Business ethics is a major component of organizational success. Companies must strive to act in an ethical way, not only because it is the right thing to do, but also because it is required of them by their stakeholders. Stakeholders have a vested interest in the performance of the organization (Jones, 2012, p. 28), above and beyond the organization’s financial performance. While shareholders expect to receive returns for their financial backing (p. 29) and expect an organization to behave in a way that ensures those returns, other stakeholder such as consumers (p. 30), the government (p. 32) and special interest groups (Weiss, 2014, p. 13), may be more concerned with how an organization operates and whether they follow legislated and/or accepted norms of ethical behavior (p. 50). Should an organization and its leadership cultivate a culture/structure in which unethical behavior flourishes, especially in this age of heavy government oversight, that organization will not last long. This paper sets out to …show more content…
Despite passing U.S. Department of Agriculture inspections, the organization failed to follow federal legislation forbidding sick animals from entering a processing plant’s food supply chain as well as multiple other violations for the inhumane treatment of its livestock (p. 56). The outside pressure (p. 51) from supervisors to meet the quota of 500 processed cows per day in order to maintain the organization’s high profit earnings as well as the lack of an organizational control system (p. 53) in which employees could report the unethical behavior of others exacerbated this situation. Employees, spurred by the need to meet this quota, overrode their individual ethics (p. 51) and behaved in an unethical
The author Robert Solomon argues that ethics has to an integral part with regard to business management. He does not believe that business management must include unethical or illegal methods to be able to succeed. Solomon preaches that business management is not as simple as obtaining revenue. “Businesses need to abide by fair policies and their owners have to be ethical in dealing with their customers” (Shaw p. 37). The author acknowledges that while illegal practices in business management could bring positive results at first, eventually the business is bound to fail. This is why Solomon recommended eight important policies that can help businesses in integrating ethics into their operations.
In Elizabeth Grossman’s article “Big Trouble with Big Chicken” she informs the audience about how the main chicken producers treat their employees and the effects they have on all the industries. Grossman has five main topics: what has led to hazards, hazards within companies, hazards leading to inspections, violations jeopardizing federal contracts and the roles consumers have. Throughout Grossman’s article she uses …. Authors to help support her claim.
The succeeding document is a proposal for a study based on the ethical treatment of animals in American slaughterhouses. The purpose of the following report is to see if it is feasible for major American supermarkets, such as King Soopers, to implement a strict selling of ethically raised animal products in their stores.
In this essay I will be answering the question; Are businesses that act unethically destined for failure? It’s no secret that many, if not the majority, of the world’s most famous companies have been accused of acting in an unethical manner; but the unasked question is why do so many get away with acting unethically. The definition of the ethics is “the study of practices and policies in business, to determine which are ethically defensible and which are not” (Jennifer Jackson 1996 page one)
I would like to call your attention to several important issues raised by the film Food, Inc. Specifically, the farming and food-production processes in the United States have become a national disgrace. By far, the most morally egregious problem is the utter disregard for animal suffering and the casual cruelty inherent in the inhumane conditions used throughout the industry. Other significant issues raised by the film include the causal connection between food industry practices and human health problems, and the complete domination of the entire food production chain by corporate conglomerates. Corporate profit and market dominance are not necessarily unethical; however, it is highly unethical for economically powerful entities to use their wealth to influence government legislators to enact laws intended to benefit those corporations through the lobbying process. Likewise, the degree to which the spirit if not the letter of laws prohibiting conflicts of interest between the private sector and Washington regulators is violated is appalling and antithetical to the fundamental democratic process of government.
The literature examines the following ethics policies: a) use of company funds and assets, b) handling of confidential information, c) personal financial interests and outside activities, and d) how to conducting business that is in compliance with organizational, state, local government, and federal laws. Also, organizations should have ethical policies that address trading stock, conducting business with suppliers and customer, kickbacks and rebates, the acceptance of gifts, bribery, destruction of company property, and the handling of the organization’s recordkeeping and retention of records. To conclude, organizations need to have policies that address disclosure of information, as well as, appropriate acceptable behavior when dealing with competitors, suppliers, and other business partners (Camps
Since taking a business ethics class, I know that many companies stray from establishing and enforcing the company’s values into their actions. This leads to bad ethics. Thus, sometimes the best way to end bad ethics is to involve the law. If not, reevaluating the company would have only addressed some issues, not all.
