Category: Business Ethics

Introduction & Approaches for Ethical Dilemma

Introduction

An ethical dilemma is defined as an examination of the moral standards of an individual where the person’s values conflict with each other. For example, a salesman’s moral values are compromised by the responsibilities of work because of the need to offer a poor-quality product to a customer who is not aware of the fact. The conflicting ethical values for salesperson are loyalty to the company and truthfulness to the customer.

Approaches for Ethical Dilemma

In the Consequential Approach, Utilitarianism is followed for decision making. The utilitarian approach says that “ethical decisions should maximize benefits to society and minimize harm.” For example, the company’s decision is always based on maximizing profit ethically for a larger number of stakeholders.

The Deontological Approach is about duty, obligation and principle. In a deontological approach, a person cannot compromise on moral principles regardless of the consequences faced. The deontologist often follows the golden rule, “Treat others the way you want to get treated” (Trevino & Nelson, 2019). For example, the owner demands to change financial statements to attract investors; the auditor decides to act even if it results in losing the job.

The Virtue Ethics Approach is about personal honesty and strong moral principles. The virtuous person has ideal character traits, which are integrity, self-control and truthfulness. A person who is virtuous shows kindness in many situations of life because of that person’s character and natural internal tendencies. For example, a doctor would never break a code of ethics for self-gain (Trevino & Nelson, 2019).

Ethical Dilemma: A Story

The Story

Olivia, a new car sales agent, still doesn’t have a sale for the month of December. This is bothering her because she is a candidate for the Rookie of the Month. One of the requirements of this award is to have a sale for each month. She is also looking forward for the award as she can put it in her resume. The winner will also receive a cash bonus.

One week before the deadline, Olivia finally closed a deal. The buyer availed a limited year-ender promo for one a car. Three days later, Olivia found out that the buyer missed to sign one of the required documents. It was only Olivia who noticed the incident. The company will have an audit for the Rookie of the Year candidates and if they find out, she will be out of contention. Upon calling the buyer, Olivia found out that he is on a vacation and will be back way past the deadline. Olivia, having been pressured that she might lose the award, has signed one of the documents without the buyer’s consent. She was so nervous because it is obvious that one of the documents is forged. Her good friend, Joanne, is the one assigned to double check the documents to make sure it is complete and not forged. She told Joanne that she signed one of the documents without consent and has pleaded not tell anyone. Joanne, a close friend of Olivia, has promised not to tell anyone about what Olivia did. A month after, Joanne’s boss asked her if Olivia’s documents are complete and if signatures are authentic.

Situation

This is an ethical dilemma because if Joanne tells the truth to her boss, her friend Olivia will lose her job and the award. Also, Joanne has promised that she would not tell anyone that Olivia signed one of the documents without the buyer’s consent. Meanwhile, if she chooses to lie to her boss, she will be disrespectful to her job, the company, and to her superior. Therefore, there is a conflict with her loyalty to her friend and loyalty to her company and boss.

Course of Action

Joanne chose not to tell her boss because she is more loyal to her friend. She perceived the situation in a regular employee’s perspective, more than the perspective her boss. She knows that as an employee, it feels unfortunate and embarrassing to lose a job. Joanne, doesn’t want her friend Olivia to lose her job. Also, Joanne doesn’t want to break her promise that will result to losing Olivia’s trust.

If the situation happened again, the group has concluded that one should do what Joanne did. The group will not tell the boss what Olivia did because of the friendship that is built. Relationships are important and the group do not want a friend to lose a job and the trust in the relationship. The group believes that the conversation about with Olivia is done privately and thus, should be just between the two of them.

Ethics in the Business Industry

Introduction

Ethics is the moral belief that affects a human’s behaviour. Ethical behaviour would, therefore, be the application of these moral principles. It occurs when an individual act in a manner that displays honesty, fairness, accountability, and other ethical characteristics that are morally acceptable to that individual. It is choosing to be honest, truthful, respectful and fair in your actions. (Stone, 2005) In short, it knows the difference between right and wrong.

Ethical behaviour is essential in the workplace for many reasons. Ethical conduct is what drives a business; it is what the company built its reputation. To run a successful business, one must consider the effects of unethical behaviour and put measures in place to mitigate any of these behaviours that may occur. One such example is a Code of Ethics. It can be beneficial in control and minimizing unacceptable behaviour in the workplace. (Lattal, Clark, & Daniels, 2007)

Ethics also protects society from unscrupulous activities where the law does not apply. For example, it is not illegal to use false information to advertise your business to get customers or sell a product, but it is unethical. Therefore, a company that wants to uphold its reputation would refrain from that activity. Thus, ethics prevent organizations from harming society and the environment.

From the lower-level workers to the senior managers of a business, ethics is a central element that is very important to the success of a business. Any company that is known for its practice in moral values and has a reputation for good corporate governance is usually respected by its customers, suppliers, and society (Jennings, 2002).

Ethical Qualities

When dealing with people, honesty is one of the most critical moral characteristics to display. Ways in which this can be applied is by being truthful and being sincere in all your actions. A trustworthy person is given a lot of respect. People will feel confident knowing that you will always act in their best interest and make decisions that will benefit them in the long run. When someone is honest, it means that the person will always tell the truth. For example, if something goes wrong, an honest person will not allow someone else to take the blame for them, they will accept the responsibility for their action. It also shows that you are a person of integrity that one can always be dependable to do the right thing.

A person who practices fairness is usually able to solve situations in an objective and amicable manner. All situations are handled in the same way as any other, and no unique treatments are extended to any one person. Fairness, therefore, means dealing with others in a consistent, impartial, and objective manner. When you are fair and just, you find that people are more comfortable working around you. They are usually more cooperative and are often more motivated to do well at their jobs (Reamer, 2013).

An accountable person usually take responsibility for their actions. It means owning up to one’s mistakes and not allowing someone else to take the blame for something that you are responsible. An accountable person recognizes the difference between right and wrong and strive to practice these principles. Assigned task is completed on time and duties are performed with the goals of the organization in mind. When one is reliable and dependable, it helps to build a relationship with co-workers. It is because people feel like they can always depend on you to do the right thing. Being present for your shift, performing specific duties, and working together for a common goal are some of the priorities of an accountable person (Siems et al.,2010).

Analysis

Many ethical qualities can be considered when creating ethical creditability. However, in addition to those mentioned above are two moral values that must also be considered, these are integrity and openness. These will be explored along with the other behaviours that are paramount for the realization of these principles.

Integrity is a strong moral principle. It demonstrates in someone honest, reliable and trustworthy. Someone who believed in moral values set personal standards and can be expected to deliver on their promises. Doing the right thing is essential not just for the individual but for the people around them (Reamer,2013).

When dealing with people, one must be openminded. People should be able to approach you with the confidence that you will give much thought to their feelings. An open person is mindful of how they approach the views and ideas of others. Respect and consideration are given to others’ opinions.

These are qualities that we learn from our cultural background and how we were socialized. These qualities enable us capable of demonstrating our ability to act in a manner that is socially accepted the values in our daily lives. In addition to these three principles (Siems, et al., 2010).

Conclusion

The application of Moral principles that include honesty, fairness, and accountability illustrates three important ethical qualities that are deemed highly relevant to the workspace. These beliefs are centred around one’s ethical values based on how an individual was trained. To maintain these values, one must continue to seek new way to uphold ethical principles, and in so doing, seek professional growth were the advantages are to build strong customer loyalty, improve company reputation and to reduce turnover for employees.

Business growth and success are foundational motivations for executive; however, correspondingly, parallel importance should be placed on the moral and ethical guidelines that drive these returns when dealing with all stakeholders.

References

1. Lattal, A., Clark, R., & Daniels, A. (2007). A Good Day’s Work: Sustaining Ethical Behavior and Business Success. McGraw Hill Professional.
2. Reamer, F. (2013). Social Work Values and Ethics. New York: Columbia University Press.
3. Siems, F., Bruton, J., & Moosmayer, D. (2010). Integrating core marketing ethical values into relationship marketing. Journal of Relationship Marketing : Innovations & Enhancements for Customer Service, Relations & Satisfaction, 9(2), 68–82. https://doi.org/10.1080/15332661003768716
4. Stone, P. (2005). Ethics and Palliative Care: A Case-based Manual. Radcliffe Publishing.
5. Trevino, L. K., & Nelson, K. A. (2014). Managing Business Ethics: Straight Talk about How to Do It Right. United States of America: John Wiley & Sons Limited.
6. Jennings, M. (2002). Business Ethics: case studies and selected readings. Mason, Ohio: Thomson/South-Western

Definition of terms

• Business

This is a complex economic operation concerning those functions that govern the production, distribution, and sale of goods and services for the benefit of the buyer and the profit of the seller (Collins,1994).

