BBA 1st Year Business Ethics Short Question Answer

Q.7. What are the different ethical management programs?

Ans. Ethical Management Programs : Ethical management programs are designed by an organiSatiOn or an employer as an attempt to have formalized structures for ensuring the organiSation to be perceived as fair, honest, responsible and iust.

Ethical progrnis are designed globally keeping four things in mind:

  • Consdenug oneself and the organisation as a part of the larger social framework.
  • Consiieiing the development and welfare of others (internal and external customers) to the extent poss&be.
  • Respecting the traditions / rituals (organisational diversity) of others.
  • Evaiuatig a situation objectively and the consequences thereof.
    Many of yci may ask why we need ethical management programs when we already have policies and procedur in place that define behavioural standards. Ethical programs are designed to ensure that there is no deviation from the standards laid down and also to ensure that employees are fair and honest in their conduct in the organisation.

The bene&s of ethical programs include decreased misconduct and additional defence to the organisation against complaints from the employees, when the latter perceives that the organisation is being unjust to him / her. However, in ordet for the ethical programs to be successful, managerial support and roe nodelling is very important. In fact there is a whole body of research which proves that organisat are increasingly documenting their ethical programs to align behaviours within the organisatioli and also going ahead to develop systems for implementation of the same.

Implemen1jon of ethical programs is a clear example of organisations being very clear in communicating what they expect of the employees relationships. Many organisations have adopted innovative waJs&communlcating and continuously reminding the employees what is expected.

We thus see dt honesty. Iirness and ethical programs are prerequisites to the good employment relationship. There are other actions also that help better the employment relationships. Certain actions are poe at the time of entry like flexible work arrangements (flexi time, job sharing, compressed workweeks), induction and orientation that are very convenient means of conveying the ethical policies.

Ethical prcs thus benefit organisations in many ways. They help lay down standards of behaviour and thrw also help in clear communhiation of the same. This prevents the employee plead on condition ofgxance, which is not the case with the manual containing policies and procedures that are hardly bwR to any of the employees.
Organisation have  now realized the importance of incorporating ethical management programs in their business. U the belief held earlier that it only helps the employee, the belief is gaining more ground that ethical programs are equally beneficial to the organisations. No wonder, more and more number of organisaticns are implementing these programs for the greater benefit of their own, the employees and most hrtantly it leads to the improved employer-employees relationship.

Q.8. Give a brief note Origin/Evolution of Business Ethics.”

Ans. Evo1utiot of Bim,ess Ethics: When we trace the origin of business ethics, we start with a period where praeit maxitnisation was seen as the only purpose of existence for a business. There was no consideration whatsoever for non-economic values, be it the people who worked with organisations or the society that allowed the business to flourish. It was only in late 1980s and 1990s that both intelligentsia and theca ademics as well as the corporate began to show interest in the same.

Nowadays, almost all organ Asations lay due emphasis on their responsibilities towards the society and the nature and they call it by different names like corporate social responsibility, corporate governance or social responsibility charter. In India Maruti Suzuki, for example, owned the responsibility to maintain a large number of parks and ensuring greenery. Hindustan Unilever started the e-Shakti initiative for women in rural areas.
Also many corporations globaily have bred philanthropists who have contributed compassion, love for poor and unprivileged. Bill Gates of Microsoft and Warren Buffet of Berkshire Hathaway are known for their philanthropic contributions across the globe.

Many organisations, for example, IBM as part of their corporate social responsibility have taken up the initiative of going green, towards contributing to environmental protection. It is not that business did not function before the advent of business ethics; but now there is a regulation of kinds that ensures business and organisations to contribute to the society and its well-being.
Nowadays business ethics determines the fundamental purpose of existence of a company in many organisations. There is an ensuing battle between various groups, for example, between those who consider profit or shareholder’s wealth maximization as the main aim of the company and those who consider value creation for all the stakeholders as main purpose of the organisation to exist.

The former argue that if an organisation’s main objective is to increase the shareholder’s wealth, then considering the rights or interests of any other group is unethical. The latter similarly argue that profit maximisation cannot be achieved at the expense of the environment and other groups in the society that contribute to the well-being of the business.

Nevertheless, business ethics continues to be a debatable topic. Many argue that lots of organisations use it to seek competitive advantage and create a fair image in the eyes of consumers and other stakeholders. There are advantages also like transparency and accountability in the organisation.

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