Business ethics assignment study mode

SEGi COLLEGE KUALA LUMPURSUBJECT:

BUSINESS ETHICS AND CORPORATE SOCIAL RESPONSIBILTY

SUBJECT CODE:

2LAW0914

LECTURER:

MS. LOGESVARY

ASSIGNMENT TITLE:

Discussion and Analysis: Why Business Fail To Management Ethnics

in the Workplace.

1. INTRODUCTION

In brief, business ethics is the application of ethics in

business. In another explanation, business ethics is the

application of general ethical ideas to business behavior.

Ethical business behavior facilitates and promotes good to

society, improves profitability, fosters business relations and

employee productivity. The concept of business ethics has come to

mean various things to various people, but generally it‘s coming

to know what it right or wrong in the workplace and doing what‘s

right - this is in regard to effects of products/ services and in

relationships with stakeholders.

Business ethics is concerned with the behavior of a

businessperson in doing a business. Unethical practices are

creating problems to businessperson and business units. The life

and growth of a business unit depends upon the ethics practiced

by a businessperson. Business ethics are developed by the passage

of time and custom. A custom differs from one business to

another. If a custom is adopted and accepted by businessperson

and public, that custom will become an ethic. Business ethics is

applicable to every type of business. The social responsibility

of a business requires the observing of business ethics. A

businessperson should not ignore the business ethics while

assuming social responsibility. Business ethics means the

behavior of a businessperson while conducting a business, by

observing morality in his business activities.

In MANAGEMENT CONCEPTS & BUSINESS ETHICS lecture notes prepared

by School Of Distance Education, University Of Calicut mentioned

that Business Ethics or Ethical standards are the principles,

practices and philosophies that guide the business people in the

day today business decisions. It relates to the behavior of a

businessperson in a business situation. They are concerned

primarily with the impacts of decisions of the society within and

outside the business organizations or other groups who keep

interest in the business activities. Business ethics can be said

to begin where the law ends. Business ethics is primarily

concerned with those issues not covered by the law, or where

there is no definite consensus on whether something is right or

wrong.

2. SUMMARY

In this task, we are going to do an extensive study on ‘Why

business fail to management ethics in the workplace’. There are

three main factors that caused the failure in management ethics

in workplace due to poor Code of Ethics, poor Code of Conduct,

and malpractice of Company Cultures.

In business ethics, Code of Ethics means a company’s written standards of

ethical behavior that are designed to guide managers and employees in making the

decisions and choices they face every day. ( Logesvary, lec. Note, chap 1,

2014) Ethical codes are often adopted by management, not to

promote a particular moral theory, but rather because they are

seen as pragmatic necessities for running an organization in a

complex society in which moral concepts play an important part,

such as right or wrong, ethical or unethical based on the

conscience of individual or organization.

On the other hand, Code of Conduct means a set of framework

policies such as principles, values that regulates the ethical

behaviors of employees to ensure every employee abide to the set

of rules. Google’s code of conduct and Toyota Management are

examples of Code of Conduct in Corporate. Such as legal or

illegal based on the written rules.

While, Company Cultures means the practice of behaviors in a

company which sometimes differ from what it suppose to be this

can be termed as pragmatic. For example, you take the company

supplies back to your home for personal usage, even though, the

company code of ethics guideline stated it is wrong to do that

and it is unethical to do so, in contrast, the company code of

conduct written that it is against the rule and regulation by the

company and penalty will be charged. By the action who is/are

affected and how the action change the company culture or

situation.

Therefore, in my opinion, I understand that the Code of Ethics,

Code of Conduct, and Company Cultures are interrelated to the

failure of management ethics in a workplace.

3. CASES AND ANALYSIS

Among the most common unethical, misconduct or malpractice in

business ethics code, code of conduct or company cultures in

workplace are the following:

Financial Emotional Hurt and Physical Harm

Discrimination

Financial Sexual Harassment Gender Bias Embezzlement Conflict of Racism

Company Cultures

Code of Conduct

Code of Ethics

InterestsMisuse of Fund Sabotage Salary wageFraud Physical fight ImposeMoney Laundering Abuse and bully QuotaBribery Gossip

Unpleasant or Hazardous Working Condition

Which, I have figured out accordingly in the table above with my

own interpretation via referring to personal encounter,

experience and colleagues opinions.

