Impact Of Business Ethics On Shareholders, Stakeholders, Customers & Clients
Read all of the following nine questions in Parts A, B, and C before beginning this project.
Write a paper addressing the following questions and reflections. The paper should be no more than 20 pages double-spaced (approximately 5,000 words) and should include examples from your journalling activities.
Part A: Stakeholders and Interrelationships
Describe how the activities influenced your awareness and understanding of the interrelationship between business and society. Use examples from your activities in each of the modules to support this answer.
Using examples from your activities, describe the challenges of dealing with the conflicts and/or confluence of stakeholder needs, wants, expectations, and perspectives. Identify whose perspective you are representing in each of your examples. List examples of some of the ramifications of ignoring or improperly addressing stakeholder interests.
Comment on how the use of “circles of reflection” can affect your perspective of an issue or situation. Cite examples from your activities to demonstrate how use of the circles of reflection affected your analysis.
Part B: Forces and Influences
Comment on how business ethics and social responsibility relate to some of the internal and external forces in business and society that we discussed in this course. Review activities in Modules 3 and 4, as well as Module 2, for examples.
Describe how the readings and journalling activities influenced your views on workplace ethics and corporate social responsibility. Did you have a shift in your perspective? Do you consider ethics and/or corporate social responsibility to be important to business and society today? Explain your answer, and use examples from the activities.
Comment on the interrelationship between external forces such as globalization, economics, technology, and the environment, and internal influences on business and society including governance and corporate citizenship (CSR), consumer protection, employee rights and responsibilities, and workplace diversity. Remember to support your argument with multiple examples such as sample journal entries, and readings.
Is the government an external force, an internal force, a stakeholder, or all of the above? Using examples from your activities, comment on the government’s role in business and society.
Part C: Final Reflection
Comment on how journaling activities helped you recognize the real or potential impact of stakeholder biases as well as your own biases. How do biases or differing perspectives influence the media, public opinion, and decision-making in business and society? Use examples from your activities to support your commentary.
Describe the most significant learning for you were and explain why.
According to Werhane (2019), business ethics is referred to as the implementation of proper practices and policies of business in regards with the arguable and controversial subjects. Some of the issues, which come up within the discussion for the ethics, tend to involve the corporate governance along with insider trading; social responsibility, bribery, fiduciary responsibilities and discrimination as well. This is mainly considered as a set of some moral rules which governs the way businesses operate along with the way the decisions are made along with the way people are known to be treated. Hence, the present study emphasizes within the context of business ethics highlighting different people such as shareholders; stakeholders; customers and clients as well along with focusing within the business and the society.
Part A: Stakeholders and interrelationships
Activities influencing the awareness and understanding for the interrelationship within society and business
It has been evidenced by Ferrell, Harrison, Ferrell & Hair (2019), that businesses are the subset for the society and different businesses, which operate within a society tend to play a proper role for the functioning of the society as per diverse ways. For instance, businesses are found to provide employment for a larger number of people and huge organisations also contribute towards the society within the form of CSR activities. As per my understanding, this indicates that both the businesses and society are interdependent within each other as they tend to rely within themselves regarding their basic functioning. It has been observed that the businesses are using the resources of the society and there are different duties that exist such as planting of the trees along with the maintenance of stadiums and parks, which are referred to as the socio-economic responsibilities and then come the society as well.
For instance, I came to know of a performance gap within tobacco industry, while exploring materials in relevance to assignment 1 that has been known to exist within the business corporations along with the stakeholders while the corporations are found to carry out the operations in the contrary towards the expectations for the stakeholders. On the other hand, as opined by Ciulla (2020), it has also been evidenced that the geophysical environment has been concerned with the way the society and the businesses influences the environment. This has led to the example of Coca-Cola Company, which has influenced it negatively for the stakeholders because of the unethical water usage. According to my findings, this led to loss of sales and brand repute for the company, which helped me understand the importance for big companies to behave responsibly towards the society and the customers. Nevertheless, the company has been found to respond in a proper way for the activity related to performance expectation gap. TCCC was known to respond in a proper way through bringing together different stakeholders who are interested within the issue while discussing the way for solving conflicts. From the activities, I understood that businesses are mainly expected for creating employment and wealth whereas; the society is expected for providing a conducive environment regarding the businesses for flourishing. This indicates that the ethical standards and the value that is adopted by an organisation present the longer term assets for the companies.
