Business Law and Ethics

Only available on StudyMode
  • Download(s) : 115
  • Published : November 9, 2010
Open Document
Text Preview
Business Law and ethics


The objective of this report is to highlight the importance and need of ethics, ethical leadership and organisation behaviour. The report is based on the speech of Michael Hackworth.

Leadership in fairness and honesty makes good business sense.

Organisation behaviours, culture, values, management style and ethics, all of them make a combination on which company success and failure depends. Every company in the world start by stating the mission, objectives, values, belief and structure. Every part of it influences each other. It is very difficult to maintain balance between them. Michael Hackworth express that top management some time ignore the ethics and ethical boundaries which significantly affect employee behaviour and organisational culture. Peer and Schlabach 2007, states in their book that the idea of ethical organisation does have its advantages, which is one dimensional. It assumes that organisation should be run ethically and must have ethically heroes who hold and have courage to take stand in case of doubtful facts and influences from peer or from organisation. A strong and effective leadership enforce shared values, commitment to the organisational values, honest and fair mechanism. Organisation leadership should be required to stick on to the highest standards. Oshagbemi and Gill 2003 explain in their research that Traditionally it was recognised that leadership at top level of management plays an important role, but the recent research on leadership levels disclosed that the recognition, involvement in decision making and development of leaders at all level of hierarchy enhance organisation success and improve efficiency and effectiveness. (Lowe et al, 1996) Managers involves subordinate in solving problems in order to obtain their views and then make decision by him. Such involvement boosts the morale of employees and keeps them motivated. Mangers should tend to reach on consensus by involving everyone affected by the decision. (John 2007) Organisation run by its mission statement and top management define culture, values and belief for the organisation. The address of Michael Hackworth is focusing values, ethics and leadership and put importance on having ethical leadership and ethical decision making.

Good ethics in good business:

The role of ethics in business is not only considered the general sense, but also business sense as well. Ethics apply in every field of business from sole proprietorship to large manufacturing companies. Most of people elevate misery whenever they find bad service or are overpriced for a particular product. But the majority of people do not feel their responsibility to make any kind of complain among those people who are involved in these bad activities. The role of integrity and value are really playing an important role now a day in this fast growing world, especially for long term businesses. Because when become successful in order to win the believe of customers on their products or company, due to their, honesty, respect, coordination and after sale services while considering the ethical consideration and according to company rules and regulations, then customer becomes loyal towards that particular companies due to their service and quality standards. Michael Hackworth, CEO of Aspirin Corp also commented that ethical leadership saves money. By way similarity, think about the excellence in business. Because if a company sell defective products to its customers, and when this defects came into the knowledge of customer. Then, one company loose believe and image from customer and loose the customer as well which ultimately increase the cost and reduce the profit of the company. Bad ethics and greediness, duplicity and offensiveness do not help the business at any condition and business fall down when consumer all go somewhere else. So, why highly skilled specialized and experienced businessman and industrialists...
tracking img