Business Ethics Essay

1.Introduction Precisely define the concept of â€Å"ethics† is quite difficult. In a general sense ethics – a set of moral principles and values that govern the behavior of a person or group of people and determining the positive and negative assessments of their thoughts and actions. Ethics associated with inner values, and they in its turn are part of the corporate culture and influence on decision making, determine their social validity within the environment. Ethical problem arises when the actions of an individual or organization may harm or conversely benefit others. Since ethics are unwritten rules, the issue of assessing an action often has irreconcilable differences. The so-called ethical dilemma arises in a situation where all the alternative solutions or courses of action because of its potentially negative moral consequences are undesirable, it is difficult to distinguish good from bad, right from wrong. Person who assumes responsibility for the organization of emerging ethical issues, often referred to as an agent of morality. This assignment examines the various approaches to the ethical issues, the study of which allows management to develop criteria for their analysis and solutions. 2.1 The Four approaches to make ethical decision Most ethical dilemmas is a conflict between the whole thing and its parts: the organization and the individual, the community and the organization. For example, should the company be subject to mandatory testing of their employees in the use of drugs and alcohol, which can benefit from it, but it restricts the freedom of action of individuals? Is it right to export goods that do not meet national quality standards in other countries with less stringent requirements? Sometimes ethically complex solutions involve a conflict between the two groups. For example, what is more important: the pollution caused by wastewater businesses or jobs that it creates, as the largest employer? Faced with the problems of an ethical choice, managers tend to be based on a normative point of view, that are certain norms and values, in accordance with which decisions are made. In normative ethics identify several approaches to the description of the system of values and hence the adoption of ethically diff icult decisions, which can be used in the practice of management: THE UTILITARIAN APPROACH, THE RIGHTS APPROACH, THE FAIRNESS OR JUSTICE APPROACHES AND THE VIRTUE APPROACH. 2.2 The Utilitarian Approach Basic principles developed in the XIX century by philosophers Jeremy Bentham and John Stuart Mill’s utilitarian approach states that appropriate behavior morality brings the greatest benefit to the greatest number of people. An individual decision-maker should review the impact of each option on all of its stakeholders, and to lay the one that brings satisfaction to the greatest number of people. In essence, it is about finding the best solution. As the complete calculations can be quite complex, allowed simplified conditions. For example, the calculation of costs and benefits in monetary terms can be used a simple economic criterion. In addition, while deciding rightly consider the situation only directly affected their sides. Utilitarian ethics justifies the introduction of a ban on the use of alcohol and smoking in the workplace, and in some cases at the end of work, as this behavior has a negative impact on the collective organization. Similarly, many companies monitor Internet use explains the need to maintain a healthy and productive environment. If employees are browsing pornographic websites, participate in racist forums or whole day browse on the virtual shopping, eventually suffers organization. Anyone who uses a utilitarian approach, assessing the impact of specific actions on the people who are directly involved in this process, while trying to produce the greatest good for the greatest number of people. Utilitarian approach focuses on the actions themselves, not the motives behind these actions. Potentially positive results of actions are weighed against the potential negative results. If the former outweigh the latter, manager, guided by a utilitarian approach is likely to begin to consider the action. The fact that some people, these actions could adversely affect recognized the inevitable and acceptable. 2.3 The Virtue Approach The virtue approach assumes that the moral and human actions are acceptable that benefits in the long term. The main driving force is self-control, and all the external forces that limit it should be stopped. Each person chooses for himself the most profitable in the long-term solution, based on which it judges the quality of their actions. One of the features of this approach is that it allows of the individual, aimed at the acquisition of personal short-term gain, in general, do not meet social norms. Precisely because individualism can be easily interpreted as a desire for purely personal purposes, it is not very popular in today’s highly organized communities focused on group goals. The approach most closely approximates to the area of free choice. 2.4 The Rights Approach The rights approach holds that man was originally endowed with fundamental rights and liberties, which cannot be violated or limited by decisions of other people. This means that the ethically correct to the solution that best respects the rights of those affected. It is assumed that the ethically correct decision should not violate these fundamental rights. Thus, the decision to listen to conversations of employees violates their right to privacy. Sexual harassment is unethical, as contrary to the right to freedom of conscience. The right to free speech justifies the actions of informants reported to management of the organization or the authorities about illegal or inappropriate actions of officers. Those who adhere to the rights approach, assess whether the decisions and actions of the basic civil and group rights and privileges. Some of these rights and privileges are listed in documents such as the Bill of Rights (the first 10 amendments to the Constitution of the United States) and the United Nations Declaration on Human Rights. The rights approach takes into account human rights such as the right to life and personal security, privacy, freedom of conscience, freedom of speech and private property. 