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Ethics represent all the principles that guide a company to excellence in the executive world. All these standards apply in any sector of business e.g. sales or finance and companies inevitably face ethical decisions in their lifespan. One of the major aims in many companies should be to make every employee hold on to these principles simply because; it is more beneficial for a company to maintain ethical morals. But, as moral issues are related to decision-making, how can all decisions be ethical and most of all whose responsibility is it? Therefore this paper focuses on how our company fulfils its obligations to stakeholders in terms of ethical business practice and socially accountable corporate conduct.
Stakeholders can be defined as employees, customer and shareholders that are all major players and partners of the company. Employees in a variety of companies are often given rights to secure shares in the company. They therefore become major stakeholders, regardless of their employee status, and often have a say as much as any other stakeholder. When a company provides goods or services, its customers both major and minor are considered stake holders. Each and every person affiliated with the company through business or otherwise is considered a vital stakeholder.
This organisation is basically decentralised so that power is delegated as low as possible in the 'food chain'. Since there are hardly any prescribed regulations over employees, the level of ethics is mainly determined by employees themselves. This is because of the fact that the idea of leadership is poor as many have power inside the organisation therefore it is easier said than done to motivate employees or implement rules in the organization for instance. Authority determines decision-making but the organization of the company plays a fundamental role in leadership. Our organisation understands the correct behaviour that it should adopt toward all stakeholders. All is clearly spelled out below and any employee who does not give adequate services is sanctioned.
Drawing example from many companies today, it is obvious that the larger the industry that it exists in, the more it will attend to major clients as compared to smaller clients. This is in fact biased as all clients should in essence all be equal. It is not uncommon for social issues such as wealth and nepotism to hinder the growth of the business and executive industry. The wealthier one is or if they happen to know someone within the company, the more services they receive. This is very unfortunate ad should be completely outlawed. The external business of a company is a major determinant of its success therefore when the business is successful stakeholders are likely to enjoy better services.
Major stakeholders as mentioned are all members associated with the organisation. A major stakeholder could be a board member of the organisation or a simple delivery man. A board member makes critical decisions that affect the day to day running of the company therefore their input is highly regarded. He/ she is responsible for making critical choices which include things like signing major deals or authorising the sale and purchase of company needs. On the other hand, a simple delivery or handy man is equally important in that they correct mishaps and occurrences that may not be able to be fixed by others. Without this stakeholder, it could mean the standstill of a major event that affects the company. It is therefore safe to say that all in a company are equally important.
This company has a number of ethical policies that ensure that all employees and stakeholders are treated with utmost fairness and honesty in all aspects of trade and service delivery, these include; questionnaires, internal and external audits, regular discussion forums and retreats and team building activities. All these avenues give all employees channels whereby they can freely, openly and positively air their views. Questionnaires are regularly given to all employees to fill so that data is collected and analysed to pin point and identify the strengths and weaknesses of the organization. In addition, the general views of the individual employees at all levels in established. Internal and external audits are done quarterly to ensure that the financial department runs smoothly. They are carried out to also establish how finances are administered and whether a particular area is receiving more or less funds than those allocated. If this is true cases of fraud and embezzlement are investigated to establish whether organisational funds are being wrongly used. Yearly reports, balance sheets and other relevant financial documents are thoroughly analysed to deal with any mishaps in the financial department.
Regular forums and discussion forums are created for employees at all levels in the company to sit and positively air their views, concerns and suggestions. These forums are adequate in that they eliminate animosity and feelings of ill will or unfair treatment amongst employees. Although some employees especially those in higher ranks tend to bypass or ignore such events, it is mandatory that all employees attend such forums primarily to create competent workers in the job market and also to ensure that the company moves forward. Another mentioned method to preserve honesty and fairness is companies taking employees on retreats and team building activities whereby employees can sit back and relax while enjoying each others company away from the hustle and bustle of the office. Here employees get to interact on a social level and get t meet with their bosses and seniors to establish working friendly relationships with them.
Aside from all these points listed and explained above, it is the legal right of the employee or stakeholder to be treated in all fairness regardless of position of seniority. Federal legislations demand that all stakeholders be subject to equal treatment and services lest the company be slapped with a law suit not only regarding labour concerns but also human rights. Any form of discrimination or prejudice whether gender or racial should be treated with utmost importance. Favouritism of any kind is a serious offence that is punishable under the law and should be avoided at all costs. It is imperative that a company be aware and similarly cautious of all items mentioned above.
Company ethics and social responsibility are closely intertwined. Essentially, social responsibility refers to the company's duty to make the most of its affirmative force on the entire community and it has to lessen its negative impact as well. Ethics is one of the proportions of social responsibility. The company has to act in response to what the community expects regardless of if it is not established as law. Numerous companies have a formidable sense of ethics because today, it is a way to perform in a revolving economy. This company is an adequate example of how business ethics could become a line of attack. Therefore, we could wonder if business ethics is an individual or organizational responsibility. Principles are fundamental as they are the heartbeat of our company's success.
However, people tend to divide ethics in business and in personal life although both are closely correlated. Actually, an individual's principle in a company should be the same as in life. But, people often assume that business is business and personal life is personal life, therefore they do not realize that work ethics affects one's individual character. When employees are engrossed in their business and as they have different objectives from the organisation, it could end up in unethical choices. Then, business ethics is a personal responsibility.
In addition, we all have to understand that in every setting, rules and regulations are created as a referral point. Norms are mandatory for every individual and employee, including those in companies. This means that, inside an organisation, you will find sub-groups that may have unlike opinions of work ethics to those spelled out by the company itself. It is the employee's responsibility to define what is principled in their outlook of business.
Moreover, the corporate traditions observed by this company i.e. the patterns and systems that administrate the conduct of the organisation and its employee's values, beliefs and customs plays a vital role in business ethics. In fact, this culture has an effect on standard decision making by members of the organisation because the company provides rules for conduct. It is therefore imperative that the employees and staff in general influence each other and give much needed insight into the proper conduct that must be observed by employees.
In conclusion, if we consider the two organisational structures i.e. centralisation and decentralisation, organizational ethics would be more an individual responsibility in decentralised companies and a cluster responsibility in centralised companies. All points shared in this paper should be taken into serious account if a company is to successfully create a niche for itself in the executive industry. Lack of customer, employee or stakeholder ethics or any kind of special or unfair treatment is wrong and is a vice that should be curbed in our society and globally if we are to ascend the business ladders.