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Business Ethics The Organization Should Take A Essay

Business Ethics The organization should take a position that it is okay to pursue its actions on the issue. Hartman (2013) makes the point that the business, and the people within the business, should follow a path that emphasizes selfishness. This selfishness is an expression of individual liberty and should not be constrained by the wishes of others, so long as the actions do not harm others. Given that actions are apt to have unpredictable and unknown outcomes, the only reasonable response is either to never do anything, or to do what you need to do.

The company should have, however, an ethical code that helps to guide decisions. It not reasonable that the organization should approach a complex ethical dilemma with an ad hoc system of solutions, but rather it should focus on developing a system by which managers within the company should know what their course of action should be (Stevens, 2008). This is because within a company, managers are agents for the shareholders. Thus, managers cannot simply be left with the impression that they should do whatever is in their most selfish interests, because that might lead to short-sighted actions that are not in the best interest of the company.

Thus, the organizational position cannot...

Enhancing shareholder wealth is a good starting point, but many organizations will take the idea further. In addition, there are different interpretations of what enhancing shareholder wealth might mean -- for example the debate between long-run and short-run shareholder wealth enhancement -- so the organization should always have a set of principles and a code by which to make such decisions.
Rhode (2006) argues that the organization should have a set of principles by which it conducts business, and that this set of principles should come from the leadership on downwards throughout the organization. Again, this highlights the need for the set of principles to be embedded in the corporate culture, and for the set of principles to be taught throughout the organization. It is entirely reasonable, then, that the position developed for the organization should be developed with the interests of many different stakeholders. Senior management, for example, must be involved, because the position will require buy-in from that level in order that the rest of the organization should take its…

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References

Carmeli, A., Sheaffer, Z. (2009). How leadership characteristics affect organizational decline and downsizing. Journal of business Ethics, 86(3), 363-378.

Hartman, L.P., DesJardins, J.R., & MacDonald, C. (2013). Business ethics: Decision-making for personal integrity & social responsibility (3rd ed.). New York, NY: McGraw-Hill Companies, Inc.

Rhode, D.L. (Ed.). (2006). Moral leadership: The theory and practice of power, judgment, and policy. San Francisco, CA: John Wiley & Sons, Inc.

Stevens, B. (2008). Corporate ethical codes: Effective instruments for influencing behavior. Journal of Business Ethics, 78(4), 601-609.
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