• Ethics

These are the principles of human conduct, sometimes called morals, and are concerned with questions such as ‘when is the act right and wrong and what is the nature or determining the standard of good and bad’ (Beauchamp, 2004).

• Business Ethics

It can be regarded as the study of business situations, activities, and decisions where issues of right and wrong are addressed (Shaw, 2004).

• Oxymoron

Means the bringing together of two contradictory concepts. To say that business is an oxymoron suggests that there are not, or cannot be ethics in business; that business is in some way unethical. (Lueck, 2008).

Long back, it was thought by classical economists like Milton Friedman that the “primary and only responsibility of business is to make money” while abiding by the law. Which is to say, engages in an open and free competition without deception or fraud. He argues that a corporation is an artificial person and therefore cannot be socially responsible, only people have responsibilities. Socially responsibility concerns the proprietors and corporate executives. He goes on to specify the traditional view of a managerial role, Friedman says, that a manager has a direct responsibility to his employers to conduct business in their desires which is to maximize their return on investment (Friedman,1962).

He argues that if social responsibility is exercised, it is acting against the shareholders, owners of the business”. Hence, he argues that a manager pursuing social responsibility violates the relationship between shareholders and the company. After all, it is the shareholders who own the company and they have hired the manager to do a specific job. Friedman goes ton to argue that businesses should focus on what they do and leave ethics to individuals. Hence e Friedman’s view is akin to social Darwinism, applying the survival of the fittest principle to the market to ensure the best of all possible outcomes (Friedman, 1970).

However, Friedman’s theory only benefits the business in the short run. This is seen in the case of Enron which was one of the largest energy producers in the world. When it was discovered that Enron had been using unethical and illegal accounting practices. These accounting practices enabled executives to grossly overstate the value of Enron. After getting caught, the company was forced to declare bankruptcy. It all happened because of a lack of ethical leadership. (Anderson, 2013).

Therefore Maxwell explains the reasons businesses and individuals tend to make decisions that can be unethical is that, they tend to take the easy path towards their objective regardless of its moral aspect, that people have the idea that being ethical limits the options in what concerns winning over the competitors and tend to consider actions according to the circumstances and not according to what is moral and ethical like in the case of Enron concentrated on maximizing the profits without thinking about the processes they were adopting (Maxwell, 2003).

Today many businesses are involved in social action. Society’s expectations are changing and the trend seems to be toward greater social responsiveness. Ethics has found its way back into the agenda of organizational leaders. Companies nowadays are expected to budget their financial plans taking into account the social commitment and social responsibility initiatives to be taken in the next few years. Hence corporate social responsibility is one of the ethical aspects of business ethics (Paine, 2003).

According to Raj’s view ba business is an economic entity and it has a right and needs to make profits, but it must also discharge its obligation to the society where it exists and operates. Hence manager’s role is corrected today as compared to the traditional view of Friedman. Collins notes that the way to correct that view is to strengthen the manager’s understanding of ethical aspects of utilitarianism which would instruct managers to do those things that will enable the greatest good and deontology would instruct managers to respect individuals by recognizing their rights and contributing to their just treatment, building trust and creating of value would make management activity more worthy of people’s commitment (Collins,2003).

More so, commentators such as Freeman, argue that businesses should also benefit other stakeholders. Stakeholders are people and groups with whom the business has a relationship. This includes shareholders but extends out to include employees, their families, the community within which the business operates, customers, and suppliers.

Hence business and ethics are not contradictory. Businesses can act ethically because good ethical behavior is the best long-term strategy. Business involves reputation and relationships, unethically behavior usually backfires in the long term. If a business takes advantage of its employees, customers, and suppliers will often find a way to retaliate. ( Beauchamp, 2014).

It is required as a main factor in making business in the long run and therefore bears the following benefits of good ethics in an organization;

Business ethics offer companies a competitive advantage.

Consumers learn to trust ethical brands and remain loyal to them, even during difficult periods. For example in 1982, Johnson & Johnson spent over a hundred million dollars recalling Tylenol, its best-selling product, after someone tampered with bottles of the painkiller. The company followed its credo, a set of ethical organizational values, and the result was a boost in consumer confidence, despite the contamination scare. Hence society benefits from business ethics because ethical companies recognize their social responsibilities. ( Anderson, 2013).

Investor loyalty

Nowadays, investors are concerned about ethics, social responsibility, and the reputation of the company in which they invest. No one wants to associate themselves with a company that has unethical practices. Investors are very much aware that an ethical environment in an organization provides efficiency, productivity, and profits.

Attracting and retaining good employees

Talented individuals at all levels of an organization want to be compensated fairly for their work and dedication. People aspire to join organizations with high ethical values. Ethical organizations create a trustworthy environment, making employees willing to rely on it. Thus companies’ policies cultivate teamwork, promote productivity, and support employee growth.

Better for society

When a company cares about its behavior, impact, and environmental footprint, it is also better for society overall. For example, a print company might care about sourcing their materials sustainably and producing their products in an environmentally friendly way. This benefits the society. Being kinder to the environment ultimately benefits society because it means consumers can live in a world that is at its best rather than at its worst for suffering. It also means consumers can start to become more aware of business ethics and choose companies that uphold strong morals to help ethical practices continue. This boosts the benefits even more.

Reputation

This is a vital aassetof a company and it is also one of the most difficult tasks to rebuild once it is lost. Potential investors and shareholders are likely to be attracted to companies that adhere to their moral guidelines and promises they have made. This keeps the company’s share price high. Employees also feel comfortable and want to stay in the business for the long term when working with a company that has strong business ethics. This increases the productivity and reduces the labor turnover. When an employee does his work with integrity and honesty and by following the guidelines, it will eventually benefit the company.

Customer satisfaction

This is vital as it provides marketers and business and business owners with a metric that can use to manage and improve their businesses. The company should evoke trust and respect among customers for enduring success. This can only be achieved through good ethical practices.

Cultivate strong teamwork and productivity

Ongoing attention and dialogue regarding values in the workplace builds openness, integrity, and community. This is critical to building strong teams in the workplace. Employees feel a strong alignment between their values and those of the organization. They react with strong motivation and performance. Usually, an organization finds a surprising disparity between its preferred values and the values reflected by behaviors in the workplace.

It helps avoid criminal acts of omission and can lower fines

Ethics programs tend to detect ethical issues and violations early so they can be reported or addressed. In some cases, when an organization is aware of an actual or potential violation and does not report it to the appropriate authorities, this can be considered a criminal act. Business dealings with certain government agencies such as the defense department and the federal sentencing guidelines specify major penalties for various types of major ethics violations. However, the guidelines potentially lower fines if an organization has to make an effort to operate ethically.

Avoid legal problems

Business ethics prevents a company from being tempted to cut corners in pursuit of profits by not fully adhering to environmental regulations or labor laws or using defective materials and products. The penalties for being caught can have a great impact including legal fees and fines by governmental agencies. This leads to negative publicity which can damage the company’s image in the long run. Hence business ethics is vital.

In conclusion, when it comes to business, it is essential to understand that short-term success is not what will keep any business alive, instead, it is the long term that will determine whether a company or an organization deserves to keep on. Business ethics are a drive towards continuous achievement and success. This is shown in successful companies such as Nike, Dell, and Starbucks. Business involves reputation and relationships, unethical behavior usually backfires in the long run as it tarnishes the image of the business. Most people prefer justice and fairness, they are more likely to want to do business with a company that does good than one that does not. Hence, in the end, it is unethical behavior that becomes costly. Therefore “business ethics is not an oxymoron.”( Anderson, 2013).

