Importance of Sound Ethical Decision Making in Organizations
Business ethics is a form of professional principles that examine ethical values and moral problems that arise in a business environment. It applies to all areas of business conduct and is important to the behavior of individuals and the whole organizations (Ferrell 9). Making ethical business decisions is a key to achieving long-term success for any business, although the decision makers may, achieve weaker short-term financial results. Knowledge of how to make ethical business decisions can help one to set the standard throughout the organization, consequently, helping the company to garner positive name in the marketplace while acquiring a loyal customer base (Griseri 7).
When a business lacks sound ethics in its everyday work, the long lasting effects can be dangerous and even deadly to that business. Unethical business decisions can result to; loss in the company’s market share, environmental pollution, and poor effect on the organization’s public image among others (Ferrell12).
Business ethics performs a crucial function in determining a company's success or failure. Companies have a special duty to their customers to ensure that their decisions are ethical and legal. Management should set out the company's core values. The choices a company makes speak a lot about its values.A successful business is one that employs sound ethical practices in its activities (Griseri 9).
4 Types of Corporate Social Responsibilities by Business
Environment Responsibilities
The businesses should obtain their raw materials from reliable and sustainable sources. They should also implement good ways of waste disposal and drainage. This will help reduce environmental pollution, reduction in carbon emissions, global warming and extensive depletion of resources such as trees among other environmental hazards (Griseri 22). Business corporates should develop procedures that will reduce impact on the environment.
Philanthropic Responsibilities
Philanthropic activities involve making an effort to benefit society. They include; donating money to charitable causes, donation services to community organizations, funding educational initiatives, scholarship programs and environmental beautification projects. After a company meets all of its other responsibilities, it can begin philanthropic responsibilities (Boylan 23). The corporation improves the loyalty of its workers through giving back to the society. Furthermore, the business improves its own support system and enjoys more support from the community that goes beyond just staffing. Corporate philanthropy also sends a signal to its consumers that the business itself is part of the society, rather than exploiting the public.
Ethical Labor Practices
Especially for the businesses that operate in international locations with different labor laws, by treating employees fairly and ethically, companies can demonstrate their corporate social responsibility (Griseri 45). Ethical responsibilities include paying fair wages, being environmentally friendly or refusing to do business with oppressive countries (De, 35).
Human Rights and political Responsibility
Socially responsible corporations make commitments not to purchase from overseas producers that unfairly treat their workers, have poor safety records, repressive regimes or employ child labor (Maximiano 14). With this, corporate companies instill good values and practices to the society for the benefit of the community.
Legal Responsibilities
A company's legal responsibilities are placed on it by the law. Apart from ensuring that company is profitable, it is also important to ensure it obeys all laws. Legal responsibilities include labor law, security regulations, environmental law and even criminal law (Tencati, 10).
Ways in Which a Society Assists Organizations/Managers/Employees Meet Its Social Obligations
The society can assist the organization meets its social obligations by providing good workforce to the company that is reliable and resourceful. The society should also give a good working environment for the organization to thrive in its activities.
Works Cited
Boylan, Michael. Business Ethics. Upper Saddle River, NJ: Prentice Hall, 2001. Print.
De, George R. T. Business Ethics. New York: Macmillan Pub. Co, 1982. Print.
Fraedrich, John, Linda Ferrell, and O C. Ferrell.Ethical Decision Making in Business: A Managerial Approach. Mason, OH: South-Western, 2013. Print.
Griseri, Paul, and Nina Seppala.Business Ethics and Corporate Social Responsibility. Australia: South-Western Cengage Learning, 2010. Print.
Maximiano, Jose M. B. Business Ethics and Corporate Social Responsibility. Pasig City, Philippines: Published and exclusively distributed by Anvil Pub, 2007. Print.
Tencati, Antonio, and Francesco Perrini.Business Ethics and Corporate Sustainability. Cheltenham, Glos, UK: Edward Elgar Publishing, 2011. Print.
