Mini-Case

Need for Ethics

What is business ethics? The answer to this question may be as simple as reciting the usual
definitions. Or, it may be more complex by detailing the "good" ways the company interacts with its
various stakeholders. The answer may also depend on who is asking the question. Many think that
there is always a "right way of doing" based on moral principles. Others believe that the right thing
to do depends on the situation and so ultimately it is up to the individual. A customer may view a
safe product as proof of an ethical business. An employee may see ethics in fair wages and full
benefits. A stockholder may it in the corporation's compliance with existing corporate best practices
as enunciated in the SEC Rules. In fact, all of these answers are accurate because the ethics of a
business is demonstrated through its practices.
Attention to business ethics is critical during times of fundamental change, in time such as
now. Values that were previously taken for granted are now being "brought back to life". Many of
these timeless values are no longer followed to the detriment of the person and consequently, the
bigger community where this person is operating in. As a result, there no clear moral direction to
guide leaders through ethical dilemmas. They must rely on themselves but are ill-equipped. Which
brings us to the imperative need, having ethics in the workplace. It is indeed important because it
helps ensure that when leaders are struggling then they have a strong moral compass.
This attention to ethical practices comes from differing motivations. There could be social
pressures to address these issues. Social awareness raises expectations of businesses that are now
are being held accountable to use their financial and social influences to address social problems
such as poverty, crime, environmental protection, public health and the overall improvement of
society

QUESTIONS:
1. What are some ethical challenges business leaders faces? Discuss how business ethics can help
them.
Answer: In every business moral issues are most important matters need to be discussed. For any
entrepreneur, exploring moral issues in the working environment might be a difficult undertaking.
Indeed, even while there are rules and regulation set up to consider workers and managers
responsible, they don't totally block unethical conduct with respect to representatives. Harassment,
bribery, discrimination, irreconcilable circumstances, worries of trustworthiness and respectability,
and whistle-blowing are a portion of the ethical hindrances that a business leader might experience,
and business ethics has a vital impact in tending to those ethical challenges.
Business ethics which are directed by regulations, perceive what is correct, wrong, and proper in the
work environment. Its purpose is to guarantee a steady upright disposition inside the organization,
from leader level administration to fresh recruits and furthermore empowers representatives settle
on better choices significantly quicker which makes efficiency increase and generally employee
morale, it guarantees that everybody is treated with fairness and respect.

2. What is the role of business ethics in improving corporate strategy and community development?
Answer: Business ethics has created because of business activities. It considers duties not just in
working environment, but also in communities' environmental, cultural, and social systems. They
additionally incorporate scientific research responsibility, protection of its consumer, and the
general construction of any firm or association. While every firm wants to earn a profit, but profits
must be done in accordance with basic societal standards, such as ethical and legal concerns.
Fundamentally, moral commitments can be shown in different ways, including rules of conduct,
social equality, and cultural and acceptable standards. Some unethical enterprises exist solely for the
purpose of generating profits, instead of adding to cultural thriving and harmony by bringing forth a
huge number of negative powers that compromise society's foundations. The function of business
ethics is to establish some moral boundaries and constraints on company concern for the wellbeing
of society's employees and workers. Furthermore, business ethics are critical for establishing
positive and cooperative relationships between company and society. It ensures that society has a
steady supply of high-quality goods and services at reasonable rates.

3. Why do you think some companies neglect the pursuance of business ethics in their
organizations?
Answer: For me companies neglect the pursuance of business ethics in their organization because
there is a possibility of misunderstanding across different departments that can lead to failure in
ethics adoption. Organizations that experience high rivalry and those that set unreasonable targets
can disregard ethical values. Also a poor organizational policies and control may tend to unethical
bevahior. Some companies disregard the compatibility of business because for them ethics is not
considered a part of the company's decision making. In other words, decisions are made by experts
who only consider their limited field and overlook the implications of their decisions. Also, individual
predominates in business because everyone has their own interest and agendas. The idea of what is
ethical will bother them because it doesn't allow to do their things on their own way.