(Panza & Potthast, n.d.) Ethics is very important to a company’s success. Ethical behavior can bring benefits to a business. They can attract customers, which can lead to a boost in sales and profits. It can attract the right employees and increase productivity. It can also attract investors and keep the company’s share price high. Unethical behavior on the other hand can damage a company’s reputation and make it less appealing to stakeholders. It could also result in lower profits.
In the past couple of decades the businesses sector and other organizations have witness a significant amount unethical conducts of corporation and individuals that have impacted stakeholders’ faith in the market. One the major ways organizations have attempted to circumvent unethical and legal misconduct is ethics auditing. Ethical auditing is used by corporation as mean to plan for ethical disasters, which in all likelihood would result in considerable legal and financial expenses and interfere with normal operation of the business including its staff, efficiency, reputation, and stakeholder faith in them ( Ferrell, Fraedrich, & Ferrell, 2013).
People do know that there are business organizations that have disregarded ethical standards and encounters ethical issues inside their company. There are times that ethical standards or norms have to be set aside to achieve something worthwhile for the company. Lately, businesses recognize the importance of ethics to help establish the integrity of the
Consumers today want to do business with reputable companies that are led and managed by ethical decision makers. Ethical decision makers look to partner with other companies that share similar morals and values. In other words, the public and other companies want to associate with an organization that will make ethical judgements. Ethical decisions are not always obvious nor are they based on what is right or wrong or what is good or bad (Gonzalez-Padron, 2015). They are choices made by managers at all levels and stakeholders who follow the company’s core values, ethics policies and moral compass. One leader who is an example of integrity and ethics is Bill Daniels, who opened and operated a small insurance agency in Wyoming. Analyzing Bill Daniel’s ethical tradition, decision approach, and moral development will provide a foundation to Bill’s business methodology.
Business ethics is an extremely important topic in our world today. This is especially true because of the fact that we live in a changing society where it has become increasingly common to see more and more cases of companies that participate in illegal, immoral and unethical activities. So that we can prevent these behaviors, it is necessary to study and understand how these situations can occur and what we can do to prevent them from happening.
In today’s business environment, it is imperative that organizations develop strategies that allow it to operate in an ethical fashion (Hill, Jones, & Schilling, 2014, p. 379). This entails developing a code of ethical standards that dictate the accepted principles of decision-making, stakeholder interaction, management style, among a myriad of other elements of organizational operations. For those organizations that take a stakeholder management approach, operating in an ethical fashion also includes acknowledging that different stakeholder groups deserve to have their rights recognized and to be treated with dignity and respect (Hill, et al., 2014, p. 381). An ethical organization values the relationships it develops with its stakeholders (Loyalty, 2013a); in theory, an individual should be able to develop a relationship and work with stakeholders that creates value for and benefits different stakeholder groups, while obeying the tenants of his/her ethical code. However, what if a stakeholder is behaving unethically? What should an individual do if they are faced with opposing ethical choices: the decision to maintain discretion about the unethical actions of a stakeholder, whom they are to value and respect or the decision to expose that stakeholder? This then becomes a dilemma between loyalty and morality: the choice between being loyal to individuals you have developed some sort of relationship with or abiding by a personal or organizational code of
The case “Does this milkshake taste funny?” presents a situation, where company employees were confronted with an ethical decision. Their thoughts and actions were shaped by several factors, including their personal moral values and the corporate culture engendered by the management of the company for which they work. This case provides an example of how a lack of a code of ethics or ethical training within a corporation can lead to negative consequences. The major players in the case are the night shift employees of Eastern Dairy, and the management of this company that set up the rules and expectations for the night shift. The background and the ethical situation
The Superior Foods Case Study discusses the challenges leadership are faced with regarding their corporation and their employees. The challenge this corporation is faced involves the beef contamination of bovine spongiform encephalopathy (mad cow disease). “On December 23, 2011, the U.S. Department of Agriculture has announced that bovine spongiform encephalopathy had been discovered in a Holstein cow in Washington State” (O’Sullivan, 2004). This outbreak caused a global reaction from the eight countries and the meat processing plants that were a part of the Superior Food Corporations. The leaders of this corporation had to develop strategies to prevent the contamination from spreading, and strategies to keep the organization from being affected financially. This case study was a good example of what typically occurs when meat processing plants are faced issues due to contamination.