Essentials of Management: Ethical Values, Attitudes, and Actions - Essay Example

RUNNING HEAD: Learning Contract: Section 1 Learning Contract Student’s Name Institution’s Name Abstract The study has been aimed to cover issues related to ethical issues and give a diverse view of the researcher’s goals. It covers the definition of ethics and social responsibility, the literature that covers both cases. While at the end it provides the reflections in accordance with what was got in the literature review. There is also methodology that seeks to identify the strategies and tools that will be used in data collection. Lastly the researcher has listed all the references used in the study. Table of Contents Abstract 2 1.0: Introduction 4 2.0: Literature review 4 2.1: Social responsibility 4 2.1.1: Dimensions of social responsibility 6 2.1.2: Social responsibility should be aimed at achieving 7 2.2: Ethical issues 8 2.2.1: The roles of ethical issues 9 2.2.2: Identifying ethical issues in an organization 10 2.2.3: Factors that trigger unethical behaviour 11 3.0: Reflections on Ethics and Social Responsibility 14 4.0: Methodology 17 4.1: Strategies to be used in the study 18 4.2: Tools to be used in data collection 18 5.0: References 20 1.0: Introduction By 15th September I will have obtained knowledge of ethical, legal and social implications of management decisions and be able to make responsible and informed choices in professional and personal settings with an intent to more fully appreciate unionism. This will be achieved by using the study and concern of Ferrell and Gresham (1985) that involves the clear understanding, combination and establish a proper link that forms ethics, social responsibility, decision making, planning and marketing in businesses and organizations as a whole. This guidance will help me to be able to identify my goals and correctly analyze them for my understanding that should exclusively be based on the study of ethics and social responsibility. 2.0: Literature review 2.1: Social responsibility According to The Chartered Institute of Marketing (2011) states that corporate social responsibility is an idea where companies combine both the environmental and social issues, during their involvement in carrying out effective service to both stakeholders and people directly related with the company. But Crooks (2005) retaliates the statement by saying that companies have no role whatsoever involving themselves in corporate social responsibility, which is the role of the government, but companies should always stick to profit making. Crooks goes ahead to state that companies should evaluate their thoughts on ethics, in a much better way and synthesized way than what they seem to understand at present. In his perspective Crooks seems to bring home the point that Managers are not proficient, stable, qualified and competent to carry out social responsibility issues. Mathews (2005) opposes what Crooks states as the responsibility of the government to protect the people, by stating that a perfect and diverse structure for this provision does not exist in any way. But it will be necessary for companies involved themselves in curbing economic situations, climate change conditions, depletion of green house, environmental degradation among other that not necessarily affect the public but them too. Lunheim (2005) states that organizations should be accountable to all stakeholders of the organization but not limited to those who own shares in the company, his will include a number of relevant practices that include standard measures of the community, their attitudes, culture put in consideration and transparency should be a concern of every organization. Using the words of Crook (2005) who concluded that corporate social responsibility is not appropriate, since it aims at fixing an economic situation that seems to be in stable condition. Handy (2002) argues that organizations behaviour denotes a feeling that shows they only value themselves but are not concerned with the society, hence illustrating the sense of greed among the members of an organization. An explanation to social responsibility is given by Griffins (2003) as the way a company will venture to go beyond and above what is considered as norm in the company, and provide services of essential benefits to people even not in direct interest of the company. Ferrell (1999) counters this statement by stating that social responsibility is the duty of every organization to maximize its output but simultaneously provides a positive image to the community it serves. Social responsibility is defined from the general impact as viewed by people outside the organization, relating to activities and duties of the organization. The social responsibility could be observed from a specific point like the emission of green house by manufacturing companies’, which has been observed as a major cause of climate change. 2.1.1: Dimensions of social responsibility According to Carroll (1991) social responsibility should be carried out on a basis of four dimensions that include: i. Legal based responsibility Organizations are expected to comply with the set government regulations, which have been set. Therefore the law should be clearly stated to the shareholders, management, employees, and customers among other of interest to the company. ii. Philanthropic responsibility(Voluntary) Ferrell (1999) refers to it as voluntary responsibility, but Carroll states “it’s icing of the cake” (Carroll, 1991). Therefore according to him social responsibility provides a venture for sharing the company’s success with the community. Crooks (2005) heavily criticize the point stating that it philanthropic amounts to stealing. But Carroll concludes that charity in a long-term can lead to a win-win situation for the company or organization. iii. Economic based responsibility It forms the base of the pyramid and is seen as the responsibility of the firm to be able to generate monetary content. The responsibility should ensure that the methods that rare used to get this money are within the ethical context of the company. iv. Ethical based responsibility They are the measures that should be put in place to ensure the company services and output is in relation to the attitudes, beliefs and culture of all its stakeholders (Carroll, 1991).Therefore the company should ensure that in essence its operation display behaviour that can be reflected by the stakeholders as ethical. 