The manner in which a company does business is a reflection of the ethics of the organization. Most strive to abide by the ethical values set forth by the company; however, on occasion these ethical practices are compromised and an organizational ethics issue is born. Ethics issues can be caused by any number of factors but one reason stands above the rest. One of the main causes of ethical issues in an organization is monetary gain.
This writing focuses on a potential ethics issue by describing the issue, analyzing the stakeholders, identifying values, resolving the issue, addressing objections, and implementing the resolution Business ethics is about having standards, principles and doing the right thing even if no one is around to see you do it. Business ethics is one of the most difficult issues to deal with, in a corporate atmosphere. Issues in business ethics within the sales department are very apparent, such as; make your quota or else.
Why do good people do bad things? I believe that salary is one of the biggest reasons for unethical behavior. Some additional examples for the use of unethical behavior may include, fear, and conflicts of interest within the company. Smith & Nephew awards its employees with bonuses, vacation days and awards for the hard work that its employees accomplish. However, Smith & Nephew does have strict rules for those who like to bend the rules and support or produce unethical behavior.
Most of Smith & Nephew’s offices are run by employees and their management is located in Memphis Tennessee, therefore the need for strict policy and rules is necessary. This company’s employees have plenty of opportunity to bend the rules and participate in unethical business but it goes back to the principles of doing the right thing. (Blake R. C. 2008). One of the main causes of ethical issues in an organization is monetary gain. One of the most difficult things for a small company to do is to take on a larger financial burden.
The ethical issue discussed in this study pitted right against cost. Many times cost wins this battle. One must be mindful that ethical issues often carry a price tag; however, the more important issue is that maintaining ethical standards brings a higher reward over the long-term. An organization that suspects a breach of ethical protocol is bound to investigate and determine the validity of the issue. Any potential ethical issue must be investigated and resolved. Ethical issues need ethical resolutions.
Some of the biggest challenges in business come from keeping up with changing behaviors of society. The behavior of an organization is a result of the interaction of the workforce, ethical values, cultural diversity, and many other factors. Organizational issues and trends are dependent on the surrounding environment. Evaluating the business and ethical considerations of operating organizations on a global scale entails a vast amount of information which contains a multitude of variables. How does a multinational enterprise create and sustain an ethical responsive plan of action?
The research turns to a variety of ideas that suggest what elements affect the global economy and the businesses surrounding the subject, from global terrorism and government corruption to simple organizational practices. Government corruption will also pose an ethical challenge to be considered. To operate a multinational enterprise in certain regions of the world, the cost of owning the right to be there will put ethics to the test. Some of the most corrupt places in the world include Bangladesh, Haiti, and Nigeria. These countries were rated to be the top three in corruption.
For an organization to grow in these specific areas, one must assume that bribes and illegal actions take place on a regular basis. All factors must be measured to sustain a respectable level of ethical standards. The three countries to rate as the least corrupt were Finland, New Zealand, and Denmark. The United States ranked at number 19. Of the most respected businesses in the world; Wal-Mart, General Electric, and Microsoft were rated in the top three. All U. S. led companies function with the unspoken understanding that ethical standards will be followed.
What creates an ethical and respectful work environment? Several features are looked into that define what gave these companies such a high merit. Accountability and a clear action plan seem to be the standout features of the organization’s success. Honesty with employees and the open door policy to talk freely to one’s leader in the company are greatly appreciated within the company ranks. In a recent study, 80% of employees for a global enterprise reported that their jobs were designed to ensure that no gaps existed in accountability.
The global economy has an estimated value of $33 trillion. This assessment entails the integration of technology, markets, politics, cultures, labor, production, and commerce. All sections are controlled by the considerations of ethics on global operations. By the year 2020, the global economy is predicted to grow by 80%. This massive growth will have a substantial impact on the world. Whether or not this shock will promote positive economic growth or spark the next world war is something to be watched closely.
Blake R.C. (2008). Business Ethics: Why Do Good People Do Bad Things?
Silicon Valley Chapter of NACD. Retrieved June 16, 2008