Posts Selected From the Category "Business Ethics"

Even though corporate responsibility for increasing the wealth of stockholders is well recognized, other social responsibilities are only beginning to be accepted. Below is a brief list of the many areas in which corporations have acknowledged their social responsibility and established programs to deal with them.

• Responsibility for protecting the natural environment includes judicious use of natural resources, energy conservation, limiting polluting emissions, and waste management.
• Responsibility toward consumers: includes creating safe products and pack­ages, educating consumers on product use and disposal, being truthful in advertising, and establishing a procedure for dealing with consumer complaints.
• Responsibility toward employee welfare: includes providing fair compensation and benefits and safe work environments, eliminating discrimination, pro­viding opportunities for personal and professional development, and having progressive human resource policies.
• Responsibilities toward local, state, and federal government agencies: include fulfilling obligations under regulations and statures of these agencies, cooperating in planning and investigations, and coordinating administrative activities with these agencies.
• Responsibilities to the public or communities where the corporation has operations: include providing economic stability, safeguarding public safety, protecting the environment, and aiding in the development of social and cultural resources of the community through corporate philanthropy.

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The dilemma of ethical decision making in business settings arises out of the tensions or conflicts between what is good for individuals, organizations, and society. These conflicts manifest themselves in rules that govern organizational behavior and in concrete decision situations.

Individual versus organizational conflicts are apparent when personal values of employees conflict with the requirements organizational tasks. For example, a junior accountant’s audit opinion may be based on ethical grounds. It may be rejected by his or her superiors who do not want to relinquish the business of the client by giving a negative opinion. A salesperson may consider the company policy of giving large discounts or personal gifts to selected customers to attract their business unfair and unethical. A marketing executive may object to company advertisements on the grounds that they are not truthful.

Conflicts between organizational and societal interests arise when corpo­rations consume public goods without paying for them or when they sell goods that may have harmful effects.…

Williams had joined Star Corporation, one of the leading consumer electronics company, only a few days back as the Purchase Manager and he was going through the employees conduct manual. He was attracted by the clause, prohibiting acceptance of gifts by the employees of the purchase department. It read as follows:

“Purchase department employees shall not accept gifts from vendors. This is to ensure that no vendor is given any special treatment and the employees work only in the best interest of the firm at all times. Any deviation from the above would be dealt with severely and could mean dismissal from the firm.”

Williams remembered his experience with his previous firm, Maple Corporation, where he had worked from 2000 for six years as purchase head prior to joining the Star Corporation.

It was only six months since he was with the Maples when it was New Year. With the New Year came some inconsequential gifts like ball pens and key chains.…