Challenge of dealing with the conflicts for wants; needs; perspective and expectations of the stakeholders
De Bakker, Rasche & Ponte (2019), stated that diversity is seen as a different aspect, which exists within the people that in turn, differentiates them through one another, has observed it. Within the workplace, different people who are considered to be tasked for undertaking the responsibility are known to be different in other ways. There is also a difference within the unauthorised immigrants along with the diversity, which is considered as it exists under law. On the other hand, there are also stakeholders who exist and are mostly hurt when any organisation is seen to hire the unauthorised employees in the first place by the shareholders as the organisation might get negative publicity as the hired employees do not deserve to be hired. According to my perspective, conflict within the stakeholders arises when the requirements based on some of the groups of stakeholders tends to compromise the expectations of the other people. As per my experience, stakeholders expect the businesses to make enough profit along with receiving a return for their investment and on the contrary, employees need good conditions of working while being retained.
It has been evidenced from assignment 3 that businesses exist within the society for making profits and a business is known to consist of various stakeholders whose interest needs to be met most of the organisations are ought for engaging within the CSR responsibilities however, they are not found to earn any profit directed to the firm (Bull and Ridley-Duff, 2019). Most of the businesses are known to participate within the social responsibilities for influencing the positive development within the locality of the organisations, which have been situated. This type of motivation is known to be the desire for the creation of better conditions of living, which encourages development and growth within various stakeholders. Nevertheless, customers are also known to play an important role to be the stakeholders for the business where the organisations should also meet with the diverse expectations for the customers. Hence, as per my view, beside the differences within culture, an universal ethical set needs to be developed as most of the ethical standards are considered within the similar aspects across the world. The respective aspects are known to be justice; rights; utilitarianism and virtues as well (Ciulla, 2020). Hence, the regards towards these factors have been relatively similar over the world while making it possible as per the adoption for a universal set of ethics. Thus, as per my opinion, the approach of the rights has been concerned with the protection for a basic right of humans along with the rights of others as well as the privileges that are provided to the different stakeholders within businesses.
Circles of reflection affecting the perspective of a situation
It has been majorly observed that a company is made up of different stakeholders where each of the concerns within a company consists of some of the concerns within relation to the stakeholders. The circle of reflection is considered as a method for visual representation for the influence based on the stakeholders while contributing directly or rather indirectly along with defining the impact for the stakeholder’s issue. As put forward by Liu, Mai & MacDonald (2019), the circles of reflection is referred to as a powerful approach for reflecting upon some of the results for different issues along with the way they can impact their partners, government, society, people, associations and similar others. Within this circle, the inner circle defines individuals and the family along with their perspective in accordance to the issue. However, the next circle is considered as the reflection for an organisation within an issue. When gone further, the respective sphere becomes much broader along with their perspective as well as the impact that are shown for the respective circles. The global impacts based on the issues are known to be insignificant. For instance, the typhoons and flood in the countries can elicit the concern related to well being of the people however, when people have their family and relatives within a particular region, these natural disasters do not impact the family members.
Figure 1: Circle of Reflection
Source: (Ciulla, 2020)
Nevertheless, there is another global issue like climate change, which might have a widespread impact across the world, along with the influence within weather for the hometown or rather the influence for livelihood for some of the indirect and direct ways. Hence, the circles of reflection are mainly concerned for supporting the leadership power. Thus, as per my views, as the stakeholders are known to be interrelated, most of the businesses along with other companies are also interconnected for being a bigger part of the big circle. Hence, as per the views of David and James (2019), being aware of this along with enhancing participation for listening to every individual group of stakeholders might help in opening my mind along with compromising another perspective for things.
