The Principles Of A Firm Or Company Making Ethical Decisions

A lot of key factors would need to be considered when determining if a company is being ran ethically

The issue of ethical decision making has become more important in recent years for a variety of reasons. An understanding of ethical decision making in organizations is more significant to the development of organizational science. Managers engage in decision-making behavior affecting the lives and well-being of others. The individual responds to an ethical dilemma with cognitions determined by his or her cognitive moral development stage.

Niedermeyer, and Presha Niedermeyer. They performed surveys using internal auditors of public companies and external auditors from large and small firms. The survey questioned how auditors made ethical decisions, and they also wanted to see how internal auditors answered versus how external auditors answered. The result of the surveys showed that there was no difference in decision- making between internal and external auditors in the aspect of how major the effects unethical decisions on victims would be. The only difference between auditors in this study was how they make decisions on what is right and what is wrong. It appears that auditors that work for the Big Four have a stronger sense to determine what is right or wrong as opposed to the other auditors working in large and small firms. The study suggests that each firm adopts policies and special training to combat these

When auditing a publicly held company, auditors need to observe principles. The ethical principles of the American Institute of Certified Public Accountants (AICPA) Code of

Business Ethics is helpful for decision-making process at all levels of organization. Following are major decisions required for solving ethical and regulatory issues

Since the dawn of time, ethical behavior has been a recurring thought that is a constant throughout the decision making process by many businesses. However, ignored more times than one care to admit. In addition, in recent years the ethical dilemmas continue to plague organizations and their leadership. Organizations and their leaders make decisions daily that can ultimately lead to embarrassing outcome. The subject of ethics is never meet easy, nor is it straightforward in any context. Ethics is a forever-evolving phenomenon that expands throughout organizations as well as your personal lives (Cheney & Frenette, 1993; Fielder, 1964; Jennings, 2012).

Ethics involve an individual's moral judgments concerning what is right and/or wrong. Individuals or groups of people are responsible for making decisions in an organization (shaw, 2008). Decisions within the organization are always emanate from the company's culture. However, the decision to act ethically and morally requires an individual judgment. Thus, members of staff are obligated to make decisions that reflect their right course of action (shaw, 2008). This involves rejecting the option that could lead to the greatest short-term gain. The leadership of most organizations stresses the need to adopt ethical behaviors and corporate social responsibility. Ethical dealings can earn the organization various benefits. For instance, it may attract more clients to the business thus boosting sales; employees could be motivated to stay longer in the organization thereby reducing recruitment expenditures. Ethical behaviors could also earn the business a favorable reputation that could attract investors. Categorically, a lack of social responsibility or unethical behavior may hurt the firm's reputation and scare away investors. Sales and profits could fall in the process.

Using 2 different companies as example, analyse and evaluate the ethical decision making process within a business setting.

Ethics, as stated by Dawn D. Bennett-Alexander and Linda F. Harrison in The Legal, Ethical & Regulatory Environment of Business in a Diverse Society, are considered subjective laws as well as a how-to-guide for businesses in how they conduct themselves with their suppliers, customers, employees, and anyone else they do business with (2012). It is not enough to know how to run and conduct business, it is also important that good judgment, situational experience and common sense be used in order to be successful and remain that way (Bennett-Alexander & Harrison, 2012). There have been companies in the

In any type of business, ethical decision-making is usually at the forefront of company operations. It shapes the foundation of a company and gives employees a moral compass as to what is expected of them

Consumers today want to do business with reputable companies that are led and managed by ethical decision makers. Ethical decision makers look to partner with other companies that share similar morals and values. In other words, the public and other companies want to associate with an organization that will make ethical judgements. Ethical decisions are not always obvious nor are they based on what is right or wrong or what is good or bad (Gonzalez-Padron, 2015). They are choices made by managers at all levels and stakeholders who follow the company’s core values, ethics policies and moral compass. One leader who is an example of integrity and ethics is Bill Daniels, who opened and operated a small insurance agency in Wyoming. Analyzing Bill Daniel’s ethical tradition, decision approach, and moral development will provide a foundation to Bill’s business methodology.

Business ethics is an extremely important topic in our world today. This is especially true because of the fact that we live in a changing society where it has become increasingly common to see more and more cases of companies that participate in illegal, immoral and unethical activities. So that we can prevent these behaviors, it is necessary to study and understand how these situations can occur and what we can do to prevent them from happening.

The inherent ethical dilemma that presents itself in this case is whether or not it is ethical to cut corners to make a profit. The management is aware of the issue, yet continues to allow the defective drives to be sold in order to attempt to appease the company’s new CEO. Is it ethical for a company to sell a defective product in order to avoid loss?

Ethics audit can be used in different fields to analyze ethical risks in organizations. Ethics audit is flexible; it works according to organization’s individual circumstances, including their size, type, legal structure or industrial sector of operation. Main structure and processes of ethics audit model should be followed. As mentioned before the current ethics audit is based on qualitative research with a methodological triangulation being used. For clarifying auditing process visualization of auditing model in Figure 1 is given.

Question 1: With the support of a New Zealand based company, discuss how any two of the following types of ethics may influence ethical decisions of a leader in the company: