Business ethics Essay Example for Free

cable morals tasteIn billet there will always be the railway line to act with integrity or to lie, cheat, and steal. Famous author Douglas Adams once said, To give real service you essential add something which cannot be bought or measured with money, and that is sincerity and integrity (Heathfield, n. d). The priority of any occupancy is to serve the needs and wants of the customer and more(prenominal) important his or her stakeholders. Any business decision made in major corporations must line up with stakeholders interests, but more important stakeholders have the cordial function to represent in the best interest of the entire corporation. The prevalence of so many major scandals with corporations caught in the public is displace much needed attention on concepts of ethic, and social responsibility. estimable motive and collective responsibility is a leave application of the ideas of in business practice. This papers purpose is to explain the role of morality a nd social responsibility in building a strategic plan while incorporating the stakeholder interests. Business execs have the responsibility to adhering to the mute ethics they have only not taught but withal have enforced by hostel and the law.Ethics are inherently common sense decisions made by those in authority with the motive to affect an entire organization. When, business executives make decisions they must consider business ethics and the organizations (stakeholders) appraises. Once the natural questions ask is, Do the organizations values reflect accepted society values? (Young, 2004) Business executives must execute strategic business plans where they take into account not only each value associated with each choice, but 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 generally to increase pelf this is echoed by economist Milton Friedman, the one and only one so cial responsibility of business is to increase its profits, presumptuous an honest and open marketplace. (Bigelow, 2013), According to Friedman also that corporations owe no responsibilities to society. However, critics will disagree 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 influence within the company. Their social responsibility is to the customers and to the employees (Jones, 2012). They have decision power, and ultimate control over allocation of resources. Corporations and organizations ultimately exist to get together 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 ethically accountability and what is considered against the law.The organizations obligation to the stakeho lder is as much as a priority as the family to the public. The relationship between a customer and a firm exists because of mutual expectations built on trust, full(a) faith, and fair dealing 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.Clear examples that recently have captivated the give-and-take over the decade has been the highly 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 story fraud, manipulation of books, and stealing from clients made by top executives in the position to meet the expectations of stakeholders and not fashioning ethically sound decisions.To prevent these scandals from occurring, ruining not only the organization, the employees but also the publics fai th within the corporate world, according to research ethical risk management is an option hooked on the infrastructure in which it promotes ethical conduct and standards. The directives and the support from management in the way it manages probable 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 at a lower place the weight of their own unethical practices. According to the SEC, the Act mandated a number of reforms to rise corporate responsibility, enhance financial disclosures and combat corporate and accounting fraud, and created the Public Company Accounting Oversight Board, also cognise as the PCAOB, to oversee the activities of the auditing profession (SEC, 2012). Ethics is a fundam ental part of compliance and governance systems.Ethics explicitly should integrate into the elements of strategic planning in businesses. In determining the roles that factor into managing stakeholders interests ethically organizations must first take into consideration that the business is the first line of defense in fetching 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 communicate 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 hon esty. 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 Building 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.