Business networking refers to an efficient and effective marketing strategy by creating sales opportunities and contacts through referrals and physical introductions. It’s a low-cost method that can be done either face to face, through phone calls, emails or through social networks and business websites (Laird, 2006, p. 5). However, business networking needs to be ethical; all levels in the business should uphold ethics. An ethical business considers the impacts their practices, processes, and activities have on others, including the impact on the environment. Business action like networking should be kept ethical at all times (Cavalier, 2014, p. 2).
Business ethics refers to sets of organizational values, principles, norms, and standards that govern the activities and practices of any individual in a business environment. Businesses and business owners should uphold ethics; they should not harm the environment, people or even animals. Business networking as well should be done in an ethical manner. Managers should not use networking for their gains. They should also not deceive the other person in the network to acquire favor to themselves. Networking should be from egoism and egocentric behaviors. It incorporates the needs and interests of all stakeholders and stockholders of an organization (Pinnington, 2002, p. 2).
All forms of forms of Networking should be practiced concurrently, and none should exclude the other. There are three types of ethical business networking, which are;
Utilitarian networking; this is a form of networking in which the business owner before starting the networking process questions themselves on the extent to which the business networking process is a real utility of the business customers. For a Utilitarian network to be ethical, it must be designed in a way that it does not waste the consumer or the potential clients’ time. This, therefore, means that for a business networking to be ethical, it must be strategic and useful to the consumers. Business networking should be free from lies regarding the network meetings (Anscomble, 2008, p. 24).
Virtuous Networking; calls for the participant of networking to act in good faith. The participants should all take part in legitimate activities, and all relevant information regarding the network should be provided at all levels. The members of the networks should all strive to offer positive influence across the network. A business networking process in which the business owner or manager intends to take advantage of the other person, who they are engaging in the network, is deemed to be unethical. Some people can take advantage of the other person’s lack of knowledge of the intended venture or by providing them with wrong information just to seal the deal. In such a case the process will be unethical. In cases where all information and data related to the intended process, the networking is deemed to be ethical.
Emotional Networking; this requires the person to have emotional feelings and have emphatic feelings about being ethical. People engaging in business networking should do the right things because they feel there are the right things not because there is a rule defining what is to be done. In networking business, people should make sure that in choosing their networking strategies they lay considerations on the impacts their actions have on others. This means that managers and business owners should consider the interests of the stakeholders as well as those of the stockholders, business stakeholders include; customers, suppliers, distributors, trade unions, government agencies, and political bodies among others (Dobos, 2010, p. 234). A business network is ethical if it puts into consideration the feelings of all these parties and should not overlook the interests of some of the stakeholders to satisfy the interests of others.
According to utilitarianism, a business ethics is termed as ethical if it considers what is good and what is bad. Business network causes satisfaction to the parties involved in the system. A system that creates no form of harm to anyone in the business network is ethical. Business networking processes that do not satisfy people involved in the process can be termed as unethical. An ethical business network process should involve making decisions that will lead to the right results when the parties concerned make decisions using the information provided but not through coincidences or accidentally. This, therefore, calls for business networking to have the other person’s interests at heart in setting up the network (Garfield & Edelglass, 2011, p. 62).
Ethical business networking does not involve taking risks in making decisions that if our expectations fail will cause harm to others. Any networking that may result to harm if anticipated results fail is thus unethical. To know if a business network process is ethical or not it is important to consider the benefits and harm of its alternatives. Ethical networking has more benefits than harm in any of the alternatives. Managers make decisions that will be favorable to all people involved in the network even if the initial intentions of the networking process fails. This way the process maintains ethical grounds at all costs since no one is hurt by the outcomes of the business.
Business Networking is ethical when practiced following the moral guidelines. To determine if a business networking process can be done by establishing whether the process meets the requirements of normative theories. In explaining the extent to which business networking is ethical three normative theories have been identified; the stockholder, the stakeholder, and social contract theories. Business networking is an important aspect of the business environment and should ensure that it areas to the social responsibilities of the business person. These theories explain how business people can ensure their networking systems meet their ethical obligations.
According to the stockholders’ theory business refers to arrangements between two groups and in which one group of generates, ethical business networking ensures that all the stockholders involved in the business receive ownership interests from the income generated from the networking venture. If the venture only benefits the managers the process is not ethical at all. For a network to be termed as ethical managers should also not use organizational resources without the approval of the stockholders even if it’s for networking purposes (Mitchell, Agle, & Wood, 2004, p. 22).
