Q: What is business ethics?
Business ethics are principles and standards that determine acceptable conduct in business. Law often guides business ethics, while other tines business ethics provide a basic framework that businesses may choose to follow to gain public acceptance.
Q: What are some of the general ethical issues in business?
In the complex global business environment of the 21st century, companies of every size face a multitude of ethical issues. Businesses have the responsibility to develop codes of conduct and ethics that every member of the organization must abide by and put into action. These are some business ethical issues:
Misuse of company Time: Theft of time is a major area of misconduct observed in the workplace. Examples like engaging in activities that are not necessary for the jobs like excessive socializing, long lunch breaks etc.
Abusive and intimidating behavior: Abusive or intimidating behavior is another common ethical problem for employees. These concepts can mean anything from physical threats, false accusations, profanity, insults etc.
Misuse of company resources: It has been observed that it is the leading issue in observed misconduct in organizations. Issues might include spending excessive amount of time on personal emails, submitting personal expense on company expense report.
Conflict of interest: It exists when a person must choose whether to advance his or her own personal interest or those of others.
Q: How can an organization improve ethical behavior?
Understanding how people make ethical issues and what prompts a person to act unethically may result in better ethical decisions. Some ways to do it are as follow:
Develop a code of ethics: The preliminary step to promote ethical behavior among employees is by establishing a code of ethics. The code of ethics provides the direction and guidelines for employees’ ethical behavior. It also helps employees understand the organization’s ethical expectations and rules.
Make managers role models: In ethical training, designating managers as role models is another way of promoting ethical behavior. For this purpose, managers need to be chosen with care and due consideration.
Disciplinary actions for unethical behavior: If any employee of the organization resorts to any malpractice or unethical behavior after completing the ethical training, it’s better to impose sanctions on them, which will help employees, understand the implications of inappropriate behavior.
Rewards for ethical behavior: After the completion of the ethical training program, an employee can be rewarded for positive behavior, so that the employee will not only continue to adhere to the ethical practices but also be an inspiration to his colleagues.
Q: What are the four dimensions of social responsibility?
The four dimensions of social responsibility are:
Economic: Corporate stakeholders expect companies to make a profit. In the past, profit maximization was at the top of a company’s goals. Now, however, contributing to the society as a whole encourages stakeholder and customer loyalty — and increases profits.
Ethical: Companies must respect the society’s values and norms and operate consistently with the society’s expectations. Companies must recognize new ethical movements that the society adopts.
Legal: In the legal component of social responsibility, companies must work within the law and the government. Companies must be aware of all local, state and federal regulations. Managers must stay current on legal issues so they can adapt operating procedures to comply with new laws.
Philanthropic Activities: Companies must be philanthropic. Philanthropy can include charitable donations, fundraising, encouraging the staff to volunteer or adopting special projects. Fine arts and performing arts contributions are options for philanthropy.
Q: Discuss the environmental issues managers must confront in dealing with social responsibility issues?
Managers today must consider the consequences of their actions on the environment as a part of their social responsibility. One area of concern is the controversial business practice of animal testing for cosmetics and drugs. Business practices that harm-endangered wildlife and their habitats are another environmental issue. Businesses must also be concerned with their contributions to air, water, and land pollution as a result of their operations. In response to these concerns, many firms are trying to eliminate wasteful practices, the emission of pollutants, and/or the use of harmful chemicals from there manufacturing processes
Q: Find the Book Of Proverbs in a Bible (Bible books can be found online). Find a Proverb that could be applied to ethics or social responsibility in business. Write out the proverb; explain how it might be applied to a business situation.
Pride goes before destruction, a haughty spirit before a fall.
Many entrepreneurs struggle with pride. Do not be afraid to tell clients or employees that you do not know the answer. Try to diffuse any issues with truth and by taking full responsibility for fixing the problem. Never let your ego get in the way of doing what’s in the best interest of your business.