...Name University Course Tutor Date Business Ethics Business Ethics Ethics can be defined as moral guidelines which govern good behavior. Therefore, business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It is increasingly being applied in businesses to guide their operations. It captures different aspects norms and values that govern the behavior of a business. For instance, it has codes of practices that are increasingly becoming popular. These cover different areas such as corporate social responsibility, environmental policy and actions, rules for personal and corporate integrity, dealings with customers and the supply chain. Business ethics guide how businesses and people should behave in the world of business or commerce. Ethical Theories There are several ethical theories that explain how people and business entities should behave in the society so that their behavior may be considered to be morally good. Some of these theories are briefly explained below in relation to business behavior. Utilitarianism This theory holds that an act can be judged as morally good or bad, right or wrong when it produces amount of pleasure or lack of pain for the greatest number of people (Sadler 9). Business ethics operates under greatest happiness principle. This implies that businesses and their managers need to maximize positive outcomes for the largest number of people...
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...PRACTICE OF BUSINESS ETHICS MMUI J131 • Rotua Veronika Ariester • Sarah Afifah • Samuel Krissandi • Ronald • Eldhie Sya'banni • Reffit Gustaroska ORGANIZATIONAL ETHICS DEFINITIONS Organizational Culture: The values, beliefs, and norms that all the employees of that organization share Value Chain: The key functional inputs that an organization provides in the transformation of raw materials into a delivered product or service ASTRA CREDIT COMPANIES Vision: Become the 1st Choice Financing Company with Total Solution Mission: To Promote Credit for a better living VALUE CHAIN Key functional inputs: Research and Development Develops and creates new product designs Manufacturing Sources the components and builds the product Marketing (and Advertising) Sales Customer Service Four Primary Line Functions Human Resources Management Finance Information Systems Management A REPRESENTATIVE COMPANY VALUE CHAIN Supply Chain Management Operations Distributions Sales and Marketing Service Profit Margin Primary Activities and Costs Product R & D, Technology, and System Development Human Resources Management General Administration Support Activities and Costs EHTICAL CHALLENGES BY ORGANIZATIONAL FUNCTION ETHICS IN RESEARCH & DEVELOPMENT Develop a product design that hopefully will allow the company to capture and maintain leading position. gather data from customer through market research...
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...CASE STUDY H&M WORKPLACE Fire safety is a major issue in Bangladeshi garment factories. Poor electrical installations and bad maintenance often create significant fire hazards. In order to make a safe workplace the norm throughout the sector, we think that it is essential to involve all stakeholders such as the government, industry organisations, trade unions and other brands. This is why we developed two training films to increase fire safety awareness amongst employees at all levels in garment factories. We teamed up with 18 other brands and employer associations in the sector, BGMEA and BKMEA, to spread this training. According to BGMEA, more than 1,250 factories and 100,000 workers received the training. Based on a study that we conducted in 2011, we raised the concern of lapsed fire-safety licenses with the Government of Bangladesh and engaged the Bangladeshi University of Engineering and Technology as well as a specialist to assess the electrical installation in four factories. These assessments were finalised in spring 2012 and their results were presented to concerned stakeholders at a seminar in Dhaka. The most common shortcomings in regards to electrical safety such as poor-quality materials, poor maintenance and lack of proper electrician training were discussed. During the seminar, a number of actions were proposed, including introducing stricter legislation and inspections. In order to set a good example, we have stipulated that all our supplier factories...
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...have increasingly concerned about CSR. Therefore, this has led to more interactions between governments and organizations and society as a whole. In the past, corporations focus on earning profit invariably, “Today, however, businesses must also reflect on the legal, ethical, moral and social consequences of their decisions” (Anderson 15). A growing number of people are keeping a watchful eye on corporations’ background whether it has a contribution to society instead of how much profit they have gained. However, corporate social responsibility has become a significant matter in the international business. The image of corporations depends on how much they take on social responsibilities. E.g. consumers are more likely satisfied with reliable global brands. Similarly, employees are more willing to work for good-welfare companies. “The brand manager uses consumer concern for business responsibility as a means for securing competitive advantage. At the same time a charitable cause receives substantial benefits.” (Smith and Higgins, 2000, P. 309). Hence, nowadays many corporations are making a positive contribution to promote its long-term self-interest and win-win situation. In this paper we will discuss ethical issues in the supply chains of both tea industry and high street clothes industry. Chapter 1.1 Introduction of tea industry Tea was originally discovered and used as a medicine...