Part B: Forces and Influences
Relation of ethics and social responsibility for external and internal forces
According to me, ethics can be referred to as a conception of wrong and right behaviour however; the business ethics on the other hand has been the application for a general and ethical idea regarding the business behaviour. On the other hand, social responsibility is considered as a moral structure along with proposing the entity rather an individual or an organisation, which has the commitment for representing the societal benefits. This indicates that social responsibility and ethics are generally applied for some of the external and internal forces along with society and business as well (Ciulla, 2020). There are some dynamic forces which impact the society and the business and include changing desires of ethics, economy, globalisation, social responsibility and advancement within the world economy as well. This type of social responsibility for any businesses, tends to incorporate the environmental concerns, natural resources, business concerns and innovation as well. However, there are certain elements that essentially put pressure within the managers for taking some of the ethical decisions.
For instance, the impact of clean stoves within the issues of global environment has been studied in the modules, which have been known to involve the depletion of ozone; declination of biodiversity; threats and climate change as well. However, it has been evidenced that implementation of clean stoves were not able to address the environmental issue based on global warming along with the depletion of ozone. However, as stated by Brenkert (2019), the impact of clean stoves within poverty and economic development has also been studied. It has been seen that economic development along with the issues of poverty centres within the economic inequity across the world. Because of such economic injustice; a huge portion based on the human population which never obtained a fair share for economic; technological and the societal advancements that are acquired through all human beings together. The external and internal influence of the factors has been considered for the organisation of HP while implementing the CSR. The external factors involved the cost of operation; demands of the customers; pressure through the international bodies and similar others. On the other hand, according to Visser (2019), the internal influences were known to involve the requirement for increasing profit; and the policies of the organisation.
Personal code of ethics: This is known to be personal for an individual who is considered as a thing such as the moral that eventually leads to a responsible element impacting the behaviour.
Rules and regulations of government: The law is known to support the directions of the government related to the working conditions; security of the products and statutory cautioning as well. This is known to provide some rules for the business chiefs for finding whatever the perceived and sufficient practices and gauges.
Legislation: This indicates the government interference along with enacting the laws based on the businessmen to take any ethical decisions.
Social forces: These pressures consist of an extensive impact within the ethics of the businesses (Dierksmeier & Seele, 2020). However, the supplies of the organisation along with the products that are substandard are involved within an unethical behaviour; the customers are also found to be distinctly indifferent to the organisation.
Globalisation: Globalisation is known to put enormous pressure within the organisations for moving their boundaries along with incrementing worldwide images. However, it tends to imply the spreading of the philosophies; business and innovation that needs to be joined through some of the values along with morals. As per different nations along with the societies consists of distinctive values like this, within the business trade, the traditions and the values are known to be conflicted or rather exchanged.
The way journaling and reading activities influence the CSR activities and workplace ethics
The present section mainly focuses upon the business organisations being a stakeholder within its environment along with examining the corporation concept as an entity to be socially responsible and is conscious of the influences which it has within the society (Purwanto, Mukharrom, Zhilyakov, Pamuji & Shankar, 2019). Hence, corporations, through their sheer size, tend to affect the national; local; regional along with global communities. However, creation of a positive outcome within the respective communities might resemble to provide the jobs while strengthening the economies and driving innovation as well. On the other hand, the negative impacts might involve damaging the environment while forcing the smaller competitors along with offering the poor service of the customers (Yang, Wang, Zhou & Jiang, 2019). Thus, according to my perception, CSR within its ideal form, tends to emphasize within the managers for demonstrating a social good for new endeavours and products. As per my understanding, it can also be framed being a response for the backlash corporations regarding a longer tracking record for harming the environments as well as the communities for the efforts to be much more profitable and efficient as well. Thus, I have identified that the concept based on ethical responsibility is to do with certain issues along with problems, which are pertaining to the people’s loyalty of the business for their companies along with the customers (Harris, Lang, Yates & Kruck, 2019). However, the social responsibility also consists of concerns for the issues; needs and interests regarding the society.