2.1.2: Social responsibility should be aimed at achieving i) Environmental responsibility It is necessary for the organizations to take clear responsibility to the surrounding and ensure they influence it positively. This includes curbing things like pollution, climate change, environmental degradation, emission of carbon dioxide, and protection of the green layer. ii) Facilitate community relations The community that is adjacent the company will require the company to put into perspective their culture, attitude and wishes to facilitate good relations and a peaceful coexistence. The target for the organization will be to make the environment a peaceful place for existence. iii) Foster relationships with owners of the organization According to Ferrell (1999) it is the responsibility of a company to be able to fulfil the basic needs of the stakeholders of the company. This may be through generation of interest on capital investment. This is much easier to comply with since the employees are the owners and carry day to day transactions of the company. iv) Enhance customers relations Customers are the ones who consume the organizations product and services and will require an effective relationship to be able to enable this effectively. They will require products that satisfy their needs, after sale services, clear naming and identification of products, the right to be informed and feedback provided to use services effectively. i) Create employees relations Employees form the heartbeat of the organization, and they foster the day to day transaction of the business to enhance its continuity. There are so many demands from the employee to the organization that include salary, medical cover, resting time, trust, appreciation and promotion among others the company should ensure they are in place. 2.2: Ethical issues The Parable of the Sadhu as defined by McCoy clearly demonstrate the role of ethics in the society, it implies that ethics should be considered besides race, culture or traditional of the individual, each person has his roles in regard to ensuring ethics is developed in the society and ethics can be carried out even without understanding its meaning. According to Ferrell (1999) ethics defines the accepted standards of measure that describe the conduct of a particular place. This behaviour is accepted and should be displayed by employees, government agencies, customers of the organization, community served by the organization suppliers and everyone interested in the activities of the given organization. The publication goes ahead to state a number of senior employees including chief executive officers who were found guilty of carrying out the activities of the organization in a fraudulent manner. However the magazine states that organization is the one that encourages unethical conduct within its premises, by not being strict with the rules laid down therefore employees are left to tend to sway and bend the rules as they prefer. Business ethics provides individuals and groups of persons with a scale of judgments in determining what is wrong and what is right Griffins (1993) describe ethics as the ability of an individual to be able to identify and clearly distinguish what is ethical or unethical also knowing what is right or wrong. 2.2.1: The roles of ethical issues The fundamental ethical and social responsibility roles is defined by law that will require organization to equip their activities in conformity with the moral standards, value, culture, feelings and general attitude of the community. For example if a company bears a scandal it reaches the community, then all the people in the company regardless if they participated or did not participate in the scandal are treated the same. According to Ferrell (1999) Ethical issues are not necessary limited with the law for example stealing another person’s phone, but in essence they are aimed creating trust, faith and belief among corporations and business organizations. Also as stated by Griffin (1993) issues that appertain by law will also be considered as unethical as long as they trigger the societies view in a negative manner. These relations are meant at ensuring the reputation of a given organization can be able to create confidence among its interest groups and related companies. For example if a fellow employee borrowed you money and promised to return you may not trust the person again. Ferrell (1999) describes that ethics is not only a concern and practice of organization whose aim is making interest and profits at the end of trading year. But even the political system has been termed as fraudulent in most circumstances and members have been continuously charged with unethical behaviour. Government officials have also never been an exemption in various ministries; illegal transactions have also been detected in finance ministries. 