...“What is "business ethics"?” Peter F. Drucker Drucker’s work takes a look at what is business ethics and what is not business ethics as it pertains to some of the major approaches taken by philosophers throughout time. No matter what the place in time the code of ethics as it pertains to Western tradition is based solely on one principle. That principle is “There is only one code of ethics, that of individual behavior, for prince and pauper, for rich and poor, for the mighty and the meek alike.” Drucker P. F. (1981). Given this principle what is business ethics or even ethics at all with given the implications that behavior which is neither immoral nor illegal for an individual would be immoral or illegal if committed by business? There seems to be a lack of compatibility with what ethics is supposed to be and business ethics. For example a person handing his money over to a mugger threatening physical harm isn’t considered unethical although the mugger is a criminal but in the business world paying off union racketeers to prevent disruption is considered to be unethical practice. The confusion around ethics in general and business ethics continues when we start looking at other business systems outside of the United States. Take for example the Japanese and German who consider the appointing of a counselor who was previously a distinguished civil servant based on the recommendation of his colleagues is essential to the public interest. However, if this practice were to...
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...of Business Ethics and represents several controversial positions. While explaining the ethics in Western Culture he states that there was agreement on the following statement: “There are only one ethics, one set of rules of morality, one code, that of individual behavior in which the same rules apply to everyone alike” (Drucker, 1981, Page 19). He discusses the examples of "a poor mother", "nepotism in China" and "paid extortion" to articulated the impact of social, economical and cultural norms on implementing this on everyone. He considers practices of questionable morality under different circumstances as ethical. Casuistry (Drucker, 1981, Page 22) was the first attempt to think about social responsibility and embed it in a set of distinctive ethics for people in power. According to Drucker, ethics for people in social responsibility is a cross-benefit calculation involving demand of individual conscience and position. For then, demand of ethics can be excepted if actions result in benefit for other people. Drucker then moves on to introduce The Ethics of Prudence (Drucker, 1981, Page 27) as other major tradition in the West. He proposes that Ethics of Prudence appropriate to a society of organizations. Prudence, the consciousness not to do the wrong thing will enable the leader to exhibit a role model behavior. According to Drucker, Ethics of Prudence do not spell out the “right” behavior, but wrong behavior is clear enough to avoid any questionable behavior. Drucker then...
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...articles were: What is Business Ethics by Peter F. Drucker, 1981, The Social Responsibility of Business is to Increase its Profits by Milton Friedman, 1970 and The Relevance of Responsibility to Ethical Business Decisions by Patrick E. Murphy, 2010. Ethical Perspectives of Friedman, Drucker and Murphy Peter F. Drucker is known as the man who invented management. Drucker wrote many books on management and influenced the way business and industry thinks about management. “Peter F. Drucker was a writer, professor, management consultant and self-described ‘social ecologist,’ who explored the way human beings organize themselves and interact much the way an ecologist would observe and analyze the biological world (Drucker Institute, 2013).” Drucker’s paper from 1981, or 32 years ago, was trying to answer the same questions which today’s business society and government are trying to answer: What is business ethics/social responsibility and who is responsible for both? These are difficult questions to answer and questions which Drucker sets out to answer in Casuist, Ethics of Prudence and Confucianism. “Business ethics undoubtedly is a close parallel to casuistry. Its origin is political, as was that of casuistry. Its basic thesis, that ethics for the ruler, and especially for the business executive, has to express social responsibility is exactly the starting point of the Casuist. But if business ethics is casuistry, then it will...
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...Chapter 5 Social Responsibility and Ethics How important is it for organizations and managers to be socially responsible and ethical? In this chapter, we’re going to look at what it means to be socially responsible and ethical and what role managers play in both. Focus on the following learning outcomes as you read and study this chapter. LEARNING OUTCOMES 5.1 Discuss what it means to be socially responsible and what factors influence that decision. 5.2 Explain green management and how organizations can go green. 5.3 Discuss the factors that lead to ethical and unethical behavior. 5.4 Describe management’s role in encouraging ethical behavior. 5.5 Discuss current social responsibility and ethics issues. SPOTLIGHT: Manager at Work Chapter 5 presents contemporary concepts of managerial ethics and social responsibility to help your students explore and appreciate the critical role of these issues in today’s complex business environment. In the opening case, “A Manager at Work,” we see firsthand the complications that arise when companies are caught in the middle of unethical and illegal allegations. The case revolves around allegations of attempted bribery by three Renault executives. After an investigation, all three of the employees were dismissed, but the story doesn’t end there as the Paris prosecutor in charge of the case later dismissed the charges for lack of evidence. Renault would eventually backtrack on the firing of the executives, rehiring all three...
