The Importance Of Ethics And Responsibility Commerce Essay

Ethics also known as moral is determined by the class of philosophy to addresses about morality i.e. concepts such as good vs. bad, right vs. wrong and matters of justice, love, peace and virtue. The term is used to indicate how individuals or organization choose to conduct themselves in relation to universal moral behavior and actions. Ethics involve choosing actions that are right and proper and just. The individual behavior can be right or wrong, proper or improper and the managerial or individual decisions can be fair or unfair.

Ethics are vital in businesses and all aspects of living. The foundation of society is built on Ethics. Without ethical principles a business/society is bound to be unsuccessful sooner or later. Business Ethics look at ethical philosophy, moral or ethical problems and deal with issues concerning the moral and ethical rights, duties and corporate authority between a corporation and its shareholders, workers, clients, media, government, provider and dealer. Ethics are connected to all discipline of organization including accounting information, human resource management, sales and marketing, fabrication, logical belongings information and talent, global business and financial system.

Social responsibility can be defined as the responsibility of the organisation to operate in ways that provides both its individual benefit like making a profit and also the benefit of its stakeholders- those people and groups who are affected in one way or another by the behavior of the organisation. For example, an industrial chemical plant has a responsibility not only towards its customers, but also towards the shareholders and the board of directors, and to those people who live in the surrounding area. This responsibility can be “negative”, meaning there is exemption from blame or liability, or it can be “positive,” meaning there is a responsibility to act beneficently. Let’s take an another Example, in corporate company a chief executive make expenditures on reducing pollution beyond the amount that is in the best interests of the corporation or that is required by law in order to contribute to the social objective of improving the environment. There are lot many benefits to any organisation of being social responsible. First and foremost benefit to organization is that to ensure the customers, suppliers and the local community knows what you are doing. Publicity like this can be a key part of using CSR to win contracts. People want to buy from businesses they respect. Through this way your business reputation will be growing day by day and it encourage customers to stay with you and do business with your company.

Compare and contrast the difference between “ethics” from a personal perspective to one established viewpoint of ethics from an organisational perspective.

Personal perspective view of ethics

People’s lives are built on moral foundation of personal ethics. They support in conclusion making, guides people to contribute measures that can help to meet their inner moral principles. Ethics are used by people in solving problems in everyday life and also help for determining correct versus incorrect. Ethics are not absolute rules but they are developed during life based on range of factors. Defining personal ethics is a difficult venture for many people as they think their inner voice is all the ethical guidance they require. Perception plays a great role in what one finds ethical. By organisation view, ethics plays a vital role that defines the way of representation, way of talking, body language, attitude etc. The lack of personal ethics gives a negative response in managerial processes. For example, if a company is launching the product with risk taking, then the manager should be fully ensured with correct way of personal ethics, as the product may be failed to attract customer if marketing manager lacks in personal ethics. So, it is clear that personal ethics makes a man to take a right managerial decision.

A standard way of understanding ethical decision-making is to understand the philosophical basis for making these decisions. People and organizations need each other. The written and unwritten codes of principles and morals that administer decisions and actions inside a business are known as Business Ethics. In the Corporate world, the organization’s traditional sets principles for determining the differentiation involving excellent and dreadful judgment making and manners.

Discuss four benefits and four disadvantages of social responsibility to an organisation.

Benefits of social responsibility

Providing good value for money

If the management and workers of the organization are well social responsible for internal and external environment of the organization then it would result in best productivity and obviously the good image of the organization. The biggest power of the any organization among all resources is the human resource that’s why if human resource is so well behaved with good ethical ways the value of any organization will be good enough.

Broadening the futuristic concept of business

If the organization is giving best output to the public demand satisfying their needs with latest trends and technology, it means that the business of the organization is good and as public response is excellent the organization would have better future aspects. This all happen due to the organizations social responsibility towards their employees and environment factors. Also workers stay longer if the business has high-quality status.

For example, MC Donald’s is giving best variety of food in hygienically manner, where all the perception of individual match such as price, food quality, taste etc. Their business is so good that we can find its outlet anywhere in the world. MC Donald’s is popular because they are socially responsible to the environment and for their work.

Good relationships with local authorities help doing business easier.

Disadvantages of social responsibility towards organisation

Everything has some prons and crons, similar to social responsibility where so many people argued on the benefits and disadvantages of social responsibility. First the most important is that the organization is running for profit maximization mostly, the social responsibility shows the fundamental misconception of the character and nature of a free economy. Business functions are moreover economic rather than social if come to the practical way and it is judged by economic criteria alone. This point of view comes to the employees mind most of the time leading to not to concentrate much in their work which automatically results in bad productivity.

The role of corporation is to make a profit and maximize social welfare through the efficiency of the employees. In some cases where employees are not much social responsible for the organization than it would be very difficult for the managers or corporation to do the best out of the work and lead the group, resulting in bad image of the organization and bad internal environment

There is the concern for the efficient use of national resources, because of social costs; profitability is not necessarily the best measure of effectiveness which affects the organization goal.

Lack of interest of the employees towards social responsible in their business also not good for the organization

Competency sometimes makes the stake holders to go beyond the limit forgetting their social responsibility that harm the nature and organization too. Being socially responsible costs organisations money, and sometimes the bill is huge. Therefore the organization think to do for profit maximizing rather than be social responsible.

Discuss social responsibility barriers that inhibit an organisation

Barriers that inhabit an organization

Social responsibility has certain costs. It’s not the natural thing to be responsible. Greed and selfishness work against social responsibility. When greed and selfishness become higher values, social responsibility goes out the window. One of the problems with our culture is that we worship wealth. People who have a lot of money are heroes to us and we strive to emulate them. We see wealth and power as an indicator of merit and virtue. But people who are rich and want to be richer, and corporate and industrial leaders whose jobs are to put the prosperity of their companies at the top of their priorities, often trivialize social responsibility, and this sets the tone for the whole culture. In social responsibility every individual in the organisation is not social responsible towards the work, it depends upon the people behaviour and motivation level within the organisation. Today every people think about wealth rather than social responsibility that they possess towards the organisation. This is the barrier in the organisation.

For e.g.:- in an organisation if certain facility is lacking for the staff then staff will suffer and this management must be think which in reality they don’t. This lacking of facility may affect the work out going on within the organisation.

Flow of information in the organisation should be well enough to avoid any conflicts between the staff but it arises due to the problems that every employee are not social responsible. A vendor to the company first think towards the money he/she will get from doing particular kind of work.