Business Ethics For Managing Corporate And Sustainability

Introductions

Discuss about the Business Ethics for Managing Corporate and Sustainability.

This report is framed with an aim to develop the understanding of whether ethical behavior exist in the business or not. It is also helpful to understand the ethical value communicated by the organization. This report also analyzes the ethical standards in the organization.  At the same time, this report focuses on the buyers and sellers interest. It is also helpful to understand the various attributes of business ethics. Finally, this report analyzes the different economic benefits through the ethical standards in the business.

Ethical behavior demonstrates how a person usually thinks about good values. Whereas, it is effective for the organization, because organization complies with the moral principles such as honesty, fairness, diversity in order to take an effective business decision (Delistavrou and Tilikidou, 2012). Along with this, above principles support the organization culture and values and help the company to be sustainable in the long run. Simultaneously, ethical behavior lead to the better relations with shareholders, suppliers, partners, and local community.

Strength

In the current environment, ethical behavior exists in the business, because it can be helpful in profit making mechanism in business. It increases the value of the firm and it creates the positive relationship among the team working, public, and empowerment. Similarly, it also raises the corporate social responsibility of the firm towards the social welfare of the people. Concurrently, ethical behavior helps to gain the competitive advantage in the market. Moreover, it also creates the workplace culture that enables to build the strong relationship between employees and management (Axelrod, 2013).  

Weakness

There are many weaknesses in an organization due to lack of ethical consideration such as organizations faces the moral and social issues. Meanwhile, it decreases the worth of the firm due to lack of ethics in the business. As a consequence, profit would be decreased. Lack of management support in ethical activity is a weakness of a firm. Similarly, it reduces the market share of the firm. Therefore, developing and maintenance of ethics compliance is very expensive and time-consuming for the organization (Weiss, 2014). Ethical behavior also creates the problem of communication.

Findings

Ethical behavior is the internal part of the organization and it is necessary for all the firms, because it is helpful to raise the value of the firm. Whereas, some companies do not address the ethical behavior due to time consuming. At the same time, organization complies the business ethical code of conduct for the profit maximization (Chell, et al., 2016). In the UK; there are 300 companies in the British in the Community (BITC) who contributes 0.5% pretax profit for the charitable projects. BITC purpose is to get companies engage in community social and economic problems. Simultaneously, UK companies spread the information related to ethical issues between the managers and staff to change the business circumstances. According to the international survey, there are 40% of Europe firms are conducting the ethical program for the employee social welfare. Whereas, employees think that the companies are more ethical due to profit only.

Ethical behavior

Meanwhile, companies are following the business ethics principle but at times they failed to reinforce to the message. The ethical code of conduct affects the mindset of workers and managers. Consequently, companies make the efforts to enhance the profitability and reduce the cost with the help of business ethics principles, which is quite helpful for the company to gain a competitive advantage (DesJardins and McCall, 2014). Some companies follow the hypocritical window dressing way to enhance their corporate social responsibility towards the people in the market. Furthermore, most of the companies create the environment that there is no importance of the ethical consideration.However, companies raise the profitability of their employees through the advanced ethical consideration in order to spread the ethical awareness. According to protestant ethic, a person achieves their objectives in an organization through his hard work, not the ethical consideration.

Ethical standard is applicable for every individual in a different way. In other words, ethical standard is the basic value and fairness of the people in a firm. Organization encourages the people to think different towards the business goal, which is helpful for the organization to enhance their profits. Meanwhile, an organization needs to follow the ethical theories in business in order to better understand the employee behavior. Along with this, theories are also helpful to control on internal affairs of the organization.  Pluralistic ignorance is a situation where all the members are denied the ethical norms and standards (Peterson and Ferrell, 2016).

Most of the companies think that there is requirement of some laws and regulation to protect the buyers and sellers from the dishonest trading partner in the market, because companies have fear of losing the market. There are some regulations that exist in the market that protects the interest of the workers, local community, and nations (Arnold, et al., 2015).  In the current environment, due to arbitrary actions, there is no reward system for the hard working people. Unfortunately, success is a capricious and disaster looms. According to the bureaucracy system, organization disposes of the human resources.  

