8.6 case study - Coursework Example

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There are two meanings of ‘corporate ethics’ in organizations today. Considering the growing importance of corporate ethics, companies are increasingly aware of their ethics policies and particular values that address a variety of issues ranging from community commitment…
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8.6 case study
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Texas Health Resources and Intel: Ethics, IT, and Compliance” "Texas Health Resources and Intel: Ethics, IT, and Compliance”
1. There are two meanings of ‘corporate ethics’ in organizations today. Considering the growing importance of corporate ethics, companies are increasingly aware of their ethics policies and particular values that address a variety of issues ranging from community commitment to environmental sustainability. These corporate ethics policies greatly benefit employees to guide their work. According to the case study, the first meaning of corporate ethics is that some organizations believe that it is inevitable to comply with federal laws and regulations. In the perspective of the second meaning, organizations promote corporate ethics so as to define a set of corporate values, to meet consumer expectations and employee demands, and to deal with economic pressures effectively (p.620). When it comes to IT practices, the first definition (meaning) implies that firms must develop improved IT policies and procedures to operate in well compliance with federal laws and regulations. From the same viewpoint, the second definition implies that organizations need to maintain well established IT practices to ensure that consumers enjoy the benefits of convenient shopping and consumers’ tastes, and specifications are adequately addressed. The firm’s economic environment can have a great influence on these practices. Companies have more choices when economic conditions are favorable but choices may have to be limited under the situations of economic downturns.
2. The advancements in IT greatly benefit corporate enterprises to address ethical issues effectively, and to take advantages of emerging opportunities with regard to corporate governance. The case study tells that IT can contribute significantly to corporate strategy. CIOs can identify the misuses of those IT capabilities, and they will be also able to flag those issues timely and thereby prevent the firm from becoming exposed to scandals. The case described about the business fraud committed by marketing workers at a large telephone company can be cited as a good example. The company executives had identified the fraud before the marketing department actually executed it. Then they developed a comprehensive IT system to monitor the use and prevent the unauthorized access to such sensitive information in future. Similarly, Intel’s IT system helps the company meet its legal and regulatory requirements in addition to enhancing its own corporate values and ethical principles (pp.620-621).
3. In my personal view, organizations should pursue high ethical standards in spite of their bottom line impact. Today people are increasingly aware of the significance of corporate social responsibilities and corporate ethics. Hence organizations that fail to follow high ethical standards are less likely to gain wide public acceptance. Even though pursuing high ethical standards may adversely impact firms’ bottom-line, this practice would assist organizations to achieve high market stature which in turn would benefit them in the long term future. In addition, enhancing high ethical standards may aid the organization to keep its employees motivated and thereby improve the overall productivity constantly. It would also help firms to foster customer loyalty, which is a key factor determining organizational success. Finally, following high ethical standards is a better way for companies to show their commitment to social obligations and to remain a responsible corporate citizen. Therefore, it is recommendable for organization to limit themselves to those scenarios where “good ethics make for good business”.
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