research paper on ethics
TRANSCRIPT
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Ethics & Its Importance InModern Business Scenario
Prepared by;
Ashish kumar.R
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The word Business Ethics itself is a contradictory
one. In the era of global changes, sustainableexistence gets priority over short term gains. This
paper tries to highlight the pre-conditions of ethics
in a business unit and also the importance of
cultivating a culture of ethics in organization.
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The aim of the study is to understand Ethics & Its
Importance In Modern Business specific aspects to
be studied were ;
Factors Affecting Employee Ethics.
Is Ethics A Management Discipline.
Reasons For Not Being Ethical .
Obstacles In Ethical Conduct.
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In the initial phrase the data's are from secondary
sources.
The major sources are ;
Research journals and surveys.
Business magazines,
Internet
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Ethics
Basically ethics refer to the rules and principles that
define rights or wrong conduct. It also relate to the
social rules that influence people to be honest in
dealing with others.
Definition
Ethics is the study of moral obligations involving the
distinction between right and wrong.
R.M.Kidder
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Business Ethics
Business Ethics is generally coming to know, what is
right or wrong in the workplace and doing what is
right this regards to the effects of products or
services and in relationships with stake holders- CARTER MCNAMARA
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Business operations include variety of activities to be
carried out. These activities pertain to various issues in
the organization.
The process of decision making involved in these
activities faces tremendous challenges in the form of
dilemma.
The confusion of What is Acceptable & What should
be Acceptable leads to variety of dilemma in the mind
of persons connected with the business operations.
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Whether a person acts ethically or unethically when
faced with an ethical dilemma is the result of complex
interactions between:
1) Stage of moral development
2) Individual characteristics
3) Organizations structural design
4) Organizations culture
5) Intensity of ethical issue
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Moderators
Individual
CharacteristicsIssue Intensity
Structural VariablesOrganizational
Culture
Ethical
Dilemma
Stage of Moral
DevelopmentEthical
Unethical
Behavior
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There are three levels of moral development.
Pre-conventional At this level, persons choicebetween right and wrong is based on personalconsequences involved such as physical punishment,reward.
Conventional Indicates that moral values reside inmaintaining expected standards and living up to theexpectations of others.
Principled Individuals make a clear effort to definemoral principles apart from the authority of thegroups to which they belong or society in general.
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Every person joins an organization with a relatively entre-
nched set of values. Our values developed at young age
fromparents,teachers,friends-represent basic conviction
about what is right or wrong.Two personality variables
found to influence an individu-als action are:
EGO STRENGTH
LOCUS OF CONTROL
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Ego str
ength- is the personality measure of the strength of apersons convictions. Individuals high in ego strengths are
more likely to do what they think is right. People with high
ego strengths are more consistent in their moral judgments
and moral actions.
Locus of Control reflects the degree to which people believe
they control their own fate. People with internal LOC believethat they control their own fate and people with external
LOC believe that what happens to them is due to luck or
chance.
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An organizations structural design influences
whether employees behave ethically. Some structures
provide strong guidance, whereas others create
ambiguity and uncertainty.
Organizational mechanism that influence ethics
include performance appraisal systems and reward
allocations procedure.
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When employees are evaluated only on outcome they
may be pressured to do" whatever is necessary to
look good on outcome variables and not be
concerned with how they got results. The danger is
that if managers toke a more lenient view of
unethical behaviors for successful employees. other
employees will model their behavior.
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A organizational culture most likely to encourage high
ethical standards is one that is high in risk tolerance,
control and conflict tolerance.
Employees in such a culture are encouraged to be
aggressive and innovative, are aware that unethical
practices will be discovered and feel free to openly
challenge expectations they consider to be unrealistic or
personally undesirable.
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Ethics acts as the character of any business house. It is
very much essential for a business organization to
follow business ethics as the firm has to survive
with in the society.
Values like honesty, integrity, truthfulness, sincerity,
fairness and many others are very much required for
a business house to progress.
The reason for this is that the only way a business
house can build goodwill is by following ethics.
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In this scenario the entire world has turned into a Global
Market, it is important to every organization to follow
ethics.
If Profit is the Heart of a business house, Ethics are the
Veins keeping the heart going on.
Business houses, adopting such two faced principle seldom
succeed as they loose out on good ethics and principles,
thus resulting into a bad reputation.
A good well run business must have high and consistent
standards of ethics.
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Pressure from above:
Even if a subordinate feels that the work assigned to
him is unethical, he is compelled to do the work dueto pressure.
Ambiguous situations:
There is absence of clear-cut ethical guidelines due
to which, at times, managers are faced with the
situations that are ethically ambiguous.
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Comparative conceptual disparity:
Managers argue that the relationship between them and
the top management is such that they cannot question
the instructions issued to them.
Personal Benefits
If a person follows ethics, he faces monetary loss ascompared to not following ethics. This tempts the
person to adopt unethical means.
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Government Policies
The complicated and ambiguous government policy is yet
another reason why people develop unethical means like tax
evasion and bribery.
To reduce expenses
Ethical way results to higher expenses thus reducing the
business profits. As the main aim of starting a business house
is to earn profits, the reduction in expenses tempts the
business house to adopt unethical means.
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Lack of management support
Even though an employee wishes to be ethical, he may
not do that as the higher authorities do not permit him to
do so.
Company politics
To survive the internal company politics, an employee
may adopt unethical means for better incentives or
higher post.
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Insufficient
resou
rces
When a company is going through a crisis, it may
adopt unethical means to save resources.
Personal financial worries
Sometimes, the salary given to employees may prove
less to meet the financial expenses. Due to this, they
adopt unethical means of earning money.
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Little or no recognition of achievements
When the employee is not being acknowledged for his
ethical behavior, he may resort to unethical means.
Need to meet sales, budget or profit goals
When any employee has a goal or a task to achieve, incase of the task resulting into failure, he might adopt
unethical ways for job accomplishment.
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It guides to make right decisions that affect employees,
shareholders, investors and the organization.
After the setting up of Consumer Courts, business ethics have
become a topic of concern because business has come to
realize that unethical activities by management can cost
business in many ways.
The distinctly visible line between ethical and unethical
activities helps to decide what a firm should do.
There are many laws and court decisions defining the right
and the wrong facilitating more for better ethical values.
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Hire individual with high ethical standards
Establish codes of ethics and decision rules
Lead by example
Performance Appraisal Mechanism
Ethics Training
Support to individuals facing ethical dilemmas
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The question of relevance of ethics in a business
unit has been a matter of controversy for the very
nature of business activities so far.
But in the competitive age of business units to
sustain, ethical issues to play a prominent role in the
world.
In the Indian environment also this applies with
equal importance.
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Business ethics need to be converted, from a
contradictory task into a compatible task for business
operations. Its importance has got to be known to the
business houses.
Indian business houses must be taken away from the
state of confusion to a state of clarity and be madefully committed to the practice of ethics into their
business operations.
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References
1) Business Ethics And Corporate Governance.
-- Dr.Ahmad Abad
2) Ethical Issues In Management
-- Verma Ajay
For Commonwealth Publishers
3) Mc Grawhill Educations Management
-- issued on 2008-2009
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Websites
1) www.indianmba.com
3) www.sharetermpapers.com
4) www.yahoosearch.com
5) www.wikipedia.com
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