2.2.2: Identifying ethical issues in an organization Ferrell (1999) states that ethics and social responsibility is an aspect that will require an individual to keenly evaluate a given decision and make a choice that might be considered by others as either a right action or a wrong choice. Organization should not observe ethics from their view, but should take into account a customer’s point view, a competitor’s angle of observation or the community’s judgment of their actions to determine whether it can be prescribed as right or wrong. Weighing ethical issues is not easy but will require an experience of many years within the organization. This is because many organizations will jeopardize their activities, and present them neatly but in reality they are fraudulent. This will require the hands of people who have skills and knowledge not limited to only few years, in order to understand. Ethics and social responsibility is directly related to culture, different cultures will observe ideas differently. For example some communities will consider a handshake as a feeling of recognition and respect, but some will consider it as a waste of time. But as the Ferrell describes that Americans will consider it a crime if you gave a gift to a client on the same day of signing a contract, but in Japan it is very appropriate. Therefore it will require an understanding of culture. 2.2.3: Factors that trigger unethical behaviour Ethical behaviour surrounds a number of issues that should be put in place, but since some company have strict management that will not want to hear or consider employees view, they are required to produce whatsoever and present results effectively to the management. But as discussed b the Ferrell (1999) the following issues might trigger unethical behaviour. i. Threatening, abusing and intimidating people. This behaviour is measured by use of abusive language, threatening people with death, oppression and segregation of individuals, shouting and even starting a fight. This should be assessed keenly to ensure that the output is correctly managed. This is because several people have been raised differently emphasizing that culture is diverse and might differ from point to point. Shouting and yelling might be a culture of a given community, of a normal way of passing message to someone. In other aspects threats may be a good way of telling people to work hard or keep away from others business. But as Griffins (1993) states ethics should not be considered as just talking on how you can achieve it, but should be ardently practiced by employees in every decision they make. He further states that employees should feel free to share with others what they think is ethical. Therefore people in an organization should always make their intentions clear especially in a diverse environment with different cultures not to be considered unethical. ii. Issues surrounding conflict of interest Conflict of interest arises at a point where individuals have a different view of a given situation; it is determined especially where more than one person will require a given reward. Therefore choosing the reward in favour of one person above the rest facilitates the issue of conflict of interest among individuals. For example presenting a bribe to a given company manager to be able to offer you a tender is considered as conflict of interest, because you will gain favour among other suppliers who had also presented their tender. iii. The trend of honesty and fair behaviour in employees The issue of honesty and fairness is directly related to the use of the company assets in carrying out duties within the range of that particular firm. Employees are required to be open and true to other employees, client, organization, their competitors but they are required to do this in accordance with law. They should therefore avoid being dishonest, cheating consumes, manipulating customers, forcing other employees to follow their trends. Above this they should not steal company’s assets to benefit their own well being. Covering up customers’ complaints and intentionally bullying fellow organization competitors’ results to unethical behaviour. iv. Communication with the stakeholders. Communication is a medium the company users to establish links with its stakeholders. However as Griffins (1993) argues that although the goal of every company is to generate profit, an organization should not take shortcuts, misrepresent information to customers just to attain profit. Therefore the provision of incomplete information to consumers about your products and services, the use of timid selling methods and using advertisement that lure consumers is considered as unethical. Some companies also do not distinctly identify their products with appropriate labels; therefore consumers may be misled to buy commodities that do not necessarily reflect their own needs. Appropriate language should be put into consideration when designing adverts, content clearly defined and target groups well identified in terms of age, gender, activity among others to avoid unethical issues. v. Relations with other organizations Managers in an organization should create a serene atmosphere in the organization that will enhance goals to be achieved. Organization relations define the way a given organization will relate with its stakeholders in the delivery of its outputs. It will be important for an organization not to use dirty tricks to cut cost and increase profitability; they should also avoid stealing marketing secrets of other organizations or any other systems that might compromise their ethical situation. vi. Feeling of not being caught or punished. Griffins (2003) emphasizes that employees will participate in unethical behaviour with the feeling that they will not be identified or caught by the management or other individuals in the company. Other managers may hide their ways by threatening employees so that they are not caught in practising unethical behaviour. Punishment within the company may also limit the practice of unethical behaviour, because when an employee practices an unethically and does not receive reprimand other employees may also feel do the same. Therefore organization should formulate measures that enable curbing ethical issues appropriately. 