Chapter 5: Bussiness ethics and ethical decision making
What one topic surprised you about this chapter?
The topic, The Nature of business ethics, was an exciting and surprising part that captivated my attention. In this topic, talked about ethics and how it is related to choice and judgment. It is essential to understand that there are acceptable standards of conduct that have the mandate to govern and guide an individual, particularly an employee of a firm or group. Ethical culture is linked to shareholder loyalty in that when a company has excellent standards, and then it would increase brand attractive to the various stakeholders. I agree that this topic has enlightened me to understand how ethical businesses relate and make decisions. “Business ethics comprises principles and standards which guide behaviors” (Ch 5, p 155). There are various factors in which ethical decisions get influenced, and they include personal moral philosophy and individual factors like age, sex, and gender. In an organizational setting, both managers and employees have to cooperate and work ethically by following the guidelines and corporate norms.
Ferrell contends that the field of business ethics is very complex in that organizational issues require subject matter, and knowledge (Ch 5, p 154). In this respect, I found this topic very intriguing concerning how values are imperative in developing norms in an organization. Management has the mandate to come up with rules and regulations that follow the constrictions of trust, accountability, and integrity. In the United States, there are agencies like the Food and Drug Administration (FDA) that have the aim of consumer protection. Many illegal and unethical businesses produce products and services that tend to harm their consumers /customers. Therefore, FDA has the ethical obligation to make sure that the American public health is protected by ensuring the consumers are safer products and making sure that product efficacy can maintain the health security of people. The FDA also deals with veterinary drugs, biological items, and technological medical devices that are utilized by medical professionals. The ethical decision must be maintained whenever coping with the 4Ps, which is the price, product, promotion, and place.
Why was that particular topic from Q1 a surprise to you?
The concept of ethical business decisions usually has the benefit of increasing trust in a business environment. I agree with the fact that this concept shows that when companies do not comply to set rules, there often face ethical disputes in which affect their image and brand. It is essential to note that through regulatory bodies, they are the watchdogs with the intent to ensure that organizations follow the set rules so that stakeholders cannot be undermined, discriminated, or exploited. In this concept, the author explains through a company called Patagonia, who donated one %of their sales for the purpose of environmental issues, which in the end lead to long-run profitability ( Ch 5, p 155). Additionally, this concept motivates me to fully appreciate how some firms take social responsibility seriously by giving back to the community and nature. When a company has legal concerns about ethical problems, then litigation is likely to happen. In the US, firms like Nestlé, Amazon, and Apple Inc have been sued because of unethical activities. For instance, Nestle’s labor force in the international community has been minors, and workers are complaining of low wages and unsafe working conditions. This example clearly shows that today’s companies do not care about their employees as it is part of their social responsibility.
Employees and employers are encouraged to have high personality morality to avoid the ethical and legal problems that can tarnish their image. I recognize that proper ethical training and guidance given to the workforce would reduce the number of illegal behaviors that adversely influence the reputation of the organization. Some companies take advantage of price-fixing, especially in a monopolistic market environment. Monopoly businesses are usually engaged in unethical behaviors of conspiracy, fraud, and other violations so that they can remain sole competitors.
Describe a second concept that will stick with you.
Abusive or intimidating behaviors are the second concept in which viewed as an ethical problem. I can relate that some workers have manners or respect for other colleagues, which shows poor communication skills in an organization. False accusations, claims are some of the issues that are involved when employees lie or refuse to give fact/correct accounts of events and situations. The interpersonal communication between employees and customers has been formal and respectful, which means that abusive comments cannot be encouraged. There are behaviors in which insults and yelling are very common among managers as they threaten and body-shame their employees. This concept gives me the insight to fully understand how communication is essential in an organizational setting whereby managers are to treat their subordinates with dignity and consideration. “Civility in our society has been a concern…”(Ch 5, p 160). In the above statement, shows that organizations should conform to civilized conversations and interactions. It is a fact that building a good rapport requires civility in relationships with the stakeholders.
Describe a third concept worthy of remembering in the future.