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...Global Peter Drucker Challenge Essay Contest Social Responsibility and Managerial Ethics A Focus on MNCs Prepared by: Kidus G.Mehalu Addis Ababa, Ethiopia August 2011 Social Responsibility and Ethics of MNCs The 2nd Peter Drucker’s Challenge Social Responsibility and Managerial Ethics -A Focus on MNCs . 1.1 Introductory Remarks Managers today are usually quite sensitive to issues of social responsibility and ethical behavior because of pressures from the public, interest groups, legal and governmental concerns, and media coverage. It is less clear where to draw the line between socially responsible behavior and the corporation’s other concerns, or between the conflicting expectations of ethical behavior among different countries. This essay on social responsibility and ethics set externally to international managers and thus in a sense outside their realm of control, is the expectation of appropriate behavior. This behavior is measured both in terms of social responsibility of the organization as such, as well as ethical behavior of individual managers. In addition to these expectations there is an onus on organizations and managers alike to manage the relationship with the host country. Having noted this, I shall now move on to the main issues this essay has set out to address in the following manner: 1.2 Global Interdependence Global interdependence is a compelling dimension of the global business environment, creating demands on international managers to take...
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...CHAPTER 3 ♦ ETHICAL BEHAVIOR AND SOCIAL RESPONSIBILITY ♦ Ethical Behavior- is that which is accepted as “good” and “right” as opposed to “bad” or “wrong” in the context of the governing moral code. Laws and Values as Determinate of Ethical Behavior * Personal Values- the underlying beliefs and attitudes that help determine individual behavior. * Terminal Values- are preference about desired ends, such as the goal’s one strives to achieve in life. Ex. Self-respect, family security, freedom and happiness. * Instrumental Values- preferences regarding the means for accomplishing these ends. Ex. Honesty, ambition, imagination, and self-discipline. Alternative Views of Ethics Four views of Ethical Behavior: ♦ Utilitarian View- considers ethical behavior to be that which delivers the greatest good to the greatest number of people. ♦ Individualism View- is based on the belief that one’s primary commitment is to the long-term advancement of self-interests. ♦ Moral Rights View- it is which respects and protects the fundamental rights of people. ♦ Justice View- it is based on the belief that ethical decisions treat people impartially and fairly, according to legal rules and standards. • Procedural Justice • Distributive Justice • Commutative Justice • Interactional Justice Cultural Issues in Ethical Behavior Cultural Relativism- belief that is no one rights way to behave and that ethical behavior is always determined by the cultural context. Universalism- suggests ethical...
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...Ethics and Social Responsibility in Strategic Planning Corporations when faced with difficult decisions have to keep in mind that the decisions that need making not only affect the corporation and the employees that work for the corporation, but it affects the corporations' stakeholders, and the public communities. The decisions made still need to keep the best interest of everyone involved without losing more of the corporation than what needs to be lost. The role of ethics and social responsibility Corporations have a great deal of responsibility to their stakeholders to make the best decisions for them as possible. However, the decisions should not be unethical that the reputation of the corporation is jeopardized. "Ethical responsibilities of an organization's management are to follow the generally held beliefs about behavior in society (Wheelen and Hunger, p. 58)." The courtesy to the community and the stakeholders of informing those affected of layoffs, closing business, or any other act that directly affects those involved is not required but expected on a society thought basis. This act allows the people to adjust to the upcoming events gradually as oppose to suddenly and prevents anger and hostility toward the corporation. This is the portion of the social responsibility that the corporations have to the community where making a profit isn't as important as how the affects of dramatic change can take a toll on the communities that rely on the business for their needs...