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...The Influence of Societal Norms on Leadership, Corporate Culture and Ethical Business Practices Media is consistently reporting scandals, acts of dishonesty, and other unethical behaviors by organizations within the United States and abroad; many factors can be attributed to this issue. The primary reason is a corporate culture that lacks emphasis on ethical decision-making (Chen, Sawyers & Williams, 1997). Leadership often feels pressured to sellout their personal ethics to achieve organizational goals at any cost. The behaviors and actions of a workforce within an organization can be influenced by many factors. The culture within an organization consists of the behaviors and actions of the employees, management, stakeholders, creditors, customers, and society (Chan & Cheung, 2012). Corporate culture is defined as “the shared beliefs top managers in a company have about how they should manage themselves and other employees, and how they should conduct their business (es) (Ferrell, Fraedrich, & Ferrell, 2013 p. 181). How does this culture affect the business practices within the organization? If unethical behavior is the practice of the leadership within the organization then the employees within the organization will be negatively affected and therefore also exhibit unethical practices. If the leadership has significant influence over the workforce what may influence the leadership within the organization? Societal norms may negatively or positively impact the culture...
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...Do you agree with Milton Friedman’s (1970) claim that: “the only responsibility of business is to increase its profits”? Today we live in a world were companies are major actors and influence society on many levels. This is why ethics were brought into the business world. Ethical enterprises follow certain values and moral beliefs and were created with the supposed intention of using that influence in a positive way and protect what surrounds them, whether it is the people who work for the company, the rest of society, the environment etc. Ethics helps companies distinguish what’s wrong or right in a certain situation and act upon it. It bases itself on the idea that a corporation is somewhat responsible for how it affects others, hence the term ‘corporate responsibility’. (Banerjee, 2007) But with time and experience it seems that ethics, although created for a noble purpose, can and are actually used by companies for purposes other than just helping others. The economist Milton Friedman believed that all this social work is the state’s responsibility and a political matter, and that it can induce losses in profit for a company, going against the essence and purpose of a business. He argues we might be better off without it. (1970) This rather negative portrayal of something that was created to do good, although quite realistic, can be discussed and hopefully re-arranged so there is hope that a company can be both socially responsible and profitable. According to Bakan (2004)...
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...Methodology • Title A study of the effect of bribery and corruption with lack of censorship in the governmental institution There are various reasons why corruption takes place and takes hold. Sometimes it is due to the fact that officials are simply not paid very much and so they need to supplement their salaries with money from bribes. Sometimes the bureaucratic system is set up in such a way that officials simply refuse to carry out their duties unless they are ‘encouraged’ by being offered bribes. In other cases it is actually part of the tradition and culture of a country to give and receive ‘gifts’ in order to get anything done. In some cases companies from less corrupt countries allegedly engage in bribery in order to do business in countries where corruption is the norm, otherwise they would not be able to operate successfully in those countries. It can be argued that if such companies did not bribe officials in the necessary countries then the economies of those countries would suffer because fewer companies would invest in them, thus making them poorer. On a smaller scale corruption is often just a result of people’s natural desire to ‘beat the system’. Mostly, corruption occurs in environments where it is tolerated and where the temptation is too strong to resist. In the following paragraph there are some examples of how bribes take place in each and every one of them. • Problem Statement Main Problem: A person gives some money to officials or...
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...Ethics in business: Author: Institution: Introduction. Ethics have been defines as the discipline that differentiates between what is good from what is bad. Ethics are a set of moral principle or value. Ethics assist individuals to make moral decisions when faced with any kind of situation. In business, ethics assist individuals in applying ethical considerations when making any decisions. Ethics regarding the carrying on of business have been described as principles and standards of behavior that are expected of individuals in business. There are various philosophical approaches to decision making in business. One of the most popular philosophical approach to ethics in business is the consequentialist approach. According to this school of thought, a decision ought to be analyzed to ensure that the benefits of making that particular decision outweigh the possible harm that can be occasioned by that decision. According to this theory, the only variables under considerations are the cost benefits involved as well as the level of harm that is likely to be caused by a particular decision. The deontological school on the other hand addresses issues which are related to duties, rights and considerations of justice using standards that are rooted on morality. There are various problems associated with this philosophical school of thought since it advocated for a strict observance of ethical behavior. One of the major problems is the conflict between the ethical duties owed to various...