References

1. Shaw, William. (2004). Business Ethics. Belmont, CA: Thomson- Wadsworth.
2. Beauchamp, T.2014. Case Studies in Business, society, and ethics, Pearson Prentice Hall, Upper Saddle River, New Jersey.
3. Collins, W(1994) .” Is business ethics an oxymoron”. Business Horizon.
4. Friedman, M.(1962). Capitalism and Freedom. Chicago: University of Chicago Press.
5. Friedman, M (1970). The sSocialResponsibility of Business is to Increase Its Profits’, The New York Times Magazine, September 13, pp.33,122-125
6. Anderson, E (2013). What happens when leaders only care about money? Forbes. Retrieved from http://time.com/3103856/10-scientific-steps-to-a-successful-career/
7. Lueck, S. (2008). After 12 year Quest, Domenici’s Mental-Health Bill Succeeds’, Wall Street Journal.
8. Maxwell, C (2003). There is no such thing as “Business” Ethics: There’s Only One Rule For Making Decisions. New York, NY: Warner Business Books.

As companies continue to expand across borders and the global marketplace becomes increasingly more accessible for small and large businesses alike there are ever more opportunities to work internationally (SOURCE). International and ethnically diverse teams are becoming more common, meaning businesses can benefit from an increasingly diverse knowledge base and new, insightful approaches to business challenges. Along with the benefits of insight, global organizations also face potential obstacles when it comes to culture and international business (SOURCE).

While there are several ways to define culture, the one used today is that it is a set of common and accepted norms shared by a society (SOURCE). But in an international business context, what is common and accepted for a professional from one country doesn’t always carry over to another colleague or business. Effective communication is essential to the success of any type of business, it is critical when there is a risk of your message getting lost in translation or obstructed by noise. Mastery of language is not what is the key to successful communication, it’s how you frame your message and that the meaning gets across which is important. Understanding the importance of subtle non-verbal communication between cultures can be equally crucial in international business. What might be obvious in your (business) culture could be strange or offensive to a foreign colleague or client. Do your research in advance of professional interactions with individuals from a different culture to ensure successful interactions. Being perceptive to body language helps. Approaching cultural differences with sensitivity, openness, and curiosity can help to put everyone at ease. Formality is a big consideration when dealing with colleagues and business partners from different countries. The concept of punctuality can also differ between cultures in an international business environment. Along with differences in etiquette come differences in attitude, particularly towards things like workplace confrontation, rules, and regulations, and assumed working hours.

Ethics

‘The field of ethics is a branch of philosophy that seeks to address questions about morality, about concepts such as good and bad, right and wrong, justice, and virtue (SOURCE).’ When the topic of business ethics comes up, most people focus on corruption and bribery. While this is a critical result of unethical behavior, the concept of business ethics and global business ethics is much broader. It impacts human resources, social responsibility, and the environment (SOURCE).

The role of ethics in management practices, particularly those practices involving human resources and employment differ between cultures. Local cultures might have a different view on the importance of age, race, gender, sexual preference, handicap, and so on. The Netherlands is an example where most of such information is asked for during the hiring process to ensure appropriate onboarding. In other cultures, such as the United States, it is not even allowed to put your height on your resume to prevent possible discrimination. Even when there are formal rules or laws against discrimination, they may not be enforced. Our modern understanding of business ethics notes that following culturally accepted norms is not always the ethical choice. What may be acceptable at certain points in history, such as racism or sexism, became unacceptable with the further development of society’s mindset (SOURCE).

Corporate social responsibility (CSR) is defined as: ‘The corporate conscience, citizenship, social performance, or sustainable responsible business, and is a form of corporate self-regulation integrated into a business model (SOURCE).’ CSR policy functions as a built-in, self-regulating mechanism whereby businesses monitor and ensure their active compliance with the spirit of the law, ethical standards, and international norms. Corporate social responsibility encompasses not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance and addresses how companies manage their economic, social, and environmental impacts.

Law

Another instrumental part of conducting global business is learning the different laws, tax codes, business regulations, and other standards in different countries can be challenging, it is said that compliance was the biggest challenge when expanding overseas. Foreign banks may also be hesitant to deal with the administrative burden of a foreign-based business (SOURCE). The best way to familiarize oneself with foreign laws and regulations is to bring an expert into the fold. Having this person involved in decisions regarding this foreign business can prevent problems and might even increase their profits (SOURCE).

Outsourcing

The next step after having sought out the knowledge needed regarding tax and other regulatory factors, could be to consider outsourcing. It’s generally true that it’s cheaper to rent a factory and its workers than to maintain them yourself. The availability of cheap overseas labor is one of the biggest advantages of outsourcing. Lower tariffs and duties, and local market access, can be added incentives to move production offshore (SOURCE). Outsourced labor, and especially overseas labor, often includes technically skilled, highly educated, and multilingual workers who are willing to work for less than labor that must be brought up to speed. The advantage of having support workers who can respond to your global customers in many languages is a significant asset (SOURCE). Your company may also enjoy a market advantage locally out of an appreciation for the jobs it provides.

Conducting your manufacturing overseas can also present difficulties. Although bribery is against the Common Law, in some countries it is part of doing business. Refusing to play the game may put your company at a disadvantage but participating in bribery creates substantial legal risk for your firm (SOURCE). Economic security is also generally less certain overseas. Crime, terrorism, corruption, and political instability can all turn out to be detrimental to the success of the enterprise. Countries can sometimes quickly and unexpectedly destabilize, as has happened in Venezuela in the past few years (SOURCE). Outsourcing your production, particularly overseas, usually means that you give up some of the daily control to your contractor.

Personal Reflection

All this knowledge gathered from this course has led me to a path of continuous learning. Since I have taken the course, I have continued to take steps to becoming a full-fledged global business leader. I have taken on more responsibility than ever and I believe that I have made steps in the right direction. An example would be that over the summer I worked for a fiduciary and financial service provider for global entities. This led me to engage in many different types of law, Dutch, Slovakian, and common law are some examples. On top of this, I have been a part of several Initial Public Offerings (IPOs) and have had to mediate between clients and federal institutions. The amount of money involved is something that I cannot disclose due to my non-disclosure agreement. But one thing I learned is after observing people interact with seven-figure amounts, they still manage to complain about the price of a gallon of milk. This might not seem like the most important life lesson, but it says a lot about the Dutch culture and the readiness to haggle even on the smallest amounts to maximize subjective profits.

Lastly what I have learned is that making mistakes is the best way to improve for me. I used to have quite the ego, it has taken me a long time to admit this. Having this ego had me believe that everything I did was correct and that any mishap that occurred was somebody else’s fault. Mistakes happen constantly, and the best thing to do with them is to own them, fix them, learn from them, and then move on.

References:

1. Gaspar, Julian E., Arreola-Risa, Antonio, Bierman, Leonard, Hise, Richard T., Kolari, James W.,
2. Smith, L. Murphy (2014). Introduction to Global Business: Understanding the International Environment and Global Business Functions (1st edition).     

Business ethics is “the study of what constitutes right or wrong, good or bad human conduct in a business environment” (MacIntosh and O’Gorman, 2015, Pg 164). Our chosen company, Samsung, is a multinational company which means it’s essential that it has good business ethics, to avoid scandal or public outrage. Samsung strives to “recognize and analyze differences in laws, regulations, and practices in respective countries while conducting business lawfully and ethically.” (Samsung, 2018), this is essential for a multinational company as it operates in many countries across the globe, which will have different laws and views on ethical business behavior due to differences in society and social norms. However business ethics is more than just the internal decisions a company makes, but how the decisions they make affect society and the surrounding environment.

Corporate social responsibility is an aspect of business ethics, which involves integrating with communities and stakeholders voluntarily. “a firm needs to be seen as having a positive impact not only on its workers but also upon society as a whole.” (MacIntosh and O’Gorman, 2015, Pg 180) Samsung has multiple ways of doing this, by putting money into education, employment, and medical services for communities that may lack the resources, this benefits the community long term as education of the young people in the community will create more learning opportunities and prepare for “meaningful jobs and a better future” (Samsung 2018).