2.5 The Fairness or Justice Approaches The conception of justice claims that ethically correct decision should be based on principles of equality, fairness and impartiality. In terms of management, there are three types of justice. Distributive justice requires that the ratio of managers to subordinates based on objective criteria. Thus, if the decision relates to such individuals to each other, it should equally apply to that and the other. Therefore, if a man and a woman do the same work assignment, they get about equal pay. However, if between the employees there are significant differences (for example in terms of skills or responsibilities), the ratio of management to them varies according to the skill level or display a sense of responsibility. But the attitude of the manager to subordinates must be clearly linked to the goals and objectives of organizations, not from other sources. Procedural fairness requires fair administration of subordinates. The rules should be clear, concise, and unbiased constantly enforced. Compensatory justice requires responsible party to compensate the damage caused to people. Moreover, people should not be held responsible for events that are beyond their control. The concept of fairness is closest to the legislation, as it is based on rules and regulations. This theory does not require complex calculations, as in the utilitarian approach, and does not serve its personal interests, which is possible in a virtue approach. It requires managers to determine for itself the characteristics of attributes, according to which evaluate the actions of workers. The conception of justice supports attempt to correct mistakes of the past, as well as fair play within the rules. In accordance with it the basis for a different pay or promotion can act reasons related solely to perform the job tasks. Most of the administration of human resources rules and laws are based on the concept of justice. Manager, who uses the approach of social justice, judges of how its actions fair and impartial in the distribution of awards and values among individuals in groups. These ideas arise from the two principles known as principles of freedom and differences. The principle of freedom holds that man has certain liberties that are compatible with the same freedoms enjoyed by other people. The principle differences argues that if there are doubts about the correctness of a decision, all the social and economic injustice, thus eliminating the need to be able to more fairly distribute goods and services. 3.Conclusion 4.Recommendation Most people, who are in business, hold a utilitarian point of view on the issue of business ethics. Arguing it actions to maximize profits, the CEO can always say that it thus seeks to ensure the maximum benefit for the majority of stakeholders. As a result of extreme volatility environment management personnel must reject this approach. A characteristic feature of utilitarianism is â€Å"impairment† interests of the individual and minority interests of the majority, and new trends in the field of human rights and social justice require that managers need ethical standards based on diametrically opposed principles. This is a complex task of modern management as well as management decisions should be made taking into account criteria such as human rights, social justice and the standards of the local community. This will increase the degree of ambiguity of administrative decisions. As a result, managers are increasingly faced with problems of moral and ethical character. Business ethics Essay The lecture of Father Roa last February 16 is an introduction to Business Ethics subject. The discussion included businessman’s myth about business ethics, the relationship of ethics and business, moral reasoning in business, the theory of profit motive, and business ethics definition. These given me deeper understanding of the subject â€Å"Business Ethics and Social Responsibility†. Some of businessman’s myth about business ethics includes: Ethics is a personal affair and not a public debatable matter; Ethics and business do not mix; This in business is relative; Good business means good ethics; and Business is war. These myths will remain a myth. The relationship of ethics and business which cannot be separated from one another. Ethics is an unwritten law, written in the heart of men. Business is an integral part of the human society with activities must also be examine from the moral perspective. In business, what is legal may not be necessary be moral. Today, the trend is to train managers to maximize profits and to quantify the operation of business. With moral reasoning in business, ethical issues and problems affecting the organization must be solved by the manager. Always judge the action based on an ethical principle. A good moral standard will be necessary have a good for me and for everyone, must be objective and not subjective, and when violated bring about feelings of guilt, share and remorse of conscience. The assumption of profit-motive is that it is an ethical issue in business and operates within the framework of freedom and structure of the business itself. There are two sides of profit-motive, good and bad. The good side is that profit-motive motivates people to do something meaningful, promotes ingenuity and cleverness in running a business, makes people productive and generates potential capital for business. If here is a good side, bad side also exist that includes promoting rivalry among competition, focus on only making money, and promote self interest. There are ethical considerations of profit-motive in business. The earning profit is a good and valid activity in business however, making excessive profit totally wrong. The teachings of the Catholic Church do not totally condemn profit as part of the business activity. In the end, business ethics was defined as study of what is right and wrong human behavior and conduct in business. This is a study of perception of people about morality, moral norms, moral rules and institution in business.