Ethical practices in Business - Essay Example

Exemplification Essay on Ethical practices in Business In an organization, ethical practices ensure that the wider perspectives and implications pertaining to operations are considered and proper action is taken in order to contribute to a sustainable society. These include community, environmental and social aspects and also the economic impacts (Holm & Lillywhite, 2002). Let us try and find out the ethical practices followed in some leading organizations. Westpac Banking Corporation Take the example of Westpac Banking Corporation.

This is the first Australian bank which has developed and implemented a strict social, environmental and ethical code of conduct for the complete supply chain of about ten thousand companies. Such supplier companies need to strictly adhere to the requisite minimum standards of regulatory compliance and follow responsible and ethical business practices. According to the general manager of Westpac Banking Corporation, Lyn Lennard, companies which fail to maintain the standard business practices will be removed from the supply chain.

The bank will be working closely and encourage these companies to adhere to the business practices. Moreover there will be time to time monitoring and review which will help the bank to ascertain whether such supply chain organizations are strictly following these standards (Westpac.com, 2008). BP Australia Pty Limited Let us consider the ethical practices at BP Australia Limited. Initially a local Australian company, this has now grown into a global energy group operating over 100 countries and employing over 100000 people worldwide (bp.com, 2011).

This global organization has started a scheme under the name BP Employee Matching Fund which allows all BP employees worldwide to access a maximum of up to USD 5000/- per employee per annum. This fund also encourages an employee to actively participate in volunteering and fund raising activities. Also this helps the staff to help feel that the organization rewards and values their enthusiasm, energy and time consumed in working with community groups like educational bodies and other charitable organization.

This global organization strict adheres to the below mentioned ethical code of conduct: a) It never engages in bonded labor or child labor. b) The recruitment process conducted will never consider an applicant’s race, color, gender, religion, national origin, age, marital status, gender identity, sexual orientation, or disability as factors responsible for selection, development and promotion opportunities for employees. c) The company has strict guidelines and rules for giving and accepting entertainment and gifts. d) The company does not permit one to make “facilitation payments”.

These are payments which are made in order to speed up or secure routine legal governmental tasks such as releasing goods held up with the customs or issuing permits. e) The company do not participate in party politics f) Last, the value of the code of conduct lies in implementing these ethical business practices and not by merely jotting down the guidelines and producing such codes (BP Australia Pty Ltd, 2011). Sydney Water: Take the case of another Australian organization – Sydney Water. This organization commits to meet value for money, standards of accountability and fair dealing.

It commits that every task it undertakes will be fair, safe, honest and environmentally responsible. This company has chalked out a program for maintaining certain ethical business practices which all employees need to strictly adhere to. The program is as follows: a) All staff, contractors and private industries must maintain a high standard of ethical conduct while dealing with Sydney Water. b) The organization, its suppliers, staff and service providers seeks to behave safely and honestly and in an environmentally responsible manner. c) The employees and service providers will not seek to offer and accept gifts, inducements or benefits. d) They will not misuse the resources of Sydney Water and instead will safeguard the resources and assets of this organization. e) The staff, suppliers, contractors and service providers of Sydney water will not engage in any kind of corruption or malpractices (Sydney Water, 2011).

Thus we have observed that most companies have a code of conduct for maintaining ethical practices in business and strictly ensure that the staff, service providers, contractors etc. maintain certain ethical standards and practices while conducting business. This helps an organization to prosper and develop. References: Holm & Lillywhite, 2002. “Doing business responsibly: Perceptions of ethical practice and governance of Australasia’s top 100 companies”. Australia: Brotherhood of St. Lawrence. Westpac.com, 2008, May, 08.

“Westpac launches new sustainability code for its 10,000 suppliers”. Retrieved on June, 26, 2011 from http://www.westpac.com.au/about-westpac/media/media-releases/2008/8may2008/ Bp.com, 2011. “Who we are”. Retrieved on June 25, 2011 from http://www.bp.com/subsection.do?categoryId=4&contentId=2006741 BP Australia Pty Ltd, 2011. “Inquiry into Corporate Responsibility and Triple-Bottom-Line Reporting”. Retrieved on June 25, 2011 from http://www.bp.com/liveassets/bp_internet/australia/corporate_australia/STAGING/local_assets/downloads_pdfs/c/CSR_submission.

pdf Sydney Water, 2011. “Business ethics”. Retrieved on June 26, 2011 from http://www.sydneywater.com.au/WhoWeAre/DoingBusinessWithUs.cfm