This defines that ethics are referred to as the moral principle, which governs an individual’s moral behaviour along with the business ethics which are considered as the moral conduct and values that eventually needs to be followed for proper work. Each and every company comprises a set for the code of conduct along with responsibilities which everyone needs to maintain within their workplace that is discipline. The workplace ethics is considered as a significant term while coming within the business and is done through the development of principles; rules along with values where the people can base their conduct. As evidenced from the assignment, business corporations are found to exist within an established environment that is identified through the requirements of government along with the ethical standards which already exist within the host country. As opined by Mea and Sims (2019), this makes the organisations for not having any right for influencing the ethics that are applicable within the country. Nevertheless, the respective corporations have been instrumental for refining the ethical standards within the business environment across the world. Thus, they might have a moral responsibility for positively influencing the standards that are used within the host country. The international corporations are also found to influence in a positive way within the ethical standards of the business. These types of standards are known to dictate an acceptable standard for business operation along with being universally acceptable.
On the other hand, utilitarian approach was considered within the performed activities of the assignments where issues have been judged as per the costs that are incurred along with the benefits accrued within the process. As argued by Ka?erauskas (2019), for the present business; decisions and activities, which only benefit some of the stakeholders along with the cost whereas; the other stakeholders are known to be unethical. A case of HIV patients have also been put forward within the developing countries along with accessing the organisations and drugs that include the drug production which might be judged with the use of the present approach through analysing the benefits and costs that are involved. Thus, as per my view, being a socially responsible organisation might bolster the image of an organisation along with building its brand. Social responsibility can eventually empower the employees for leveraging corporate resources within the disposal for performing well. The formal CSR programs are also able to boost the morale of the employees along with leading towards a greater productivity within the workforce.
Interrelationship within external forces and internal influences within business and society
It has been observed that the internal influences are summed up and can also be recognised for being an influence which a business might control whereas; external influences are known to be particular factors which cannot be controlled by the business (Khan and Naguib, 2019). According to my opinion, the interrelationship within these two factors indicates that the external environmental factors are considered to be the events which take place outside the organisation along with being harder for controlling and predicting. While, the internal factors are known to be the events that tend to occur within a company, which are known to be much easier for controlling as compared with the external environment.
Globalisation: It is referred to as the changes of the world where most of the companies and individuals are found to move away through the self containing countries and going towards the integrated world (Freudenreich, Lüdeke-Freund & Schaltegger, 2019). Hence, globalisation within business is considered to be the change for a business through an organisation while being related to a single country for one that can operate within multiple countries.
Economics: The economic factors are known to involve things such as stronger economic cycles of growth along with confidence of the customers; recessions and other indicators of economies as well as the rates of interest and the strength within the financial market.
Technology: Technology is known to impact the ability of an organisation for communicating with the customers. The fast shipments options are known to allow most of the businesses for moving products across a larger and geographic area (Remišová, Lašáková & Kirchmayer, 2019). When the customers are found to use the technology for interacting with the business, most of the businesses are known to benefit due to better communication, which eventually creates a stronger image in the public.
Environment: The geographical as well as ecological factors tend to exert the influence within the decisions for different industries along with the business for being carried out within a particular region (Morsing and Spence, 2019). This happens due to the people for a specific region of geography, which comprises similar preferences; tastes as well as requirements.
Governance: It has the ability to change the way of working for the businesses along with influencing the economy either through passing the laws or through the change of its own taxes and spending as well. For instance, extra spending of the government along with lowering the taxes might result in more and more demands within the economy along with leading towards a higher output as well as employment. However, as stated by Thorpe and Roper (2019), corporate governance affords certain rules; policies for dictating the corporate behaviour where shareholders are known to have greater influence for these respective decisions.
CSR activities: Through these programs as well as the volunteer effort, most of the businesses are able to benefit the society while boosting their own brands. The CSR activities are also known to help forge a stronger bond within the corporations and the employees along with boosting morale, which can eventually help in both the employers, and the employees for being connected across the world.
Workplace diversity: When the organisations are found to hire a much more diverse workforce through all the backgrounds, the respective employees are known to inevitably bring their own skills which might often be diverse. Thus, diversity within cultures tends to mean diversity within skills along with the service and the products that have been offered (Ocak, Köseoglu & Yildiz, 2020). This can in turn, improve the organisational culture along with attracting a better talent.
