Question

“The Six Pillars of Character are the core ethical values of CHARACTER COUNTS! Articulated in the Aspen Declaration, these values were identified by a nonpartisan, nonsectarian (secular) group of youth development experts in 1992 as “core ethical values that transcend cultural, religious and socioeconomic differences” (Character Counts, n.d.) Consider the following questions from a biblical perspective. Include that perspective in your responses by incorporating scriptural concepts, references, examples, or illustrations in support of your responses. Complete the assignment by writing a paper that responds to the following: Explain the advantages of business ethics. What do you think management's role should be in setting ethical standards? Tip for Success: Although this question asks “What do you think?”, it is important to remember that your opinion should be presented as fact backed by research (that is, by having the research that support your opinion. Doing so will build a much stronger paper. What is social responsibility? In what ways can demonstrating social responsibility be positive for a business? What responsibilities do corporations have to their stakeholders, such as stockholders, employees, and customers?

Answer 1

Ethics or moral principles involves the right and wrong conduct of a person or society. It also describes what is morally right and what is wrong that is the moral principles.It directs human behaviour. It describes what are our belief, how we behave and create the workd and live our life based on the right and wrong things.

For example:

• An individual should not use other person for his/her benefit.
• A person should not support any unlawful activity by another person even if the latter is a family member, friend or relative.

Human beings can make conscious and ethical decisions which separates them from other living beings. Ethical people have what philosopher Thomas Aquinas called a ‘well-informed conscience’. They live what Socrates called ‘an examined life’ – a life particularly associated with being human.

Business Ethics

Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual”s actions also apply to business and the business activities. Ethical business practice involves distinguishing between "right" and "wrong" and then making the right choice.

For example : Advertising alcohol and tobacco products is against the law in some countries like India. So a company should not advertisie any such related products.

Advantages of Business Ethics

• Risk mitigation and sustainability: A business which knows about what is right and what is wrong and which follows all the laws and regulations can easily survive in the long term and no party can complain against its ethical practices. Thus there is no risk of shutdown by any law.

Other advantages are:

• Competitive Advantage against other unethical companies.
• Increase in profit and shareholder wealth.
• Customer confidence and retention.
• Brand loyalty and customer trust.
• Benefit to the society as a whole due to corporate social responsibility.

Role of management in setting ethical standards

The management of a company takes all the important decisons in a company. It is the role of management to consider all the ethical and unethical practices in any business environment and choose wisely what is right for the company.

the management should not follow any unethical practice for the sake of revenue growth and profitability. Unethical practices seems to make profit in the short term but they are the major risk to any company. A company should understand all the stakeholders benefits inter alia. Therefore, the management should wisely choose the practices which benefits the shareholders as well as the stakeholders.

SOCIAL RESPONSIBILTY

A company also has wider responsibilities. It takes resources from the country or region where it operates. There should be mutual benefit to the company as well as the country. It should minimise any harm to the environment and work in ways that do not damage the communities in which it operates. This is known as corporate social responsibility (CSR). A firm should also give something in return to the country from which it is taking resources is the basis for corporate social responsibility.

Benefits of CSR to companies include: better brand recognition. positive business reputation. increased sales and customer loyalty.

Responsibilities that corporations have to their stakeholders, such as stockholders, employees, and customers

Stockholders: The company should put all its efforts for profitability and shareholders wealth maximization in an ethical way.

Employees: The company should keep in mind the interest of the employees and the workforce. Understanding personal goals of the employee helps the manager to motivate the employee and use its hidden potential. Employee grievances should be addressed timely and accurately.

Customers: The company should understand the needs and wants of the customers and satisfy them in an ethical way. By no means the interest of the consumers are harmed for the sake of increasing sales and profit. It is the responsibility of the company to treat all the customers equally in a proper and efficient manner without causing any loss to the society by its activities.