Ethics

629 Words Apr 4th, 2012 3 Pages
Ethics
Keith A. Bates Sr.
MGT/498
4 April 2012
Richard Rignall

Ethics
Ethics and Social Responsibility in Developing a Strategic Plan
Ethics are values that guide personal thoughts and actions in knowing right from wrong. Personal conduct and behavior is based on how the individual views unethical behavior. Social responsibility is the company, management, and employees working and conducting themselves by following rules of society. Companies that include ethics and social responsibility into the company's mission and vision statement have a greater chance of succeeding. Ethics is based on an individual's actions. These individual actions affect the business. Adelphia, one of The United States largest cable company, failed because
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Companies need good employees and good employees do not want to work for an unethical company. Employee turnover will be high, increasing training time and expense and decreasing the functionality of an organization. Employers will experience low morale, more sick days, and employees will not be motivated. Investors do not want to invest in an organization that lacks ethics.
Example of a company overstepping ethical boundaries for stakeholders
Ford Motor Corporation put profits ahead of consumer safety with the Pinto exploding on rear impact crashes. Ford Motor Company engineers had a design to fix the explosion issue, but management decided not to implement the design change. The design change would have cost Ford $11 per car to install. Ford estimated that the design change would have cost $137 million compared to the $49.5 million in benefits if the change were implemented. What types of preventative measures could be taken to avoid this type of situation.
Ford Motor Company did not violate any federal laws by not correcting the problem causing the Ford Pinto to explode. Ford was criticized for using the risk/benefit analysis and for making the choice of profits instead of consumer safety.
Ford's financial theory used to make the decision did not take into account the repercussions of negative publicity and the number and amount of judgments and settlements against Ford Motor Corporation.

Conclusion
In conclusion, Ford's decision cost more than

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