For instance, it has been observed from the activity where the internal and external influences of the organisation, HP were considered. The internal factors have been known to influence the decision making of HP. It has been observed that technology drives HP within the quest for creating a technological world where it has planned for reducing the price of the goods for making it affordable for most of the consumers. The respective initiative can also allow the organisation to act within the remote places for gaining access for the network along with making it better. Thus, HP has been found to improve the levels of technology and internet within various nations and is still known to be doing it through opening most of the new outlets for various countries.
Role of the government in society and business
The role of government within the business involves protecting the customers. On the other hand, the U.S is known to make advances within the rights of the customers for the decades. Nevertheless, as opposed by Brieger, Terjesen, Hechavarría & Welzel (2019), the movement of the customers still needs a considerable development for protecting the public. According to me, participants within the business's needs to respond to the external forces where the government actions also play a significant role. For instance, the regulation; policies and the legislation along with tex code all are known to impact the businesses along with their external and internal stakeholders. For instance, it has been observed from the assignment that each and every organisation comprises an internal government which tends to formulate the policies for running the operations. On the other hand, systems are made for acting towards the guidelines of the major goals that make profit. The CSR responsibilities also serve as the consideration for the plans that are made. It has been evidenced from the case study of HP that provisions for the hand skills towards the youth ensures the economy that is developed along with the government for earning revenues (de Graaf, 2019). The respective program is known to serve as a process for killing the immorality along with the drug intake within that time which might have been spent idle and is now consumed through the work.
Nevertheless, the internal stakeholders are found to be the groups or rather the individuals who directly or rather financially are involved within the operational processes. On the other hand, the external stakeholders are also found to indirectly be influenced through the operations of the organisation. The internal stakeholders are known to be the managers and the employees along with the owners. The stakeholders are known to provide the goals of the management board along with the strategies and thus need the leadership of the organisations for running the key decisions through them involving the concerning goals of finance; lines of new products; brand management and acquisitions as well (Edwards, 2019). Thus, I have identified that the government regulation within the state and the financial levels comprise a major impact for the way businesses tend to operate. It has also managed the activities of the businesses in the levels that have created different regulatory acts and agencies.
Part C: Final reflection
Biases or differing perspectives influencing the public opinion; media and decision making within society and business
As stated in the above discussion, I have evidenced that beside the existence based on the differences in culture across the world, it is known to be possible for developing universal ethics. This might be due to the ethical standards that are dependent within similar aspects such as justice; rights; utilitarianism and virtues as well. This tends to regard the factors that have been relatively similar for the world to make it possible regarding the adoption of universal ethics. The approach of the rights was concerned with the protection for a basic right of humans along with the other rights as well as privileges that are provided to different stakeholders. However, I have also seen in the assignment that the utilitarian approach for ethics is dependent within the benefits and the costs that are involved within various decisions of the businesses. Over the respective approach, the most ethical decision of business is considered as which realizes the higher benefits for most of the stakeholders that are included to result within a least cost (Kumar, Mathiyazhagan & Mathivathanan, 2020). However, the right approach has also been observed by me within the ethical issues which are considered within the rights of the stakeholders who have been involved. The business decisions are found to be ethical when they provide for along with the protection of those rights for the stakeholders who are involved within the issue.
The knowledge, which I have gained through the present course along with the activities that are influenced by me, has been the treatment along with stronger relationships within the core stakeholders that is eventually considered as a key for the businesses to grow. Bias is known to be the term to support or rather opposes any statement which is seen to be unfair due to allowing the personal opinions for influencing any kind of judgement. As stated by Peters (2019), bias cannot be dispensed and can also be recognised and alleviated for the introduction and examination of proof. My exploration regarding various activities of the assignments and various cases provided me with much more data related to the media job that affected the view points.
