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Which Isn`t a Reason Why Business Ethics Is Important Mcq

Unfortunately, practicing this philosophy can be easier in your personal life than in the business world. Ethical challenges arise in business because companies, especially large ones, have multiple stakeholders who sometimes make competing demands. Making decisions that affect multiple stakeholders is not easy, even for experienced managers. And for newcomers to the business world, the task can be extremely daunting. However, you can get a head start on ethical decision-making by looking at two types of challenges you`ll face in the business world: ethical dilemmas and ethical choices. Let`s start this section with this question: What can individuals, organizations, and government agencies do to foster an environment of ethical behavior in business? First, of course, we need to define the term. One of the goals of anyone doing business should be to promote ethical behavior in the organizational environment. How do you know when an organization is behaving ethically? Most lists of ethical organizing activities include the following criteria: The goal of any business is to satisfy customers who reward companies by buying their products. Sellers are also responsible for treating customers fairly, both ethically and legally. This means that customers: In fact, ethics are always “managed” – but too often indirectly. For example, the behavior of the founder or current leader of the organization is a strong moral or directive influence, if you will, on the behavior or employees in the workplace.

Strategic priorities (maximizing profits, increasing market share, reducing costs, etc.) can have a very strong impact on morale. Laws, regulations and rules directly influence being more ethical, usually in a way that enhances the common good and/or minimizes damage to the community. Some are still skeptical about business ethics and believe that you cannot manage value in an organization. Donaldson and Davis (Management Decision, V28, N6) argue that management is, after all, a value system. Skeptics might consider the enormous influence of several “codes of ethics,” such as the “10 commandments” in Christian religions or the U.S. Constitution. Codes can be very powerful even in small “organizations”. Why do so many reasonable people, despite all the good arguments for doing the right thing, act unethically (at least sometimes)? Why do good people make bad decisions? According to one study, there are four common rationalizations (excuses) to justify wrongdoing:[45] It is in a company`s interest to act ethically. Trusted companies are better able to attract and retain customers, talented employees and capital. Those tainted by questionable ethics suffer from shrinking customer bases, staff turnover and investor mistrust.

Almost every company now has a business ethics program. This is partly because technology and digital communications have made it easier to identify and publicize ethical errors. To avoid negative impacts, companies are devoting more resources to business ethics. In a survey of accountants, for example, 55% said they thought the importance of business ethics would continue to grow over the next three years. In addition to establishing formal programs, companies create ethical workplaces by hiring the right talent. “High integrity and honesty” is the second most important skill for leaders, according to a recent survey. Today`s business people need to understand the connection between business ethics and business success. Owners invest money in businesses. In turn, the people who run a business have a responsibility to increase the value of the owners` investments through profitable operations.

Managers are also responsible for providing owners (as well as other stakeholders with financial interests such as creditors and suppliers) with accurate and reliable information about the company`s performance. This is clearly one of the areas where WorldCom leaders have failed at work. Senior management deliberately misled shareholders by presenting them with fraudulent financial statements that the power and influence of corporations means they have the potential to harm society. You probably already know what it means to be ethical: to distinguish right from wrong and know when to practice one over the other. Business ethics is the application of ethical behavior in a business context. Acting ethically in business means more than just complying with applicable laws and regulations. It also means being honest, not harming others, competing fairly, and refusing to put your own interests above those of your company, its owners, and employees. When you`re in business, you obviously need a keen sense of what`s right and wrong. You need personal conviction to do the right thing, even if it means doing something personally difficult or harmful. Employees of companies that regularly appear on Business Ethics magazine`s “100 Best Corporate Citizens” list consider the items on the previous list to be as usual in the workplace. Companies topping the 2016 list include Microsoft, Hasbro, Ecolab, Bristol-Myers-Squibb and Lockheed Martin. [23] How can you make sure you`re doing the right thing in the business world? How should you respond to the kind of challenges you will face? Since your actions in the business world are greatly influenced by your moral character, we begin by assessing your current moral state.

Which of the following options is right for you (choose one)? Most of the ethical dilemmas faced by leaders in the workplace are very complex. Wallace explains that you know when they have a significant ethical conflict when a) significant value conflicts between different interests, b) real alternatives that are equal, and c) significant consequences for the “stakeholders” in the situation. Kirrane mentions that when the topic of business ethics comes up, people are quick to talk about the Golden Rule, honesty and politeness. But when faced with complex ethical dilemmas, most people realize that there is a vast “grey area” when trying to apply ethical principles. Business ethics in the workplace is about prioritizing moral values for the workplace and ensuring that behavior is consistent with those values – this is values management. Still, there are many myths about business ethics. Some of these myths stem from a general confusion about the concept of ethics. Other myths stem from narrow or simplistic views of ethical dilemmas. As mentioned earlier, Johnson & Johnson received high praise for the actions taken by its CEO, James Burke, in response to the Tylenol disaster in 1982. But things are changing.

To find out how a company can destroy its reputation, let`s fast forward to 2008 and rethink J&J and its credo, which says: “We believe our first responsibility is to doctors, nurses and patients, mothers and fathers and everyone who uses our products and services. To meet their needs, everything we do must be of high quality. [32] How could a company whose employees believed so strongly in its creed be sued and investigated by Congress for a series of defective product recalls? [33] Over a three-year period, the company recalled twenty-four products, including Tylenol for children, infants and adults, Motrin and Benadryl; [34] Acuvue TruEye 1-day contact lenses sold outside the United States; [35] and hip replacements. [36] Businesses play a crucial role in developing good business ethics. But educational institutions also play a fundamental role in developing ethical leaders. U.S. News & World Report reported that teaching ethics is essential to a well-rounded MBA program. At the University of Redlands, we understand why business ethics are important.

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