Organizations should develop their own code of conduct to maintain reasonable social standards. This code of ethics is the basic principles of conduct that individuals are bound to maintain as managers, staff, and employees, and shareholders in order to accomplish the business objectives by ensuring the betterment of the community and company’s Human Resource.
However, business ethics is often misunderstood as legal compliance. Abiding by law is rather easy because it clearly states the requirements that an organization must meet. In contrast, ethical decision always demands careful assessment of prevailing situations and consequences. Code of ethics will not change as the firm’s natural and technological environment change. It always inspires organizations to do what is right other than what is appropriate to the situation.
In addition, organizations have to heed genuine concern to the effect of each decision on the environment, community, employees, and customers. People are interested to join organizations which are having high level of ethics and social responsibility (Daft R L., 393).
Interests in business ethics was fueled as an immediate result of American corporate scandals. Subsequently, The Public Company Accounting Reforms Act was passed in the US congress in 2002 in order to control over the auditing in public companies. The Act is also known as Sarbanes-Oxley Act (SOX). The legislation was to enhance confidence in investors, and to enforce strict and authentic audit control that would prevent corporate misconduct (Ge Weili & McVay S., 2005). However, efforts of corporate governess have been misguided by numerous factors since the implementation of SOX. According to Markham J W (2006), organizations today are struggling with massive law suits and unaffordable amounts in attorney fees in order to comply with the ...
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(Business Ethics And/Or Social Responsibility Essay)
“Business Ethics And/Or Social Responsibility Essay”, n.d. https://studentshare.net/miscellaneous/390068-business-ethics-andor-social-responsibility.
6 children have been reportedly died due to consuming the milk while more than 800 were hospitalized due to the consumption of the milk. Society as a whole therefore not only bears the health costs of such activities of the firms but also withstands the social damage done by such unethical behavior.
7 Work Cited Page…………………………………………………………….. 8 Executive Summary The restaurant industry is one of largest employers in the United States. The industry generates billions of dollars in sales each year. It is important for the players in this industry to consider the importance of ethics and social responsibility.
Business ethics posses wide explanatory dimensions. As a business practice and as a matter of professional interest, the area is mainly normative. Academics try to comprehend the ethical business behavior by the application of descriptive means. The variety and magnitude of business ethical issues replicate the communication of profit-maximizing behavior with non-economic apprehension.
Top business schools teach that maximizing profits and shareholders wealth is the primary measure of managerial competence. Corporate compensation policies including pay-for-performance schemes and stock options have also tended to perpetuate this narrow definition.
Ethical codes are considered by organizations to help members in understanding the right and wrong decisions that are taken by them. GlaxoSmithKline (GSK) a pharmaceutical giant operating all over the world has their own code of ethics which make them unique in the pharmaceutical industry.
The expectations of the society regarding the social obligations of organisations are continuously changing mainly because of the influences by varied approaches to social, economic, cultural events and political aspects impacting the business environment; thereby transforming the social mentality, which puts the pressure on local or multinational corporations to carry their business in an ethical and socially responsible manner.
The objective of staying profitable becomes difficult to reach if business is sidetracked by costs to be incurred from complying with the mandates of business ethics and social responsibility, such as equipping its factories with state-of-the-art anti-pollution devices and showering employees with generous benefits.
The fast food industry is part of the restaurant industry. There are ethical issues associated with the way fast food chain treat their employees. These workers are paid low wages, but are expected to do a lot of work.