The third concept related to bribery is worth remembering mainly because of the example of Novartis, who was accused of bribing a Chinese health care provider paid a fine of $25 million proving that business ethics plays a significant role in operations and activities ( Ch 5, p 162 par 1). Many companies are ruined because of bribery, a charge in which explains their unethical behaviors by engaging in malicious conduct. In the United States, this trend is widespread, as it is viewed as a typical and acceptable manner of doing business. A personal experience of bribery is when saw a parent ‘ bribing’ a child with ice cream so that she can stop crying. I view the modern-day bribing to be a form of motivation so that things might get done. In an organization environment, bribery is considered as an unlawful act (Ch 5, p 162 par 2). In the US, the Department of Justice and other bodies are responsible for maintaining ethical standards and strictness and making sure that set laws are not violated. Some companies face prosecution because of bribe allegations and misconduct in their business operations. The concept of company bribing shows the level of morality and ethical consideration an individual tend to possess. It is imperative to state that bribe in private, and public sectors exist, and I contend that bribes hold organizations hostage and dismantle the moral fabric of society.
Take a Deep Dive on one topic of your choice from this chapter. Specifically, what did that entail, and how long did you spend exploring? (watching videos, reading academic papers, online news, websites, etc.)What did you discover outside the book? (include website links)
Discrimination involves age, sex, gender, religious affiliation, economics, and social status in the workplace. There are many acts and legislation, for example, the title VII of the Civil Rights Act of 1964(Ch 5, p 163), it states that this unethical and immoral for it is considered illegal to discriminate against an employee because of their sex race, color, religion, and sometimes nationality. There are legislations in which protect employees from any form of discrimination since it usually impacts the productivity and relationship in the organization. On a personal level, I have not faced any racial discrimination or any gender or sex-related bias at work from my employer. It means that most of the discriminated workers keep in silence with the fear that they would lose their jobs in the process. Discrimination and sexual harassment is a topic that has a lot of ethical and moral issues in which impact the reputation and well being of the employees. I agree that sexual harassment would lead to a hostile work environment. In a business environment, there is ethnic diversity in that Hispanic, African Americans, and other minorities are treated discriminatorily. Pornography at the workplace is unethical as this chapter states, “Displaying explicit sexual materials may create a hostile work environment…”( Ch 5, p 163). The issue of racism in the workplace is a huge factor as it increases the level of isolation and segregation, which makes work completion much harder.
Nevertheless, sexual harassment has a negative impact on an organization as it is considered unethical. Whenever an employee experiences sexual harassment, it affects them psychologically and mentally. Women are prone to absenteeism when they are violated; hence it influences the turnover and thus lowers workplace productivity. I believe that there is a need to protect employees at the workplace by providing safe measures and code of conduct among workers.https://wol.iza.org/articles/sexual-harassment-in-workplace/long.
Sex orientation, same-sex relationships are examples of aspects in which some organizations discriminate in employees. Management needs to establish ground rules so that employees can develop empathy and consideration in an organization. The inequality in the workplace creates a hostile environment that increases the level of resistance and bad behaviors. I view discrimination is unethical as it violates human rights, values, and integrity of an employee. Ethics is essential among workers to instill respect, collectiveness, cooperation, and commitment.
“Fraud is any false communication that deceives, manipulates, or conceals facts to create a false impression…” (Ch 5, p 164). Financial irregularities are widespread in the workplace, which proves that there ethical considerations to be revised. I found this topic very helpful as it assists me in maintaining moral code. Strategies in which can help management in maintaining ethical standards and respect each other are promoted privacy in the company. The essence of privacy in computer and social platforms is to ensure proper online monitoring of the employees.”Companies often use cookies or other devices to engage in online tracking” (Ch 5, p 164). Fraud happens a lot in organizational settings, as there is a lot of misconduct in the workplace. The fact is that the employer tends to misrepresent in terms of speaking or writing. Besides, fraud raises ethical issues and the level of standards in which the employer stands for in the firm. Features of fraud include a false representation about job security, and salary, issues with health.
Prevention of fraud in the workplace is essential as I contend that clear guidelines and protocols have to be set so that employees can conform and follow the rules. Fraud is one of the white-collar in which corporations engage so that they can make money in which sometimes leads to whistleblowers. The act of increasing the perception of detection is known to be one of the effective fraud deterrents. In the matter of dishonesty, I am sure that employees need to be punished for any misconduct that occurs in the workplace. Segregation of duties is another way of reducing the level of fraud since an employee should not revise or correct their work as it would tempt them to commit fraud.
What topic in this chapter might you take a deep dive into later?