Therefore, in this task, I begin the analysis of business ethics

cases by referring to the article ‘Learning to do the right thing – right

here, right now. (Business-ethics.com) In my interpretation, in this

article mentioned that despite the increase of business ethics

courses in academic filed and the increase use of corporate codes

of conduct and social responsibility, however, business

organizations seems to have many scandals in action to public. In

a campus, students were taught about the business ethics subject,

in contrast, the reality seems to be different to the real

business world. For example, referring to the racism

discrimination case written by UTUSAN MALAYSIA titled ‘SukaGuam

terima banyak aduan Melayu didiskriminasi (Complaint on Discrimination against

Malay in workplacereceived by SukaGuam)’. although it is a pro-government

press, however, in my encounter I noticed it is occurring in

reality at every workplace in Malaysia, whereby private sectors

workplace have a proportion of non-Malays employees while Malays

employees proportion in Public sectors then to have more due to

the quota and impose set by the government. Such impose and quota

indirectly caused the action of racism in workplace due to

ethnics’ attitude of working. Furthermore, it caused the conflict

of interest that sparked gossips among colleagues and effects the

promotion and salary wage adjustment to the employees in a

workplace. Such occur indirectly caused emotional hurt to

employees due to unpleasant working condition in a workplace.

Therefore, to me such occur is wrong in code of ethics which is

unethical in certain manner even though the code of conduct cites

that racism shouldn’t have occurred because such occur by action

it indirectly caused emotional hurt to employees due to

unpleasant working condition in a workplace.

Another example mentioned in the article ‘Learning to do the right thing –

right here, right now. (Business-ethics.com), related to sexual harassment in

workplace. In term of Code of Ethics it is wrong and very

unethical, in code of conduct, it is written illegal by action in

law, regulation set by the ministry and in the company written

guideline. However, the enforcement is not strong enough to

protect women employees in a workplace worst to worst it has

indirectly become a company culture whereby certain women are

able to get adapt to it, while certain of them faced emotional

hurt due to unpleasant workplace whereby male superior or

colleagues unwanted sex advance towards them caused them to leave

the workplace. Such occur can be refer by a personal account of

a Singaporean at "My married boss sexually harassed me”, Asiaone Business.

Referring to the second case, written by Mitchell Pearson, Erie,

PA, ‘Why ‘Dark factories’ are not good for the environment’

posted in business-ethics.com, discussed about the automatic

working machines in the manufacturing sector which substitute the

human labour to do the manufacturing works.

In my interpretation, such ‘Dark Factories’ is good for future

long-term application in manufacture sector since the technology

is advancing and progressing. However, it failed to address the

cause of unemployment possibly a high unemployment in the future.

Although company might state that the cost of employing human

labour will be much more expensive in the future. However, I

think is wrong in term of business code of ethics to replace

human labour stage by stage robotic labour. Because, this is

against the labour rights by law and code of conduct in all

Labour Unions. Although, is ethical in term of saving energy and

saving cost to keep a good revenue for other business

developments.

To the extent of my understanding, a populated nation needs to

increase the use of human labours and reduce the use of robotic

machines in manufacture sector because the labour cost is still

lower and human labour are indeed must more efficient compare to

robotic technology which function according to command. But, keep

on creating prototypes of robotic machines to back up the

manufacturing sector such as emergency and natural disaster to

temporary substitute human labours to keep up the operation work.

I think it is also a solution in order to cope high unemployment

rate in a nation. China, India, Bangladesh and Vietnam for

example.

