Business Ethics

There are four Questions In this assignment. The student should answer all the four questions. Marks allotted 100. s/ Each Question carries equal marks (25 marks) unless specified explicitly. Questions IQ -What in your opinion is Business Ethics and what is not? Do you think Business ethics builds in values for a Business to sustain itself in a world of grueling competition? Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow in order to gain public acceptance.

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise In a business environment. It applies to all aspects of business conduct and Is relevant to The range and quantity of business ethical issues reflects the interaction of profit- maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the sass and sass, both within major corporations and within academia.

For example, today most major corporations promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters. Adam Smith said, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. ” Business ethics are implemented in order to ensure that a certain required level of trust exists between consumers and various forms of market participants with businesses.

For example, a portfolio manager must give the same consideration to the portfolios of family members and small individual investors. Such practices ensure that the public is treated fairly. Business ethics means taking the right course’. Acting ethically takes into account all the factors of doing business. Sustainability is about meeting the challenges of ensuring that future generations can enjoy the same kind of lifestyles people enjoy today. This naturally involves taking a long-term perspective on balancing economic, environmental and social impacts of business.

Q-What is CARS (Corporate Social Responsibility ) ? How is it different from Philanthropy ? Is it unethical on the part of the organization to gain benefits out of its CARS related activities? Give examples. Corporate social responsibility (CARS) is also known by a number of other names: reporter responsibility, corporate accountability, corporate ethics, corporate citizenship, sustainability, stewardship, triple bottom line and responsible business, to name Just a few. CARS is an evolving concept that currently does not have a universally accepted definition.

Generally,CARS is understood to be the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner and thereby establish better practices within the firm, create wealth and improve society. ND early sass after many multinational corporations formed the term stakeholder, meaning those on whom an organization’s activities have an impact. When a small business decides to donate a portion of profits to a charity, this action qualifies as philanthropy.

You make either a one-time or ongoing commitment to give money to a non-profit organization, and that organization uses the money to further its mission. Whereas, corporate social responsibility encompasses any practice that improves the lives of your work force, community and the environment. Though it is not unethical to gain from corporate social responsibility; however, it is accessory for company to not fall in the trap of gaining money. For instance, organizations do spend a lot of money in Nags for the child development. Here, they need to ensure that the Nags to which they are contributing must act on the ground level.

It is because there are Nags that may promise advertisements of the companies during their events. In such cases, without looking at the return, companies need to work with a single focus of helping the needy children and bring a change in their lives. Question No 3: a) Explain the corporate social responsibility towards the educational institutions ) Explain the significance of ethics in business planning and decision making a) Today, public education faces the mounting challenges of standardized testing, strained budgets, teacher retention, and global workforce competition.

Businesses have begun to take a more targeted approach in their corporate social responsibility programs and are seeking to impact areas that have a correlation with their own business goals. For many businesses, education is an important part of their plans, since the needs exist in all geographic areas, across all subject areas, and for all kinds of people. The bottom line is that educational outreach efforts have the potential to make a real and lasting difference for all players involved.

Companies get involved in education for a number of strategic reasons, including building a positive reputation and goodwill among consumers, employees, investors, and other stakeholders; developing brand recognition, whether to increase consumer loyalty, boost sales, or establish the company as an industry leader; building a more educated workforce; raising consumer awareness about a particular issue; and fulfilling a company mission or mandate. All ethical questions are focused on making a decision. In determining right of ethics, can be very helpful. The code is the baseline by which a person, group, or organization can measure the facts of a case (including whether a determination can be made impartially). It is also important to develop an organization’s value statement to reflect your ethical values as well; this will help employees understand your commitment and direction.

When analysis and evaluation begins, the rights of the individual and group, the equality of treatment, and the steps taken to remedy the issue or situation in a way hat best serves the organization’s vision or identity must all come into play. By examining each of these elements, a decision that’s cohesive, consistent and appropriate will begin to form. Finally, that decision must be implemented. Question No 4: a) Explain the factors influencing ethical environment a service organization. Ethical environment is a general perception organizational employees have about whether the organization is ethical.

In an ethical climate you would see the following things: ; Employees have a lot of skill in recognizing ethical issues ; Success is fined not Just by the results, but also the way they are obtained ; Employees continually strive to maintain high ethical standards ; Employees have a lot of knowledge regarding how to handle ethical issues ; Employees rarely feel pressured to compromise the organization’s ethical standards to achieve business objectives Although there is a human tendency to blame a few “bad apples” for wrongdoing in organizations, the inconvenient truth is that the organizational environment-?including the leadership, practices, and climate-?is the most critical factor in creating ethical organizations. ) How can the character, goals and aspirations of leader contribute to business ethics of the organization? In his recent paper on ethical reasoning, eminent psychologist Robert Sternberg suggests that organizations suffer from ethical drift – a gradual, unconscious lowering of moral standards. While businesses compete for profit, the boundaries between right and wrong become blurred and people’s ethical frame of reference shifts. He focus becomes navigating the system, rather than doing what’s right. Instead we need leaders with a strong moral compass. They, in turn, need to teach not Just right s. Wrong, but a way of negotiating ethical dilemmas so that their followers always act with integrity. C) What are the ethical dilemmas regarding competitive intelligence? Competitive intelligence (C’) is receiving more notoriety in every industry sector. This discipline can aid companies to make better strategic decisions by gathering information about their industry. The ethical dilemmas regarding competitive intelligence: 1 . Misrepresentation is the most common issue that subdivides many CLC practitioners in many ambiguous ethical issues.