Employees have the habit of a waste of time, which is known as theft of time—the topic of misuse of company time and resources, which happened daily. The fact is that workers misuse equipment and materials with the intent to gratify themselves. The impact of time wastage results in billions of money; I contend that misusing work time is unethical in that employees tend to accept wages and salaries for completed work, but in the real sense, they waste time and do not complete their work. When employees do not follow the appropriate rules and legal norms, it will lead to inadequate code of conduct. There are many ways to handle the unethical situation in the workplace, and it includes the creation of a code of ethics. Another element is having the right tone for behavior in the specific workplace through the establishment of the ethical protocol. A manager has the mandate to empower their employees, which I agree with.
Why does that future Deep Dive interest you?
The reason is that the misuse of companies’ time and resources is widely evident in many business operations. The reason for choosing that dive in a topic is because it has elaborate content and how management can detect time wastage in the company. Some of the exciting parts are that employees waste time by leaving the workplace much earlier. The excessive use of social media and daydreaming is a form of unethical activities that waste time in a firm. Time theft can be mitigated through the installation of time and attendance software in the companies’ computers so that one cannot abuse their work time. I contend that these action plans are easy to implement; for instance, management can create open lines of communication between subordinates and managers. Employees should have a sense of accountability and deep understanding.
What topic in this chapter was the least relevant to you?
The topic of conflict of interest was not that captivating as it has less vital and developed points which I felt it did not impact me deeply. The author defines a conflict of interest as an issue that arises when an individual must close to advance his or her own interests or the organization’s (Ch 5, p 161). The Keystone XL pipeline aspect was confusing as it would have liked if the topic was longer and more detailed like the others. The other reason for making this topic my least favorite is because of the elaboration of the BlackRock issue with conflict of interest as there was no comparison of details with another company. I believe that conflict of interest concerning Corporations tends to be related to deals and agreements in which have influences and impacts both companies in the outcome.
Chapter 6: Strategic approaches to improving ethical behaviors
What one topic surprised you about this chapter?
The topic that surprised me the most was the Code of Conduct. In any organizational setting, there is a need for a code of conduct in which has the aim of guiding the actions and behaviors of employees ethically. “People come from diverse family, educational and business backgrounds” (Ch 6, p160), which means that the application of code of conduct might be different in every single individual in the organization. There is a need to establish organizational ethics programs that would act as a way forward for the conduct of the firm. It is essential to understand the elements of effective ethics programs in which every management has to adhere to so that there would be good behavior promotion. One of the aspects is the standards and codes in which has the main to prevent criminal activities. Issues like fraud and other white-collar crimes can be mitigated by following this element. In an ethics program, the company has to vet a leadership and ethics officer who will be in charge of supervising the activities and how individuals are conducting themselves. For a program to become realistic, I strongly contend that practical training plays a significant role in making sure the employees are equipped with skills and knowledge. Education and training course is one of the elements in which a firm engage so that they can develop sustainable ethic programs. More importantly, the issue of monitoring and disclosure is another element in which a practical ethics program relies on. There is a need for ethics ans compliance in which I aver that following set norms and making sure that subordinates are disciplined. The incentive is one way of increasing the level of ethical behavior as it would promote compliance of ethics when people are satisfied. Observation and reinforcement are significant for any type of management in that following up and evaluating employees is one sub-element of this concept. Corrective actions that involve self-reporting to authorities ensure that employees to be disciplined and avoid any form of non-conformity.
Why was that particular topic from Q1 a surprise to you?
Notably, one major subtopic that interested me was which officers. I did not have a vast knowledge of the tasks and duties of this particular individual and the role they play in ethic program and decision making in an organization. An ethics officer generally has the responsibility of not overseeing legal and ethical issues and activities in the organization. The Ethics Officer has the role of serving as the organization’s internal controller in terms of ethics and any form of improprieties, sometimes workers accuse and company face allegations. I learned that ethic officer is in charge of any complaints, and conflicts of interest that are made to the company and provide a strategic solution in solving such matters. They have the mandate of delivering aspects of corporate leadership, in that many US firms usually follow the corporate governance protocol to solve ethical issues. It is a fact that an ethics officer can educate other employees on effective practices and procedures to ensure their total compliance. I aver that there is a need to maintain a high level of regulations so that it might impact business on a positive note. In personal experience, I once worked in Walmart, and it had a regional ethics officer who was in charge, ensuring that the company was following any regulation in the matter of employees’ wages and working conditions. There have been allegations that low wages and salaries in which it was denied by Walmart management. I discovered that the ethics officer is an integral element mainly with the task of tackling the issue, any internal and external report that might impact the company. These rationales made me interested in finding more about how ethics officers relate to the primary principles, which are justice, beneficence, and non-maleficence, just to mention a few.