On the other hand, a less populated nations needs to reduce the

use of human labours and increase the use of robotic machines in

manufacturing sector because the labour cost in less populated

nations are expensive in cost due to the demand for more human

labours are very high. For example, Malaysia an industrial nation

which human labours are very high demand and immigrantion labours

intake is an issue, a referring by ‘Malaysian govt to impose hiring costs

on foreign workers’, the Hindu Business Times. Recently, the impose of

reducing the intake of foreign labours also further tabling the

minimum wage by the legislation lobby to the Prime Minister and

finally the prime minister agreed the minimum wage for labours

set at RM 900 for manual labours in Malaysia, referring to the

article ‘Indian workers in Malaysia may get minimum wages’ by the Indian express

and Minimum wage gazette on July 1, takes effect in January 2013, Malaysian Insider.

The suggestion I suggested actually questioned no right or wrong

in the code of ethics, as long as the key players in industry

practice the use of human labours vs robotic technology labours

ethically and abide to the legal and guideline set by the local

authority. As long the outcome or actions will not harm bring

harm to labour rights, environment and society.

Third case article ‘Why CEOs need to make Gender Diversity on

Boards Happen’ by Ian W.Bailey (Business Ethics.com), discussed

about making gender diversity to enhance a better performance in

workplace. Besides that, a good team on the executive board to

make decisions better.

In my interpretation, I agree that it is right in the code of

ethics to make gender diversity in a workplace. In fact, it is

ethical to implement it, rather than making a workplace a male

dominate/majority workplace, which most of the time unethical

incidents occurring such as emotional hurt and physical harm.

Taking workplaces in Singapore as an example, referring to an

article ‘"My married boss sexually harassed me” by Asiaone, Singapore, incident

such as sexual harassment on a personal assistant by her male

superior occurred that actually intimidate her to speak out, even

she has voiced her unwanted sexual advance by her male superior

to the Human Resource, however, the male superior’s sexual

advance is still unavoidable till she has no choice to leave the

job.

Also, in a male dominance workplace, violence such as physical

fight and bully actually occurred. For example, referring to an

article ‘IT boss who hit intern in video charged with hurting and abusing employee

‘by STOMP Singapore, showed a male superior verbally and

physically attacked his staff, the video was uploaded by a video

taker a staff at the same workplace.

Therefore, I believe gender diversity in a workplace will create

a safer and more performance driven workplace. Besides that, the

unwanted or unsolicited hurt and harm among the employees in

workplace can be reduced.

Fourth, an article by Business-Ethics.com ‘GlaxoSmithKline to Quit

Paying Doctors for Promotional Talks’, discussed about the financial

misconduct that committed by employees in a workplace. It is

mentioned in the article that the GlaxoSmithKline ‘the sixth-largest

global drug maker, announced Tuesday that it will no longer hire doctors to promote its

drugs.” Many complain by the doctors to the media and public that

the company failure to pay the doctor once the company halts the

hiring of doctors to promote its drugs.

In my interpretation, I will refer to the case of Olympus scandal

by referring to the article on BBC ‘‘Olympus scandal: Former executives

sentenced’ whereby conflicts of interest and sabotage among the

executive employers in the workplace failure to meet a consensus

or gaining financial for personal purpose. Therefore, the

clinging of the financial misconduct such as embezzlement, misuse

of fund, financial fraud, money laundering and bribery occurred

in an Olympus executive workplace internally and externally.

To my extent of understanding, it is definitely wrong in business

code of ethics to commit such financial misconduct offences. By

explaining it in a simple manner, the money belongs to the

organization which distributed into level to people who worked at

the organization. Therefore, it is very unethical to commit such

offence. However, in code of conduct and by law it is written

clearly that penalty will be imposed to those members in a

workplace who committed such financial misconducts, anyhow, such

offences is not easy to be trace since most people doing it

indirectly or in secret deal. Lastly, undeclared financial deal

indirect deteriorated poor management in a workplace.

4. OUTCOME OF RESEARCH

Overall, all the cases mentioned above are examples of the causes

of management failure which are able to explain the effects

towards the stakeholders, the employees and the customers,

possibly the society. Here, I will use the Domino effect Theory

to explain the consequences of business failure in management

ethics at workplace, in my personal view.

