...reputation can crumble, and that can lead to a loss of major business. It is important that companies can trust each other enough to be able to make large business deals together. It is also important that customers trust a company in order to make purchases from it. If customers feel that their money is going to be used for an unethical cause, they may choose to do business with another company. One often overlooked aspect of trust in a business setting is how much employers trust their employees and vice versa. This paper focuses on two companies (Walmart and Hewlett Packard) that have taken a major public relations hit recently. We will describe the events that caused these major hits and steps that the companies could have taken to prevent them and their responses to the incidents. Walmart Walmart has been one of the most successful companies in recent history. According to cnnmoney.com, they have ranked as one of the top 2 companies in the Fortune 500 since 2007 (Fotune 500, 2011). Walmart has over 2 million employees and is the second largest employer in the world. In the next five years it is estimated that they will add 500,000 more employees (Gardner, 2011). Former Senior Vice President of Walmart, Ron Loveless gives ten reasons why Walmart has been so successful. He credits leadership, communication, corporate structure and ethics, among other things as the reasons for success. He says, “The effort to be an "ethical" company was a key ingredient to our success” (Walmart's...
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...Loss of consumer trust is hard to regain for any organization, especially for an organization like the Better Business Bureau whose primary function as a business is built upon being trustworthy. Furthermore, consumers are very suspicious when it comes to consumer reports concerning the ethical behavior of a company. But, for many years the BBB had gain public trust with its rating system of thousands of companies. Additionally, it also helped many companies gain extra business while negative ratings damaged the brand image of others and resulted in company losses. In this case, the critical issue that pertains to unethical behavior of the Better Business Bureau was the organization willingness to advance better rating to companies...
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...can culture affect ethical standards and shape business behavior? High ethical standards require both businesses and individuals to conform to sound moral principles. Business ethics comprises the principles and standards that guide behavior in the world of business. Culture does affect ethical standards and shape business behavior. For example, in America unethical standards in a business cause one in four to witness it in the last six months (LRN, 2009). This is because the Western world is very individualistic in their thought processes, so they become competitive, and will hurt anyone in the process to get to the top. Is it ethical to take part in corrupt international business transactions? Legal? Explain. Yes, culture can affect the ethical standards and shape business behavior in many ways. One of the ways are bribes, many business in other countries uses bribes to get what they want. This is how many of the countries get things done. On the other hand there are still many companies that don’t believe in bribes and think that it is unethical in business, and then they find it very difficult to continue their business in those countries. The reasons why many companies use bribes are because their government officials have very low salaries (Shaw, 2010). Lucrative positions are "sold “Further, “at different rates, it depends on the bribe. When companies take part in corrupt international business transactions, it does mean that it is ethical. It is up to the...
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...BUSI610: Organization Design and Business Ethics Mitzi N. Harvey Liberty University Abstract This literature review examines the concepts of business ethics and how it is related to the organizational design of a corporation. The first section of this review defines the concepts of business ethics and organizational design to establish their meaning and use throughout this paper. The second aspect of understanding the relationship between business ethics and organizational design comes from understanding how and/or why ethics is important to organizational design. This will illustrate any underlying influences ethics has on business structure and design. The third section of this paper reviews and groups the literature found linking ethics and organizational design. Literature is grouped together based on the similarities found in authors’ opinions, research and/or results. The next section discusses the ideas of micro and macro ethics; first defining them, illustrating the differences and then explaining how they come into play when examining the link between ethics and design. The following sections of the review, provides examples of formal organizational structures, ethical programs, and the ethical decisions that impacted them. Finally, in the conclusion of the review it summarizes the relationship between business ethics and organizational design, how this relationship impacts business, and what this means for business managers. Introduction To sustain...