Samsung also takes action to ensure that they do not harm the environment, they have the slogan “Planet first”, and by 2020 Samsung aims to and are making efforts “to reduce greenhouse gases, to make eco-friendly products with minimum environmental impact, to reuse waste material and waste products to help build a circular economy, and our efforts to reach out to local communities.” (Samsung, 2018). This shows that Samsung is limiting the damage they’re doing and also aiding the development of the environment through its proposed reusing of waste material, this will stop the waste material from entering and disrupting or destroying ecosystems. Samsung is one of the biggest global employers, they employ around three hundred thousand people worldwide. The strive for the company to make a profit is fuelled by the prospects for expansion and growth of the company but also “economic stability and subsequent development of a nation” (MacIntosh and O’Gorman, 2015) so Samsung makes the ethical business decision to keep creating profit and operating in many countries as they create jobs and revenue for the countries in which Samsung carries out business or has business interests if they were to stop creating profit then this would cause a large number of jobs losses and hurt society, as well as the business failing to produce sufficient funds to continue to run as a multinational corporation. This is a form of corporate social responsibility. Samsung has encountered some ethical problems. As they were “caught paying people to write and give a false, negative comment on their competitor’s product.

The issue arose in April 2013 and was done by one of the branches of the company in Taiwan.” (Awie Bin Tomani et al, 2016). This is seen as an ethical issue, as the business that these reviews were left on, HTC, could have suffered repercussions due to these reviews, such as a drop in demand for their product and therefore a fall in revenue, this is ethically wrong as customers of the product haven’t made these comments and future potential buyers would be put off buying HTC and may turn to the competitor Samsung, as they would have wanted. This action would cause long-term negative consequences for the stakeholders of HTC, this is why the action can be classified as unethical. Samsung has also been accused of “exploiting young workers” (Charles Arthur, 2012) the claims include physical and verbal abuse as well as overworking. It was also found that “safety measures, such as providing protective clothing for workers, were not followed.” (Charles Arthur, 2012) this proves that the treatment of the workers was unethical as it put the employees of Samsung at risk of harm, due to cost-cutting or ignorance. As employees are stakeholders in the business they put trust in the business, and this unethical behavior is a breach of this trust. 

Ethics

Ethics is defined as the moral principles that govern a person’s behaviour or the conducting of an activity. In simpler words ethics is a system of moral principles. Ethics define the right way of living life for us by establishing rules, principles and values.

Business ethics

Ethics is an important part of our life. Basically it is what discriminates us from animals. It works by providing us a code of conduct which we can follow and become more acceptable and respectable in our society. Just as ethics is applied in every other field of our lives there are certain ethics which should be implemented in our business too. Business ethics is a form of applied ethics that oversees ethical problems that can arise in a business environment.

Businesses throughout the world are focusing and trying to use more ethical ways of doing business so that they can satisfy their customers and also increase their profits. Similarly the business we chose which goes by the name Islamabad Diagnostic Centre or ‘IDC’ is one of the best and most trusted diagnostic centres not only in twin cities but throughout the country. Just as any other business, Islamabad Diagnostic Centre works hard to make sure that everything it does is well in between the ethical boundaries of our society and makes the society accept and trust this dignified organization even more.

Policies

In the field of keeping the environment clean and hazard free, Islamabad diagnostic centre has many different policies which were told to us by the Director Operations in our recent interview with him. Some notable policies were as following

• The waste was classified into different categories. All of these were dumped in separate bins and then were treated by the certified waste authorities through different methods. So as different waste objects need to be treated differently at different temperatures and by using different methods, this step made sure that no waste was left untreated.
• Secondly, all the waste that was produced by the Islamabad diagnostic centre was kept away from the main building and was completely covered so that its smell and the germs do not spread until it was taken away by the waste authorities.
• Thirdly, Islamabad Diagnostic Centre has an agreement with a waste management company which is certified by the Government of Pakistan, to pick up and treat their waste. This company makes sure that the waste is disposed of properly by using different techniques such incineration etc.

Management

It is true that employees are the building block of an organization. But they are also the face of the organization. What they do is what represents the company in the eyes of the public. So employees should be well trained and well aware of the organizations ethical codes and they should make sure that they implement these codes while performing their duties. At IDC, management is considered really crucial. IDC values its employees very much but also expects good result and behaviour from them. While interviewing the director operations told us multiple benefits some of which are as following:

• Firstly, all the employees of IDC can use the medical services free of cost. This includes blood test, X-Ray and any other medical service that they need.
• Secondly, employees are granted interest free loans to meet their expenses or if they ever met a crisis and needed money above their pay check and affordability on an urgent basis.
• Thirdly, employees are also provided with donations if they or any of their family members gets involved in a bad accident or god forbid if any of their family members dies. Furthermore, the director told us that for the sake of employee welfare, IDC also pays the transportation cost of dead bodies of their employees loved one’s and as well as pays other burial expenses. But this all is done off the record to show their employees that IDC stands with them in their moments of sorrow.

These are the benefits that IDC provides but in return as mentioned earlier, it requires some things to be followed by employees. The most important thing is the rules and principles set by the organization should be completely followed and this includes the ethical code of conduct. The director said that any employee who is found violating these policies and codes will be referred to the discipline committee which has the authority to impose strict punishments including firing the employee from the job.

Reporting

Every organization has a particular structure and is being run according a particular process. There is a particular chain of command in every organization through which reporting is done in a hierarchy, from lower level to higher level. But according to the director operations of IDC they follow ‘FLAT ORGANIZATIONAL STRUCTURE”. A flat organization refers to an organization structure with few or no levels of management between management and staff level employees. This elevates the employee’s level of responsibility in the organization, improves the coordination and speed of communication between employees and encourages and easier decision making process among employees etc. This all helps IDC to carry out smooth operations within their organization and make their employees more loyal and make them follow their ethical codes and other principles more strictly as they have a greater sense of responsibility and this allows IDC to satisfy their customers, the society, do good for the environment and make healthy profits.

References

1. https://smallbusiness.chron.com/flat-vs-hierarchical-organizational-structure-724.html
2. https://managementhelp.org/businessethics/index.htm
3. https://idc.net.pk/

Discovers what a code of business ethics is and its role in an organization.

A code of business ethics is a written document specifying expected employee-manager behavior conduct in the organization. A code of ethics sets out the ethical principles and best practices of an organization to uphold fairness, dignity, and professionalism. Violating the code of ethics will result in punishments, including termination, for members of an organization.

A code of business ethics is important in an organization because all strategy formulation, implementation, and evaluation decisions have ethical ramifications. The aim of the code of business ethics of the organization is to prevent corruption encourage fair and ethical conduct, among other things, and ensure that the company’s business is done in a consistently lawful and ethical way to the maximum degree possible.

To ensure that everyone in the company is clear about the company’s mission, values, and guiding principles, a code of ethics is important for companies to establish. From a regulatory and law-enforcement standpoint, it provides staff with a framework of which rules exist and how to act in the gray areas of value-based ethics that are not always clear. It shows that the code of business ethics plays an important role in an organization that brings toward the goals.

Other than that, the role of the code of business ethics may include seven principles of admirable business ethics. The first is to be trustworthy whereby no person or organization wants to do business with an individual that they do not trust. Secondly, being open-minded involves continually asking all internal and external stakeholders for ‘ethics-related feedback’.

Thirdly, honor all commitments and obligations, which can bring the employee to become more responsible in doing their work. Fourthly, do not misrepresent, exaggerate, or mislead with any print materials because it may lead to copyright problems in the business. Fifthly, be visibly a responsible community citizen as it shows our culture in the country to other businesses. Sixthly, utilize accounting practices to identify and eliminate questionable activities. Finally, follow the motto of do unto others as you would have them do unto you so that people can respect each other and follow business ethics.

Shows how organizations can create an ethical culture.

Establishing a consistent code of business ethics is a key element in creating an ethical culture in organizations. Such unethical practices that concern every field of online commerce are internet fraud, hacking into business machines, spreading viruses, and identity theft. On the other hand, periodic ethics workshops are required to raise awareness of working environments under which ethics problems should occur to ensure that the code of ethics is read, recognized, believed, and remembered. So that employees will know about the ethics and apply it in their workplace.

As well as ethics training programs can be carried out to create an ethics culture. These training sessions are aimed at improving the code of ethics of the organization, clarifying what activities are and are not acceptable, and resolving future ethical dilemmas. It should include messages from the CEO or owner of the business emphasizing ethical business practices, the development and discussion of codes of ethics, and procedures for discussing and reporting unethical behavior.