According to the business dictionary, Domino effect theory means

repercussion of an act or event under which every associated or connected entity is

affected to a more or less the same degree. Named after the circular arrangement of

dominos in which if any one domino falls, all fall.

The illustration on next page shows an example of the (Domino

effect theory) actions that bring effects to an organization which

led to the downfall or reputation being tarnished due to the

failure of management ethnics in workplace, in my personal view

according to my observation.

Therefore, management workplace ethics plays significant roles in

developing an organization besides building a better team and a

mutual trust between the stakeholders’ and employees.

5. CONCLUSION

In short, poor management ethics in workplace caused the public

to lose confidence in a organization due to poor communication

between employees and the stakeholders. Besides that, poor

management ethics in workplace will bring greater effects to the

reputation of organization revenue and possibly the downfall.

Managerial TeamDecision Making board determine the action Right or Wrong Professional: Accountants, PRs', Marketing etc. working, accordingly or unaccordinglyBlue Collor: sales person, product technicians do the manual works Efficiently or inefficientlyConsumersjudge the Products and ServicesPublic :Society, Media, Government and Legal decide an organization repuatation and ethics.

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In my opinion, in order to improvise those deplorable conditions

related to ethical issues in an organization workplace. Actions

must be enforced either penalty (Bad action) or reward (Good

Action) to any member in an organization workplace besides using

the mean of the corporate social responsible.

6. RECOMMENDATION

Therefore, with the experiences I have in a company, with

references from Logesvary lecture Notes and the MANAGEMENT

CONCEPTS & BUSINESS ETHICS lecture notes prepared by School Of

Distance Education, University Of Calicut. I will recommend a

corporate to establish a more efficient Human resource Department

to oversee the company by creating ethical programmes to enhance

a better organization workplace culture via applying the

corporate social responsible means the corporate belief that a company

needs to be responsible for its actions – socially, ethically, and environmentally, must be

apply to improvise the company. (Business Dictionary)

According to the MANAGEMENT CONCEPTS & BUSINESS ETHICS lecture

notes prepared by School Of Distance Education, University Of

Calicut, to create an ethical organization certain steps are to be taken. Ethical or

unethical behavior of individual employees is influenced in the workplace both by their

own moral development and the influence that the organization culture exerts on them.

They are influenced by a group of forces that surround them such as their peers, their

supervisors, and superiors, the reward system, group norms, company values and

policies and the manner of their implementation. Ethical behavior can be developed

and managed in a number of ways. The pivotal role to manage and develop ethical

behavior among employees lies with the human resource management of that

organization. Human resource management department can execute this through

training, communication and discipline. The big organizations which are ethically

committed, assign the primary task of managing and monitoring ethical behavior to

Human Resource Management department. In some other organizations, there may be

ethics officers who are entrusted with the responsibility to bring ethics and managed

ethics in every endeavor of their organization.

It is also mentioned that a larger organizations have undertaken

to implement ethical behavior at their workplaces to

significantly improvise a workplace to serve the stakeholder and

society better. Application of business ethics helps to avoid

much misconduct in the society. For example, Sunway group and SP

Setia Group in Malaysia.

Therefore, to cultivate a strong team work and productivity by

establishing an ethical programme helps to tune employee behavior

in accordance with the values preferred by leaders of the

organization. It helps to build openness, integrity and a sense

of oneness among all. Employees feel strong alignment between

their values and those of the organization and they react with

strong motivation and performance.

Secondly, Support Employee Growth of ethics programme help

employees to face reality, both good and bad in the organization

and themselves. They feel full confidence to admit and deal with

whatever comes their way.

Thirdly, Insurance policy for all employees in workplace as an

ethical programs help to ensure that policies are legal. Ethical

principles are often applied to current, major ethical issues and

become legislation. A major intent of well designed personnel

policies is to ensure ethical treatment of employees.