Business networks should be ones in which the managers adhere to the set legal directions by the stockholders, this means that if the stockholders give an ultimatum of crossing down a business plan, for example, the management should adhere to that. If managers engage in networking which aims at maximizing the stockholder’s profits and returns the business network is termed as ethical.
However, the theory does not allow managers to engage in unprescribed processes in efforts to generate more profits. They should not ignore any ethical issue in pursuit of increasing profits. Any activity that follows this is termed as unethical. Managers should only network in pursuit of profits only using non-deceptive and legal means, and thus ethical networking should not impose any ethical constraint on either the managers or employees. The managers are obligated to ensure that business targets are met, but they should not be pushed to the point of doing illegal business to achieve the business targets.
The theory as well explains that the managers should not use the stockholder’s money against their wishes. Thus any business activity initiated by the managers without the approval of the stockholders is seen as unethical regardless of its motives. Managers and all stockholders should have a sitting to discuss the intended practices and actions. Managers should avoid making decisions behind the stockholder’s back to ensure that the networking systems are ethical (Friedman & Miles, 2014, p. 215).
This is a management and business ethics theory that specifically looks at the moral and ethics in organizational management. According to this theory for a business networking process to be ethical, it must involve the well being of the stakeholders, the company’s stakeholders are; employees, suppliers, customers, political groups, trade unions, the communities, financers, and trade associations as well as competitors. This, therefore, means that a business networking strategy should have more benefits on the organization’s stakeholders, in comparison to the possible harms that the strategy can lead to. A business activity is only successful if it’s able to balance the interests of the stockholders and stakeholders. Just like the stockholders lays much attention the interests of its stakeholders. Business networking that considers the interests of its stakeholders can be termed as ethical. No one stakeholder is irrelevant in an organization, and hence managers should not overlook the interests of any of them. For instance, a business network that promotes the interests and needs of the employees a t the expense of the organizational suppliers is unethical.
Stakeholder’s theory holds that the organization’s management has the obligation of increasing the company’s profits, which can be done through networking which should ensure a balance between the needs and interests of all the company’s stakeholders. An ethical business network process works in line with two stakeholder’s management principles; corporate legitimacy which lays emphasis on the need to respect and maintain respect for all the stakeholder’s rights. Ethical practices should be in accordance with this principle. Most of the business networks are used (Donaldson & Preston, 2005) promoting the welfare of the organization in attempts to maximize the profits. No matter the pressure to produce managers should not overlook on any stakeholders. Also, the networking is termed to be ethical if it considers the interests and feelings of company’s stakeholders. Whether planned for or accidental, networking results should not cause harm to any of the stockholders.
The second principle is stakeholder’s fiduciary which explains that the organizational management should enhance a fiduciary relationship between the company and its stakeholders. For a business networking to qualify as ethical, they should operate by the interests of the stakeholders who are the agents of the company. Businesses have social responsibilities of upholding the stakeholders’ interests, and this qualifies a practice as either ethical or unethical (Phillips, 2003, pp. 10-11).
According to Ed Freeman and William Evan, (1988) ethical business practices should uphold respects for persons. Its ethical principle states that every person/ stakeholder should be accorded respect and should be treated regarding his rights. The management should ensure they represent the interests of all the stakeholders in its business expansion, development to stand management strategies (Friedman & Miles, 2002, pp. 19-21). The theory calls for honesty, and thus ethical business networking should not deceive its stakeholders for any given reason. Managers involve the stakeholders in making decisions which affect them. Any strategy to market the businesses that might affect the employees, for example, should the employees before settling on such a decision. Failures to involve stakeholders in the decision making of matters affecting them deem the networking strategy unethical (Falaky, 2014, pp. 17-18).
This theory implies that businesses have an ethical obligation to promote the well-being of the entire society and community through customers and employees interests satisfactions. Members of a society allow the existence of business in specific areas due to the benefits they expect to get in return. Businesses networking strategies which aim at promoting the society’s well-being and considers the society’s interests can be termed to as ethical
. Managers are obliged to engaging in activities which promote the interests of the society which forms part of the external business environment. Most business networks aim at increasing the company’s advantages the perceived disadvantages (Falaky, 2014, p. 18). In maintaining ethical standards, businesses should consider the social welfare as well as the justice term. The social term states that the members of the society have the right to allow the setting up of business in their area only if they are sure to benefit in doing so. This, therefore, means that in networking for their businesses managers and business owners should appreciate the social terms in doing so for instance, in networking for a pork center it would be unethical to a network to the Muslim brothers whose social culture do not allow the consumption of pork.