3.0: Reflections on Ethics and Social Responsibility I have identified there is a distinct and clear difference between ethics and social responsibility but they should be accompanied hand in hand to ensure the fulfilment of the set goals and listed objectives. Social responsibility is the way companies, organizations and institutions are held accountable by the public to ensure that their operations do not conflict with their daily operations. Ethics is the codes of contact that is aimed at defining an individual behavioural as either acceptable or unacceptable by the community he/she lives. Crooks (2005) ideas on social responsibility are not right and no government system will be suitable to carry out all the events at stake and facilitate correct input, therefore everyone not only organizations should be responsible in all the issues tackled. For example as stated by Ferrell (1999) a company should always take responsible behaviour for its consumers, employees, shareholders, community relations and environmental protection at all times. This is important since if the practice of companies, institution and organizations observes this relation there will be peaceful co-existence as a result a better world to live in. Also I have noted that the Parable of the Sadhu is the pillar of ethical consideration that in essence requires individual to take responsibility in relation to what they consider as right or wrong. I have also noted that the Sadhu was helped despite the different cultural basis of the people concerned, but the most amazing thing is that the Samaritans at the time did not understand they were carrying out an ethical consideration. But with the deep understanding that I get from ethics as a source of controlling behaviour and determining what is a right practice or a wrong action. My goal towards the competence understanding and making decisions that reflect social consciousness have been inspired and triggered by the words of Carroll (1991) four dimensions of social responsibility, which include the voluntary practice that is the essence of facilitating a peaceful coexistence with the surrounding community. I have also identified and turned down the words of Crooks (2005) that philanthropic approach will be equivalent to stealing, with this regard I base my argument that not every philanthropic or charitable approach should amount to stealing. One can decide to help and facilitate continuity of the community with hard earned rewards. I have also learnt that social responsibility of an organization should not be limited to the community alone, which was previously my understanding. I have now identified that it should be practiced in the organization to ensure that owners, employees and even the environment is put into concern. It opens up a perspective that will assist me wanting to know more what media centres ought to do in order to facilitate social responsibility in the firm and within the community at large. My best example of unethical behaviour is identified by Griffins, who states that picking money from the grounds and putting it in your pocket considering it is yours is wrong. Even if the owner is not around it will be wise to make an effort to find the person since he or she might be suffering at your expense. This is far much more important since me as a student picking money from the field has always been considered as lack and a blessing rather than an issue of social responsibility. Therefore in my study it will be fundamental to include this when in my data collection procedure to help establish and educate others on the same. The ideas I got have made me want to explore more about what causes people in a company to practice the unethical conduct. Ferrell (1999) has provided me with an angle of unethical behaviour that I had not noted before by identifying that employees practice unethical conduct because there is no punishment provided for the same. It will be important as I carry out my studies to find out what exactly employees should do to maintain ethical behaviour in a firm. And in my study to be conducted in 20 companies I will seek to find out if ethics should be individual responsibility or a collective duty of the organization. I have also been challenged and inspired by the words of Griffins (1993) who clearly state that a company should hire good individuals, who in essence should be ready to understand the culture and trends among the people they live in. At times I can speak loudly to others thinking I should be heard better, but now I find out that I was practicing unethical conduct. Also asking friends to conceal bad things we do I can now clearly understand it promotes unethical behaviour. Further my best example of unethical behaviour was one described by Ferrell that brings contrast of the American and Japanese culture. In Japan if you want to recruit a client you must go with a gift to show consideration and politeness, but in America the same is considered to be a bribe. It has open my mind to find out that it is not proper conduct to always move to other areas and places and present your culture thinking everyone understands it. But understanding the attitudes, feelings, morals and even behaviour of the community we live in is appropriate. I have also found out that it will be important in my survey to include a study on what people considered as appropriate but later found out it was considered unethical in other communities they lived in and served. I have also identified that ethical behaviour is the pillar of social responsibility, and without one the other becomes difficult if not impossible to achieve. Therefore it calls for everyone including me as a student to identify social responsibility and at the same time work out ethical issues. The best example will be of an employee taking (stealing) a company non functional asset without having to include the company management. The