In the unregulated market, organizations differentiate their value through more vulnerable to ethical. There are some ethical attributes that tend to long-term stability in the market such as trustworthiness, cooperation that do not represent the company profitability as the primary factor.  A firm needs to focus on everal factors for success and one of those is ehical values are more successful in the market rather than the unethical organization

Strength and Weakness of the Ethical Behavior

Good ethics is effective for the organization in the long run, because it raises the brand image and productivity of the firm in the market. Therefore, in a survey 65% respondents think that ethical standard is helpful for the firm to take competitive advantage. Similarly, 94% of business community faces the problem related to ethical issues. At the same time, 67% companies follow the ethical consideration consequently; it provides the donation to the charitable trust as his social responsibility (Finch, et al., 2015). Thus, ethical consideration can be helpful to take an effective decision and raise the sales. Self-interested behavior can be helpful to provide the positive outcomes for the organizations. It can be said that success depends on the ethical consideration in the business.  However, business ethic develops the trust, cooperation and value between the customers and suppliers. Instead of this, a smaller company denies obeying the business ethics due to the temptation of short term profit. 

Some Companies have invited the people to invest their money in short-term goals rather than the long term for the fund’s stability. However, a firm expects to a manager and their employees to follow the ethical standard to accomplish the goals.

In business ethics, the organization should avoid the bureaucracy control on employees while managing the ethics in business consequently, it needs to manage and communicate with the help of social system and provide an equal chance to every employee to think differently related to business ethics. Similarly, the organization should appoint the experts to determine the organization ethical behavior activity as to promote more ethical. The company should overcome the inducements in unethical behavior such as punishment for nonperformer. Additionally, it can be recommended that organization should conduct the education programs and training to reinforce the ethical code, which is quite helpful to take effective decision making in the context of ethical consideration. Meanwhile, it should also prepare the top level hierarchy to use their power to create an ethical environment. Simultaneously, the company should provide the reward to their best – performing employees.

Conclusion

On the basis of above analysis, it can be concluded that ethical behavior is significant for the business, because it raises the feasibility of the firm in the market. Ethical behavior develops the positive relation between management and employees vice versa developing and maintenance the ethical consideration in the business is very expensive. The ethical consideration can be helpful to raise the profitability of the firm. Simultaneously, most of the companies fail to reinforce the ethical consideration, consequently, it negative impacts upon their long-term sustainability and profitability (Matten, 2015). Some firms used the hypocritical window dressing way to enhance their value, sales, corporate social responsibility, and profits.

References

Delistavrou, A. and Tilikidou, I. (2012). Exploring the Ethical Behaviour Adopted by Greek Consumers. Journal of Marketing Vistas, 1(2), 22-35.

Axelrod, S. (Ed.). (2013). Effects of punishment on human behavior. USA: Academic Press.

Weiss, J. W. (2014). Business ethics: A stakeholder and issues management approach. USA: Berrett-Koehler Publishers.

Chell, E., Spence, L. J., Perrini, F. and Harris, J. D. (2016). Social entrepreneurship and business ethics: does social equal ethical?. Journal of Business Ethics, 133(4), 619-625.

DesJardins, J. R. and McCall, J. J. (2014). Contemporary issues in business ethics. USA: Cengage Learning.

Peterson, P. E. and Ferrell, O. C. (2016). Business Ethics: New Challenges for Business Schools and Corporate Leaders: New Challenges for Business Schools and Corporate Leaders. UK: Routledge.

Arnold, D. G., Goodpaster, K. E. and Weaver, G. R. (2015). Past Trends and Future Directions in Business Ethics and Corporate Responsibility Scholarship. Business Ethics Quarterly, 25(04), 121-141.

Finch, D., Deephouse, D. and Varella, P. (2015). Examining an Individual’s Legitimacy Judgment Using the Value–Attitude System: The Role of Environmental and Economic Values and Source Credibility. Journal of Business Ethics, 127(2), 265-281.

Matten, D. (2015). Business Ethics: Managing Corporate Citizenship and Sustainability in the Age of Globalization. USA: Oxford University Press.