Besides that, whistle-blowing also is one of the ethical cultures that can be applied in the organization. Whistle-blowing refers to policies that require employees to report any unethical violations they discover or see in the firm. Whistleblowing is an effective and legitimate way of trying to monitor companies’ future immoral actions, and also helping to create a sense of accountability and transparency. To continue their often situation of reducing organizational misconduct, society must sustain a sense of support and motivation for whistleblowers. It should be practiced by employees and organizations should have procedures that enable whistle-blowing as this activity can prevent corruption in the organization.

Every day I make decisions as part of my regular life. From the article by Eddy S. Ng & Ronald J. Burke, I understand that I make three types of decisions every day. They may be based on personal values, collective issues, or leadership reasons. As a business student aiming to make ethical decisions, I can make leadership decisions. If I never compromise my ethics, many things can be controlled. My ethical decisions will help sustain society, while unethical decisions may benefit organizations by generating extra profits. The main question that arises here is how can I know the way of ethics. Can I learn business ethics from any of my courses, or is it a natural thing? Here, two groups of people give two types of arguments: one supports that it can be taught in college, while another group is against it (Ritter, B.A., 2006). After going through the article, I think it can be adopted by blending both perspectives. After receiving training, at least I can understand what is ethical and what is unethical. Gender discrimination is a world-burning issue that I can change easily by changing some of my views. I can fully understand this after learning about sustainable business. Moreover, if we take this to heart, at least more than one manager will emerge who can make a change for the organization shortly by making ethical decisions. Always making ethical decisions is a challenge for me as well.

When I read the book ‘Meeting the Ethical Challenges of Leadership: Casting Light or Shadow’ by Johnson, I found that it will also be a challenge for me. In that book, ethics is defined as ‘judgments about whether human behavior is right or wrong,’ and leadership is defined as ‘the exercise of influence in a group context’ (Johnson, C.E., 2017). When I take charge of any organization, my decisions will be a blend of these concepts. I know it will be challenging, but someone has to take the first step. Organizations may not support my decisions, but if I can provide them with a clear understanding of sustainable business, resistance may be minimized.

After that, I can move forward with bigger issues. In the 21st century, we are demolishing everything to fulfill our demands. It’s time to raise some voices. It is a rough road ahead, but if I make ethical decisions by exerting pressure from the bottom ladder in my leadership, I think it will have a significant effect on the organization.

Now it’s time to discuss how to adopt this. We know that leaders are important keys in the choice of social policies and programs adopted and executed by organizations (Ng, E.S. and Burke, R.J., 2010). I think it is not an inborn characteristic. Everyone is a leader of his own. I need to first understand moral awareness and the difference between good and bad. At least after reading Barbara A. Ritter, I can say that if this is included in the curriculum, there might be a significant change in society. As an example, I am learning from this course. When I make decisions for the company shortly, I will think twice if that conflicts with my ethics. I must blow the whistle if any unethical activity occurs. It may cost me my promotion or the company profit, but I will not compromise. So leadership can be practiced in the curriculum to foster ethical decisions in organizations.

Now, let’s discuss ethics. I think it can also be taught in the curriculum. So when I make any decisions, at least I can understand the impact of that decision on society. Sometimes decisions can be biased because of pressure from higher-ups. If the CEO asks me to do anything, I might not consider whether it is ethical or not. If I have the practice to say no to unethical things, I can blow the whistle, which can prevent the world from unethical practices. This will have an impact on organizations. I firmly believe that if anyone knows anything unethical, they will think twice before engaging in it. This second thought will change society. So my ethical decisions will have an impact on organizations.

I believe business ethics can be taught and practiced in our everyday lives. If it is possible, then there must be an impact on the organization. After completing the last two weeks, we all know that sustainable business is profitable for the organization. So why should I make unethical decisions for short-term profits? From last week, I am now aware of most of the unethical issues of the 21st century. Now I have to think about how to prevent them with my leadership and ethical capabilities. As per Sachs, in today’s world, the poor are struggling to find food, safe water, health care, and shelter, so they need mere survival (Sachs, J.D., 2015). To make a few profits and make CEOs happy, I cannot make unethical decisions that will affect those people.

I make decisions every day, and I agree sometimes they may be unethical. I have to say I was unaware of various issues. They may cause problems for society as well. In today’s situation, scenarios are changing. I am trying to avoid plastics, reading about gender discrimination, trying to save natural energy, etc. I think it will also make a difference in organizations where I may play a role as a manager. Transformational leadership is more effective now for sustainable business (Ng, E.S. and Burke, R.J., 2010). So it can be easily said that our decisions will affect the organization, whether ethically or unethically. At least from now on, I will not compromise on my ethics. I practiced this leadership from my curriculum as well as ethics.

In conclusion, I want to say that every day we are making decisions to move forward with time. I or anyone else may not always be thinking of ethics. This affects society and also the organization. So why make unethical decisions or be in a dilemma about ethics? Ethical behavior must be practiced regularly so that it becomes a natural human trait. One more thing I have to say is that I must blow the whistle if any unethical practices are going on. My decisions count in the organization. They may be small, but someday they may cause more significant changes. The world is being destroyed every day, so if we do not make a sustainable plan, then shortly, there will be nothing left to discuss. Organizations like IKEA, Walmart, Nestle, Walt Disney & Nike are talking about sustainable business. So I think my decisions will foster ethical decision-making in organizations.

References:

1. Ng, E.S. and Burke, R.J., 2010. Predictors of business students’ attitudes toward sustainable business practices. Journal of Business Ethics, 95(4), pp.603-615.
2. Ritter, B.A., 2006. Can business ethics be trained? A study of the ethical decision-making process in business students. Journal of Business Ethics, 68(2), pp.153-164.
3. Johnson, C.E., 2017. Meeting the ethical challenges of leadership: Casting light or shadow. Sage Publications.
4. Sachs, Jeffrey D. (2015) The Age of Sustainable Development. (e-book), New York: Columbia University Press. Chapters 1-14.

In light of the recent uproar over the concept of business ethics, corporations often find themselves faced with the tricky task of balancing business interests and the expectation to meet ethical standards. In this paper, we will look at business ethics and decision-making. I will particularly consider two approaches to business ethics analyse the case study about both approaches and then motivate for my preferred approach. The two approaches to business ethics that I will look at are Utilitarianism and the Human Rights approach.

As a starting point, I first answer the question of what is business ethics and make a case for ethics in business. Ethics is defined as a “system or set of moral principles that influence an individual to make choices based on his or her various motives and the resultant ends of those choices” (Masten, 2012, pg. 4). Business ethics is then “the application of ethical values to business behavior” (Business Ethics and Human Rights, 26 July 2012). The concept of business ethics affects most if not all facets of business and contributes greatly to the decision-making process of business (Leśna-Wierszołowicz, 2012). It also holds that there are many approaches to ethics (in our case, business ethics) and this has a great impact on decisions made having given due regard to ethics. As noted earlier, I will look at what impact utilitarianism and human rights will each have on the outcome of the corporation in answering the question of whether or not the corporation retains the now disabled employee despite budget constraints and strategic objectives of the business.

Utilitarianism is a theory that holds that the morality of an action is dependent on the outcome or goodness of that outcome (Gamland, 2012). The theory can be traced back to the works of Plato and Aristotle. (Eggleston, 2012). It only developed as a theory that can be said to be both freestanding as well as defined in the eighteenth century and some of the early writers involved in development include Hume and Mill (Eggleston, 2012). The theory is commonly known as “the ends justify the means” theory with the classic case of a runway trolley running towards a group of tied-up persons and the only way to save them is by sacrificing one person. In this case, retaining in choosing whether or not to fire her, lay her off with compensation, or find a way to retain her would be resolved by giving preference to the option that will benefit mankind the most (Gamland, 2012). According to this theory, actions will never have an existing and permanent moral value (Gamland, 2012), the value is determined by the facts about “the maximization of overall well-being, which is closely related to happiness” (Eggleston, 2012, pg. 452).

The fundamental principle of utilitarianism is the principle of utility which has it that for an act to pass the test of ethics, it must yield the best overall result about usefulness or the welfare of all persons affected by the act in question. (Gamland, 2012).