Misrepresentation is falsely identifying oneself in order to receive or access information that would not have been provided if one’s identity was used. 2. Omitting some details about one’s identity Not revealing one’s identity in a public venue after overhearing classified information 3. Another misrepresentation issue is not disclosing the true intent on how the information will be used. 4. Client conflict arises mostly with CIA practitioners who are consultants. CLC consultants agree that there should never service competing clients at the same time because the practitioner may act in favor of one of the clients and share classified information about a competitor.

Business Ethics

FDA-approved prescription medication that is commonly used to treat depression, obsessive-compulsive disorder, generalized anxiety disorder, social anxiety disorder, and post-traumatic stress disorder. What unethical research behavior was Involved? The lawsuit claims that Silhouetting falsely and deceptively advertised and promoted the prescription antidepressant medication Paxar. The lawsuit claims that Gallo Smith Kline misrepresented and failed to disclose material information to the attain.

Even the healthcare providers did not know because the drug company failed to market it. This drug was additive and habit forming which they did not state anywhere in the material. They also did not warren that if you stop this drug it could cause harm. Paxar could also cause child defects. Who were the injured parties? The Injured parties were all of the persons who filled a prescription between January 14, 1999 and January 1, 2003 and took the medication for an extended amount of time. The patient’s ages ranged from 18 years old or older.

And they were students of the State of California at the time that they received the prescription. How has the unethical behavior affected the organization, the individual and society? The organization had to pay up to a total of $8,500,000. 00 for out-of-pocket expenses to refund the members of this class action law suit. The organization also had to pay a charitable contribution of 1 to the Mental Health America in California and three other organizations. Each organization was to receive $250,000. 00. Also ASK has to include certain information about Paxar.

They put more information on their website and they provide more hand out information The unethical behavior affected the individuals because It caused so many side effects. Some people had problems with depression. Some who stopped the medication without knowing that if you stopped It without weaning yourself off of It; It could cause headaches, severe depression, panic disorder, nervousness along with a very long list of other things. Some people even had thought of harming themselves. The unethical behavior could have been avoided simply by making sure that all of he information was printed on the medication.

Making sure that the health care provider knew the pros and the cons. Making sure those children with certain disabilities didn’t take this medication. The unethical behavior was resolved by producing more information. Making it assessable, on the website and also with pamphlets. After being fined lots of money Gallo Smith Kline had to pay I think they learned their lesson. References http://www. Capitalizations. Com/index http://postulating. TV http://www. Duplications. Com/open/2144-ask-Paxar-class-action-lawsuit-settlement

Business Ethics

What key topics need to be examined to determine if a business is one of the most ethical businesses? Key business topics include but not limited to code of business ethics, corporate social responsibility and vendor code of conduct. I am going to review these topics on Jones Lang Losable. Jones Lang Losable Is a financial and professional services firm specializing In commercial real estate services and investment management. Hopefully this will give you a thorough understanding on a company on top of the business world with their ethical practices. Des, governance, ethics compliance systems, top leadership commitment, whether they have an ethics officer or department, existence of ethics hotness and clear processes for reporting issues, etc. I personally love it when I see any organization having a code of business ethics for the company internally and an external vendor code of ethics. You know a business is serious about there ethical approach and how they are viewed when they require their vendors to adhere to ethical policy. As quoted In there code of ethics manual “our vendors represent us and while doing equines need to represent our beliefs (lines Lang Losable 201 1)”.

Code of Business ethics: Our Code of Business Ethics helps our people better understand the duties and responsibilities associated with conducting business on behalf of Jones Lang Losable. The Code contains sections that address our responsibilities to clients, business partners, shareholders, and the communities and governments in the countries in which we do business. Members of our Board of Directors fully support and mandate our compliance with the Code. Reports of possible violations can be made to our global Ethics Hotlist 24 hours a day, seven days a week.

Vendor Code of conduct. We trust that our vendors, Including firms and Individuals who provide direct service to or directly to our clients, will honor our commitment to Integrity. While vendors are viewed as independent entities, their business practices can reflect upon our brand and reputation. We expect all vendors to embrace and adhere to our Vendor Code of Conduct. * Paper #3: The research-based Deciphers Institute is a leading organization dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, and sustainability.

Visit their website at http:// deciphers. Com/2011-worlds-most-ethical-companies/ and read about the current most ethical companies In the world. Choose one of these companies and examine why they have been Identified. Look at their codes, governance, ethics compliance systems, top leadership commitment, whether they have an ethics officer or department, existence of ethics hotness and clear processes for reporting Issues, etc.

Prepare a 5-page paper on the company, its ethical strengths and weaknesses, and to discuss your findings to the class in Week 3. There is a discussion board set up for the selection of the company (week 1) for your paper. First come, first served on choice of company in order to avoid duplicate papers. Your paper and discussion will be evaluated by the facilitator according to the standards in the rubric at the end of this learning module. You should use these standards to guide you in this assignment.