Ethics Has Become an Important Area of Study - Essay Example

Introduction Ethics refer to the rules and standards governing a person's conduct. Ethics has only recently become an important area of study. It has been found that ethical behavior is influenced not only by individual or group behavior but also by factors in the cultural, organizational and external environment. Factors in the cultural environment include family, friends, neighbors, education, religion and media. Ethical codes, role models, policies and practices, and reward and punishment systems comprise the organizational influences. The external factors include developments taking place in the political, legal, economic and international arena. All these factors work together in determining the ethical behavior of individuals and groups in organizations (Research(ICMR)). There is a great deal of controversy regarding the nature of ethical behavior. Even though some persons may consider their behavior ethical, their peers in the organization and people from other places of the world i.e. their counterparts may disagree. An employee may consider the use of office stationery like pens, envelops etc. for personal use as unethical, whereas his colleagues may feel that since these things are not very costly, using them for personal reasons is not wrong. The meaning of ethical behavior differs from individual to individual and from group to group. A research study in which business executives and business faculty members were asked to give their opinion on the unauthorized copying of microcomputer software revealed that while executives considered this behavior unethical, faculty members did not. It is hence proved that 'Ethics' is important for any organization and also its members. Synopsis on Ethics Ethics, in philosophy, is the study and evaluation of human conduct in the light of moral principles. Moral principles may be viewed either as the standard of conduct that individuals have constructed for themselves or as the body of obligations and duties that a particular society requires of its members ((ICMR)). Approaches to Ethical Theory Ethics has developed as people have reflected on the intentions and consequences of their acts. From this reflection on the nature of human behavior, theories of conscience have developed, giving direction to much ethical thinking. Intuitionists, moral-sense theorists, and sentimentalists postulated an innate moral sense, which serves as the ground of ethical decision. Empiricists deny any such innate principle and consider conscience a power of discrimination acquired by experience. In the one case conscience is the originator of moral behavior, and in the other it is the result of moralizing. Between these extremes there have been many compromises. The Nature of the Good Another major difference in the approach to ethical problems revolves around the question of absolute good as opposed to relative good. Throughout the history of philosophy thinkers have sought an absolute criterion of ethics. Frequently moral codes have been based on religious absolutes. All varying methods of building an ethical system pose the question of the degree to which morality is authoritative (i.e., imposed by a power outside the individual). If the criterion of morality is the welfare of the state, the state is supreme arbiter (Arckatty). If the authority is a religion, then that religion is the ethical teacher. Professional Ethics What is Professional Ethics Professional Ethics concerns one's conduct of behavior and practice when carrying out professional work. Such work may include consulting, researching, teaching and writing (Research(ICMR)). The institutionalization of Codes of Conduct and Codes of Practice is common with many professional bodies for their members to observe. Any code may be considered to be a formalization of experience into a set of rules. A code is adopted by a community because its members accept the adherence to these rules, including the restrictions that apply. Good ethics and good business Why should a company consider ethics in directing its behavior - on top of law, self-interest, and convention The worst conceivable result of high moral standard would be competitive or other tangible detriment because the special efforts and costs a company attaches to ethical consideration result in net disadvantages for it. There are a number of indications that the short-term profit from ethical conduct does not exactly burst into the limelight or even show clearly measurable financial disadvantage (Palanikumar). It would be dishonest to exclude these effects in an option in action on corporate ethics. On the other hand there are many empirical examples in which unethical corporate behavior caused a great social outcry and intervention from the authorities, and presented no favorable options even in the short-term. A second conceivable possibility is that financial disadvantages due to investments over and above those required by law for instance in environmental, social, or safety areas or withdrawing from sale for ethical reasons could be compensated and balanced out by non-financial advantages like the company's reputation (Keerti). A third possibility is that ethical dealing might be worthwhile from both the financial and non-financial points of view. These are most probable, at least in the mid- and long-term, for the following reasons. Reduction in the cost of friction with social environment First and foremost, ethical conduct brings reductions in the cost of friction with the social environment (for private individuals and institutions.) For corporations, social friction costs arise when behavior which is legal but seen as illegitimate or unethical leads to calls for boycotts from other organizations (Answers.Com). On the other hand, there is growing evidence that a company's "image" can become a competitive advantage because a "positive coefficient" arises. This can become a decisive market advantage where a corporation offers products and services that are comparable in quality and usefulness with those of other companies. Employees' motivation The fact that corporate behavior which is at least frictionless but wherever possible goes beyond marginal ethics also motivates serious investors to purchase shares, and that the direct neighbors look to the company with pleasure and pride reinforces employees' positive identification. In the business setting, 'social-responsibility' is often employed as a synonym for a business's or business person's ethical obligations. This is unfortunate because this loose, generic use of the phrase can often obscure or prejudice the issue of what a business's or business person's ethical obligiations truly are. To see why, one must appreciate that the pharase is also used to contrast a business's or business person's "social" responsibilities