Characteristics of utilitarianism are thus often along the lines of consequentialism which translates to that the outcome of an act affects if that act falls within the ambit of rightness or not; welfarism which qualifies one act as being higher than its alternative if that one act will amount to the happiness of a greater number of people; individualism which holds that the value will only hold if a being capable of feelings is affected; aggregation which is concerned with summing up all values of the persons affected; and maximization which qualifies an act as good only if it makes a greater number of people happier. (Eggleston, 2012). Therefore, applied to the facts at hand, the secretary will only be retained if the way found for retaining her would lead to a maximized state of happiness, not only for her but for all other stakeholders of the entity. Put in the alternative, she would need to be fired if it means that her losing her job will maximize the state of happiness or welfare of the business (the stakeholders as they are sentient beings).

I now move on to consider the second approach in question: The human rights approach. Human rights are rights held by individuals which are matters of significant importance and are undeniable (Brenkert, 2016). There are generally three approaches to human rights: Relativist which holds that rights are culturally based (Brenkert, 2016, 279), which takes a stand that rights are to be understood in a strict sense as basic moral rights (Brenkert, 2016, 280), and the expansive view which has it that rights are “things we might strive to realize for people for which we may necessarily be condemned or punished if we fail to achieve them (Brenkert, 2016, 281).

How human rights play a role in ethics, particularly business ethics can be explained as follows: there has been a move away from the traditional view that human rights are the responsibility of the state only. This can be attributed to the “developments in size, power, speed, and extent of business activities” (Brenkert, 2016, 271). Furthermore, businesses have come to realize their power and ability to impact stakeholders in their various forms. (Brenkert, 2016). Another factor is the questions relating to human rights that have arisen as a result of globalization (Brenkert, 2016), putting pressure on businesses to think and deliberate on the role and place of human rights in decision-making.

As such the modern view is that “businesses are morally responsible for human rights” as they “have a moral agency that is sufficiently appropriate to sustain moral responsibilities” (Brenkert, 2016, 288). This means the fact that they also have a significant impact on all their stakeholders including workers puts up a strong case for the moral obligation placed on them, to not only promote human rights but to also play an active role in their promotion. (Brenkert, 2016). Businesses, more often than not find themselves faced with risks stemming from commercial practices. One of the risks is the “moral risk associated” with these. Finally, it has been accepted that it is “part of a corporation’s general duty to exercise social responsibility” (Brenkert, 2016, 289).

As not above, human rights are undeniable. Therefore the fact that a business or the community in general has little to no regard for human rights does not mean that a right has been or can be waived by the holder (Brenkert, 2016). Businesses should therefore consider it only ethical to respect and uphold the rights of its stakeholders. “Doing business ethically necessarily involves respecting human rights in the course of business operations” (Business Ethics and Human Rights, 26 July 2012). Some of the rights that must be taken into account in our case are whether letting the employee go would not amount to a violation of her constitutional rights to dignity and not to be subjected to unfair discrimination on grounds of disability. Business also needs to consider if it would be ethical and be a display of respect for the international right to employment if they do not make means to retain her.

I now move on to the final aspect of this paper: to state my preferred approach and furnish reasons for that. My preferred approach is the utilitarian approach. I justifying this I start by offering criticism for the human rights alternative. The approach is too partial and considers the interests of only one person. All stakeholders have financial interests to be considered and protected and yet when we look at this approach we only look at the person and matter at hand. There is no regard for business strategic objectives. In this case, if retaining the employee is what will amount to ethical business conduct then that is the course to be followed. The fact that the business will suffer financially, which in the long run may affect more employees, customers, and shareholders, is ignored.

But with the utilitarian approach the business itself as well as other people involved. Retaining the employee at extra cost to the business would make the employee happy but happiness would be maximized by a guarantee that the budget will be kept to, the financial security of the company will not be compromised and whatever plans were already made for the already tight budget will be met.

It would therefore be very ethical to let the employee go with compensation. When it comes to business decisions her happiness cannot take priority over that of the whole organisation. It is important to note that the maximized happiness or welfare we are looking at here is not that of the organization as a juristic entity but of all its natural stakeholders that would be affected if the entity fails to meet its financial objectives or has to change its plans due to unforeseen changes in the budget. The result of happier stakeholders justifies disregard of loyalty and personal circumstances of one person. (1500 words)

References

1. BrenkerT, G. (2016). Business Ethics and Human Rights: An Overview. Retrieved from https://www.cambridge.org/core/journals/business-and-human-rights-journal/article/business-ethics-and-human-rights-an-overview/4E12322863D6BA2B17871B03EDA9BBB9
2. Business Ethics and Human Rights (2016). Retrieved from http://www.ibe.org.uk/userassets/briefings/ibe_briefing_26_business_ethics_and_human_rights.pdf
3. Eggleston, B. (2012). Retrieved from http://www.benegg.net/publications/Eggleston_Utilitarianism.pdf
4. Garland, E. (2012). Ethics Spring 102. Presentation, University of Bergen.
5. Leśna-Wierszołowicz, E. (2012). Retrieved from http://agro.icm.edu.pl/agro/element/bwmeta1.element.agro-77c1382c-2474-4016-9765-9437a33f69a8/c/Lesna_Wierszolowicz.pdf
6. Masten, K. (2012). Organizational Ethics in Accounting: A Comparison of Utilitarianism and Christian Deontological Principles. Retrieved from https://digitalcommons.liberty.edu/honors/276/

 

The United States of America is a land of opportunity. As citizens, we have the opportunity to pursue an education, the opportunity to practice freedom of speech, and the opportunity to engage in business affairs. Each of these opportunities functions under a set of guidelines, principles, and procedures. The field of education has a set of standards and expectations that those working in it operate by, social media has become a platform where people have the freedom to say whatever they want and businesses continue to work hard to earn profits and serve their consumers. Though the primary objective of most businesses is to reach some sort of financial success, businesses must re-evaluate their practices regularly. Though separate entities, business ethics, corporate social responsibility, and international business are concepts that connect.

To see the relationship between corporate social responsibility, international business, and business ethics, it’s important to understand the philosophy behind each component. Corporate social responsibility, or CSR, is an ill and sometimes inadequately defined concept. From one perspective, it is the assumption and fulfillment of responsibilities beyond those dictated by markets. Some research states that the fundamental idea of CSR is that business and society are working together in harmony as one entity rather than two distinct ones; therefore, society has certain expectations for appropriate business behavior and outcomes. Other conceptions of CSR focus on performance and outcomes based on profit, which can be assessed independently of motivation. Corporate social responsibility, or CSR, is an initiative that can be broken down further into four categories. These categories are environmental sustainability initiatives, direct philanthropic giving, ethical business practices, and economic responsibility.

The first category of corporate social responsibility is the environmental sustainability initiative which strives to reduce the amount of greenhouse gases and pollution. All of us want to live our best life and living our best life includes being productive and responsible human beings, showing respect to others around us, and living in an environment free of harmful agents. There are some concerns regarding the state of environmental sustainability initiatives. Scientists have identified a series of harmful impacts on present and future human populations resulting from climate change. Even though economic development is growing, there is a fear that future generations are on the verge of confronting scarce natural resources and a polluted environment. These include water scarcity, drought, heat waves, forest fires, increased global distribution of tropical diseases, increased intensity of storms, rising sea levels, and the inundation of low-lying coastal regions. These impacts of a changing climate will have direct, negative impacts on human populations and will have an especially harmful impact on the ability of the least economically well-off to attain basic human rights (Arnold, 2016). As citizens, we all have a responsibility to leave this planet as clean and healthy as possible, not only for future generations but also for other species that share this planet with us. Economic sustainability challenges businesses to make sure that their products and services are not causing danger or harm to the environment in which we live.