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...literature review observes the views of organizational design and business ethics as they relate to one another in business. The first portion of this paper defines organizational design and business ethics to establish their importance and also examines managerial ethics and corporate social responsibility, sources of ethical principles. The second portion pursues to explain the relationship between business ethics and organizational design and how managers shape ethics through use of value-based leadership and formal structure systems. The third portion pursues to review the importance of ethics to organizational design and the structures that support or enforce ethical behavior in organizations. The fourth portion links literature reviewed and published over the past few years together based on their reference to ethics and organizational design. The literatures are linked together based on commonalities found in the opinions of the authors relating to a spiritual perspective, ethics and corporate structure, organizational and ethical theories, and ethical strategy. Last but not least, the review concludes with a summary of the important role that ethics plays in the organizational design and structure of a business and how it applies to members of management. Keywords: business ethics, organizational design, corporate social responsibility Outline INTRODUCTION I. Organizational Design/Business Ethics A. This will be a review of the relationship between different...
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...BUSI610: Organization Design and Business Ethics Mitzi N. Harvey Liberty University Abstract This literature review examines the concepts of business ethics and how it is related to the organizational design of a corporation. The first section of this review defines the concepts of business ethics and organizational design to establish their meaning and use throughout this paper. The second aspect of understanding the relationship between business ethics and organizational design comes from understanding how and/or why ethics is important to organizational design. This will illustrate any underlying influences ethics has on business structure and design. The third section of this paper reviews and groups the literature found linking ethics and organizational design. Literature is grouped together based on the similarities found in authors’ opinions, research and/or results. The next section discusses the ideas of micro and macro ethics; first defining them, illustrating the differences and then explaining how they come into play when examining the link between ethics and design. The following sections of the review, provides examples of formal organizational structures, ethical programs, and the ethical decisions that impacted them. Finally, in the conclusion of the review it summarizes the relationship between business ethics and organizational design, how this relationship impacts business, and what this means for business managers. Introduction To sustain...
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...Ethical Issues Ethical Issues in Corporate America Larry Goodman Business 610/ Organizational Behavior Prakash Menon April 10, 2011 Ethical Issues 1 The purpose of this paper is to look at the Ethical Issues in Corporate America. This paper will address areas regarding why ethical issues are a major concern in organizations, what influences impact ethical behavior and how organizations can influence ethical behavior in employees. To complete this task outside resources, such as books and articles will be utilized. According to Wise Geek.com, Ethic is defined as, “the behavior that a business adheres to in its daily dealings with the world”. Ethic takes on many different forms with any organization, how ethics impacts employees is very important to the success and failure of the company. Organizations are more likely to achieve ethical success with the employees if the employees are properly trained to complete any desired task. Given the fact that the employees are not trained properly, makes them more likely to make a mistake or incapable of performing job duties, this is a condition that will influence the ethical behavior of the employee. Properly continued training will enable the employees an opportunity achieve better results and it will help the organization produce better products. The employer may utilize other areas to help drive desired ethical behavior. The employer may take steps to help increase the desired ethical behavior. The employer may use...
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...Organizational Design & Business Ethics: A Literature Review Abstract A review of the current literature regarding business ethics was conducted analyzing scholarly peer-reviewed articles about business ethics and their relation to leadership, managerial decision making, corporate social responsibility and overall corporate structure. Increased corporate scandals and the discovery of a rise in unethical business practices have thrown the topic of business ethics into the spotlight. Organizations are expected by their stakeholders to implement strong ethics within their corporate structure and culture. This expectation could be accomplished through strong ethical leadership, formal structures and regulations that place emphasis on ethics, and by making a commitment to corporate social responsibility. Using these guidelines will help organizations overcome the various challenges allowing the business to build a strong ethical foundation that will ultimately benefit the company through increased customer and employee satisfaction, which could result in increased profits, organizational sustainability and social status. The review of the literature reveals that there is still plenty of room for exploration on the topic of business ethics and particularly with the topic of ethical leadership. It is recommended that more focus be placed on understanding the influence of strong ethical leadership within an organization and how this influence flows down the organizational...
