Analyze the evolution of ethics as a central principle in modern business.

LO2- Examine the evolution of ethics as a core value in modern business.

Business ethics is obvious in today’s business, and it refers to the ideals that managers employ as a guide. They can tell whether they are doing the right thing or the wrong thing because of the laws. It is critical to recognize that business does not exist in isolation because it operates in the environment and interacts with various stakeholders. As a result, the concept must be specified to govern its activities in order to avoid disputes with both internal and external stakeholders. All the policies or decisions made by the managers must be according to moral principles, norms or standards accepted by all the business stakeholders. Disputes will always arise in a case of unethical activities such as bribery, discrimination, corporate governance, corporate social responsibility, and many others. Ethics are a framework for the organization to enable it to exist peacefully in the environment and be accepted by the public.

Stakeholders have different needs which are different from the goals and objectives of the business. These disparities, therefore, cause conflicts of interests among the two parties in the event of each fulfilling their needs. Over the years’ implementation of business, ethics have changed in the business world. Managers have a hard task in making decisions as there are many new ethical dilemmas, but it is their duty to make decisions accepted by all the parties. Trying to make decisions to cater for all the needs of the stakeholders has made managers fail in achieving the primary objectives of the organization. In the past, managers could not consider firms environmental effect to either pollution and global warming but in the recent year’s employers must put into consideration maintenance of the environment. These have made managers make decisions about productions which protect the environment. Competition is key component among the businesses in the environment, and there are some ethical issues which define it. In the past, employees could take ideas of one company to another company and help the company defeat the competitor but nowadays, it is against the law and illegal for former business employees to give information to the opponent irrespective of the situation they.

In the past, employees may have been able to take ideas or intelligence to another company to help win work and follow up by moving over to that company. Today, many organizations and corporations have non-disclosures or non-compete clauses, which make it much harder for this type of thing to happen. These are one-way ethics has evolved in business.

Employees rights have been reinforced, and it is illegal for any employer not to respect them. They are entitled to better services and protection of their safety during the work periods. Any accidents happening in the execution of their duties the employees are responsible for catering all medical expenses.

Corruption is an unethical activity which is very rampant in the business environment. In the past, crime was not given much consideration as those involved were never punished. However, in the recently, crime is punishable by law and illegal among businesses. The company participating in corrupt deals end up paying huge fines or even been closed down by the authorities.

Honesty and communication are also major components of ethics that have evolved over time. Competition among business has led to use of unfair means to fight competition among the competitors. In the past, Companies used to give false information about the product uses they sell to the customers. These activities to combat competition led to the consumer getting affected by the products purchased or the products not meeting their needs. Nowadays, these activities are illegal and unethical to all businesses. Any company caught doing them risk being closed or fined heavily.

Managers have a duty to ensure that decisions they make are both ethical and legal to be accepted in the business environment. Both the needs of the employer and employees should be observed in all decisions they make. Decisions should not cheap at the expense of the other party. Ethical decisions mean they are according to the set principle whereas legal decisions say that they observe the set laws by the authorities. The beginning of conflict avoidance by the business is by the decisions made (Velasquez, & Velazquez, 2002).

LO4- Evaluate examples, cases, situations and personalities that exemplify the options and circumstances of modern business life.

In the contemporary business life, there are many changes and the management of the company has many options on how it handles the employees and carries the business activities. Monopoly is no longer there like in the past as competitors are many in the market. Competitions are high as most companies make the same products or products which are close substitutes. The game has made businesses success a very hard. Strategies of creativity and innovation have to be adopted to ensure that organization is competitive in the environment. Managers have an obligation to enable the business to make better decisions if they want them to succeed.

However, it is true that the management has a variety of option as per the employees to hire, the raw materials to use in manufacturing and the market to sell its products.

Wrong choices by the management results to the failure of the organization as it is unable to meet its set targets. The environment is unpredictable, and this can lead to disappointment or regret the choice you initially made, even though it may have been a good option. There is no doubt about it; we are living in a much more diverse, inclusive, and accepting the world.

