Descriptive Ethics and Responsible Investment - Essay Example

Question Descriptive ethics can also be referred to as comparative ethics and can be defined as the study of what individuals consider to be right and wrong and the circumstances that are involved in the development of these definitions (Cory, 2004). Therefore it is accurate to say that descriptive leaves room for the definition of issues such as morality according to the view of the particular person/people that is being studied (Weiss, 2009). In summary, descriptive ethics can be said to try and answer such questions as, what does an individual according to their judgment believe is right of wrong? By answering this question, one is able to determine what are the motivators and other features behind individuals’ morality when they are based in a position that for example could define an organizational context. The ethical behavior of an individual within an organization whether it is a manager or an employee can be said to be as a result of what they judge to be right and wrong under the contextual features presented to them by the organization (Cory, 2004). Thus, it can be said that the various contextual features that are set by an organization serve as a foundation to what the employees will consider to be right. There are three contextual features in this matter that can be considered to be some of the main basis of what an individual will consider to be right or wrong in their organization (Weiss, 2009). They include, the values encouraged by the organization, the morality of the company itself and the ideology promoted by the upper echelons of management. Values – The values of the organization can be described as the virtues within an employee that are noted and encouraged by the company (Weiss, 2009). There are a number of values that a company can encourage such as the go-getter or never-say-die attitude that will be based on encouraging employees to keep pushing on, but if this is done the wrong way, negative results may occur (Cory, 2004). If a must-win mentality is what is encouraged, for example, then an employee may see it fit for them to do whatever it takes to win no matter the cost. However is values such as honesty and hard work are promoted, there will be a more positive effect on the employees’ attitudes. Morality – The actions undertaken by an organization can be used to judge its morality. If its actions reflect that of a company that has no regard to others, then it is more likely that its employees will pick up on that attitude and reflect it with their own actions (Cory, 2004). For example, should a company plainly engage in actions such as pollution without remorse its employees will end up not caring for other people as well. Therefore, it is necessary for a company to maintain a positive aura around itself that will have a better impact on its employees. Ideology – This can be defined as the main train of thought that is promoted by the organization. If this train of thought is one of selfishness, then it will show in the actions of the employees as they will tend to care only for themselves as well (Weiss, 2009). If an organization strives to create a connection with the society instead, for example, such actions will create a feeling of togetherness within the individuals of the organization. Question 5 Responsible investment can be defined as the situations where the decisions made by businesses and other organizations are not done with only their benefit being considered but involve the factorization of areas such as social as well as environmental matters and corporate governance (Fialka, 2006). This means that the practices of the businesses are designed to ensure that there is no negative impact on the issues that have been mentioned above. This emerged as a result of the business world that their activities may have been responsible for the poor state that the environment was in and were it to continue they would be no more opportunity for the making of profit (Sun, 2010). It also emerged as a result of the development of social responsibility that recently crept into many organizations as many businesses realized that profit margins cannot be the only driver behind success. As a result, there are a number of companies and organizations that have come together and agreed to a number of principles which can also be seen as strategies that they will adhere to in their day to day business activities (Fialka, 2006). These strategies have been designed to ensure that the activities of the company take into account all the social and environmental factors that will also be affected as a result of anything that they might do. Corporate governance is also taken into consideration, and a combination of all three issues can be referred to as ESG (Sun, 2010). Some of main strategies that have been developed as a result of the attempt to maintain their activities within ESG friendly zones include the inclusion of ESG matters into the decision making of the companies when considering matters (Fialka, 2006). The companies will also strive to work together such as providing the required information to show that they have been adhering to the policies set. The owners and managers of the companies will also take a more active interest in the activities of the company and the business that is conducted to ensure that everything is in order (Sun, 2010). Lastly the companies will strive to promote this new mode of business thinking and applications in their various industries (within the investment sector) and encourage others to join them in this endeavor. Of the various strategies that have been mentioned above, it can be said that the third one (that is, the active involvement of the owners of these companies in the application of these strategies) can be seen as the most important of the lot (Sun, 2010). This is due to the fact that despite the high importance of the other three strategies that have been put in place, they will all come to naught should the strategy of ensuring that owners are actively trying to change their company fail (Fialka, 2006). This will lead to the discouragement of other organizations that may have been actively involved themselves as well as undermine the whole process of the ESG movement and policies that have been issued to support. Responsible Investment will thus be seen as a passing trend should the owners of the various organizations that have decided to implement it into their activities not take it seriously and thus as a result not follow through with the various agreements that they may have made (Fialka, 2006). This may even lead other organizations to decide that there is no need for them to keep their end of the bargain resulting in a backwards trend that may undo everything done and the progress that was made. References Cory, J. 2004. Activist Business Ethics, Springer, Boston. Fialka. J. 2006. "Politics & Economics: Big Businesses Have New Take on Warming; Some Companies Move From Opposition to Offering Proposals on Limiting Emissions". Wall Street Journal Sun, W. 2010. How to Govern Corporations So They Serve the Public Good: A Theory of Corporate Governance Emergence, Edwin Mellen, New York. Weiss, J. W. 2009. Business Ethics: A Stakeholder and Issues Management Approach With Cases (5 ed.). 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