Ethics in Business Comunity - Essay Example

Communication In Business Table of Contents Business practices & approaches suggested by Global Compact 3 Issues faced while implementing suggested business practices 3 Lesson learnt while implementing the required practices 5 Benefits and risk to key stakeholders 6 Recommendation 6 Reference 7 Business practices & approaches suggested by Global Compact United Nations Global Compact has suggested ten principles in the area of human rights, labour, the environment and anti-corruption1. A company acquires all the required resources from the society; hence it is the moral responsibility of the company to take active part in up-gradation of the society and it should minimise the harmful effect incurred to environment. Therefore, these ten principles should be used by the companies while formulating their business strategies and policies. Among these ten principles, the principle 7 states “Businesses should support a precautionary approach to environmental challenges”, and principle 9 states that “Business should encourage the development and diffusion of environmentally friendly technologies”2. Through these two principles, UN Global Compact asks companies to take proactive measures so that environmental degradation can be minimised. These principles also encourage companies to adopt environment friendly technology as this will reduce the adverse effect of companies’ operation on the environment. Issues faced while implementing suggested business practices While implementing the environment related principles mentioned by UN Global Compact (Principle 7 and 9), a company has to make required changes in its business operations. These changes should be implemented in a more planned manner. Therefore, at first the company should conduct an audit to find out how its operation is impacting the environment. After considering the data derived from this analysis, management should point out those activities which are adversely affecting the environment. If possible, these activities should be replaced with some other alternative processes; otherwise required changes should be introduced to curtail its harmful effect. As Fuji is involved in production of electronic goods; hence it has to deal with ample number of chemicals that have a harsh and adverse effect on the environment. To imply with these principles, the company has to introduce several changes in its operation. As for example, before ejecting the waste gases in the environment these should be treated to so that carbon particles can be collected and the highly reactive gasses can be converted to stable compounds which do not pollute the environment to that extent. Therefore, to provide required treatment for the waste products, Fuji introduced new techniques and made required investment in purchasing the essential machineries. The company also made changes in the production process so that the amount of waste produced can be minimised. Introduction of technology is not just enough until and unless the human resource actively participates. Therefore, the company motivated its workforce to work hand in hand with the management to minimise the harmful effect. Hence, the company provided required training to its employees so that they can adjust with the new technology. Such training assisted the employees to understand how to work in the changed working environment. It can be concluded that while implementing the required business practices, Fuji not just faced the technical issues but it also had to deal with financial as well as human resource issues. Apart from Fuji, if any other company which is operating in this industry, will face all these issue while implementing the required environmental practices in their business. Lesson learnt while implementing the required practices The process of implementing required business practices is not as simple as it may appear at first glance. Companies often find themselves in a state of dilemma that whether preference should be given to the profitability of the firm or towards social welfare. This is because, if the company make investment in eco-friendly techniques, it will increase its operational cost and the profit margin will reduce. On the other hand, if the company does not bother much about the environment it will adversely affect the environment and has to face stringent legal action by the government. Even its market image may get hampered. Therefore, the company should develop a balance between profitability and social responsibility. In the process of implementing required business practices, Fuji realised that involvement of top management is highly essential in formulating required change in the company. For smooth implementation of the plan, changes should be introduced in step by step manner. There is always a possibility that process of implementation may not be executed as per the plan; hence the management should maintain a flexible plan which can be modified to best suit the requirements. Fuji realised that to attain a sustainable position in the society, the company should go on reviving its environment related policies on time to time basis. Hence, it is a dynamic process which requires equal participation of the management and the employees to make our Earth a better place to live. Benefits and risk to key stakeholders If a company makes high investment in environment up-gradation, it will adversely affect its profitability and the shareholders have a risk of getting poor return on their investment. However, such investment will assist the company to minimise its harmful effect on the environment and thus the society will be benefited. A company which is concern about its effect on the environment will gain goodwill in the market and it will succeed in acquiring sustainable growth in future. Recommendation To comply with the environmental principles provided by UN Global Compact, a company has to adopt the practice of conducting environment audit. Like a financial report, this environment report will provide all the details regarding investment done by the company for minimising its negative effect on the environment. This report will also provide information that whether the company succeeded in achieving its environment related targets. Companies should invest a part of their retained earnings for introducing new technology to minimise the adverse effect on the environment. This invested should be done considering long tern benefit for the society as well as for the company. Apart from making investment in the company, management can collaborate with nongovernment organisations like WWF for conservation of natural resources. Investment should also be made for educating people that how they can conserve their natural environment and develop a green nation for the generations to come. Reference United Nations Global Compact. (No date). The Ten Principles. About Us. Retrieved December 11, 2010 from http://www.unglobalcompact.org/aboutthegc/thetenprinciples/index.html. Read More