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...Managing Ethical Decision Making in the Workplace James E. Gleason BUS 275-H01 Calhoun Community College Abstract Business leaders struggle to balance the desire for profit and maximum shareholder return with corporate ethics and social responsibility. Unfortunately, short-term financial bottom line has taken the place of maintaining strong moral character in today’s business practices. In the United States alone, about two-thirds of the top corporations have been guilty of some type of corporate malfeasance. In the face of both damaging and publicly embarrassing litigation, business leaders now recognize the need for sound, straightforward ethics management programs in their companies that makes ethical business practices a top priority at all times. Top executives must lead by example and actively and willingly encourage ethical behavior in their peers as well as employees. The need for stronger ethics in business has prompted business schools to critically examine their business curricula and place greater teaching emphasis on ethics and social responsibility to ensure future generations of new business graduates enter the workforce with the highest moral standards. Keywords: ethics, social responsibility, malfeasance, business schools, business curricula Managing Ethical Decision Making in the Workplace Introduction Ensuring that the necessary steps are taken to create and foster a high level of ethics in the business practices of the workplace is critically...
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...Applying Ethics in Business Judy Blair-Jackson Kaplan University Ethics in Business Since the past decade more companies are focusing on incorporating ethical principles in business transactions and decision-making. One of the factors that have caused this shift on ethical focus is the financial crisis in the corporate world. Many reputable companies, CEO’s, CFO’s, and auditors have been implicated for fraudulent business activities. It is hoped that if businesses focus on building an ethical culture in the organization this may act as a deterrent to management and employees engaging in unethical business transactions and decision-making. Schein (1985) posits that the “organization’s culture is a cognitive framework, consisting of attitudes, values, behavioral norms, and expectations shared by organization members” (as cited in Brooks & Dunn, 2012, p. 254). Organizational culture can positively or negatively affect employees’ behavior. Where there is no focus of management on ethical behavior, employees may get the wrong message about the company’s stance on ethical principles. On the other hand where management displays and discusses ethics with employees, this shows a commitment from them that the company’s values ethical principles and behaviors. Management’s commitment and support to ethical standards must be evident through their actions. Brooks & Dunn (2012) stated that “it is vital that organizations create an environment culture where appropriate shared...
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...Responsibility MGT/498 September 2, 2015 Ethics and Social Responsibility Ethical behaviors offer significant advantages, society as hold benefits. Executives who behave ethically are better off and live more fulfilled lives, and unethical behavior can destroy an organization and the individuals who take part in it. Conducting business in the appropriate manner may not always generate the greatest profits however in the end it will lead to greatest personal satisfaction, fulfillment, and a successful outcome. What is Ethics? Ethics is the study of what constitute right and wrong behavior, it focus on morality and application of moral principals in the everyday life, also what is conform to our personal beliefs Business ethics focus on what constitute ethical behavior in the world of business, however it is not a separate behavior. Understanding business ethics is important to long viability to the business and the well-being of the officers and directors as well as the welfare of the employees (Merriam-Webster Dictionary). Ethical Standards and Behaviors The minimal acceptable standards for ethical business behavior are the compliance of the law. Ethical standards such as those in the company's policy and code of ethics must also guide decisions. Nevertheless, simply complying with the laws does not always does not necessarily make the business practice ethical. When can sometimes be ethical and still constitutes as being illegal? During the mortgage fraud, many families...