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...Ethics and Social Responsibility Andrea Clark MGT 498 May 15, 2012 Thomas Moore Ethics and Social Responsibility “The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.” (Wheelen & Hunger, 2010 p.72) Social responsibility considers the customers, employees, shareholders, communities, interests and social- environmental consequences of their business activities. A strategic approach, companies can determine activities to devote to being socially responsible and choose activities which will strengthen their competitive advantage. Companies develop strategies with voluntarily integrated social and environmental concern in their business operations (Padala & Suryanarayana, n.d.). The purpose of this paper is to explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Ethics Ethics is described as the control over dealing with the bad and good with moral duty and obligations and business ethics is concerned with the justice, truth and a variety of other aspects including the expectations of fair compensation, society, public relations, consumer autonomy, advertising, social responsibilities, and corporate behavior within the home country as well as abroad (Padala & Suryanarayana, n.d.). Managers and top level management have a responsibility to establish ethics by creating a code of ethics for an organization...
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...to be successful and provide stakeholders with healthy financial performance. One of the key performance indicators of businesses according to Drucker (1981) is their engagement in ethical business practices or according to Friedman (1970) their social responsibility in the business arena. What is clear is the need for businesses to act in a responsible manner, including implementing actionable measures that include environmental factors, community involvement, financial stability, and corporate sponsorships, as well as having senior leaders who are willing to accept accountability for the actions of the businesses in which they are leading. However, there remains conflicting definitions of ethical business behavior, and “ethics is, after all, not a recent discovery. Over the centuries philosophers in their struggle with human behavior have developed different approaches to ethics, each leading to different conclusions” (Drucker, 1981, p. 18), In other words, it is no surprise that what one business leader views as ethical may be viewed as unethical by another. Peter Drucker’s work was a hallmark that attempted to evaluate business ethics and how its definition could be applied to business models. The model of business ethics by Peter Drucker are clearly defined within the roles of...
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...Abstract Ethics and social responsibility occupy an important place in our personal value system. Customer confidence in how business operates has been severely shaken by recent corporate scandals and collapses, such as Enron and bank failures. Hence it is important for companies to consider incorporating ethics and social responsibility into their strategic planning. This applies whether a company is involved with customers one-on-one, such as a Taco Bell or Dell, Inc., or their involvement is indirect, through their relationship with their clients, such as newspaper distributor Pogo Distribution Company, or wholesale food seller, Del Monte. This paper analyzes what are ethics and social responsibility, how each applies to a company’s strategic planning, and the overall impact on stakeholders when ethics and social responsibility is considered in strategic planning. The paper will conclude with how my ethical perspective has evolved throughout the program. The Role of Ethics and Social Responsibility in Strategic Planning To be their most successful, companies must consider ethics and social responsibility as critical parts, inherent components of strategic plan. Ethical and social responsibility criteria must be included as part of the strategic process in before-profit decisions rather than after-profit decisions in order to receive the maximum benefit, i.e. corporate profits. The Role of Ethics in Strategic Planning Reflecting critically and actively on ethical...
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...Ethics and Social Responsibility “The concept of social responsibility proposes that a private corporation has responsibilities to society that extend beyond making a profit.” (Wheelen & Hunger, 2010 p.72) Social responsibility considers the customers, employees, shareholders, communities, interests and social- environmental consequences of their business activities. A strategic approach, companies can determine activities to devote to being socially responsible and choose activities which will strengthen their competitive advantage. Companies develop strategies with voluntarily integrated social and environmental concern in their business operations (Padala & Suryanarayana, n.d.). The purpose of this paper is to explain the role of ethics and social responsibility in developing a strategic plan while considering stakeholder needs and agendas. Ethics Ethics is described as the control over dealing with the bad and good with moral duty and obligations and business ethics is concerned with the justice, truth and a variety of other aspects including the expectations of fair compensation, society, public relations, consumer autonomy, advertising, social responsibilities, and corporate behavior within the home country as well as abroad (Padala & Suryanarayana, n.d.). Managers and top level management have a responsibility to establish ethics by creating a code of ethics for an organization. Establishing a business code of ethics can offer a basis for which politics...