employee will convince himself that he is simply taking but the actual thing amount to stealing. This defines the unethical behaviour of the employee stealing from his employer and the same time failing to display the consideration of social responsibility in protecting the company’s assets. I did not have this clear understanding of ethics and social responsibility that arises from this situation and it gives me a challenge to find out more in my data collection process and seek the best method that I will use to ensure I deal with the situation. As noted from the words of Drucker (1983) who stated that since a given society is made up of organizations, it is a society that will always rely upon interdependence from one another. This will therefore make me identify that ethical behaviour should not only be an individual responsibility (which it can be) but is the sole responsibility of everyone in the society. 4.0: Methodology This chapter will tend to outline the procedure that I will use to ensure that I collect concise data that will specifically much my study. It will also show the data collection method relating to my study need. 4.1: Strategies to be used in the study 1. To engage senior managers from diverse leadership philosophical background in a discussion on a subject of ethics and social responsibility. To clearly help in understanding the role of ethics and social responsibility. 2. Carry out an assessment on diverse models of ethical decision making and their applicability and implications to business ventures and management practices. This will expose my leadership shortcomings henceforth I will plan for remedial and improvement strategies. a. Listen to media shows and attend conferences on this topic: Ongoing b. Enrol in a mentorship program on this topic. 3. Collection of media reports related to ethical behaviour that will include textual, visual and numeric data. 4. Survey 20 companies in various industry and regions on their approach of ethical and corporate social responsibility: Ongoing 4.2: Tools to be used in data collection Data collection instruments are established tools that are used in collecting, capturing and recording data. The following instruments will be used in the study: i. Questionnaires They are intended to facilitate the researcher to obtain important information for the research from the people they collect data from. The questionnaires are important since it will assist the respondent to answer without embarrassment. The researcher will use open ended questionnaire to facilitate the respondents to have freedom in answering and as well facilitate simulative thinking. The questionnaire will consist of two parts, general section for identification of gender, age, level of study, years of service among other questions. The second part will be the questionnaire proper that will seek to address the following themes: What the respondent understand of ethics and social responsibility? What do they consider as ethical or unethical? If they have ever practised ethics and social responsibility? What causes unethical behaviour? What can be done to enhance ethics and social responsibility? The questionnaire will be the main method of the study but would be supplemented by interview method. ii. Interview Schedules Saunders, Lewis and Thornbill (2003) describes that an interview is an exclusive discussion between two or at times more people which aims at achieving certain results. The researcher will use semi structured interviews in the collection of in-depth data from Managers from diverse philosophical background. The interview schedule will guide the researcher during the collection of data from the Managers and as well standardize the interview, such that questions are asked in a similar manner and he doesn’t deviate from the topic. The response will be recorded in an interview schedule as the interview progresses. Themes to be explored include: An understanding of ethical and non-ethical issues. What they have done to implement ethics and social responsibility. What are their view on ethics and social responsibility What is done to an employee if they conduct themselves unethically As managers what experience they got from ethics and social responsibility What measures are taken to ensure corporate social responsibility During interview the researcher will be keen to observe non-verbal movements. 5.0: References Carroll, A. B. (1991). The pyramid of corporate social responsibility: toward the moral management of organizational stakeholders (balancing economic, legal, and social responsibilities. Business Horizons, 34, 39(10). Crook, C. (2005). The Good Company. The Economist, 3-16. Drucker, P. F. (1983). Ethical Chic. Essentials of Management: Ethical Values, Attitudes, and Actions. Pot Washington, N.Y: National University Publications, Associated Faculty Press. Ferrell, O.C and Larry G. G. (1985). A Contingency Framework for Understanding Ethical Decision Making in Marketing. Journal of Marketing, (Summer), 87-96. Ferrell, O.C. (1999). An Assessment of the Proposed Academy of Marketing Science Code of Ethics for Marketing Educators. Journal of Business Ethics, 19 (2 part 1), 225-228. Griffin, R. W. (1993). Management (4th Ed). Geneva: Houghton Mifflin. Handy, C. (2002). What's a Business For? Harvard Business Review: 49-55. Lunheim, R. (2004). Building the myth of Corporate Social Responsibility: CSR and new institutionalism in organizational analysis. The Annual Colloquium of the European Academy of Business in Society. Brussels. Matthews,Markus.2005.The good Company [pdf] Available at: [Accessed 11 May 2012]. Saunders, M., Lewis, P. and Thornbill, A. (2003). Research Methods for Business Students (3rd ed.). London: Pearson Education. The Chartered Institute of Marketing, 2010. Corporate Social Responsibility [pdf] Available at: [Accessed 11 May 2012]. Read More