Business Ethics

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  • Topic: Ethics, Board of directors, Corporate governance
  • Pages : 8 (3030 words )
  • Download(s) : 12
  • Published : January 23, 2013
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Business Ethics and Sustainability

Ethics” are the regulations of actions recognized in respect to a particular set of human actions or a particular group, civilization, etc. In other words ‘Ethics rationalizes morality to produce ethical theory that can be applied to any situation’ (Crane and Matten 2010, p. 8). The imperatives of usual managerial performance are so compelling that there is little time or proclivity to deflect attention to the moral content of organizational decision-making. Morality appears to be so cryptic and qualitative in nature that it lacks substantive relation to objective and quantitative performance. Ethical issues arise in a situation when an individual is required to choose between alternatives that must be evaluated as correct or incorrect. Businesses and industries more and more find themselves facing external stress to improve their moral track record. The stakeholders tend to focus on activities and ethical practice of multinationals or firms with ethical issues. The effective administration of ethical issues requires that their managers and workers know how to deal with ethical problems in their everyday work lives. Management academics are often viewed as ideologists in that they serve dominant groups through socialization in business schools, support managers with ideas and vocabularies for cultural-ideological control at the workplace level, and provide an aura of science to support the introduction and use of managerial techniques (Alvesson & Deetz 2005, p. 74). Therefore, directorial members must first realize some of the underlying reasons for the occurrence of immoral practices. When a Corporation and a Cooperative is concerned, there are a lot of similarities between the two. Both are business establishments that are created for the purposes of returns and are classified as an entity of limited liability. However, there are more differences among these two concepts than their similarities. A corporation legally conducts business. According to Shaw, Barry and Sansbury (2009, p. 179), a legalistic definition of a corporation would be something along the lines of: ‘A corporation is a thing that can endure beyond the natural lives of its members and that has incorporators who may sue and be sued as a unit and who are able to consign part of their property to the corporation for ventures of limited liability.’  Corporations subsist as a creation of corporate law, and their system balances the interests of the shareholders that invest their capital and the workforce who contribute their labor. A cooperative may be termed as a non-profit organization for the reason that it returns all the profits back to its members. The capitalist corporation that I chose is Microsoft Corporation. More than 95 percent of the world’s computers run on Microsoft’s Windows operating system. Microsoft’s worldwide reach is enormous with hundreds of millions of people using the company’s software programs. Microsoft products comprise Windows, Office applications including Word, Excel, and Access, Windows Server, web development tools, internet resources, and business solutions software. To capitalize on the lucrative gaming market, Microsoft developed the Xbox and currently challenges the market leader Sony with the new Xbox 360 console. Microsoft is headquartered in Redmond, Washington, U.S., with offices in another 60 countries. It employs approximately 71,170 people and earned more than US$16.5 billion in operating income today. Microsoft members completed an opinion poll, provided admittance to internal documentation and council of the organization were interviewed as part of the study. When Mondragon Cooperative Corporation (MCC) is considered, the corporation is totally capital intensive unlike the other firms which are labor intensive. The corporation has started when the British industry began declining. Mondragon lies in the Basque country of Northern Spain. It is a small village which...
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