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...Innovation, Ethics, and Entrepreneurship Morgan P. Miles Linda S. Munilla Jeffrey G. Covin ABSTRACT. This paper is a response to Ray’s (2004) recent proposal that the intellectual property rights (IPR) attached to potentially life saving/life sustaining innovations should become public goods in cases where markets are either unable or unwilling to pay for the creation of the intellectual property. Using a free market approach to innovation based on Western moral philosophy, we suggest that treating intellectually protected life saving/life sustaining innovations as public goods will likely reduce social welfare over the long term. KEY WORDS: entrepreneurship, ethics, innovation, intellectual property rights, policy ‘‘For the Scripture says, ‘Do not muzzle the ox while it is treading out the grain,’ and ‘The worker deserves his wages’ ’’ 1 Timothy 5:18. Ray (2004), in a recent critique of Miles et al. (2002), proposes that the intellectual property rights (IPR) generated from any life saving/life sustaining entrepreneurial initiatives should be transferred to the public domain whenever potential users of these innovations are unable or unwilling to enter into mutually beneficial exchange relationships with the creators of the IPR. This reply offers a perspective on why Ray’s (2004) imperative does not maximize social welfare and, in fact, will tend to diminish social welfare over the long-term as a result of lower economic incentives for innovation. Introduction ‘‘Few...
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...2. De George, R. (1987). The Status of Business Ethics: Past and Future.Journal of Business Ethics. 6, pg201-211 3. Desponded et al. (1989). Organisational Culture and Marketing: Defining the Research Agenda. The Journal of Marketing. 53, pg3-4. 4. Fogarty, T.J. 1996, "The imagery and reality of peer review in the U.S.: Insights from institutional theory", Accounting, Organizations and Society, vol. 21, no. 2, pp. 243-267 5. Goodpaster, K. (1991). Business Ethics and Stakeholder Analysis. Business Ethics Quarterly, pg. 54-69. 6. Hilary, G. & Lennox, C. 2005, "The credibility of self-regulation: Evidence from the accounting profession's peer review program", Journal of Accounting and Economics, vol. 40, no. 1, pp. 211-229. 7. Jarnagin, C. ;Slocum, J. W. (2007). Creating corporate cultures through mythopoetic leadership. Organizational Dynamics. 36 (3), 288-302. 8. Kavanagh, M. H. ;Ashkanasy, N. M.. (2006). The impact of leadership and change management strategy on organizational culture and individual acceptance of change during a merger. British Journal of Management. 17 (1), S81-S103. 9. Kend, M. & A, H.K. 2013, "The CLERP 9 audit reforms: benefits and costs through the eyes of regulators, standard setters and Audit service suppliers", Abacus, vol. 49, no. 2, pp. 139-160. 10. Linnenluecke, M. K. ;Griffiths, A. . (2010). Corporate sustainability and organizational culture. Journal of World Business. 45 (4), 357-366. 11. Pittman, J. &...
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...critic is Noble Prize winner Milton Friedman, who regards CSR as a waste of stockholders’ money (1970). However, many other articles claim, opposite Friedman, that CSR actually improves companies’ financial performance in the long run (Bagnoli and Watts, 2003; McWilliams and Siegel, 2001). There are plenty of arguments on CSR’s influence on company’s performance. As far as I am concerned, CSR plays as a double-edged sword in company performance. The definition of CSR is quite easy to understand. According to Business for Social Responsibility (BSR), CSR is defined as “achieving commercial success in ways that honor ethical values and respect people, communities, and the natural environment.” McWilliams and Siegel (2001:117) describe CSR as “actions that appear to further some social good, beyond the interest of the firm and that which is required by law.” These suggest that a socially responsible corporation should take a step forward and adopt strategies and business practices that go beyond the profit requirements and contribute to some social-friendly activities. However, when companies choose to engage in CSR activities, what they are taking into account is not simply moral responsibility. There are still other drivers including benefits CSR brings as well as the development sustainability enterprise, etc. That’s the reason why we should analyze the benefits and harms of CSR to corporate financial performance. For the benefits of CSR, it is claimed that corporations must...
