(Critical Analysis Template)
Name: Jasper Esmalla Class: BUSI 560Section: Spring 2011
Critical Analysis Topic: Business Ethics and the Real Estate
◆ Defined as the standard by which one judges between moral right and wrong (Lawrence & Weber, 2011). o Covers every area in the business:
- Accounting and financial responsibility
- Marketing and advertising
- Information Technology
◆ Is the application of ethical ideas in the business world. ◆ The purpose is to provide guidance to managers and employees to follow company policies and societal laws. ◆ Ethical policies and codes can enhance the business’ identity and reputation in the community (Argenti, 2009). ◆ Is vital to the success of big corporations and non-profit organizations as well as start-up businesses. ◆ Can be demonstrated through corporate responsibility and corporate citizenship. ◆ Are a valuable advantage to attain positive company recognition and presents managers and employees with a positive structure.
◆ Businesses have an ethical obligation to operate in a manner to obey the law (Friedman, 2000). ◆ Generally accepted practice of businesses due to the legal ramifications of unethical acts. ◆ Companies and businesses increasingly recognize the importance of ethics and reputation to achieve business goals and stay competitive in the global market. ◆ Every company must employ and practice legal and truthful advertising (Pivar, 159-164). ◆ Without ethics, there are truly no boundaries and disaster can lead to financial ruin (Dunham, Walczak, Carney, & Woellert, 2002). ◆ Personal values and character can affect the company’s ethical culture and vice versa. ◆ Courtesy and consideration should form the basis of ethical conduct (Vajda, 2008).
◆ Unethical practices are governed by different entities: o The Copyright Act (Bagley & Savage, 2006)
o The Civil Rights Act
o Patent and Trademark Office
o The Equal Pay Act
o The Organization for Economic Cooperation and Development (OECD) (Thompson & Thompson Law, 2010) o The Federal Trademark Act
◆ Companies may run the risk of losing customers and clients if they act unethically. ◆ Corporate responsibility was started due to a series of corporate scandals that was discovered in the 1980s and 1990s (Slaughter, n.d.). ◆ Improve corporate image versus the sales focused drive. ◆ Deter others from copying valuable assets.
◆ Customer leaves with a very good impression of the company’s managers and its employees. ◆ Prevents discrimination of any kind (Smith & Charles, 2009). ◆ Prevents deceptive and unfair business and competition practices. ◆ Avoids fraudulent marketing and advertising activity
◆ Protects consumers from misleading offers, untruths or concealment, and betrayal of confidence. ◆ Maintain positive values and character of the companies’ employees ◆ Fall of big companies due to unethical acts (Connor, 2010): o Enron
o Merrill Lynch
o Countrywide Financial
o Lehman Brothers
◆ Contributors of Ethical Standards:
o Board of Directors of the National Association of Realtors (NAR, 2011) o David Findley of Partners Trust (Findley, 2010)
- Co-founded Partners Trust who delivers unmatched ethical real estate business operation - Empowered member of his sales force to commit to rigorous ethical standards - Oversaw complaints and violations of Realtors Code of Ethics as Chairman of the Grievance Committee o David Neeleman and JetBlue on the crisis on February 14, 2007 - Corrected mistakes uncovered by the 2007 crisis (JetBlue, 2007) - Compensated passengers due to failure of meeting certain service levels (Bailey, 2007) - Top priorities continue to include safety and customer service - Employees’ positive character and attitudes helped out...