Critical Business Ethics in Global Workplace Human Relations - Credit Suisse - Case Study Example

Critical Business Ethics in Global Workplace Human Relations Table of Contents Introduction 3 Discussion 3 What is professional or corporate ethics? 3 The theory or perspective of utilitarian 4 The theory or perspective of Virtue ethics 5 The theory or perspective of right ethics 6 The theory or perspective of care ethics 7 The theory or perspective of non-essentialist ethics 8 Analysis 9 How fraudulent activity affects morale of the customers or the employees in a workplace? 9 Findings 9 Conclusion 10 References 11 Introduction In this age, reputation and dominance is entirely based on performance and activities of an individual. Due to which each and every individual desire to offer high attention over the concept of ethics (Bevan, 2007). Ethics acts as the catalyst in the life of the professionals, in order to retain the job for a longer period of time. Ethics is considered as a concept of presenting a standard set of behaviour with all other co-members so as to enhance his or her popularity and demand in the organization. Apart from this, unethical activities act as irresponsible or illegal actions against the employer of the organization thereby hindering individual morality and integrity along with organizational image and prosperity in the entire globe. Therefore, in order to make ethical decisions and processes, maximum extent of the individual desire to offer to act intelligently and tactically, that may offer positive results towards all other co-members. Thus, it might be clearly revealed that corporate culture and management style is entirely dependent over ethical pillars and ideas and if it distorts, its image and reliability gets hindered significantly (Jackson & et. al. 2011). The rationale of this essay is to discuss critically the concepts and theories of business ethics in a global workplace, along with the five major perspectives such as utilitarian perspective, rights perspectives, virtue, care and non essential perspectives. The entire essay is divided into five parts such as introduction, discussion, analysis, finding and a conclusion. Discussion What is professional or corporate ethics? Corporate ethics is described as a set of standard rules and regulations followed by all the members of an organization. Such type of standards and rules are implemented within the organization in order to amplify its culture, interpersonal relationships among the employees and communication. By maintaining a good interpersonal relationship, the inner morale and devotion of the employees gets enhanced that helps to improve their performance and efficiency (Beardwell & Claydon, 2010). Along with this, by maintenance of a set of proper regulations, the level of profitability and productivity of the organization as well as the employees increases to a significant extent. As a result of which, the consistency and loyalty of the organization enhances within the minds of the employees and stakeholders that helps to enhance its position and sustainability (Harzing & Pinnington, 2011). The theory or perspective of utilitarian Utilitarianism is recognised as one of the most important ethical theory of normative ethics and as per the theory of utilitarianism, the end results or the course of action helps to determine, whether it is accurate or not for the society or the organizational members. Moreover, if the action leads to maximum benefit or utility, then it is surely effective for an organization or a society (Trevino & et. al. 2010). Apart from this, the theory of utilitarianism is also considered as a hedonistic approach, only when the activities or actions do not present any sort of negative impact over the citizens of the society or members of the organization. Due to these causes, this theory of normative ethics is highly preferred and favoured by the leaders or managers of the organization. This is because; the theory of utilitarianism is considered by the managers or leaders at the time of implementation of any policy, strategy or advanced technology within the organization. So, that it might help in improvement of the inner morale and commitment of the employees that may amplify its performance and productivity in the organization among others (Bevan, 2007). Moreover, utilitarianism concept is also used in order to maximise the motives and desires of the employees so that their devotion and dedication enhances resulting in amplification of the profitability and dominance of the organization among other rival players in the market. Therefore, it might be clearly revealed that the perspective of utilitarianism is to offer maximum benefit to all that may reduce its negative effects. However, the second-largest and reputed Swiss bank of Switzerland, Credit Suisse offers a variety of financial services to its target customers such as private banking, investment banking facilities as well as asset management services among others. However, in order to improve its reputation and customer base, it assisted its customers to conceal their incomes in various sham nominated accounts. This is done, so that the customers might attain freedom from the duty of presenting tax to the Swiss government. Apart from this, the organization of Credit Suisse also destroyed the account details of the customers and also presented a huge amount of revenue to the citizens in order to reduce income tax returns. Other than this, the organization of Credit Suisse also obtained a huge amount of money so as to deliver false income tax returns. By doing so, the organization of Credit Suisse not only cheated its target customers but also acted against the Swiss laws and regulations. Therefore, as per the theory or perspective of utilitarianism, such a conduct do not offer any