Ethics in Business Practices - Essay Example

Ethics The word ‘ethics’ is a commonly used phrase that means, in short, knowing then acting upon what society as a whole deems to be the preferred response for the situation. For example, stealing cars for a living is unethical as is padding a corporation’s balance sheet (see Enron) and causing physical harm to the innocent. However, what is right and who is to judge are important considerations when discussing personal ethics. Slavery was accepted by society therefore, at that time, this atrocious practice was not considered unethical. ‘Fixing’ or ‘cooking the books’ is common business practice which extends to not informing the IRS about that $10 lottery ticket winnings. Most would not think cheating Uncle Sam out of such a small amount as ‘unethical.’ These types of behavior illustrate both how conditioning and association function to determine our course in life. While we are influenced by how we were taught regarding what is right and wrong within a given situation and we make decisions based upon our association with these rules, ethics can ultimately only be quantified on a personal level. Slavery was just as wrong then as now and cheating is always wrong even if it’s the government that is the victim. During the days of slavery, many knew it to be wrong and it bothers some to exceed the speed limit or dodge taxes even to the smallest extent but why the disparity? The discrepancy lies within the experiences of the individual, what they witnessed as acceptable behavior and were taught as children. Whether or not a society progresses in a positive, productive manner ultimately depends upon how ethical it collectively decides to be, a reflection of the importance it gives to educating its citizens on understanding their own personal ethical conduct. Because society is, at its most basic level, a collection of individuals, it is necessary to define one’s own philosophy of proper business ethics before moving out into the field. For me, proper business ethics should include an individual’s constant attention to the common good and justice, which includes issues of sustainability and eco-efficiency as well as leading by example at the individual and organizational level. Ethical business practices give customers, employees, partners and shareholders reassurance that they will not be cheated. The ethical approach that favors the common good suggests that a corporation’s actions should benefit, ultimately, all of a community or society. According to Socrates, knowledge of oneself will instruct from within regarding those things which are good (moral and ethical) and those things which are not. By understanding “his spiritual self as it really is, including all its shortcomings, strengths and potentialities,”1 the individual becomes more knowledgeable about himself and can begin to trust his inner feelings to a greater extent. Socrates suggests the path to the greatest good, then, by claiming that things that are good will make us feel happy inside while things that are bad will be immediately recognizable to the man who knows himself because these actions will cause “spiritual degradation and mental deterioration”2 that will be immediately apparent. However, the self-serving goals of corporate America has created a value system not only separate but in opposition to that of society. “With the continuously surfacing scandals in corporate America, the idea that any form of ethics exists in business is suspect. We are also seeing similar situations within the ranks of government and religious leaders.”3 Some suggest that the collective morality of the country is in a decline and people are becoming increasingly tolerant of unethical behavior. Others say that the scrutiny of the press and technologies such as security devices has simply shed light on behaviors that have long been accepted as necessary evils and that society is actually, albeit slowly, becoming more ethical because of the heightened scrutiny. However, a good portion of what may help corporations become more ethical in their business practices is if the individuals who lead the organization remain dedicated to the concepts of justice. It was Plato’s idea that only the unjust are unhappy, so to be happy (to achieve the greatest good), one must first be just. Plato attempts to define the term “justice” in his first chapter of The Republic.4 Through his dialogue, Plato develops the concept that justice is not a singularly defined, standard answer applicable to all things. Instead, it is a habit of conscious consideration regarding the various elements involved. The just man, or anything else that can be said to be just in some way, is a man who commits himself to his own work in harmony with others, seeking to rule only his own inner life and to comport himself in the completion of his duties with careful consideration of what constitutes just and good action at all times. The main identifying theme behind all actions is identifying what brings the individual, the state or the condition to a greater alignment with the just and good condition for all. This factors into the treatment of employees and clients as well as requiring that corporations remain aware of their environmental impact as this will have an impact on those who use that environment. Business, social and political leaders of the nation must lead by example as the face of a public which values their ‘values’ enough to examine them more deeply and more often. When the people decide they want a moral, decent and ethical society, then they will refocus their efforts to educate young persons regarding ethical behaviors. Teaching ethics involves having students examine their own morals and deciding right and wrong on a rational, reasoned and unemotional basis and regardless of preconceptions.5 “We must consciously engage students in a continuous evaluation of what (they) believe and what (they) practice. Education provides a unique opportunity to challenge the ‘beliefs and practices’ of students be they related to poverty, sexual preference, race, gender, environmental issues, religion or any other potentially divisive issue.”6 Because ethics education is sorely lacking at all levels, society continues to regress in this area and has blurred the line between personal morals and societal ethics to the detriment of all. It is important to remember when making the transition into leadership that this practice of examining one’s values must be continuous if one is not to lose sight of what’s truly important. Some wish to impose their belief system as an ethical barometer for all. However, had persons of this decidedly egotistical ambition been taught to critically examine their own thoughts of morality and understand the human consequences of legislating their own particular morals; they would be more inclined to simply practice their own moral code within a