with its or his or her ordinary ones (Drucker). A business's or business person's ordinary responsibilities are to manage the business and expend business resources so as to accomplish the specific purposes for which the business was organized. The globalization of business has created dramatic new imperatives for companies to take action against corruption and bribery. Academics and governments recognized that corruption shunts investment into unproductive sectors, retards the development of consumer markets, and disproportionately harms the poor. Companies often implement anti-corruption programs with the primary goal of reducing vulnerability to fines and criminal sanctions. As companies become increasingly global in nature, they are seeking out ways to preserve their values and integrity-specifically, to combat corruption and bribery-while competing successfully in a broad range of cultures and business environments (Aamodt). A burst of activity on the part of governments and international bodies created a comprehensive architecture of legal and regulatory standards governing corruption and bribery. Corporate anti-corruption and bribery programs vary by individual company, country of origin, and industry Invalid source specified.. As most of the companies today are doing business in a global economy, there would be situations as discussed in the case, that are to be faced by the managers and situations which really need certain decisions that are to be taken by them. The decisions may be ones which have - in small or not-so-small ways - significant consequences for the present or future welfare of persons. That is to say that situation of ethical choices would be faced. Every significant profession and every institution that thinks anything of itself has its "something ethics" to proclaim - environmental ethics, media ethics, research ethics, and even corporate ethics are the consequence. The latter has recently, along with environmental ethics, gained most in significance. There are now a great number of national and international books, seminars, symposia, ethics networks, and journals exclusively devoted to business ethics. There can be no doubt that not only "ethics" is "in" - business ethics is too. The reason behind this is, if there had been a fundamental shift in social value systems and has the "worth" of ethical argument increase as a result That would be an expalantion, for when traditional ways of life and institutions are not longer taken for granted, philosophical ethics, guided by the idea of sensible human life, seeks generally valid arguments about good and just behavior in a methodical way. There is no need to point out that we are living in a time of great social change. If social change were to move in the direction of higher morals then all social groups and institutions - including business enterprises - would be faced with new legitimating demands. Economic performance alone is no longer enough to give businesses legitimacy. Non-economic demands, e.g., the sustainable fulfillment of social and environmental responsibility in industrialized and developing countries, have been increasing their significance for legitimating for many years. Philosophical reflection is without doubt a fulfilling and intellectually challenging matter - also for those that bear responsibility in companies. But if one wishes to do more than just get traditional moral philosophical knowledge over to people or preach romantic idealism, then ethics, including corporate ethics, must come down from its lofty realm of "ideas" and "values" and establish itself in day-to-day reality. Acting responsibly would then not mean swearing allegiance to higher notions of approvable behavior, but would emerge from a very worldly setting in which a company's or individual's activity has to be justified in the light of different values in pluralistic societies. Acting responsibly always and primarily means acting intelligently, i.e. carefully weighing up the benefits and harm that one's own actions can bring. All moral activity occurs on the basis of a balance between the realization of interests and the avoidance of physical, social, or even state sanctions - not to mention those in any afterlife. In the business environment characterized by cut-throat competition, organizations set insurmountable targets for employees who under pressure break rules and even resort to unfair practices to achieve the targets. In the case under study, the situation of Mira Singh is more or less the same. Employees in such situation face ethical dilemmas and are unable to distinguish between right and wrong conduct. The characteristics of ideal ethical behavior have not been clearly defined. The absence of clear-cut distinction between right and wrong is being misused by organization along with its members at times (Newstorm). Though for the sake of the profit the company may earn, if Ms. Singh can go ahead by offering bribe, that particular act of Ms. Singh may leave a very bad impact on her and also on the organization at a later point of time and this is for sure. All the studies and researches related to ethics have undoubtedly proved that an ethically healthy environment is a prerequisite for improved productivity and efficiency. Finally, it may be so advised that irrespective of the profits that may be gained by the organization from this particular order, Ms. Singh would avoid offering bribe to that particular officer though it may cost her and the company for which she is working, losing that particular order. References 1. (ICMR), ICFAI Center for Management Researh. Business ethics and corporate governance. Hyderabad: ICFAI Center for Management Research, 2003. 2. Aamodt, Michael G. Human Relations in Businees: Developing Interpersonal and Leadership Skills. USA: Thomas Learning Inc., 2001. 3. Answers.Com. Answers.Com. 2007. 4 November 2007 . 4. Arckatty, DR. Suresh. I CAN. Hyderabad: Radian Publishers, 2005. 5. Biz/ed. "Advanced Business: Business Decision Making." Biz/ed (2002): 11. 6. Drucker, Peter F. Management. Delhi: Allied Publishers, 2000 Rev ed. 7. Keerti, Dr. B. Head- EMployee Engagement Rajyalakshmi. 3 November 2007. 8. Newstorm, John W. Organizational Behavior - Human Behavior at Work. New Delhi: Tata McGraw Hill, 1997. 9. Palanikumar, DR Anbu. Head - Finance Rajyalakshmi. 15 October 2007. 10. Research(ICMR), ICFAI Center for Management. Introduction to Orgnizational Behavior. Hyderabad: ICFAI Center for Management Research, 2003. 11. www.oecd.org/dataoecd/45/32/1922830.pdf 12. www.oecd.org/department/0,3355,en_2649_34855_1_1_1_1_1,00.html 13. www.transparency.org/global_priorities/private_sector/business_principles 14. news.bbc.co.uk/1/hi/business/4153635.stm 15. www.emich.edu/public/cob/management/ethics/ibc.html 16. www.reuters.com/article/reutersEdge/idUSN1430653020071214 Read More