The second category of corporate social responsibility is direct philanthropic giving. Direct philanthropic giving involves donating one’s time, money, or resources to charities and organizations at a local, national, or international level. These donations provide financial assistance to underdeveloped countries, educational programs, and disaster relief funds. One of the most visible ways a business can help a community is through corporate philanthropy. While the courts have ruled that charitable contributions fall within the legal and fiduciary powers of the corporation’s policymakers, some critics have argued that corporate managers have no right to give away company money that does not belong to them and any income earned by the company should be either reinvested in the company or distributed to the stockholders (Wulfson, 2001). Businesses and entrepreneurs that engage in direct philanthropic giving activities promote organizational and field-wide effectiveness. This type of giving also helps to build capacity and encourage knowledge-sharing and collaboration among grantees and grantmakers. Examples of direct charitable activities include the Bill & Melinda Gates Foundation which sponsored a health summit and facilitated a national HIV prevention initiative; the Annie E. Casey Foundation established a program to provide services to vulnerable children; and the Marin Community Foundation operates a resource center to help people and businesses successfully plan and implement philanthropic activities. Businesses have a responsibility to give back to their communities. Direct philanthropic giving shows that businesses are deeply invested in more than just making a profit.

Another category of corporate social responsibility revolves around ethical business practices. Under these practices, businesses should provide fair labor laws for their employees and the employees of their suppliers. The issue of equal pay continues to plague some businesses. While the federal Equal Pay Act already abolishes wage disparity based on sex, federal laws such as Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act, and the Americans with Disabilities Act prohibit compensation discrimination based on race, color, religion, sex, national origin, age, or disability. However, many states and businesses are taking it upon themselves to enforce laws aimed at further addressing pay equity. Some laws are more restrictive than others in matters such as prohibiting employers from asking about compensation history or relying on it to help determine employment and compensation offers. Other laws prohibit employers from restricting workplace discussions among employees about their wages. Despite this debate, businesses should also implement equal pay for equal work and living wage compensation initiatives for all employees.

The last category of corporate social responsibility is economic responsibility. Businesses are economic units before anything else. They should offer solutions to their clients to help solve their challenges and achieve their financial goals. For example, ethical leaders have a moral obligation to provide safe, healthy, and non-discriminatory working conditions for employees. This moral obligation also includes providing their customers with safe products and services that meet their needs and expectations. Ethical leaders ensure that the potential risks of products and services are openly and transparently communicated to meet the needs of their customers for safety. To the community, ethical leaders need to be sensitive to the world in which they operate. Ethical leaders assess the impact of business decisions on natural and social environments. They also ensure that production processes are as environmentally friendly as possible. The ultimate goal of ethical leadership is to achieve a common good such as business sustainability and organizational legitimacy (Maak & Pless, 2006).

In addition to corporate social responsibility, international business is an entity that has several functions. These businesses export goods and services all over the world which in turn earns valuable foreign exchange. This foreign exchange is used to pay for imports and it increases profits for businesses, therefore, strengthening the economy of the country. The strategy that international businesses operate under is to utilize the finances and technologies of rich countries and the raw materials and labor of poor countries. By using the best technology, hiring highly qualified employees and managers, producing high-quality goods, and selling these goods all over the world, international businesses often meet their primary objective which is to earn high profits. However, when a loss takes place in one country, the loss can be balanced by gaining a profit in another country. Surplus goods and resources in one country can be exported to another country. All of these things help minimize business risks.

International businesses have a high level of organizational efficiency. They continually use modern management techniques to improve their organization’s efficiency by hiring qualified and experienced employees and managers. Personnel is trained regularly. They are highly motivated with high salaries and strong benefits. From stakeholders’ perspectives, international business leaders possess the art of building and sustaining good relationships with all relevant stakeholders, and their relationships with them are connected through a shared sense of meaning and purpose. By doing so, they create incentives to encourage respectful collaboration and improve motivation and commitment to achieving sustainable and responsible change inside and outside the organization (Maak & Pless, 2006). International businesses receive several financial and tax benefits, facilities, and concessions from our government because these businesses bring in a lot of foreign exchange for the country. International businesses produce high-quality goods at low costs. They spend a lot of money on advertising all over the world. Using the best of the best technology, management techniques, marketing techniques, etc. make these businesses more competitive and in turn, fight off their competitors.

Business ethics involve rules, principles, and standards for deciding what is morally right or wrong when doing business. We understand that business ethics as a concept is changing in the context of new technologies, new ways of resource mobilization and utilization, evolving societal practices, and growing towards a connected global business network. Growing universal awareness of the finiteness of natural resources, the growing wealth divide, and the pervasive presence of businesses in the individual citizen’s life through technologies such as big data and cloud computing, bring forth business ethics to the forefront of the conversation on societal norms (Goel & Ramanathan, 2014). CSR holds business leaders- local, national, and global- to a high level of accountability which involves making sure that the decisions made do not violate any laws or ethical principles. Corporate social responsibility examines how international businesses comply with the obligations of applicable legislation and conventions, but also how it integrates social and environmental factors into their global strategic decision-making, policies, and practices. International businesses put business ethics into practice by being sensitive to cultural diversity and thinking globally and strategically. Corporate social responsibility now goes beyond earning money. It’s concerned with protecting the interests of employees, customers, suppliers, and the communities in which businesses operate. Other business ethics practices from corporate social responsibility involve adopting humane employee practices, caring for the environment, and engaging in philanthropic endeavors.

While the primary objective of most businesses is to earn money, there is also a set of principles that should lead them in their day-to-day operations. The principles, or business ethics, are to ensure that companies and organizations operate in a fair and just manner when it comes to employee relations and business transactions. Corporate social responsibility, international businesses, and business ethics are connected because business ethics are a part of both. By donating generously to those in need, establishing fair pay and benefits, and implementing humane employee practices, corporate social responsibility and international businesses demonstrate a strong sense of business ethics.     

Technology and innovation nows day become a major role of our life, it’s taught the competitor sector with the biggest companies in the world creating and innovating every year by giving the quality and the innovation on every product they produce. But when politics come affect this interesting field, it becomes more complicated to determine who controls the market .in this assignment, I will discuss one the major economic crisis between the 2 Global economic power and why is it related directly to The second biggest Smartphone producer in the world? and why this decision is unethical? For me to go deep in the subject I have to give a background about the company and what the company major fields and why is it important to know that to understand the hole crisis because it’s not just related to the smartphones but it is related also to China and USA.

Huawei Technologie is a company that was founded in 1987, it is the leader in global provider of information and communication technology. Huawei have approximatively 194000 employees and operate in 170 countries and regions in the world with more than 3 billion people around the world. Huawei offers to their customer’s value by providing them with open, flexible and secure ICT (information and communications technology), Stable secure and stable network operations by making it as secure as possible and it has been their priorities since 2018, Promoting industry development and providing people with strong growth platform. Huawei is also known as the second-biggest smartphone producer in the world and one of the companies that are going to implement the 5g in the next few years, however with the cold war between that was started by the US and involved China and Huawei, it is an important challenge to make it happened.

STAKEHOLDER MAP: Stakeholders’ impact and are impacted by the company in different ways, each one of them plays a major role in the development and the innovation of Huawei.Based on the sic principles that Huawei relies on to priorities stakeholders that are: Principles of responsibility, influence, Proximity, Dependency, Representation, and policy & strategic intent and by doing that Huawei make sure to understand the requirements of each one of the stakeholders.as in the issue each stakeholders have an effect and been affected by it because since the materials that made to create the product are based on multiple stakeholders but also the customers are related to the product since they buy the product.