society that is truly ethical and compassionate. “Without an active awareness of ethics and the practice of the discipline of ethics, morality becomes rigid and unjust or immoral.”7 Rather than attempting to dictate ethics or establishing rigid rules for ethics, it is better overall to lead by example and illustrate how a consistent willingness to examine my personal ethics in my personal and business life as I apply these to the way I do business and my expectations for it can lead to a better society for everyone. In making the transition from the personal to the corporate, of course, there would necessarily be some codification of an ethical code of conduct. Corporate corruption in the U.S. is sadly legendary in scope. Worldcom, Tyco and Enron provide just a few of examples of fraudulent practices by company heads which cost thousands of people millions of dollars including retirement benefits. The long-standing partnership between governments and corporations is well documented but this relationship has served to exploit the public rather than work for the common good. “The common thread is the lack of corporate accountability due to the extreme corruption of governments, which has moved them to abandon their social responsibility for the sake of very private interests, including their own self-interest.”8 One cannot simply view the surface efforts of a corporation as evidence of ethical conduct permeating throughout the entire organization, especially at the highest levels where the decisions are made and the beans counted. Enron was on the ‘100 Best Companies to Work for in America’ for three years, accepted six awards for environmental efforts and boasted of its strict company policies concerning the protection of human rights, safeguarding the environment and its no tolerance stance on corporate corruption. Obviously, corporate policies are not the answer to curbing corruption unless the question becomes how corruption can be publicly acknowledged and the company put on the mask of righteousness while those at the top steal billions of dollars. According to Managing Director & CEO of BP, John Manzoni, “in order to prosper into the future, global companies must contribute to solving the issues that the world faces today. Business must rebuild trust by demonstrating that its interests are aligned with those of society as a whole.”9 Setting an example from the top can be reinforced by providing bonuses or recognition for individual employees striving to ensure fairness and honesty within the department they are assigned while displaying sensitivity to the community’s needs in the performance of their position. Regardless of the various controls or policies that are in place in a given nation to protect the environment or lessen environmental impacts of opening a business in that region, it is incumbent upon the ethical business manager to do whatever possible to ensure impacts are held to a minimum and employees are treated with decency, fairness and respect as human beings. In the UK, legislation has been put in place to try to ensure that this step is taken from the beginning by requiring companies to appoint a particular individual whose main purpose is to assess and update environmental policies to lessen risk and increase efficiency. “The starting point and main principle of the HSW Act is that it is those who create risk from work activity who are responsible for the protection of workers and the public from any consequences.”10 For example, instead of requiring a company to meet a specific maximum percentage of ground level concentration of a pollutant emitted from the facility, the UK law requires the company to conduct its own risk assessment of the emission of said pollutant and take steps to correct the pollution situation “up to the point where the taking of any further steps would be grossly disproportionate to any residual risk.”11 In the way that the act is written, it is incumbent upon the company in question to do everything “so far as is reasonably practicable,” but this somewhat ambiguous statement is imbued with the strict interpretation that the least possible damage to the environment and public health should be allowed. This interpretation is further backed up with the proper funding and concentrated manpower available to enforce these laws. The ethical manager, working from an individual standpoint of what is just and fair, should not need directives such as the environmental directives found in the UK in order to ensure that this step is taken, encouraging all employees to take the same stance and thereby beginning to build a more ethical and happier society. By starting at the individual level, the ethical manager will engage, on a consistent basis, in examining his or her own beliefs regarding their values and beliefs, assessing whether his or her external actions are in keeping with these beliefs or changing what needs to be changed to bring actions more into line with their consideration of what’s right and good. While technology makes it possible for us to become our brother’s keeper, a more ethical approach is to lead by example for individuals and corporations. By encouraging ethical behavior in lower employees through the use of recognition or rewards, the ethical manager can encourage an ethical approach throughout the corporation. This approach must take into account the individual members of the organization as well as the clients they serve and the environment in which they operate. Only then can one begin to say with any degree of accuracy that they are working from an ethical stance. References Arcement, Billy Med. (December 20, 2007). “Ethics—The Conscious of Decision Making” Self Growth.com Retrieved November 4, 2008 from Fonteneau, Gerard. “Corporate Social Responsibility.” The Jus Semper Global Alliance (February 8, 2008). November 4, 2008 Health and Safety Executive. (2002). The Health and Safety System in Great Britain. Norwich: Crown publishing, pp. 14-17. Retrieved November 4, 2008 from Hinman, L. M. (2002). Ethics: A Pluralistic Approach to Ethical Theory, 3rd ed. Belmont, Calif.: Wadsworth. Jones, S.R. (2002). The Underside of Service-learning. About Campus / September–October, pp. 10–13. Manzoni, John “BP and Infosys co-chair inquiry into the role of the global company of tomorrow” Ethical Corporation (August 15, 2006). November 4, 2008 Plato. (360 BC; reprinted 1992). The Republic. A.D. Lindsay (Trans.). New York: Alfred A. Knopf. Sahakian, W. and Sahakian, M. (1966). Ideas of the Great Philosophers. New York: Barnes and Noble Books. Velasquez, Manuel; Moberg, Dennis; Meyer, Michael J.; Shanks, Thomas; McLean, Margaret R.; DeCosse, David; Andre, Claire; & Hanson, Kirk O. (2006). “A Framework for Thinking Ethically.” Issues in Ethics. Markkula Center for Applied Ethics. El Camino Real, Santa Clara, CA: Santa Clara University. Retrieved November 4, 2008 from Read More