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...Ethics Reflection Name of Student Institution Affiliation Ethics Reflection Ethics refer to the moral principles governing a person’s behavior or a group’s behavior, especially at the workplace (Johnson, 2007). In an organization, the workers should relate to each other in a moral manner with aim of working in harmony to accomplish organizational goals. Employees should also relate morally with the customers and other stakeholders. Therefore, an organization finds ethics and social responsibility extremely necessary for organizational growth. Ethics and social responsibility are applicable in the development of an organizational strategic plan considering the requirement of stakeholders (Pearce & Robinson, 2013). This discussion will consider the role of ethics and social responsibility in strategic planning, overall impact of ethics and responsibility on stakeholders, as well as evolution of ethical perspective. Role of Ethics in Strategic Planning Professionals have the responsibility to reflect actively and critically on ethical issues that they experience during their practice (Pearce & Robinson, 2013). A thorough observation of ethics will ensure that an organization attains its objectives, mission, goals, and visions in a way that will give the business a framework and direction. Organizations depend upon ethics when creating guidelines that ensure that the organizational employees work in harmony to accomplish organizational goals. In the...
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...NORTHCENTRAL UNIVERSITY ASSIGNMENT COVER SHEET Learner: Jeffrey D. Simmons THIS FORM MUST BE COMPLETELY FILLED IN Please Follow These Procedures: If requested by your mentor, use an assignment cover sheet as the first page of the word processor file. The assignment header should include the Learner’s last name, first initial, course code, dash, and assignment number (DoeJXXX0000-1) justified to the left and the page number justified to the right. Keep a Photocopy or Electronic Copy of Your Assignments: You may need to re-submit assignments if your mentor has indicated that you may or must do so. Academic Integrity: All work submitted in each course must be the Learner’s own. This includes all assignments, exams, term papers, and other projects required by the faculty mentor. The known submission of another person’s work represented as that of the Learner’s without properly citing the source of the work will be considered plagiarism and will result in an unsatisfactory grade for the work submitted or for the entire course, and may result in academic dismissal. | | MGT7019-8 | Dr. Chad McAllister | | | Foundations for Doctoral Study in Business | SIMMONSMGT7019-8-ASSGN#1 | | | All work submitted is original and my own intellectual property. I am open to guidance and instruction that enable me to achieve my educational goal of excellence. ------------------------------------------------- ------------------------------------------------- ...
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...BUSINESS ETHICS: COMPARE AND CONTRAST PAPER By: Karla Powell North Central University What is business ethics? The word business can mean different things, but in this context it means a commercial or industrial endeavor to make/sell products or services. The word ethics is defined as a set of principles of right conduct or a system of moral values. So what does business ethics mean? Used together it means for a commercial/industrial endeavor to form a set of principles or rules to follow while they are making or selling products or services. The word business ethics is frequently heard as it relates to social responsibility. According to the dictionary social responsibility is “an ethical ideology or theory that an entity, be it an organization or individual has an obligation to act to benefit society at large” (the freedictionary.com). Three notable management authorities: Patrick Murphy, Milton Friedman, and Peter Drucker, have different opinions on what business ethics and social responsibility are and what is should mean to the business world. According to Patrick Murphy (2009) responsibility is a key principle of business ethics which implies a moral obligation to act. The word act is used as a verb and means to “do something.” Murphy points out that one is to not only act but to act in a certain way based on the persons extent of the freedom they have, meaning the bigger the space of freedom the bigger the obligation or responsibility one has. So, the higher...
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...Ethics Paper Lisa Henderson MGT 498 Strategic Management July 20, 2011 Joyce Cusack Ethics Paper The role of ethics and social responsibility plays a critical part in today’s society. When speaking on the role of ethics in the corporate world we all have seen a few companies that have really disregarded ethics to which it has caused a trickle down destructive effect on the organization. One may try to figure out why such corporate professional, hardworking, and savvy men and women act so unethically. We all know that running a business requires a great deal of ethics and without ethics a business may fail before it really gets off the ground. Social Responsibility sometimes can become a thorn in a business because of the way the consumer or society feels about how that business deals with social responsibility. This can go either way where a the consumer may feel as though the organization should make the responsible decision and on the other hand the organization feels as though it is not their responsibility it is the responsibility of the consumer. This is and has been a battle that goes back and forth for a long time and to current today it still goes back and forth between the consumer, the courts, and the organization. Business ethics can be defined as a form of professional or applied ethics that looks at ethical morale, principles, and problems that may come about in a business environment. Here are just a few expert opinions on ethics and social responsibility...
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