Thus, it is better to define business ethics through the types of responsibilities it does and does not deal with. Finally, ethics differ from law by the sense that not everything that is legal is also moral.
For instance, although it is legal for a company to pollute to environment to some extent, many would argue that pollution is inherently immoral and hence unethical. As mentioned earlier, issues of business ethics have a long history, and are thoroughly referred to in civilian and religious writings. Throughout the various forms of commerce, matters such as competition, accurate reporting and pricing to name a few are part of all major transcripts, including Aristotle, the Old Testament, the Koran and even appear in Buddhist writings.
However, this interest in business ethics has grown significantly during the 20th century, reaching a peak today due to several main reasons: First and foremost is the unique role of corporations in the modern society. This form of business, whose economic and social power may be immense and involves numerous stakeholders, motivated further thinking regarding the means in which possible negative influence of corporations can be restricted.
Ethics among the employees will also ensure respect between them Pinnington, Macklin and Campbell, For example, cultural differences such as race or religion cannot affect the employees because they have ethical training. Additionally, the employers will respect moral decisions from employees such as breaks for religion or cultural activities without having to deduct pay.
A personal moral dilemma that can measure the company's ethical standards includes a case of sexual harassment or bullying behavior Fraedrich and Ferrell, Such bullying and harassment behavior affect work performance and leads to enhanced stages because only a few lower level employees can risk their job positions to report a case of harassment. However, after attending employee ethical training, the employees will have a strategy that will ensure that the harassment has been forwarded to the management without fear of risking their jobs.
Moreover, the employer will have training in ethical responsibilities; hence, will understand n employee that is in such a personal moral dilemma. From a utilitarian view, the dilemma presents a decision-making situation that provided maximum utility. Notably, utilitarianism is an ethical approach that claims the action that maximizes utility is the best one. In this scenario, the worker being sexually harassed will ensure that the best action is the one that presents much well-being in the company.
From a relativistic view, the dilemma may lack absolute truth due to lack of proof or validity. Sexual harassment at times is faked by employees due to cases of jealousy or self-interests. As a result, there should be enough evidence and motive to support the truth. Additionally, not all ethical cultures may consider the personal dilemma as sexual harassment due to values and morals that allow such actions Garber, The assessment of the structure of the organization reveals how effective planning and management of the activities of the business can enhance the success of the organization.
The operations of a business venture are subjected to a prototypical approach, which is formulated in line with the targets of the firm as well as the environment factors. One of the key contributors of organizational structure assessment is Alfred Chandler who examined the correlation between structure and strategy in an organization. This section examines Chandlerts thesis and provides a review of the implication of structure on organizational performance.
Alfred Chandler established a theory-based thesis that described how corporate structure follows strategy. Chandler evaluated how the structures used in businesses organizations are created to assist in the implementation of strategies.
The historian established his arguments based on the evaluation of case studies involving American conglomerates. The mode of implementation of the M-form approach was different for all the organization, but there was a significant correlation.
Therefore, Chandler concluded that organizational strategies as the determinants of long-term achievements. However, the attainment of the designated targets requires a comprehensive framework of operation, which Chandler referred to as an organizational structure. Although the thesis has been opposed, the analysis of the study inclines to the current experiences in the business sector in line with the management of capital, customer satisfaction, supply chain, and growth of the firm.
Therefore, when Chandler stated that structure follows strategy, he meant that organizational forms are the target-specific derivatives of the strategies associated with the enterprise. Several studies have linked corporate structure to the performance of the organization. Nakano carried out an exploratory analysis of the relationship between structure and strategy with a bias to supply chain management to determine how performance is influenced.
The study used samples of Japanese corporations to determine how organizational structure determined the level of outcome in the administration of the supply chain. The research found out that the supply chain is an element of the internal arrangement of an organization where the management approach used will determine the level of performance for active or efficient firms.
Al-Kayed, Zain, and Duasa examined the essence of capital management structures on the performance levels of the Islamic Bank. The aim of their assessment was to establish recommendations that can be used to enhance the capital funds within the bank. The evaluation included two possibilities in capital management: The scholars found that when the macroeconomic environment is controlled then the financial market performance is increased.
The findings depicted the postulates of the signaling theory in banks, which ascertained high capital management guarantee performance. A similar study looked at the capital structure based on the dimension of Agency Theory. Dawar evaluated the implication of the capital structure in an organization on performance based on the Agency Theory using Indian corporations as the sources of data. The findings showed that leverage has a negative effect on financial performance contradicting the postulates of the Agency Theory.
Moreover, the nature of the bond markets defines the capital structure and strategies, which are skewed when contrasted with the emerging or developed economies. Therefore, research recommended the use of analytic approaches based on market performance to improve the output of the corporations in the country.
Moreover, Darko, Aribi, and Uzonwanne looked at the organizational structure from the corporate governance perspective. The study examined the impact of director and board structure on ownership and control of the businesses.
The research used samples from the Ghanats companies listed on the stock exchange. The analysis of the scholarly findings showed that ownership concentration and female representation determined the extent of performance that is achieved.
However, the findings did not reveal the correlation between the board or the committee on performance. Nevertheless, the analysis hinted how independent directors as well as the audit team influence performance, which is part of the organizational structure.
Abou-El-Sood also examined the success of organizations in line with corporate governance structures. The research that was founded on the capacity of banks to manage financial risks and capital strains involved the U. The scholar found out that the structures that were characterized by stakeholder concentration, managerial ownership, and small size of the management board were associated with high performance stable financial adequacy.
The effect of capital stability assists in managing risk strategies emanating from the external environment factors. Furthermore, Grassa carried out a study whose aim was to evaluate the ownership, income, and insolvency structures associated with Islamic banks. The focus of the study was the correlation between the property concentration and the revenue structure and insolvency. Using the data from Islamic banks between and , the scholar undertook a quantitative analysis where the three-staged least-square approach revealed the magnitude of the interrelation.
The findings showed that income structures define insolvency exposures for those firms adopting the concertation of ownership approach, which has a significant implication on the performance levels. The reason presented in the study was that deposits, which depend on income approaches, as well as the high number of shareholders, determine the strategic decisions undertaken in an organization.
On the other hand, Afrifa and Tauringana measured the extent of performance among the small and medium-sized firm listed in the U. The study was biased to the governance structure and the outcomes after a specific financial period. The research revealed that the performance of SMEs depends on the alignment of internal factors such as corporate governance, the size of the board, the age of the CEO, and tenure of the board of directors. The factors affect the outcome of the SMEs differently, which calls from strategic management f the affairs of the firms.
Also, Reddy and Locke analyzed the relationship between organizational structure and the level of performance. Three key elements evaluated in the study included ownership, capital, and governance. The samples included the business entities operating in New Zealand. The findings depicted the approach to governance defines the agency costs associated with management practices.
On the other hand, the for cooperatives and mutual firms, internal borrowing was preferred to outsourcing when seeking additional funds. Alone vs the System. Is Uber a good or bad thing, overall? Is misleading advertising unethical? Misleading Headlines About Misleading Advertising: Do ethics classes make people more ethical?
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In this business MBA research paper, we will discuss why business ethics are critical, and how they can prevent scandals or corrupt business practices. It has been said that “business ethics” is an oxymoron.
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