Business ethics Essay

In chore there will always be the line to doing with integrity or to lie, cheat, and steal. Famous author Douglas Adams once said, To give strong service you moldiness add something which cannot be bought or measured with m nonpareily, and that is distressfulness and integrity (Heathfield, n. d). The anteriority of any barter is to serve the necessarily and wants of the customer and more important his or her stakeholders. Any backup decision make in major(ip) corporations must line up with stakeholders interests, only more important stakeholders run through the accessible responsibility to represent in the best interest of the entire corporation.The prevalence of so many major scandals with corporations caught in the public is drawing much needed attention on concepts of ethic, and social responsibility. good motive and corporate responsibility is a direct exertion of the ideas of in business practice. This papers purpose is to explain the role of moral philosophy and social responsibility in building a strategic externalize while incorporating the stakeholder interests. Business execs have the responsibility to adhering to the unspoken ethics they have only not taught only also have enforced by society and the law.Ethics are inherently common sense decisions do by those in authority with the power to affect an entire formation. When, business executives make decisions they must consider business ethics and the physical com casts (stakeholders) values. Once the inhering questions ask is, Do the placements values reflect true society values? (Young, 2004) Business executives must execute strategic business plans where they take into account not only severally value associated with each choice, exclusively the consequences of each choice.The interests of the stakeholder are one of the prime obligations of an organization. The demands of the stakeholders are principally to increase profits this is echoed by economist Milton Friedman, the one and only one social responsibility of business is to increase its profits, assuming an honest and slack marketplace. (Bigelow, 2013), According to Friedman also that corporations owe no responsibilities to society. However, critics will resist that corporate social responsibility is always to put the customer first, which ensures a customers happiness and loyalty.Stakeholders are not only investors into companies but they also have voting power, which carries social, and financial forge within the caller-up. Their social responsibility is to the customers and to the employees (Jones, 2012). They have decision power, and ultimate control over tryst of resources. Corporations and organizations ultimately exist to satisfy the needs and agendas of the stakeholders. The problem lies in, however when the needs and the agendas of the stakeholders can blur the line between what is estimablely right and what is considered against the law.The organizations obligation to the stakeho lder is as much as a priority as the relationship to the public. The relationship between a customer and a firm exists because of mutual expectations built on trust, good confidence, and fair dealings in their interaction (Ferrell). When creating a strategic business plan the organization must incorporate its social responsibilities for the customer, and prevent any ethical dilemmas. reform examples that recently have captivated the news over the decade has been the exceedingly publicized cases of Waste Management, Enron, WorldCom, Tyco, HealthSouth, which exaggerated earnings to meet the expectations of stakeholders, Freddie Mac, AIG, Bernie Madoff, and host of others. These examples of write up fraud, manipulation of books, and stealing from clients made by top executives in the position to meet the expectations of stakeholders and not making ethically sound decisions.To prevent these scandals from occurring, downfall not only the organization, the employees but also the publ ics faith within the corporate world, according to research ethical risk prudence is an option dependent on the infrastructure in which it promotes ethical shoot and standards. The directives and the support from management in the way it manages potential problems with the lack of ethical standards. Because of the number of scandals not only have businesses implemented stronger measures for ethical practices but also have the legal systems. The establishment of theSarbanes-Oxley Act (SOX) in 2002, which came after the scandal of WorldCom, was because the number of major corporations collapsing under the weight of their own wrong practices. According to the SEC, the Act mandated a number of reforms to stir corporate responsibility, enhance financial disclosures and combat corporate and accounting fraud, and created the Public Company business relationship Oversight Board, also known as the PCAOB, to oversee the activities of the auditing profession (SEC, 2012). Ethics is a funda mental part of compliance and governance systems.Ethics explicitly should integrate into the elements of strategic planning in businesses. In determining the roles that gene into managing stakeholders interests ethically organizations must first take into consideration that the business is the first line of defense in taking responsibility for managing and supervising corporate responsibility effective in accordance with the level of influence the business set by the organization. Executives in a position to make it to stakeholders must always implement ethical decisions when balancing their needs and the organizations.The executives must be responsible in providing clarification and verification of ethical standards in place. The executives must drive the culture and work environment of compliance toward ethical standards and practices to ensure the effectiveness. Business ethics is important in every organization and the main responsibility is to act with integrity and honesty. References Ferrall, O. C. (2004). Business ethics and customer stakeholders. Academy of Management Executive, 18(2), retrieved from http//danielsethics. mgt. unm. edu/pdf/Customer Stakeholders.pdf. Bigelow, L. (2013). What are the social responsibilities of a company to its stakeholders? Hearst Newspapers, Retrieved from http//smallbusiness. chron. com Heathfield, S. (n. d. ). Inspirational quotes for business and work Integrity. Retrieved from http//humanresources. about. com Young, P. (2004). Ethics and risk management make a framework. Risk Management, 6(3), 23-34. Retrieved from http//www. jstor. org The Laws That Govern the Securities Industry. (2012). SEC. Retrieved from http//www. irmi. com/expert/articles/2005/head02. aspx.