• Customers: They are the ones ho buy the products and influence the numbers of the company, in this case, costumes play a major role because not only they are impacted by the issue but they are going to impact the company in a negative way. the most important thing to a customers is the product quality and safety since the issue impact directly the product in a negative way then the product quality will decrease because the product will not be the same and that will influence the customers Purchase but there is an expectation from the customers towards the company that Product quality will not decrease. Huawei in this situation communicate with the customers through customer surveys and satisfaction surveys to know more about what the customers think about the issue and what are their concerns and obviously, Huawei reassure their customers that the quality will not decrease but it’s the opposite actually, it’s still going to increase and be innovative as usual and the prof of that is they launch The Huawei Mate 30 without Google Apps after the US and Google Ban them from using Android fully and Google Apps, they were able to sell one million after the launch by just pre-orders in china, obviously the smartphone will be available in Europe very soon but the question is will it do good numbers?
• Suppliers: The suppliers are related directly to this issue. Because of the influence of the US, most suppliers that use to do business with Huawei are cutting the ties off with them because of this situation but the main one is Google. Since Android-powered every Huawei smartphone, it is one of the main suppliers for Huawei. After Putting Huawei in the blacklist of the US, Google was forced to drop the license from Huawei but even tough, Android is open-source which means it can be used as the funding to build a system for the smartphones which what Huawei did because they anticipated this situation way before. But Google was one of the companies that stop working with Huawei, others stoped such as Qualcomm, Intel, Panasonic, Vodafone, Microsoft and some of them are not American companies just because their country is an ally to the US which complicated things for Huawei to stay in the same level as it was before but one the companies that made a huge crisis for Huawei is ARM, it’s a British company that design the Processers of Huawei that they developed called the Kirin but since Huawei bought up the license for 2 years, they still can be designed them for that time but after it won’t be possible which will have a serious impact on Huawei smartphone’s. Normally for Huawei to solve this Problem it needs to invest money and time to be able to produce and design their processor but that’s nearly impossible not only it can take several years to do that but also it won’t have the same performance as the processor that are designed by ARM. For now, they still trying to find a solution between Huawei and ARM to find a way to work together.
• Governments: In this issue, the government is very involved, the issue was created trough politics since they were a conflict between the 2 economic Power in the world.Because Huawei has an impact not just in China but in the world. The US wasn’t very happy with what they discover and with the fact, they couldn’t work with China to get the negotiation into a point where both parties will have a win-win situation but obviously after the ban of Huawei from the Americans, china is supporting Huawei in every possible way to minimize the impact that was caused by this situation. The president Trump decided that after the situation that it’s the best choice to cut ties with Huawei since they represent China and it’s the second manufacturing smartphone company in the world behind Samsung and apple in the third which not only it represents a threat to an American company but also to Samsung too ho also supplies some of the material to Apple. It is ethical that politics influence companies and to put pressure on Huawei?
• Media / Non-governmental Organizations: in this case, the media plays a major role and it is also impacted by the situation because it’s a global issue. Since The Us and China are also involved directly, obviously the media will talk more about the issue either by making rumors spread like they did recently by saying that The president Trump is working on an agreement to solve the Issue which he denied directly in a press-meeting. When we talk about the media, we talk also about E-platform such as Youtube ho contain Tech YouTubers such as MKBHD and others ho talked about this issue indirectly trough their test to one of the latest smartphone made by Huawei without Android.
• Consumers: One of the main parts ho are affected by the issue is the consumers because first they are the one ho buy and use directly the product and also because they are the one ho make reviews to give their opinions about the product. When the customer hear that google apps won’t be part of Huawei system, a part of them will be worried because the experience and most of the apps are well developed to compete with appel apps for example but the other part ( Chinese people ) they are not worried because in china they don’t use the Google apps, they have their own apps and that’s why since the Mate 30 is out the sales increased in China.

ETHICAL DISCUSSION

In terms of the stakeholder position on the issue, I found out that for customers they were forced by the US to stop working with Huawei even if they know that it will affect them negatively since Huawei is growing fast in the past 2 years .the decision that they made was based either on the fact that the country that they represent is an ally of the US or it’s an American company like the example of Google by revoking the license of android on any future Huawei device until further notice. For the governments, we see that the cause of the issue is a political, a crisis between two big countries that involved companies into their issue which not only complicated the situation but it made it worse today. For The media they were affected by the issue positively and negatively, for once the media show that because of unethical decision that was made by the president of the US, it created a crisis between countries and most important companies and because of that decision and the influence behind it will definitely affect both countries and American companies that use to do business with Huawei. For the consumers, well it really depend on the geography, if you are in America, the Chinese products are not welcomed after the Us put Huawei and other Chinese companies in their Blacklist because of the non-agreement between the 2 countries but it is clear that today it is not an easy decision to make when you want to buy a smartphone that is worth around 800 euros because of this issue. Obviously in Asia Huawei will not be affected by it because they don’t use google Apps .

CORPORATE ETHICS

When it comes to Ethics , Huawei is very serious about this matter . Because it is an IT company, it ‘s on her duty to protect the data and privacy of every user ( Companies, consumers) but it’s not just about that, there is also corruption and bribery that are trained very seriously in Huawei .the goal is to foster a fair business environment and maintain order .these issues must be not just addressed but also dealt with in the severe matter in the eyes of the company.

Integrity is one of the main aspects that Huawei relies on, in fact, the company has zero tolerance for Bribery or corruption and to see that Huawei is very serious about it, they launched programs to improve their anti-corruption and anti-bribery management system. Huawei makes sure that every employees or third parties who do business with them or on behalf of Huawei comply with Laws and regulation of the countries they operate and also all the companies must sign the BCGs ( Business Conduct Guidelines ) and also Huawei make their Partners sign agreement of honesty and integrity which help the company to establish an ethical and fair Business.

Based on all the efforts that Huawei is putting to fight corruption and Bribery to make their Business better.

• Culture of integrity and compliance: Culture is a very important part of the company since it’s multinational company and is present mostly every continent in the world, Huawei take multiple initiatives when it comes to culture and anti-corruption and anti-bribery to increase awareness in this point.
• Compliance management: Huawei takes all the measurements to anticipate any potential risks in all business scenarios.
• External communications: Huawei makes sure that all the stakeholders fully understand the compliance regulations and policies.

Huawei also applies the IPR and trade secret protection by owning 2 patents, inside chine and the other outside china .it complies with applicable laws and regulations.By building and developing this protection system, Huawei is against the practices that affect the trade secrets of the others.

Huawei was accused of spying on their consumers and that was one of the reasons why the President Trump decided to put them on the blacklist, but Huawei denied it and was and still want to prove that it’s not true, based what I mentioned the company has a very strict and strong point of view when it comes to ethics, it is seen as one of the companies that rely to ethics in their business. But the issue is more complicated than that, in fact, Huawei also is launching the 5G which is the latest technology when it comes to networking but the US is not accepting that gift to end this conflict with a motif of the 5 G will help Huawei to spy on American people. Huawei is the only company that is very advanced when it comes to 5G, others developed the same technology like Qualcomm but not as good as Huawei.

PERSONAL VIEW

In my opinion, this is an issue was complicated and cause by politics when it comes to politics nothing is ethical. When can see jut because the US and China didn’t have a trade agreement, it caused cause inside the Business world and affected on the biggest companies in the world ( Huawei and Google )? Google was the main company to react in the first place because it was influenced by the decision of the President of USA, is it Ethical ? of course not, in this situation it brakes every code of ethics and make thing even worse than they look. the company was accused of spying on the American people, because of an e-mail from Huawei’s company that proves that but nothing was shown to the public and Huawei offered to prove that it is not true. If the politics come to the business world and influence a company because they have a crisis in their country it definitely brakes every ethical code that exists in this world. But the fact that not just Huawei will be affected by this situation but also Google because Huawei is the second biggest manufacturing smartphone in the world, it means revoking the license will hit Google when it hurt the most but google did nit really have a choice but to follow orders. I believe politics should not involve companies in their issue, what stays in politics stay in politics. We can see that Business is involved everywhere even in politics where in this situation was dragged to it but it is part of our life now, everything is related to business. I think if there is any chance of resolving this situation politically without involving the companies by not influencing them to take action against each other, that would be the most ethical thing that happened in politics.

ISSUE ANALYSIS

The US and China were negotiating a trade agreement between them, the US decided to raise the taxes by 25% for the Chinese product but the Chinese didn’t agree to it, the president trump decided to sign sanctions against some Chinese companies such as Huawei because they suspect them they are spying on the Americans with proof. By adding Huawei to the blacklist of the US, all American companies that use to do Business with Huawei cut ties with them and stopped doing Bussiness with them and even other companies that their country is allied with the US decided that it’s in their interest to stop doing business with them.in this case, it is definitely right versus wrong, because not only we can see that it is not fair to include companies into politics, but to make other companies do something that will benefit the US directly and affect the American companies in a negative way just to put pressure on Huawei and China. I can see that the relevant factors are definitely the fact that President Trump decides to attack china by punishing them through one of their protegy ( Huawei ) by putting pressure on them not just on the smartphone productions but also on the 5G technology that is definitely the future. In this case, the only way to solve this issue is either by solving the political problem between the countries ethically as soon as possible or not involve the Business in politics, after all in politics every weapon are allowed. but that’s not ethical.