VTB Group Corporation - Essay Example

To demonstrate how ethical decisions are made at the global level between the key stakeholders of VTB Group Corporation (Russian Bank).

Reasons why the problem is important

Taking business ethical decisions has different importance both the company and its stakeholders. Understanding the business ethic decisions is equally indispensable in the long-run viability of any company in the world (Miller & Jentz, 2008, 43). Having ethical decisions is also notable for well being of the company officials as well as the company’s employees. Since the people who take on the task of making ethical decisions address more complex issues in the business environment, the task is usually demanding and difficult to undertake (Miller & Jentz, 2007, 63). For a company to come up with a means to handle ethical decisions, moral reasoning has to apply. In undertaking ethical reasoning, various theories have been set up to investigate the circumstances concerning certain ethical standards. Ethical reasoning to determine a way to make decisions uses a number of approaches (Miller & Jentz, 2008, 56). The first approach has a basis on the duties that in certain cases also suggest having certain rights. The other approach concerns or determines ethics by taking into consideration the results or outcomes of a specific action that is undertaken (Miller & Cross, 2009). Further to the basic approaches to undertaking ethical decisions, various theories have also been developed in an effort to address the issue of corporate responsibility of corporate organizations.  A company using the corporate social responsibility approach considers the results brought about by a certain decision to the stakeholders of that particular organization (Miller & Cross, 2007, 76).

Method of Problem Identification

The problem was identified by considering the various codes of ethics for various companies and the implementation of these ethical decisions. The ethical decisions were undertaken by applying the ethical reasoning approaches in corporate responsibility.

The method for identification proved to be appropriate since discussions and more research concerning business ethics were different for a number of other corporate organizations.

Results

VTB Group has strived so much to ensure full abiding of the international principles, rules, and norms within the countries in which it operates and in the code of ethics as well as individual by-laws. The bank holds a responsibility towards the stakeholders through the provision of better performance and customers for quality services as spelled out by the obligations to the community as well as the state (yd15, 2008, 3). In creating ethical decisions, the group has portrayed respect and the worthiness of human dignity by respecting the various rights and liberties of its employees and customers without prejudice based on ethnicity, social class, political affiliations. The bank ensures strict compliance to the liberties and freedoms that are considered core values of the organization.  The group also considers fair activity towards its competitors as well as the stakeholders and mutual respect in making ethical decisions. The bank creates a strong relationship with its customers, workers as well as other stakeholders within the state concerning the fundamental principles of honesty and general respect. The company respects the mentioned parties' values, thoughts, and views (yd15, 2008, 3). The bank also considers equity in making ethical decisions through the shows of value and concerns for the other human beings. The bank ensures that there are no possibilities of admission of any form of unfair civil liberties or remuneration in the hiring of employees and developing their careers or even when offering any material stimulation. The bank also considers the satisfaction that the customers obtain upon delivery of services. The bank has complete awareness of the fact that the bank gets profit if only the customer’s needs or preferences are satisfied by offering elevated services.  The bank offers superb services and applies fair prices. It also ensures constant enhancements and innovation as well as seeking better strategies to provide proficient performance. The bank has immense value for its staff, and it is for this reason that it provides them with health care services as stated by the government. VTB attempts to avoid any illegal actions by the third factions towards VTB, its shareholders, clients, trade partners, and workforce. VTB places an exceptional center of attention on improving the operational atmosphere to ensure resourceful and secure labor surroundings for its workers, as well as due safeguard of their physical condition (yd15, 2008, 4). The bank also considers the relations with the state and municipal authorities are cemented on the various ideology such as excellent assurance, honesty, professionalism, shared respect and trust as well as complete execution of commitments (yd15, 2008, 4). VTB is willfully tender support to people of communities where it runs through, amongst other things, benevolent institutions, finances, learning, and other similar establishments. The bank also offers job opportunities to the people within the community and provides opportunities for young people to carry out innovative programs (yd15, 2008, 4).

Challenges

Various challenges such as carrying out business in different environments with people of diverse cultures provide a considerable challenge to the implementation of business ethics.

Conclusion

The principle of ethical reasoning acts as a useful tool for decision-making to determine the right and wrong components within certain human interactions (Fernando, 2006, 1.4). The observation and proper implementation of the business ethics serve as a starting point to establishing strong trust between the company in operation and the people living in that locality. This is because business ethics serve to improve the welfare of society through the provision for a corrective, social and opinionated platform (Fernando, 2006, 1.5).