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...Edge Hotel School Business Report Name: D L Tutor: Module Title: H O Degree Title: BA Hotel Management Submission Date: 7th November 2014 Academic Integrity Statement: I declare that the work in this assignment was carried out in accordance with the requirements of the Edge Hotel School Academic Offences Policy and Procedures and that it has not been submitted for any other academic award. Except where indicated by specific reference in the text, this work is my own work. Work done in collaboration with, or with the assistance of others, is indicated as such. I have identified all material in this assignment which is not my own work through appropriate referencing and acknowledgement. Where I have quoted from the work of others, I have included the source in the references/bibliography. Any views expressed in the dissertation are those of the author. Business Report Contents Introduction p 2 Discussion p 3 Conclusion p 8 References p 9 Appendices p 10 Appendix 1 – Strategic Management Model p 10 Appendix 2 – Swot Analysis Chart p 10 Appendix 3 – Service Recovery System p 10 Appendix 4 – Pareto’s law p 11 Appendix 5 – Kellog’s Square Dealer p 11 Introduction The aim of this business report is to write about a performance, indicating areas and recommendations for improvements. In this report Service Recovery Process (SRP) will be reviewed and how it impacts on hotel operations and strategic...
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...J Bus Ethics (2015) 131:107–119 DOI 10.1007/s10551-014-2271-z Authentic Leadership and Whistleblowing: Mediating Roles of Psychological Safety and Personal Identification Sheng-min Liu • Jian-qiao Liao • Hongguo Wei Received: 26 July 2013 / Accepted: 22 June 2014 / Published online: 8 January 2015 Ó Springer Science+Business Media Dordrecht 2015 Abstract The issues of organizational wrongdoing damage organizational performance and limit the development of organizations. Although organizational members may know the wrongdoing and have the opportunity to blow the whistle, they would keep silent because of the interpersonal risks. However, leaders can play an important role in shaping employee whistleblowing. This study focuses on discovering the mechanisms of how authentic leaders influence employee whistleblowing with a sample from China. Results demonstrate that authentic leadership is positively related to internal whistleblowing. Team psychological safety partly mediates the relationship between authentic leadership and internal whistleblowing. Personal identification partly mediates the relationship between authentic leadership and internal whistleblowing. The study contributes to the extant theory by filling the gap between leadership and whistleblowing. Keywords Internal whistleblowing Á Authentic leadership Á Psychological safety Á Personal identification S. Liu Business School, University of Shanghai for Science and Technology, Jungong Road...
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...AUTHENTIC VERSUS TRANSFORMATIONAL LEADERSHIP: ASSESSING THEIR EFFECTIVENESS ON ORGANIZATIONAL CITIZENSHIP BEHAVIOR OF FOLLOWERS Thomas H. Tonkin Regent University ABSTRACT With the corporate scandals of the 2000s, many employees in organizations are clamoring for authenticity in their leaders. Though authenticity appears to be a noble trait, how effective is this as a leadership approach, specifically in increasing altruistic employee organizational citizenship behaviors? Is authentic leadership more effective than other leadership approaches, such as transformational leadership? This study examined the extent to which authentic leadership is a stronger predictor of employee organizational citizenship behavior (OCBs) compared to transformational leadership. The analysis also investigated the extent to which overall job satisfaction mediated the relationship between authentic leadership and OCBs. The findings suggest that in fact three out of the fours sub scales in authentic leadership had a positive effect on both overall job satisfaction and the OCB of altruism. This study implies suggestions for practical interventions based on the associated theories found in this paper. Keywords: Authentic leadership, transformational leadership, job satisfaction OCBs INTRODUCTION Though there are many theories on leadership, one view is agreed by most scholars, leadership is a real phenomenon that is critical for the effectiveness of organizations (Bennis, 2003; Yukl...
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...www.sciedu.ca/jms Journal of Management and Strategy Vol. 1, No. 1; December 2010 Managing Justly Across Cultures: The Problem of Fairness in International Business Rolf D. Dixon (Corresponding author) Weber State University 3802 University Circle, Ogden, Utah 84408, USA Tel: +1-(801)-626-7542 E-mail: rddixon@weber.edu Cam Caldwell University of Georgia G-2 Brooks Hall, Athens, GA 30602-6256, USA Tel: +1-(318)-446-0129 E-mail: camcaldw@uga.edu Apichai Chatchutimakorn College of Business, McNeese State University Kayla Gradney College of Business, McNeese State University Kochakan Rattanametangkul McNeese State University katekochakan@yahoo.com Received: September 14, 2010 Abstract The aim of this paper is to examine the relationships between organizational justice and the factors that characterize cultural differences. This paper begins by briefly summarizing the nature of organizational justice and by identifying how justice is perceived. Hofstede’s five factors of cultural dimension model, which he developed in his seminal 1980 research on national cultures, is utilized to present characteristics of cultural differences. Ten propositions are then offered which relate to organizational justice and differences in cultural perspectives. These propositions suggest specific management approaches that organizational leaders can adopt to be more effective in dealing with employees from respective cultures. This paper concludes by identifying the importance of understanding...
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