benefit to its customers, rather presents varied types of negative impacts. As a result of which, such a conduct of creating sham nominated accounts as well as presentation of false income tax returns by Credit Suisse not only destroyed its image and reputation within the minds of the customers, but also hindered its profitability. Hence, it might be stated that the activities of Credit Suisse is just against the benefits of the customers and so it is not recognised as a utilitarian action. The theory or perspective of Virtue ethics Virtue ethics is also considered to be of high important in corporate organizations in this age. This is because; as per this ethics, the right or wrong of an action is highly dependent on the way by which it is performed. Moreover, as per aretaic ethics, the action is highly controlled by the characteristics and virtues of an individual. However, the virtues or inner morale’s assists the activity only after the analysing the level of benefits. But, the rate of morale’s and virtues might differ significantly, if only individual benefit might be attained by conducting an action, rather than group benefits (Banerjee, 2010). Therefore, it might be revealed from the above mentioned information that virtue ethics is highly dependent over the character or beliefs of an individual. Similar, the organization of Credit Suisse performed a fraudulent case with its customers in order to amplify its account balance rather than customers. Apart from this, by presenting false income tax return files, it acted against the laws of Swiss banks that resulted in a fine of $ 2.8 billion. Moreover, after creating such a fraudulent case, not only the image and position of the organization of Credit Suisse decreased but its competitiveness and dominance in the market of Switzerland also declined entirely among other existing rival players. Thus, it might be clearly revealed that such types of actions are performed by the management of the organization of Credit Suisse in order to fulfil their individual benefits rather than groups. But in order to fulfil their individual benefits, the organization of Credit Suisse had to face varied types of allegations from the supreme authority of Switzerland and also had to present a huge amount of revenue as fine. Hence, it might be stated that such type of activities is just against the rules and regulations of a corporate as it hindered the interest and benefits of its customers. Along with this, such type of fraudulent actions also presented varied types of negative impacts over the customers that hindered their trust and reliability over the brand. The theory or perspective of right ethics The theory of right ethics also plays a significant role in corporate organizations. This is because; as per right ethics, ethical or fundamental rules and regulations might be implemented so as to improve the social scenario. Apart from this, right ethics is considered as the legal laws developed in order to amplify the benefits of the societal members and to reduce the negative consequences (Trevino & et. al. 2010). However, the activities or actions of the organization of Credit Suisse are entirely against the ethics or fundamental rules. The organization tried to cheat its target customers by presenting false income tax returns to the government of Switzerland. By doing so, it tried to amplify its amount of profitability and income ratio as compared to many other Swiss banks. However, it also tried to improve the reputation and trust of itself within the minds of the customers by destroying their bank accounts as well. But all these deeds acted negatively that hindered its image and prosperity in the market thereby hindering its portfolio and competitiveness. As a result of which, the organization of Credit Suisse had to bear a huge amount of fine that smashed its reputation and brand loyalty. In addition as the organization of Credit Suisse made varied types of unethical decisions such as destruction of the accounts of the customers, creation of sham accounts etc, so as to improve its profit margin, is entirely against the laws and regulations of ethical relativism. Therefore, due to the presentation of such type of activities, the organization of Credit Suisse failed to retain its sustained position and demand in the market of Switzerland among other rival players. Hence, the management style is entirely responsible for such de-fall of the organization (Boone & Van, 1997). Hence, it might be analysed that, the actions and activities need to presented as per the societal benefits rather than individual benefits so as to improve its ethical responsibilities. The theory or perspective of care ethics The ethics of care is entirely recognised as one of the most important part of normative ethics. As per this ethical perspective, the moral duty of an organization is to work for the benefit of the society. Apart from this, the organization or an individual might try to care and concern about the advantages of the citizens of the societal members to a significant extent as compared to others (Bowden & Mulnix, 2005). By doing so, the trust and devotion of the organization might get enhanced as it works for the positive benefits of the society rather than individual results (Marino, 2010). However, the activities performed by the organization of Credit Suisse are not at all for the benefits of its customers, but for individual benefits. As a result, the organization of Credit Suisse is fined with a huge amount of $ 2.8 billion by the Swiss government that hindered its dominance and reputation in the market among others. Other than this, the activities performed by the organization of Credit Suisse is entirely fraudulent and do not offer any sort of benefits to its customers. However, the management of the organization