Business Ethics for Leaders - Essay Example

Business ethics Introduction Business ethics refer the standards of wrong or right conduct that a company or business adopt in its association with its environment. In the present world, there is no single acceptable moral code; therefore, it is important to note that businesses and companies implement business ethics in their organization. They should be laid down and followed to the later by all individuals in a company in order to create a conducive and friendly working environment. According to Applied-corporate-governance (1) Company and businesses that adopt business ethics are always successful in their work. Customers have a high tendency of trusting companies and businesses that are value-based. Business ethics help create harmony between businesses and the outside world. Based on the above underpinning evidence it is justified to say that business ethics play a significant role in the success of companies and businesses. Models of management business ethics Moral management This model assumes the role of leadership whenever ethical conflicts occur in an organization. Its purpose is implement ethical behavior for the overall success of a business or organization. It adheres to the high standards of ethical behavior. Immoral management This model does not have any ethical principles; in fact, it opposes any form of ethical behavior portrayed by businesses or companies. It grabs any available opportunity that may benefit a corporate. Amoral management This model is grouped into unintentional and intentional management. Unintentional management pays little or no ethical considerations in businesses or companies, while intentional management does not pay any attention to ethical behavior. Amoral management gives managers the mandate to control their businesses or companies. This model gives a provision for the implementation of ethics if manager approve such ethics. Factors that organization should consider when creating their business ethics Communication There should be open communication with both the employees and members of management. This help promotes confidence, trust, and comfort amongst all involved parties in an organization or business. Open communication is essential for discussion of any issues that are related to the code of ethics (Businessburrito 1). A team to oversee the process of creating and adherence business ethics A company or business should appoint a team designed strictly to monitor ethical actions of all its employees. The team should have specific procedures to determine incidences of unethical behaviors amongst workers. It should also a separate procedure that outline the type of discipline that unethical workers should face. Vision Companies and businesses should have clearly explained visions before embarking on creating codes of ethics for their organizations. A company’s vision should have a full detail of all aspects of ethical rules. It plays a key role in determining the overall success and implementation of business ethics in any company. Levels of business ethics Individual level- this level looks at the behavior of all individuals in an organization or business. A person’s behavior may be determined by his or her personality, environment or peer. Business ethics at this level are of immense importance since they help harmonize all individuals in an organization (Businessburrito 1). Failure to implement business ethics at this level may have dramatic negative effect on the success of a company or business. Corporate level-this level helps companies and businesses to be extremely careful when conducting and implementing their business strategies. These companies and business ought to ensure that their behavior is in line with the individual corporate entities in both public and private sectors. Macro level- this level outlines the role of businesses in their association with the entire society. A company’s strategies should aim at delivering remarkable benefits to a society in an ethical manner. Its activities should be in agreement with the set standards that are accepted at both national and international level (Applied-corporate-governance 1). Important of business ethics to an organization They attract and increase the number of workers to a particular business, help a business or a company to get the most talented workers, and reduce recruitment costs of organizations. Business ethics also help in attracting investors and in keeping a company’s share price high. This, in turn, helps protect a company or business from takeover. Again, business ethics help increase the number of customers who buy a company’s products; hence, boosting sales and profits (Archie & Kilk 23). Business ethics amongst employees ensure that they carry out their duties in an honest manner. These employees adhere to the set rules and policies while at the same working hard to meet the goals of their organization. In addition, these employees deliver quality work; hence, a company offers quality services and products (Archie & Kilk 78). Business ethics amongst leaders in an organization help them to manage employees in an effective and efficiency manner. Code of ethics amongst leaders of any organization play a significant role in determining the type of discipline procedures for their workers. In addition, ethical leadership increases a business’ reputation in the financial market and community (Murray 78). A company’s business may also improve if there is a solid reputation for integrity and ethics in the community. Business ethics help create and improve ethical organizational culture. When leaders exhibit the type of behavior they would like to see in employees, they create an ethical culture. Rewarding employees who adhere to the integrity and values of a company and disciplining those who make wrong choices also help in reinforcing ethical behavior in an organization. Disadvantages of business ethics Most code of ethics in an organization limits it chance of maximizing its profit. For example, a multinational company may be forced to forgo its practices, like child labor and coerced employment, if it relocate to another country that require strict ethical practices amongst companies and organizations. Personal gain- some workers may take advantage of some business ethics to open a case against a company for only minor misbehavior Ethical principles Respect-both managers and employees should respect and treat one another with courtesy regardless of their ages, gender, color, or race Be community involved- a business person should be involved in issues and activities that pertain to a community. This help such an individual’s demonstrate that his or her business is a responsible community contributor. Have clear documents- all documents used in a business should professional, clear, and precise. These documents should not mispresent or misinterpret a person’s business. Meet obligations and duties- a business person should do all that he can to gain the trust of his or her past customers and clients. This is especially recommended if a businessperson has had a misunderstanding with his or her customers in the past. Such a person should reclaim any lost business through honoring all obligations and commitments. Maintain accounting control- this help an individual end any dubious activities in a prompt manner. He or she should take time to go through his or her accounting and record keeping. Be trustful- a trustworthy business person recognizes that customers are willing to purchase services and products from businesses and companies that they can trust. Customers get attracted to such a business leading to increase in its profits gain. Keep an open mind- all leaders of companies and organizations should be open to new ideas for their continuous development. They should ask for feedbacks from team members and customers for successful growth of their companies How a raising leader should handle business ethics when it conflicts with profit or opportunity  Sometimes, leaders should ignore certain ethical standards in order to increase or protect profits of an organization. Again, leaders can keep some issues as a secret when business ethics conflict with profit. For instance, leaders are advised not to disclose to their employees of any possible cut down in labor when organizations find themselves in situation where they need to lay off workers in order to survive (Murray 15). Such a secret should be kept until the last moment in order to avoid any chances of frightening shareholders. This leaves employees who lose their positions extremely little or no time to make alternate plans. Works Cited Applied-Corporate-Governance. Define Business Ethics. Retrieved from http://www.applied-corporate-governance.com/define-business-ethics.html, 2011. Web. Archie, Carroll, & Kilk, Ann. Business and Society: Ethics, Sustainability, and Stakeholder Management. New York: The McGraw Hill Companies, 2001. Print. Businessburrito. Business and Ethics. Retrieved from http://www.businessburrito.com/business-and-ethics.html, 2012. Web. Murray, Weidenbaum. Business and Government in the Global Marketplace. New York: Prentice Hall, 2004. Print. Read More