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The Role of Corporations - Essay Example
This paper aims to examine in detail the practical and ethical/social obligations to a corporation. It will then discuss the need to fulfill these obligations and as we move on to the end, it will explain in detail a step by step procedure which can be used by any organization to successfully resolve an ethical issue that arises…
The main aim of an organization can be anything ranging from profit to gaining market share, but the way it achieves this goal matters a lot. There are certain responsibilities and obligations that the organization has towards various groups and situations. It may be impossible to discuss every ethical obligation to a corporation because there are so many. These range from production of bad goods like tobacco to treating the employees fairly.
Mark Pastin in his book, 'The Hard Problems of Management: Gaining the Ethics Edge', has attempted to summarize this by providing four principles for that are necessary in order for an organization to be ethical. The organization must interact with all stakeholders without problems, so that these groups feel that they are a part of the organization. Secondly, the organization must be very critical about fairness. This implies to everyone involved in or with the organization. It must be fair to its employees, competitors, shareholders, clients etc. Everyone in this organization must be responsible for his own actions. Lastly, the organization must operate in a way which will ensure that its environment does not suffer. (Carter McNamara, 1997)
Doug Wallace also gave six characteristics that are necessary for an organization in order for it to be ethical in its practices. His characteristics have a lot to do with integrity. ...