Describe one concept that intrigued you.
The concept of ethic training and communication was very interesting as there are factors which are involved in such training process—for instance, identification of primary ethical risk elements that might hinder the process from being successful. Corporate risks in a matter like fraud and bribery are some areas in which employees are supposed to be talked the right way to handle. The second factor is the relating ethical decisions to the firm’s organizational values, principles, and culture. Management must provide moral training that promotes a correlated relationship with decisionmaking and regulatory aspects. There is a need to ensure proper communication of the organization’s codes, its principles, and procedure concerning ethical business conduct. The author further shows that management has the right to provide a questionnaire framework and reporting mechanism, which should make feedback respond and communication in the organization much more straightforward. Training events should be regular so that employees can feel more relaxed and familiar with the processes. Social media is a communication tool in which ethics training can be reinforced because it is more accessible today. The feedback mechanism gives the.mangement chance to listen to the ethical issues of employees that are presented. Training and communication initiatives should reflect the unique characteristics of an organization (Ch 6, p 195). Behavioral simulation or role-play is a modern method that American organizations are utilizing intending to recreate complexities of the firms’ relationship and, most importantly, to develop analytical skills for ethical resolving mechanism.
Describe a second concept that will stick with you.
Whistleblowing as another concept in this chapter is essential as it ensures that the company’s wrongdoing is exposed to the outside world. An interesting fact was about a whistleblower in UBS concerning tax evasion and was awarded for the revelation. It is essential to understand that whistleblowing is exposing the employer’s wrongdoing to outsiders, such as the media or government regulatory agencies (Ch 6, p 198). However, a friendly and ethical corporate culture has the purpose of supporting its employees by giving them the rights and freedom of voicing their concerns without any consequences. In some cases, employees are afraid of reprisal and dismal from the company, which proves that intimidation is common in whistleblowing. When a company has adequate and effective whistleblowing policy, it will be able to encourage an ethical culture whereby an employer’s wrongdoing can be exposed and addressed promptly. There is regulatory action that is done for payment or rewarding the whistleblower since, in most, they are fired or discredited by the employer. The reputation damage is the most evident impact as a result of whistleblowing. It is a fact to understand that whistleblowing policy provides privacy and also reinforces elements of staff confidentiality whereby they are protected by the law.
Employers insist on firing or make the worker redundant hence whistleblowers usually get a lot of pressure that makes them quit. I once read about a story of a corporate whistleblower that went wrong, which lead to the death of the whistleblower that was gunned down. In such situations, whistleblowers get bullied and even physically harassed by other employees or the accused employer. In this chapter, whistleblowing is viewed as an ethical action in which it encourages employees to detect any misconduct in management and ensure the promotion of ethical structure.
Describe a third concept worthy of remembering in the future.
I found the concept of transactional leadership exciting as it usually focuses on the role of supervision. The aspect of organizational and group performance is another feature in this type of leadership style.”Ethical leaders must learn from their experiences and gain knowledge about appropriate practice “(Ch 6, p 210). Transformational leadership is highly vital in an organization in that it has the benefit of enhancing the motivation and engagement of employees (followers) through directing their behavior toward the shared organizational vision. Managers are supposed to have the right leadership styles that relate to their skills, talents, and abilities to perform.”Transformational leaders communicate a sense of mission, stimulate new ways of thinking…”(Ch 6, p 212), which means that this type of leadership is diverse as the needs and aspirations of the workers are priorities.
Take a Deep Dive on one topic of your choice from this chapter. Specifically, what did that entail, and how long did you spend exploring? (watching videos, reading academic papers, online news, websites, etc.)What did you discover outside the book? (include website links)
Leadership power is a topic that took me a few days to resources websites and articles concerning the five bases of leadership power. It is essential to understand that ethical decisions are linked to how the leadership power is utilized. The most successful leaders tend to adapt their style based upon the situation (Ch 6, p 211). One of them is legitimate power, which is defined in whereby the leader has ultimate authority and formal right over others as they can make demands and expect compliance. Ethics in the past has been viewed, understood, and also taught as a set of behavioral rules. In this type of power, there is a need for compliance with these specific rules that aim to protect the clients of any kind of harm. There are structures in which legitimate power tends to be related, which involves ethical codes of conduct. It has the benefit of ensuring to clarify what is right and wrong in any organization. Leaders are able to maintain ethical structures, for example, whistleblower protection, in that workers are able to be protected in terms of identity when they are reporting unethical practices. The final decision of the organizational leadership is the main characteristic of this power as the team must agree and conform l. Another feature is the forcing aspect of compliance so that ethical decisions can be met, which might have disciplinary repercussions if not followed. https://expertprogrammanagement.com/2018/05/legitimate-power/#:~:text=Advantages%20of%20Legitimate%20Power,military%20to%20perform%20a%20task.
