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Essay Example on Business Ethics

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1087 words
University of Richmond
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Many people are at crossroads when it comes to ethical issues and ethical consideration. However, both organizations and individuals agree on one thing. It is important for entities both individual and organization to uphold or meet the basic moral codes. Both law and codes of conducts have loopholes, and the ethical framework also present challenges these ethical framework conflict each other (Trevino, Butterfield & McCabe, 1998). The selection of the right code and the adoption of professional ethics in organizations are dependent on the intention and judgment of the management and organisational leadership to install in their employee a strong code of ethics. However based on the arguments of Mike Gustavsson, it is clear that management has a duty of not only creating a code of ethics but must also instil a culture of ethical decision making.

In responses to Mike Gustavsson, leaderships are an essential factor when it comes to ethical behaviours within the organisation. Leadership style can help reinforce ethical behaviour in an organisation. For example, a transformational leader can offer inspirational motivation to the followers (Torkaman, 2011). Instead of imposing the code of ethics and code of conducts on employees, it is important to build in the employee's character, inspire them and motivate them (Ashford, Mayer, Ong & Sonenshein, 2013). Additionally, the leader should serve as the employee's role model. While many of the people in the seminar argued that character and upbringing are important, the leaders have to serve as role model, behave ethically and make an ethical decision.

In response to Deshi Chen, not everyone learns about ethics in school only. Most of the ethical behaviours should be taught at home. The school at the corporate world is only supposed to give direction and shape people's behaviours (Ponemon, 1992). It is also advisable to note that while companies have corporate ethics and governance codes, these are just formality. Unless a leader and the employees have an intention to actuals demonstrate these corporate ethics and governance code. The most effective way that most organisations have managed to make employees follow the corporate ethics and governance code is only through developing and implementing a culture (Conrad, 1991). The organisation culture refers to the unwritten rules, laws, morals and code of conducts that employees are expected to follow. Every organisation should develop its culture, and corporate ethics and governance code based on their specific context, internal and external environment.

Even though the goals of most corporations is shareholder wealth maximization based on the shareholder theory, it is important to note that the client and customer are also stakeholders who must partake in the company's profits (Rutledge & Karim, 1999). Organisations may not be under oath or law to give asks to the community, but it is a moral requirement that all organizations that operate in an environment should give back to the environment and community I which they operate. There have also been of discourses that point at the sustainability of organisational profit. There is a significant positive correlation between ethical conducts and profits such that the customers favour organisations that give back to the community and operate ethically. Most customers would like to be associated with ethical and environmentally conscious organisations. Most boycotts are mainly targeted at unethical organisations. Therefore, when looking at ethics from an organisational perspective, there is evidence that the management should inspire and nurture an ethical culture. Finally, a leader must show genuine concern for his followers, and the society as a whole.

Ethical behaviours mean conducting oneself in a manner that does not infringe on the other people's rights, autonomy and freedoms. Ethical leadership is found in the argument that personal attention to all stakeholders is important to bring out the very best in everyone (Kurschner, 1996). An organisation with a transformational reader is likely to have ethical employees as the leader would influence the employees, create an ethical culture and promote ethical decision making.

I think Jan Edwards argument is ill-founded because apart from pecuniary duties of the organisation to the stakeholders, the organisation also stand to be counted as a moral entity, making an ethical decision over and above the profit-making and driving growth (Arnold, Lampe & Sutton, 2011). Many organisations are pursuing ethics as a pillar of successful operations, and all these organisations are just paranoid because there is a grey area which they would never want to discuss (Koumbiadis, 2014). The nexus between profit-making and given back to the society through charity work.

Finally, I agree with the argument of Mei-Hua Feeling because strong ethical codes of concurs and strong codes of professional behaviours can lead to more moral, ethical business, that translates into profit, wealth generation and sustainable businesses.

In conclusion, I feel that instead of having code of conduct that seems to be imposed on the employees, organisations should focus on creating an ethical culture and making ethical behaves a part of the company's fabrics that puts the employees together for a united goals and unity of direction. A good manager must also be a good leader to inspire ethical culture within an organisation.



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