FACULTY BUSINESS AND MANAGEMENT
SEMESTER MAY / YEAR 2011
IDENTITY CARD NO.
PP DURIAN DAUN, MELAKA
TABLE OF CONTENTS
A Review on Literature on Ethics and Social Responsibility
Important of Ethics and Social Responsibility
Argument on Ethics and Social Responsibility
Approach to Sustain Ethics and Social Responsibility
Ethics are talked about frequently and addressed in the news when unethical decisions are found. Sadly, people do not hear about ethics when others are engaging in ethical behavior on a daily basis. Keep in mind that things that are not illegal may be unethical. Ethics are an individual belief system that consists of knowing what is right and wrong. Ethics can vary person to person. Ethics is in part analyzing decisions, beliefs, and actions. Ethics is not just talking about the right thing. It is doing what is right in every decision that is made.
Social responsibility can be an example of ethical behavior. It is enhancing society in general. However, a business can’t afford to go around doing good deeds if there is no potential pay off. If the business were to loose too much money, then it would cease to exist, hurt customers, and leave employees jobless. There are some that argue that social responsibility is shown only when companies go beyond what is optional, and really intend to create a benefit for others besides the company.
1.1 Ethics in an Organizational Context
Although ethics are an individual phenomenon, ethical or unethical actions by particular managers do not occur in a vacuum. Indeed, they most often occur in an organizational context that is conducive to them. Actions of peer managers and top managers, as well as the organization’s culture, all contribute to the ethical context of the organization. The starting point in understanding the ethical context of management is, of course, the individual’s own ethical standards. Organizational practices may strongly influence the ethical standards of employees. Some organizations openly permit unethical business practices as long as they are in the firm’s best interests.
If managers become aware of unethical practices and allow them to continue, they contribute to an organization culture that says such activity is permitted. The organization’s environment also contributes to the context for ethical behavior. In a highly competitive or regulated industry, for example, a manager may feel more pressure to achieve high performance. When managers feel pressure to meet goals or lower costs, they may explore a variety of alternatives to help achieve these ends. And, in some cases, the alternative they choose may be unethical or even illegal.
Most organizational scientists acknowledge that it is not a company’s place to teach employees moral values. After all, these come with people as they enter the workplace. However, it is a company’s responsibility to set clear standards of behavior and to train employees in recognizing and following them. Just as organizations prescribe other kinds of behavior that are expected in the workplace (e.g., when to arrive and leave), so too should they prescribe appropriate ethical behavior (e.g., how to complete expense reports and what precisely is considered a bribe). Not surprisingly, most top business leaders recognize that clearly prescribing ethical behavior is a fundamental part of good management.
1.2 Corporate Social Responsibilities (CSR) in an Organizational Context
As discussed earlier, ethics relate to individuals and their decisions and behaviors. Organizations themselves do not...
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