The reward power is one of the common forms of power in which leads to loyalty to the organization. This power involves the ability to reward through methods like bonuses and incentives at work. Excellent performance means that employees had compliance and exceeded their expectations.https://www.bizskinny.com/Management/reward-power.php.Expert power in an organizational setting has a connection to ethical decisions as individuals with much experience and knowledge are in charge of that particular field. In this chapter, “expert usually stems from a superior’s credibility with stakeholders “( Ch 6, p 205). This power gives the employees the perception that their boss has high qualified and unique skills and knowledge that gives them the power to be in charge. An example is departmental heads and managers have more skills and knowledge in that particular field. Expert power is important in leadership since it gives management the power to control and direct the subordinates. I have seen many companies holding leadership seminars that are characterized by courses and teaching to be successful and effective leaders. Later I learned that the reason for departmental head and managers attend such meetings and seminars are mainly to improve skills and knowledge of their field. In this respect, expert power is an automatic gateway for managers to get compliance from subordinates.” Expert power may cause ethical problems when it is used to manipulate others or to gain an unafraid advantage “(Ch 6, p 206).
Referent power is well explained in the chapter through an example of Lisa Jones. I agree with the fact that this power is mainly by association and perceived worthiness. For instance, a worker has the perception that their goals are similar to others in achieving a specific objective. In an organization, some individuals seek others with the intent to leverage those work relationships to influence and persuade another in positions of legitimate power; for example, your boss. Coercive power relies on fear to change behavior (Ch 6, p 205). In this chapter, it is essential to note that coercive is the opposite to reward power in that employees can get punished. When where unethical behaviors in an organization, this kind of power is highly encouraged to restore compliance. https://youtu.be/VJztnIFPO4
What topic in this chapter might you take a deep dive into later?
Leader-follower relationships
Healthy work relationships arr promoted when there mutual ethical expectation and objectives. Managers must create a sound communication system with their employees. I agree with the author that there is a need for employers to reduce the level of micro-managing of employees ad it makes them feel unappreciated and Male them less accountable. Additionally, this topic is essential to dive in, as it explains how micromanagement is related to low morale in an organization. Organizational leaders have to be approachable in that I can communicate and interact with my boss or supervisor without feeling intimidated or afraid. In the statement, “…ethical leaders use communication to develop to develop a respectful relationship with employees” (Ch 6, pg 213). It is essential to note that communication helps in the achievement of organizational goals and objectives.
Why does that future Deep Dive interest you?
Job satisfaction and employee commitment are two impacts of effective communication in which I found to be vital for me to apply in my future career. I chose this topic mainly; it can relate to future careers and how communication hierarchy and channels are essential in the achievement of organizational goals and objectives. A friendly culture at work has to promote cooperation and working together between low-level employees and top management as it would reduce elements of isolation and meaningless fear. Having a proper feedback channel is very practical in which I found that managers have to be proactive so that to promote ethical decision making. The fact is that shared goal and values is very important as it has the mandate of building a good relationship and forging strong work ethics in the process.
What topic in this chapter was the least relevant to you?
The benefit of ethical leadership is a topic in this chapter that did not interest me that much mainly because it is a repetition of some aspects discussed, like job satisfaction and way to motivate people. I find the topic not relevant enough to me as it does not give more elaborate content so that it can be more detailed. In this topic, there are few benefits of ethical leadership in which there are very many. Ethical leaders have the mandate to communicate with their subordinates so that they can initiate aspects of implementation, supervision, and other processes necessary to ensure that employee is more familiarised with core beliefs and values. On the contrarily, I believe that ethical leaders have to cooperate with subordinates to ensure that proper management and compliance. For an ethical and friendly work environment exist, there is a need for effective leadership from the managers.
Work cited
Business & Society BUSINESS AND SOCIETY: A Strategic Approach to Social Responsibility & Ethics, 6th Edition, by Ferrell, Thorne, Ferrell;
ISBN: 9780997117141