Business Ethics
Ethics and Morality
At the onset, one could deduce that ethics and morality share similarities in terms of conforming to a stipulated standard of behavior based on the principle of right and wrong. Apparently, there are distinguishing features between ethics and morality in terms of their theoretical or conceptual framework. As disclosed, “ethics refer to the series of rules provided to an individual by an external source. e.g. their profession. On the other hand, morals refer to an individual’s own principles regarding right and wrong” (Ethics vs Morals, n.d., par. 1). Likewise, ethics are external rules, standards, guidelines prescribed by social or professional groups; while morality involves personal principles, beliefs, value system ingrained in one’s being and guides the person in conducting behavior and decisions in life.
Examples of ethical distinction are as follows: professions are generally guided with ethical codes of conduct and behavior that provide the basic rules that each profession should adhere to when conducting their roles and responsibilities. Doctors, nurses, and other health care practitioners have ethical standards for the medical profession that include principles on ensuring no harm would be inflicted in their course of undertaking their duties to the patients whom they serve. Concurrently, the field of business is also guided with business ethics that ensure equality and fair dealings with various stakeholders within which business practitioners engage various transactions with. These ethical standards in business also ensure that there would not be any conflicts of interests between doing their responsibilities and serving to achieve the goals of the organization, of which they are a part of. Likewise, other ethical issues in business include conformity to transparency, social responsibility, avoiding bribery or gifts, and being cautious on engaging in romantic relationships with peers, colleagues, or with people in authority within their respective organizations.
In terms of morality, if a person has been raised with beliefs that conform to a particular faith or religious affiliation that dictates that it is wrong to eat meat, then, by all means the person’s principles include avoiding meat at all cost because it is the belief that has been ingrained in his being and in the culture within which he or she was raised. However, in other cultures, eating meat does not indicate that there is any violation of any rules when nothing of the sort was inculcated in the person’s set of beliefs and value system. Thus, one person could believe that eating meat is immoral; while the other person sees otherwise.
Moral Obligations in Business Organizations
Moral obligations apply to business organizations in terms of expanding their interests and goals from purely generating profits to doing what is deemed right and good for the benefit of other stakeholders, especially of the society. As emphasized by Preston (2011), the moral obligations of business organizations was actually premised from Peter Drucker’s contention that “profit was the primary motive for business, but not the only motive. He asserted that business has responsibilities to the communities it touches in the same way that a school has responsibilities that go beyond the primary goal of educational performance” (Preston, 2011, par. 3). In so doing, corporate social responsibility began to be emphasized as an integral part of contemporary business organizations’ policies to ensure that the needs of the community, including focusing on conserving and preserving the environment, becomes part of the organizations’ thrusts as their moral obligation.
In terms of accountability for actions taken as a whole (as an organization) or in part (individuals who make up the organization), it really depends on the situation and the action or behavior that was manifested. Organizations always prescribe a set of rules through company policies and procedures; as well as codes of discipline and ethical behavior which are communicated and disseminated to all personnel across the ranks. As such, each and every personnel is expected to abide by these guiding principles; otherwise, violations would mean sanctions and imposition of penalties, also indicated in these policies and codes and pursuant to the laws of the justice system. If an employee who is supposed to know these rules, still knowingly and intently violated them, and jeopardized the customers or members of the community, those who were jeopardized could run after the organization, per se, in addition to the person who wronged them. But, in this case, the organization could impose the necessary sanctions to the particular individual that violated the rules.
In other situations, where organizations or members of the organizations have committed bribery, which is a federal offense; then, the members of the organization who were identified to have committed the bribery would be accountable, as well as the organization that perpetuated this, if the bribery was contracted to benefit the organization to secure a license or agreement with a third party.
Corporate Responsibility
The major arguments concerning corporate social responsibility include serving the interests of the community through supporting educational programs; serving as volunteers for civic or environmental projects; donating time, money or efforts to social, civic, and charitable events. As noted and observed from large organizations that openly pledge responsibilities to the society, these endeavors contribute to improving the image of the organization and assist in generating financial success through the symbiotic and mutual beneficial relationship between the organization and members of the community which they serve.
References
Ethics vs Morals. (n.d.). Retrieved from diff en: http://www.diffen.com/difference/Ethics_vs_Morals
Preston, P. (2011, May 7). The moral obligations of business. Retrieved from Business Spectator: http://www.businessspectator.com.au/bs.nsf/Article/What-are-the-moral-obligations-of-your-business-pd20110427-GB2T2?opendocument&src=rss