Ethical business networking benefits the society in three major ways; to start with the societies who are the consumers benefit from the economic efficiency created through networking ethically. This is achieved through company maximization of the advantages of their business activities. The society as well benefits through ease of access to recent technologies and other important resources brought by the businesses. The decisions made by businesses must align with every individual’s interests. In addition to meeting the legal requirements set by the Federal governments, the organization s also obliged to meet the nonlegal expectations of the community surrounding the business (Narveson & Trenchard, 2008, pp. 103-105).
Ethical business network ensures that the business employs a corporate social responsibility that meets the ethical standards satisfying the community’s expectations and needs. The management makes sure that they meet their end of the bargain by satisfying the interests of the society without violating the legal laws. Business networking is also ethical in that it controls environmental harm by controlling the utilization of natural resources as well as by controlling the unnecessary release of harmful products to the environment. In networking the business is bound by corporate social responsibilities of controlling and preserving the environment.
Social contrast theory also upholds corporate social governance that ensures that the organization meets the ethical standards, controlling the occurrence of unethical and illegal activities. The corporate governance also ensures that those who distract ethical operations are dealt with. Any right business network whether operational or anticipated should abide by this.
Operating ethical business comes with its costs, and business people should be ready to face the challenges that come along with the practice. For instance, by remaining ethical, it’s at times hard for businesses fail to hit their profit margins. They also find it hard to meet the distributors’ and retailers’ margins. However, despite these challenges being ethical is one of the strategies that organizations can use to achieve sustainability. Ethical practices are very beneficial to the success of the business culture, and the critical values as well as other important aspects (Riley, 2013, p. 543).
In conclusion, it’s evident that business networking is an ethical practice if the organizations and business managers adhere to the set ethical standards. However, depending on how networking is carried out it can be termed as either ethical or unethical. Business networking qualifies to be ethical if it satisfies the interests of others and not just the business owner. Networking calls for business owners to avoid being egocentric. Business Networking can, therefore, be said to be ethical or unethical depending on its application by the business owners/ the networkers. It as well depends on the motive behind the networking process. It’s ethical when done with the interests of all, which are the business owners, business stockholders, all stakeholders and the community. Ethical business considers the wellbeing of the environment as well.
References
Anscomble, E. (2008). Modern Moral Philosophy. Philosophy, p.24.
Cavalier, R. (2014). Meta-Ethics, Normative Ethics, and Applied Ethics. Online Guide to Ethics and Moral Philosophy , pp. 02-26.
Dobos, N. (2010). “Networking, Corruption, and Subversion. Journal of Business Ethics , pp.234.
Donaldson, T., & Preston, L. E. (2005). “The Stakeholder Theory of the Corporation: Concepts, Evidence, and Implications”. Academy of Management Review. ,p. 298.
Falaky, F. (2014). SSocial Contract, Masochist Contract: Aesthetics of Freedom and Submission in Rousseau. Albany. New York: State University of New York Press.
Friedman, A. L., & Miles, S. (2014). Stakeholders: Theory and Practice. Oxford: Oxford University Press. ISBN 978-0199269860.
Friedman, A. L., & Miles, S. (2002). “Developing Stakeholders Intrests. Management Studies ,pp. 1-21.
Garfield, J. L., & Edelglass, W. (2011). The goods that serve as criteriaThe goods that serve as a criteria of morality are collective or public, in contrast, for instance, to individual happiness or well-being. Oxford: The Oxford Handbook of World Phd.
Laird, P. W. (2006). Pull: Networking and Success since Benjamin Franklin. Cambridge: Cambridge University Press.
Mitchell, R., Agle, B., & Wood, D. (2004). “Toward a Theory Towards a Theory of Stakeholder Identification and Salience: Defining the Principle of Who and What Really Counts”. Academy of Management Review ,p. 22.
Narveson, J., & Trenchard, D. (2008). “Contractarianism/Social Contractarianism/Social Contract”. In Hamowy, Ronald. The Encyclopedia of Libertarianism. Thousand Oaks, CA: SAGE. Oxford: ISBN 978-1412965804. LCCN 2008009151. OCLC 750831024.
Phillips, R. (2003). Stakeholder Theory and Organizational Ethics. Michigan: ISBN 1-57675-268-2.
Pinnington, A. H. (2002). Human Resource Management in Australia. Melbourne:: . Oxford University Press ISBN 0-19-551477-7.
Riley, P. (2013). “How Coherent is the Social Contract Tradition. Journal of Management Sciences ,pp. 543-562.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download