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...Introduction For this paper I will be discussing Business Ethics and Corporate Social Responsibility (CSR) using Anglo-American and Primark case studies as examples. First, I will discuss what is meant by ethical business behavior. Second, I will discuss how Anglo-American and Primark apply ethics into their business practices. Third, I will discuss what the costs and benefits are to an organization when they behave ethically. Finally, I will choose one component from Svennson & Woods’ model from “A Model of Business Ethics”, and discuss how it is relevant for Anglo-American. Ethical Business Behavior Ethical business behavior refers to an organizations actions and policies that are synergetic with "doing the right thing" (Sethi, 2003). Similar to the inherent laws of society that man has established that promote specific behaviors and actions that are deemed appropriate to build trust and relationships that last, it is similar in corporations. In order to operate ethically, organizations must also establish a clearly defined set of principles and a culture of ethical compliance that builds trust and confidence with their employees and their customers (Paine, 1994). Ethical business behavior is a combination of values and normative ethics, which drive an organization. Additionally, ethical business behavior is expected by society as a whole. Svennson & Woods write, “Society does have expectations of business and of its business leaders” (Svennson & Woods, 2008). Anglo-American...
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...BUSINESS ETHICS Business ethics is nothing but the application of ethics in business. Business ethics is the application of general ethical ideas to business behavior. Ethical business behavior facilitates and promotes good to society, improves profitability, fosters business relations and employee productivity. The concept of business ethics has come to mean various things to various people, but generally it‘s coming to know what it right or wrong in the workplace and doing what‘s right - this is in regard to effects of products/ services and in relationships with stakeholders. Business ethics is concerned with the behavior of a businessman in doing a business. Unethical practices are creating problems to businessman and business units. The life and growth of a business unit depends upon the ethics practiced by a businessman. Business ethics are developed by the passage of time and custom. A custom differs from one business to another. If a custom is adopted and accepted by businessman and public, that custom will become an ethic. Business ethics is applicable to every type of business. The social responsibility of a business requires the observing of business ethics. A business man should not ignore the business ethics while assuming social responsibility. Business ethics means the behaviour of a businessman while conducting a business, by observing morality in his business activities. According to Wheeler Business Ethics is an art and science for maintaining harmonious...
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...theory maintains that Question options: | there is no such thing as "moral free space"�all ethical standards are determined by societal norms, and individuals have an implied social contract to live up to these standards. | | few nations or cultures have common moral agreement on what is ethically right and wrong. | | there should be no absolute limits put on what actions and behaviors fall inside the boundaries of what is ethically or morally right and which actions/behaviors fall outside. | | "first-order" universal ethical norms take precedence over "second-order" local ethical norms. | | each country/culture/society has commonly held views about what constitutes ethically appropriate actions/behaviors; these common standards of what is ethical and what is not combine to form a "social contract" that all individuals in that country/culture/society are obligated to observe. | Question 2 | | 1 / 1 point | Which one of the following is not a part of the business case for why companies should act in a socially responsible manner? Question options: | Every business has a moral duty to be a good corporate citizen. | | Acting in a socially responsible manner reduces the risk of reputation-damaging incidents. | | Acting in a socially responsible manner is in the overall best interest of shareholders. | | To the extent that a company's socially responsible behavior wins applause from consumers and fortifies its reputation, a company may win additional patronage...
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...Discussion Week 1 What is the difference between morals and ethics in the workplace? Might something be ethical but immoral? What about unethical but moral? Which is more important to an organization, to be ethical or moral? Why? Morals and ethics relates to individual character, ethics, and morals but also applied in business world. Ethics stresses a social systems to which application of morals that influences ethical behavior at work whereas morality consists of rules of human behavior and specifies that certain behavior or actions are wrong or immoral and others are right or moral (De George, 2010). The decision’s one makes, whether it is for personal or professional reasons falls into either an ethical or moral decision making category. Morals define personal character. Moral decisions are based upon the beliefs of the individual while ethical decisions are guidelines, standards, and laws that affect the business professional’s decision-making process. In an ethical climate, people are held accountable and decisions are made based on what is in the best interest of the company or its employees and not what nets the greater financial gain for an individual at the expense of the company’s ethical fiber. Issues that arise in business can sometimes be ethical but immoral or vice versa. Business organizations face ethical and moral decisions daily. Ethics in business are central in the organization as it provides standards that form the moral integrity of the company. Effective...
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