Business Ethics
Introduction
Business ethic is the operational standards and codes of conduct a company has that observes the ethical principles and the moral or ethical dilemmas that may arise in a business situation. These codes and standards apply to all members of the organization and how the conduct themselves in interacting business matters with each other, customers and superiors. In addition, business ethic seeks to create a good relationship with the society within which the business operates. Business ethics are also aimed at ensuing that businesses are able to make profits. This paper discusses the role of business ethics in companies and the society. The paper analyses five articles that share the role of business ethics and how it has had an impact in the society.
- Visser, W. (2010). “The Evolution and Revolution of corporate Social Responsibility”. Responsible Business: How to Manage a CSR strategy Successfully.
This article examines the role of corporate social responsibility in the society. The article recognizes the long existence of corporate responsibility (Visser 2010). It continues to point out that corporate responsibility has failed despite the long history of community service that dates back to centuries. Businesses overtime have helped the society in many ways, however, when judged based on the total impact it has had on the society and the planet, it is doubtful that social responsibility among business will retain its praise. Businesses practices in the past and presently have contributed greatly to the world’s environmental problem. What is more, the role of businesses in the society has failed to offer basic commodities to the people of the world because of the profit driven nature of business.
Companies believe that corporate social responsibility is aimed at showing that they care for the society (Hopkins 2003, p 38). They forget that social responsibility should be a genuine show of respect for the society and environment within which they work in. The article suggests that businesses should reorganize their priorities with regard to social responsibility and make efforts to improve business practices that help the society. The companies should not be driven social responsibility to boost the company image. Corporate responsibility should also gear their efforts to creating a mutually beneficial partnership with the community (Jennings 2011). The role of corporate responsibility should be aimed at making positive contributions in society.
- Parker, M & Pearson, G. (2005). “Capitalism and its Regulation: A Dialogue on Business and Ethics”. Journal of Business Ethics 60: 91-101
Parker and Pearson (2005) explore two divergent positions on how to approach the ethics of politics of capitalism through dialogue between Martin and Gordon. Martin believes that global capitalism is not the only way for human beings to organize themselves since it serves to benefit only a few. Gordon on the other hand counters and suggests that capitalism enhances cooperation that enables people to benefit more from capitalism. To counter, Martin suggests the fact that division of labor effects surplus in production. The surplus however is the property of the capitalist, this as proposed by Karl Marx is stealing from the workers. This is the selfish and exploitative feature of capitalism. The question of the relevance of capitalism in the world today has sparked debate allover the world. There are claims that the problem of the global economy is that it is extremely reliant on the existence of capitalism.
To avert the problems of capitalism that have been heightened by individualistic tendencies of competition, there has to be a level playing ground for the people to compete. This can be done by ensuring that there are measures put in place to restrain hyperactive competitiveness in business. Capitalism in essence is not a bad thing, the excesses that arise out of it create disconnect between profits and the people who made the profits become possible. Alternatives to capitalism are therefore important to ensure that the global capitalist market is beneficial to all (Mann and Roberts, 2007).
- Velasquez, M. (2000). “Globalization and the Failure of Ethics”. Business Ethics Quarterly 10: 343-352
Globalization despite the massive benefits it offers to the world has created many problems for the multinational corporations and their mangers. Globalization has offered several corporations to operate in different countries where there is a problem of integrating the business ethics of the organization and the culture of the country within which they operate (Velasquez 2000). The effect of a multinational operating within certain borders brings about the need for a set of ethical principles that can be used depending on the situation. In essence, globalization has forced multinational corporations to create multiple ethical considerations since it has exposed the corporations to different cultural backgrounds that have different beliefs in terms of morals.
Cultural relativism involves a situation where a manager is expected to adhere to the cultural practices as corporate standards within a country of operation. This is unrealistic because the cultural provisions of the culture in which a manager operates may go against the principles of other members of the organization who belong to different cultures. While relativism may fail, absolutism may be useful. This is where a manger opts to use universal moral standards as the basis for corporate ethics in multinationals (Kline 2010). Several other theories have failed to offer a solution for a business ethics for multinationals; the remedy is to find approaches that could be applied to all cultures in the world.