However, there may still be times when personality clashes can be a circumstance of modern business life. Certain people and certain personalities in the corporate community have the tendency not to do as the law requires. The past is magnified as the environment is more open. People are aware of what is right and wrong, and it is hard for anyone to deceive them. Some personality types in the environment are; spiritual, loving, sensitive, commitment, perfectionist, introvert, extrovert, loud, quiet, modest, and cocky. Managers in this situations are required to show their excellent skills and return the situation to normal where all the parties come to an agreement. Managers bring all the parties with different personalities to equilibrium thus reducing or avoiding any conflicts. Disagreement among the stakeholders are healthy, but managers have the duty to solve them amicably. Managers must be neutral in their decisions not to favor any side hence making it easy to get a solution to a crisis.

LO6- Compare the differences, importance, and purpose of a code of conduct and code of ethics.

Code of conduct and code of ethics are used interchangeably, but they are two distinct things. Code of conduct focus on the employees’ behavior towards the organization in achieving the set targets. They define what the organization expects from the employee. Code of ethics on the other hand focus on the management or the employer’s behavior towards the business stakeholders both internal and external. The two tools are essential in business regulation by laying down clearly the requirement of both the employee and the employers in the business scenario. They are both tremendously important because it gives guidance on how to conduct ones’ self or organization positively which in turn helps create an image of good behavior and trust to the public.

Code of ethics are the guiding principles of the management of any company. It helps the managers in the decision making to enable the business to be a success. It acts as the constitution of the organization. They show that managers what is right to do and what is wrong to do in the organization. Any decision made is thoroughly checked as per its merits and demerits. Managers have to ensure that there is a good relationship between the organization and the stakeholders. An example of business ethics is an organization not allowing corruption to be carried out by all the parties. Corruption is a vice, and unethical practice and its prohibition in the organization is critical to ensure fairness and honesty in business operations (Council, 1995).

A code of conduct set the rules of the behavior of the employees in the business environment. The employees are tools used to achieve the goals of the organization, and they must be regulated to work towards the objectives. Different employees in the firm have different goals and purpose which may be not achieving the organizational goals but meeting the personal desires. It is, therefore, important for the management to regulate the employees to ensure that they do what is expected of them by the organization. Code of conduct is the constitution of the workers which shows their duties, how to relate to others in the organization and the consequences of failing to observe the rules and regulations. The employee’s rules are formulated by the board of directors, and it’s upon the employees to adhere to them. An example may include employees not being allowed to listen to music in the workplace as this is a hindrance to their performance (Ratings, 2015).

Code of conducts and code of ethics are used to regulate behaviors of both parties in the business environment. The main difference is that code of ethics governs the conduct of the firm to its stakeholders. Code of conducts regulates the behavior of the employees towards each other and the organization. The code of ethics covers a wide area as it deals with both the internal and external business stakeholders. Code of conduct includes a small area as it deals majorly with the employee’s relations. The two are paramount in ensuring peaceful co-existence among all the parties that relate to the organization. Breaking any of the two leads to consequences to the parties. Employees not observing the code of conduct may end up being punished by the group management. When the organization does not follow the code of ethics, it gets into conflicts with the stakeholders. These may lead to low customers, high employee’s turnover, a huge penalty by courts and also the closure of the organization.

Code of conducts and code of ethics have many advantages to the organization. They bring loyalty between the organization and its stakeholders as all parties right are observed to the fully. Business survival is guaranteed when there is smooth co-existence of all parties in the group. The aim of all businesses is to attract customers and through observance of the code of ethics and code of conducts the activities of the organization, are achieved and the client is attracted resulting to high sales. The image of the company is maintained, and this makes the company have a competitive advantage over its competitors in the market. Expenses to the organization due to employees turnover and fines reduces thus increase the business profit margin. In the long-term, the company is assured of high profits.

In conclusion ethical decision making by the managers has many requirements or depends on numbers of factors. The characteristic of the managers is useful to enable him to make decisions that follow the accepted principles. The ethical standards of the managers will determine whether he will make principles accepted by all. Some managers make decisions without consulting or taking into consideration the needs of the other parties. The ability to recognize the moral dilemmas which result from the decisions made will enable managers to be keen and careful in making any decisions. It is the duty of the managers to make moral actions in their organization as this will lead to its success.

References

Council, M. A. (1995). Code of ethics. Manitoba Arts Council.

Ratings, F. (2015). Code of Conduct.

Velasquez, M. G., & Velazquez, M. (2002). Business ethics: Concepts and cases (Vol. 111). Upper Saddle River, NJ: Prentice Hall.