006): 245. Monippalli, Matthew and Yunus Kathawala. Business Ethics in America. Illinois: Eastern lllinois University, 2008. Rendtorff, J D. "Business Ethics, Overview." Business Ethics Journal (2012): 397-142. Spence, Edward and Brett Van Heekeren. Advertising Ethics. New Jersey: Pearson/Prentice Hall, 2005. Stajkovic, Alexander D and Fred Luthans. "Business Ethics across Cultures." Business Ethics across Cultures (2008): 126-138. Bibliography Read More

Similar business entities have come up with codes of business ethics that cut across all boundaries, cultures and nations. Ethics start from initial business practices, such as production, and go on up to the final stages of selling and distribution. Ethical goods are produced ethically. For instance, good produced from child labor or oppressed labor are considered unethical. Free markets that allocate resources and sell their products in a just manner that maximizes utility and at the same time respects others is considered morally upright.

Importance of ethics in the market place In all business practices, there are ethics that are followed and guide the way business is conducted. From this, different aspects if business in the market place have come up with a set of ethical codes of conducts that govern their codes of conduct. Collectively, there codes of conduct that govern the entire business fraternity but all aspects have their own code. Ethical codes vary from production, employment, distribution, marketing and promotion, accounting, medical, procurement among others (Jung, p, 86).

The basic rules cut across all fields. There are various benefits that player in the business world can get from practicing ethical responsibility. Protection of assets A strong and reliable ethical culture in the work place can help safeguard the asset of the business and those of investors as well. Employees who abide by the laws and ethical rules will safeguard the interests of the business for their own advantage and of other stakeholders as well. When employees behave in an ethical manner, they avoid using the employers’ assets for their own benefits.

They are entrusted with the security and well being of the employers’ assets. However, on the part of the employer, it is important for them to deal with employees in a respectable manner and give them the rights they deserve. Employers should observe employment laws that are meant to safeguard the interests of employees. In addition to this, employers should have schemes that give employees a sense of belonging and importance toward their work. It is a mutual and two way aspect. Employers to observe the needs of employees and in return they will have their interests safeguarded.

Employers should create an environment of trust, dignity, and respect in the wok place (Icheku and Phil, p, 109). Productivity and synergy To be successful in the marketplace, businesses should form a system where their objectives are aligned with values of the employees. This can only be achieved through openness and respect for the view and opinions of others. Following a set code of conduct will ensure that everyone in their respective stations understands their responsibilities and work together as a team for the greater good of the institution.

A motivated workforce is crucial for productivity and teamwork (Lefkowitz, p, 256). Public image and perception For any business to survive in the marketplace, it has to have a good image perception from the public which comprises of it consumers and other important stakeholder. No one stake holder would want to be associated with an institution that has no regard for the laws or ethical issues at large. An organization that engages in fraudulent and scandalous activities will have a dented image which will ultimately affect their business.

On the other hand, an institution that has regard for ethical codes of conduct will have a positive feedback from consumers, government and even competitors (Rendtorff, p, 260). For instance, a company that has a corporate social responsibility of reducing pollution in their areas of operation will have a better image in the eyes of the public and this will improve their image. The public image is largely based on valuing the concerns of others and doing something to safeguard it. Building trust with the public creates strong brands and increases consumer bases by significant amounts which help businesses to stay afloat.

Ethical conduct and decision making Often in the market place, players are faced with the constant challenge of ethical dilemmas.

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