- Crane, A. & Matten, D. (2007). Understanding Business Ethics. Business Ethics: managing corporate citizenship in the age of globalization. 89-121
There are times when one is met with certain dilemmas that revolve around moral values. This is usually the point of deciding between right and wrong. In the case of a multinational intending to set up branch in a developing country, there are moral implications that arise with such investments. This may include bribing officials to get the investment moving (Crane and Matten 2007, p 89). This may also involve several people who have divergent views on such issues creating a moral dilemma for the multinational. The cultural differences in between the country of origin and a developing country bring about differences in morals. This gives multinationals a problem in trying to determine between what is right and wrong. However, businesses have taken up investment opportunities that have compromised the company ethical demands (Paetzold 2010).
Different ethical theories adopt different proposals of what is right and what is wrong. Others propose that the one has to conform to the morals of a different culture and others such as abolitionism propose that one stands by universal codes of ethics. Pluralism on the other hand proposes a middle ground between the two. The decision could also be determined by the level of good or evil the decision will elicit. Companies will most likely make decisions that will benefit them in term of profit (Fleming 2003, p 22). Therefore, article recommends various ways within which people can make decisions with regard to moral standing. In essence, the article determines that decisions and their consequences burden are left to the decision maker.
- Garriga E. Mele D. (2004). “Corporate Social Responsibility Theories: Mapping the Territory”. Journal of Business Ethics. 53: 51-71.
Corporate Social responsibility is one that has been characterized by numerous theories and approaches that are in most cases very unclear. There has been very lengthy debate as to the meaning of corporate social responsibility. The article tries to clarify the situation by offering a classification of CSR theories and their related approaches. The article identifies instrumental theories, political theories, integrative theories and ethical issues. The theories over time have developed different variations that have determined what corporate social responsibility is. In the end, the views of social responsibility have been distorted to a point where organizations have forgotten the essence of such endeavors.
Corporate Social responsibility theories map out four elements that are related to the profit, political performance, societal demands and ethical values. These theories have to be integrated to ensure that corporate social responsibility is used to serves the community instead of destroying it. Corporate social responsibility must aim at enhancing sustainable development for the common good. While profit is important in a business, measures must be put in place such that corporations deplete natural resources in their selfish desire to maximize profits (Williams and Williams 2007). The article proposes a merger of politics, society, businesses and upright ethical values for sustainable development and shared profit.
Conclusion
The five articles have expressed a common feature. It has established that current views of corporate social responsibility have been distorted. Corporate establishment have always thought of their charity and other good deeds as a way to boost company image. Consequently, the corporate entities have overlooked the harm the business practices have hard on the society and the environment. This has led to the emergence of insignificant impacts on the society by corporate responsibility measures. The articles reiterate the need for integrating all aspects of society to ensure that all sectors have the chance to ensure that corporate responsibility has the desired effect (Rendtorff 2009).
References
Crane, A., Matten D, & Crane, A 2007, Business ethics: managing corporate citizenship and sustainability in the age of globalization. Oxford, Oxford University Press.
Fleming, J 2003, Profit at any cost? why business ethics makes sense. Grand Rapids, Mich, Baker.
Garriga, E, & Melé, D 2008, ‘Corporate Social Responsibility Theories: Mapping the Territory’, Corporate Social Responsibility : Readings and Cases in a Global Context, pp 76-106.
Hopkins, M 2003, The planetary bargain corporate social responsibility matters, London, Earthscan Publications <http://site.ebrary.com/id/10128846>.
Jennings, M 2011, Business ethics: case studies and selected readings. Mason, Ohio, South-Western.
Kline, JM 2010, Ethics in International Business: Decision Making in a Global Political Economy, London, Taylor & Francis Ltd.
Mann, RA, & Roberts, BS 2007, Business law and the regulation of business, Australia, Thompson/South-Western West.
Paetzold, K 2010, Corporate social responsibility (CSR): an international marketing approach, Hamburg, Diplomica Verl.
Parker, M & Pearson, G 2005, ‘Capitalism and its Regulation: A Dialogue on Business and Ethics’, Journal of Business Ethics, 60, pp 91-101.
Pohl, M, & Tolhurst N 2010, Responsible business: how to manage a CSR strategy successfully, Chichester, West Sussex, U.K., Wiley.
Rendtorff, JD 2009, Responsibility, ethics, and legitimacy of corporations, Frederiksberg, Denmark, Copenhagen Business School Press.
Velasquez, M 2000, “Globalization and the Failure of Ethics”, Business Ethics Quarterly 10, pp 343-352
Williams, S & Williams, N 2007, The profit impact of business intelligence, Amsterdam, Elsevier/Morgan Kaufmann Publishers.
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