of Credit Suisse performed the activity of filing false statements for income returns smashed its relationship with its customers, for its fake nature. Due to these above mentioned reasons, it might be stated that the activities of Credit Suisse is just against the views of care ethics and ethical relativism. Furthermore, the responsibility of the organization of Credit Suisse is to present care and concern for his customers by presenting their income returns to the government of Swiss. Only then, it might become successful in enhancing its demand and popularity in the market of Switzerland as compared to many other rival players. Moreover, by offering such type of ethical activities for the customers, the relationship and loyalty of the organization might get enhanced in this age of competitiveness. The theory or perspective of non-essentialist ethics According to the theory of non-essentialist ethics, the activity or action of an individual may not be described with the help of his or her values or traits. This is because; traits and characteristics of an individual changes every now and then and so it may not be responsible for its activity. However, culture might be one of the reasons for which, the individual might perform unethical deeds or activities, so as to improve his or her conditions. Similarly, the organization of Credit Suisse cheated its customers by offering fraudulent income tax returns so as to fulfil its individual interest rather than others. By doing so, the organization had to offer a huge fine that smashed its reputation and image in the market (Mizzori, 2009). However, the organization of Credit Suisse might try to present varied types of beneficial financial services so as to improve its dependency in the market. By doing so, it might enhance its inner strengths thereby reducing its threats and weaknesses to a significant extent as compared to others. Only then, it might become successful in enhancing its competitiveness and sustainability in the market of Switzerland. Analysis How fraudulent activity affects morale of the customers or the employees in a workplace? The fraudulent activity of an organization or an individual offers negative impact affecting the morale and inner beliefs of the customers and employees. Such types of activities are performed in order to improve individual interests and desires rather than societies as stated by the views of ethical relativism. Ethical relativism means creation of varied types of activities that are entirely against the laws and regulations of the workplace ethics. For example: development of false income tax files of the customers as well as destruction of the false accounts are some of the unethical deeds that offered negative impacts over the morale’s of the customers. However, due to such fraudulent activity, the organization of Credit Suisse had to present a big amount of fine in front of the Swiss government that entirely damaged its status and image in the market as stated by the law of ethical absolutism. Other than ethical relativism and ethical absolutism, ethical pluralism is also entirely responsible for creation of fraudulent behaviours within a workplace (Holmes, 2009). This is because; the values and ideas of an individual may differ from the other individual of the society. Due to which, it might create clashes among the individual as a result of difference of morale’s and values. Thus, due to these causes, above mentioned, varied types of fraudulent activities might arise within an organization that may hinder the values of others. Findings After evaluating and analysing all the above mentioned information and perspectives, it might be revealed that the organization of Credit Suisse conducted fraudulent activity so as to enhance the individual profits. By doing so, it hindered the image and reputation of itself thereby declining its customer base and market value. Apart from this, due to such type of fraudulent activities, the organization of Credit Suisse had to present a fine of $ 2.8 billion to the Swiss government. Thus, it might be stated that, such type of activity took place mainly due to the presentation of un-just rules and regulations. Conclusion Conclusively, it might be stated that the presentation of unethical activities of the organization of Credit Suisse is mainly due to the high concentration over individual desires rather than societal desires. As a result of which, the organization tried to mislead the customers by presenting their false income tax return filings to the government of Switzerland as compared to many others. Due to which, it failed to retain its image and popularity in the market thereby hindering its prosperity and sustainability to a considerable extent. Thus, it might be stated that, the actions of Credit Suisse is entirely dependent over the unethical desires of the management officials. References Boone, P. & Van, D. B. A. J. 1997. Discerning a key characteristic of a European Style of Management. Int. Studies of Mgt. & Org., Vol. 26 ( 3), 109-127. Bowden, R & Mulnix, M. 2005. Business Education: A View of U.S. and European. London: Sage. Beardwell, .J. & Claydon, T. 2010. Human Resource Management. London: Sage. Bevan, D. 2007. Ethics and HRM, in Human Resource Management: a critical text, edited by Storey, John. London: Thompson Learning. Banerjee, S. 2010. Governing the global corporation: A critical perspective. Business Ethics Quarterly, 20(2). Holmes, A. F. 2009. Ethics: Approaching moral decisions. London: Routledge. Jackson, S. & et. al. 2011. Managing Human Resource.. London: Routledge. Mizzori, J. 2009. Ethics: the Basic. London: Routledge. Marino, G. 2010. Ethics: the Essential Writings. New York: Palgrave Macmillan. Trevino, L. K. & et. al. 2010. Managing Business ethics. New York: Cengage Learning. Read More