Business 1551

Business law, ethics, and social responsibilities

Unit 1, Discussion 1
In the modern economy most companies, if not all of them, strive to do their work ethically in
which they achieve the interests of the company, shareholders, employees, customers, and
society as a whole. Usually when any company works ethically will have a good reputation
which help it to maximize profit. Ethics relates to how an organization or corporation handles
situations that require moral decisions. Ethics is a moral principle that guides the behavior of a
person. They derived from several sources including values, religion, and cultural practice. )
Leonard,2019)
Managers are responsible for making several decisions in their companies every day. Those
decisions could affect the company as a whole including employees, customers, stakeholders,
and even the environment. Management ethics are considered essential to protect individuals and
groups from the consequences of poor managerial decision-making. (Why ethics are still
essential in management,2023) Management plays an important role in setting the ethics and
standards that employees in the company will follow. Employees are significantly influenced by
the values and standards of their managers. For example, a company that cares about profits and
pressures its employees to achieve the highest profit creates a culture that says achieving profits
is important, even if it is in ways that are not Ethical. (Why ethics are still essential in
management,2023).
Sustainability should be everybody's responsibility, but individuals can't make a significant
difference by themselves. In the first place, Governments should pass strict laws regarding
preserving the environment and not depleting it, in addition to setting fines for anyone who
violates these laws, as this has a significant impact on the quality of human life for future
generations. Despite this, the greatest responsibility falls on organizations, factories, and the
managers of these factories to make ethical decisions and consider not depleting the
environment, even if this leads to greater costs in the short term. Management must think of
solutions that balance organizations' profits, environmental sustainability, and social
responsibility, as this will benefit the company in the long run and maximize its profits.
(Flagel,2020).
Managers are primarily responsible for maintaining ethical codes in organizations and
encouraging employees to work according to them. Sometimes managers must create new ethical
codes or make some changes to existing ones according to the requirements of the external
environment and the company’s internal conditions. How managers respond to ethical dilemmas
affects how their team members respond to similar dilemmas in the future. Management in a
company sets the tone for ethical leadership. If employees see that their managers respond
ethically in difficult situations, they are more likely to make ethical decisions on their own. (Why
ethics are still essential in management,2023).
I know a friend of mine who worked in a contracting company. The company’s management was
not interested in making ethical decisions, rather its primary concern was maximizing profits and
reducing costs, even if that meant reducing quality. The company agreed with customers on
certain specifications for the materials used in the building, but it used lower-quality materials
during implementation to reduce the final cost. The company faced many legal problems and
lawsuits due to its lying to customers. It was suffering from employee turnover due to their
dissatisfaction with management policy. After a few months, the company was forced to stop its
work due to its bad reputation and the many legal cases it faced.

References:

Why ethics are still essential in management. Southeastern Oklahoma State University. (2023,
July 24). https://online.se.edu/programs/business/mba/business-management/why-ethics-
are-still-essential-in-management/

Leonard, K. (2019, February 5). What are managerial ethics?. Small Business - Chron.com.
https://smallbusiness.chron.com/managerial-ethics-36425.html

Flagel, J. (2022, November 3). Whose responsibility is sustainability? - LINQ. Linq Consulting.
https://www.linq-consulting.com/post/whose-responsibility-is-sustainability