What Are Advantages and Disadvantages of Ethical Behavior in Business?”

Milton Friedman’s shareholder theory of management says that the purpose of a business is to make money for the owner or the stockholders of the business. Friedman says that there is only one social responsibility for the business: to use its resources in order to increase

In order for the directors and executives in any company to know that their employees are acting in an ethical manner, they need a defined

During the announcement of the seventh annual list of most ethical companies in the world in 2013, Alex Brigham of Ethisphere, noted that more companies find that ethical business practices increase their competitiveness in their respective industries, helping to further substantiate the notion that a culture of ethic is crucial to sustainable excellence (Smith, 2013). Researchers in the field of Organizational Behavior has found that employees are subjected to an environment of ethical dilemma constantly. During such moments employees have a choice either to pursue with ethical conduct or engage in an unethical behavior which results in harming the organization or its stakeholder (Trevino & Brown, 2004). How the employee behave greatly depends

In this essay we are taking a look at the famous Milton Friedman's essay "The Social Responsibility of Business is to Increase Profit ". The following paper is an attempt to critically evaluate the article in consideration of Freeman Stakeholder Theory.

In today’s 21st century, it takes good ethics for every company to strive competitively to maintain as the best top competitor in their industries; and has its provocations of smart goal as to how successfully they anticipate their business to function, when it comes to finances, attracting and recruiting employees, begin an admirable corporation to citizens, and while showing customers and employees love, courteous, and appreciation. Companies forestall unethical behavior of bad reputation to uphold the organization values. These atrocious speculations can permanently cause decreased revenues and will degrade the company name, sometimes irreparably damaged.

An initial new hire and employee ethics training has to be develop and administered. Also on-going ethics refresher training for use throughout the employees career with Company Q will need to be incorporated in the program. Systems will be developed and put in place to monitor, audit, and report ethics violations. A time-line to re-evaluate these programs and their effectiveness towards meeting the companies social responsibility goals will be established. Based on the evaluation a revision or revamp of the program if necessary will be initiated. The ethics program needs to be reviewed and understood by all employees and expectation for compliance very clear. This can be accomplish by tying compliance in some form to employees and leadership individual performance goals. Shareholders all the way down to entry-level employees will benefit from the ethics program which will also put the company on track to being more socially responsible. Once a code of ethics is in place and training has been given, then Company Q can begin developing trust within the company and employees as well as the community. Continued education and training will enable the company to become more socially responsible.

Our Code of Ethics Program is designed to uphold the interests of every stakeholder of Given Company. Our mission is to uphold a high level of integrity by maintaining high company standards, values and principles to ensure the company meets its mission of being a good corporate citizen who is socially responsible. Our program provides effective guidance for daily decision making for all levels of personnel in an effort to establish and promote long-term relationships within Given Company and with our customers and community. The overall goal of the program is to be diligent in establishing a culture

Finally, I believe is important for companies to follow ethical standards that could assist them to make responsible decisions. The ISO 26000 standards is a document that addresses responsible practices related to organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues and community involvement and development (Ajeti, S. R., 2016, para. 2-4). for example, When Chevron faces difficult situations, they try to resolve them by answering four questions: (1) is it legal? (2) Is it consistent with the company policy, including human rights policy? (3) is it consistent with the chevron’s core values? (4) if it were made public, would be I be comfortable? (Chevron, 2015, p.

There have been several breaches of ethical conduct since the passing of Sarbanes-Oxley Act of 2002. This Act was placed into law to protect the consumer against fraudulent activity by organizations. This paper will provide a brief history of the law and discuss some of the ethical components and social implications on corporations. This research will provide information on how the Sarbanes-Oxley Act affects smaller organizations and how it encourages employees to inform of wrong doings.

According to our text, “Ethics is the moral principles and standards that guide the behavior of an individual or group” (Bateman & Snell, 2013, p. 68). Mark Hurd’s behavior was unethical to his values, character, and morals. Therefore, there were consequences that were created, to keep the company’s “ethical climate” properly shaped (Bateman & Snell, 2013, p. 76). Thus, unethical corporate behavior may be the responsibility of an unethical individual, but it often reveals a company culture that is ethically lax (Bateman & Snell, 2013, p. 76). Overall, maintaining an ethical environment can be challenging, but it is important to assess the company’s morals—to ensure that their reputation will not be in

There are several steps corporate and governmental leaders can take to promote ethical behavior to include developing a code of ethics and implementing ethical policies. Maintaining and supporting open communication with stakeholders and employees builds trust so that concerns are brought forward without fear of retaliation. Establishing systems and processes that support and do not sabotage ethical practices is significant to safeguarding against fraudulent and unethical behavior. However, even with the proper policies and reporting mechanisms, companies are not guaranteed that unethical behavior will not occur. With systems in place, a company is able to address issues and take action to discontinue the behavior. The most effective way to promote ethical behavior is through leadership commitment, training and demonstrating appropriate behavior. (Center for Ethical Business Cultures, 2008)

Many fortune 500 companies have implemented a ethics program (Ruddell, 2015). This paper will examine the goals associated with establishing a ethics program, some action items, and considerations of the essential elements associated with ethic programs.

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.

Today’s business world presents numerous ethical issues. In today’s world above board/moral ethics in organizations do not often materialize intuitively. Organization must strive to provide employees with a clear understanding of the overall company vision. This will aid employees in practicing the code of ethics, policies and procedures in the workplace. Companies must be unwavering in continuously delivering the uppermost ethics of provision in which customers, applicants and employees are entitled to under fair business practices. One major core value is to uphold responsible and fair business practices.

In a world where loss of reputation can mean the difference between achieving positive revenue, maintaining market position or suffering substantial losses, it has become increasingly important to not only remain at the top of your field in manufacturing and innovation but to also demonstrate sound ethical practices. In order to be seen as a valued organisation and most importantly a