As per the case of Mercks Vioxx where it has been read about the lives of different individuals affected through the media. The organisation was known to publicize the prescription besides illuminating the shoppers related to the symptoms based on medication due to the way through which it promotes and the customers are also known to have a positive picture for the company and they were also found to accept whatever was heard by them. This had in turn, brought different heart issues along with heart assaults. This has prompted a wrong leadership due to the wrong data where this bias tends to assume the significant job within the business morals for going in a reason regarding the basic leadership. On the contrary, as put forward by Dahlan (2019), it has also, likewise, delineated about the media that have the ability for making positive conditions as well. However, some of the cognitive biases are mentioned below:
Contextual biases: These are known to occur when the decision of an individual is known to be influenced through extraneous information that does not require drawing any of the conclusions. For instance, an examiner of fingerprint which is received as a file considering the case summary and prints might be much more likely for finding its match as compared to an analyst who is known to receive no case information.
Selection bias: This is mainly referred to as a statistical bias where the analyst is known to fail for making proper decisions within the selection of an individual or rather a sample through the greater population. This tends to erode the statistical conclusion of the analysts through destroying the assumptions for random sampling. For example, within the crime scene, an investigator is considered to collect the evidence (Khodaei and Ortt, 2019). Thus, for the present scenario, the case of unauthorised immigrants is an instance for bias where the organisations were found to hire some of the unauthorised employees regarding saving extra taxes and money as well.
Confirmation bias: This has been considered as a tendency for the decision makers to provide evidence which favours the hypothesis which devalues the evidence which contradicts it. This has also occurred within Chiquita brands which were seen to support the organisation by the partners along with unlawful gatherings through providing a reason for organisational safety along with the workers which have resulted in being an adverse influence.
Expectation bias: This generally occurs when people are known to pore-maturely go within a conclusion besides being examined for the available evidence along with conducting any thorough examination (Roca-Puig, 2019). For instance, within the investigations of arso, the examiners were found to come within the conclusion as per the eye witness that tends to account rather than totally inspecting the scene of crime. Within the case of Merck's Vioxx, most of the people were found to buy the product through seeing any of the advertisement rather than making use of the actual medicine.
Explanation and justification of most significant learning for the present course
Based on the respective course, I have identified a viewpoint regarding the real significance for the morals of the business along with the corporate and social obligation as well. According to me, CSR is known to be significant for each and every organisation along with the employees and the non-profit terms as well. The respective efforts are found to range through the donation of money towards the non-profits for the adoption of environmental friendly policies within the workplace. I have observed that the business morals and CSRs are known to consist of the ability for ensuring the picture of the organisation (Crifo, Escrig-Olmedo & Mottis, 2019). Each of the businesses who tends to get through opposition should be kept in view for the corporate social duty as these days are achieving benefit which is not considered as the major thought process for the business. However, the best companies are considered as which keeps their adding and productivity for the society to be socially mindful. There is also another advantage for the corporate social responsibility and the business morals which is a sustainable development within the light for the respective fact which is through the business endeavours for returning back the resources for the society regarding another sensible shape.
CSR and business morals have been related within each other as both tend to identify with the moral dimensions regarding beneficial associations along with the business activities (Lin, McKenna, Ho & Shen, 2019). This is applied for the appropriation; generation; deal of promotion while utilising the ventures and the products. This is also known to implement questionable issues such as insider trading; discrimination and bribery. Considering everything, according to my perception, the present course has been exceptionally useful through reinforcing the significant parts based on the business. This causes the companies to be developed internationally along with keeping up with qualities; standards and gauges for the companies too. In addition to that, as stated by Scheidler, Edinger-Schons, Spanjol & Wieseke (2019), the CSR responsibilities are also seen to pay back its incentives for the business when the organisations are known to step up related to the society welfare, streamlining the sources for reasonable development along with endeavours for paying back the resources for the society. Moreover, they also make positive picture as per their buyers along with various other parties such as stakeholders and the shareholders.
To conclude, the present study has emphasized within the ethical standards of the business both nationally and internationally highlighting the stakeholders along with external and internal influence within the organisations. However, several examples have been considered from the previous modules based on ethical standards of business outlining the interrelationship within society and business. On the other hand, a circle of reflection has also been considered in the present study along with forces and influences within the society and the business focusing on Corporate Social Responsibility. Reflection has also been provided in the above discussion regarding the impact based on stakeholder biases.
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