Many businesses try to take a more ethical, caring approach in their business by providing considerate and flexible working hours, recycling their waste and carrying out their business in a correct and fair manner. (Freeman, 1984) also questioned the approach to ethics. He believed that it entails looking after each stakeholder – any person who is affected by or has an effect on the business. The Economical Approach - (Friedman, 1972) had a different approach and believes that ‘the social responsibility of an organisation is to maximise profits’. He believed that the shareholders should benefit from the organisation and the prime objective should be making a profit.
It was widely believed that the company's success and rapid growth could be attributed largely to its committed and motivated workforce. Starbucks cared about its employees and was one of the few companies in the retail sector to provide generous benefits to both full time workers as well as part timers. This ensured that employees remained motivated, and Starbucks had a relatively low employee turnover. However, in the early 2000s, the company faced the challenge of finding and retaining the right number and kind of employees to man its future growth. Starbucks realized early on that motivated and committed human resources were the key to the success of a retail business.
An example of this could be social security benefits. These motivations help the company recruit top level employees and increase their overall productivity. But this can be a trade-off as these benefits and rewards can be costly. Takeaway 2 - Corporate Culture, Human Resources, and Ethics Zappos is a great example of a company that has created a lively atmosphere for their workers through their casual working environment. But another takeaway is that this type of culture is not compatible with many companies.
There are businesses of different kinds and managed by different numbers of people For example:- » Sole proprietorship » Cooperatives » Partnership » Private limited Company » Public limited Company In business, like in every activity, advantages and disadvantages are part of its progress. Profits being the major goal and advantage, there are many other advantages of taking part in the art of business; but what are the disadvantages: 1) Violation of profit maximization: This is the essence of the classical viewpoint. Business is most socially responsible when it attends strictly to its economic interests and leaves other activities to other institutions. 2) Dilution of purpose: The pursuit of social goals dilutes business’s primary purpose: economic productivity. Society may suffer as both economic and social goals are poorly accomplished.
As industry becomes larger, businesses are forced to modernize to keep up with the competition. The extent to which a company modernizes is purely up to them, as each is forced to weigh the economic benefits and costs of industrialization. Often, when big companies take steps to become more efficient they lose the original culture of the business and/or people who have helped build it up. It is an unfortunate side effect that shouldn't be taken lightly. I believe, and there is evidence to suggest, that moral tradition is important in having a successful business, especially when a business revolves largely around the culture of the people.
The code of ethics leaders use determines discipline procedures and the acceptable behavior for all workers in an organization. When leaders have high ethical standards, it encourages workers in the organization to meet that same level. Ethical leadership also enhances the company’s reputation in the financial market and community. A solid reputation for ethics and integrity in the community may improve the company’s business. Employee Ethics Ethical behavior among workers in an organization ensures that employees complete work with honesty and integrity.
And for companies to accept the fact that you have to spend money to make money. Ethics at times get confused with etiquette. Etiquette is the values that are related to human behavior and ethics is values that are related to human conduct. I believe that etiquette should be a part of ethics. Morality should be a part of ethics also.
Ethics in business are not just a passing fad. Ethics are foundation of any business. Ethics are the values that you invest in a business. When your organisation is ethical the employees in the organisation feel motivated to work in the organisation. I visited a company in which the main motto of their company in their mission statement was "To deliver value products and services to customers NOT under any cost."
I support this claim that “customer is always right” . First of all of the definition or the meaning of “customer is always right” is a standard process that states a company's willingness to be seen to put the customer first. It applies to everyone outside the business organization. Customer’s choices are to be respected because each person has an independent entity, with the individual wants and needs. These are the people who have the influence to maintain you in the business or to kick you out from the business.
7 Principles of Admirable Business Ethics 1. Be Trustful: Recognize customers want to do business with a company they can trust; when trust is at the core of a company, it's easy to recognize. Trust defined, is assured reliance on the character, ability, strength, and truth of a business. 2. Keep An Open Mind: For continuous improvement of a company, the leader of an organization must be open to new ideas.