Fourthly, ethical programs to help to detect issues and

violations early so that they can be reported or addressed which

helps to avoid subsequent penal actions and lower fines or avoid

Penal action.

Fifthly, ethical programmes are able to assists in Quality

Management, Strategic planning and diversity management. Since,

Ethical programme identify favorite values and ensure

organizational behaviors which are associated with those values.

This complex effort can be aligned with values, including quality

management, strategic planning and diversity management.

Besides that, role of organization culture in ethics is also

important. An organization culture can potentially influence the

ethical conduct of the organization. Organization culture has

been identified as one of the main factor which influenced the

ethical conduct at workplaces. An organization can guide the

conduct of its employees by embedding ethical values in its

dominant culture.

Organization culture refers to a system of shared meaning held by

members that distinguishes the organization form other

organizations. It is a set of assumptions, beliefs, values and

norms that are shared by organization members. It is the basic

pattern of shared assumptions and values that governs behavior

with in a particular organization. It can be created by the

founder of the organization based on his or her values and

expectations. For example, the Toyota management was applied by

all employees of Toyota. Each organization tries to develop its

own culture based on the values of its founder wants to transmit

in the workplace. Organization culture represents the common

perception shared by members of an organization. Individuals with

different backgrounds in an organization altogether have a

tendency to describe the organization culture in almost similar

terms. The strength of an organization culture has an influence

on ethical behavior of managers. If the culture is strong and

supports high ethical standards, it should have a very powerful

positive influence on a manager‘s ethical behavior, In a weak

culture managers are more likely to rely on sub cultural norms to

guide their behavior.

An effective organizational culture should encourage ethical

behavior and discourage unethical behavior. The corporate culture

of a firm is evolved by its people absorbing values, good or bad

which its top executives have an ethical and social conscience,

than they will, by their thoughts and deeds, inspire their

subordinates to exhibit these values, both inside and outside

their workplace.

REFERENCES:

1. Logesvary (2014), “BUSINESS ETHICS AND CORPORATE SOCIAL

RESPONSIBILTY, Lecture notes Chap. 1 to Chap. 10, Segi

College Kuala Lumpur.

2. Newell, Sue., 2006, ‘Business Ethics’, Business the Ultimate

Resource, A&C Black Publishers Ltd, Sulfolk, UK, Pg 279 –

281.

3. Pascarella, ‘ Wokers without Borders: Creating Bonds when

Workers have no Loyalty’, Perry Business the Ultimate

Resource, A&C Black Publishers Ltd, Sulfolk, UK, Pg 237-238.

4. Business Terms definitions, retrieved from

<http://www.businessdictionary.com/>

READING MATERIAL PREPARED BY LECTURER VIA BUSINESS ETHICS.COM

1. Pearson, Michael, Erie, PA. ‘Why ‘Dark Factories’ Are Not

Good for the Environment’, Business-Ethics.com, retrieved

from < http://business-ethics.com/2014/01/02/1516-why-dark-

factories-are-not-good-for-the-environment/>, January 2,

2014.

2. Sockell, Donna. ‘Learning to Do the Right Thing – Right

Here, Right Now’, Business-Ethics.com, retrieved from <

http://business-ethics.com/2013/01/10/10545-learning-to-do-

the-right-thing-right-here-right-now/>, January 10, 2013.

3. Ian W. Bailey. Hill+Knowlton Strategies ‘Why CEOs Need to

Make Gender Diversity on Boards Happen’, retrieved from <

http://business-ethics.com/2013/12/05/1551-why-ceos-need-to-

make-gender-diversity-on-boards-happen/> , December 5, 2013 

4. Ornstein, Charles. ProPublica,

‘http://business-ethics.com/2013/12/17/1443-glaxosmithkline-

to-quit-paying-doctors-for-promotional-talks/’, retrieved

from < http://business-ethics.com/2013/12/17/1443-

glaxosmithkline-to-quit-paying-doctors-for-promotional-

talks/> December 17, 2013.

Reading List:

1. ‘Olympus scandal: Former executives sentenced’, retrieved

from <http://www.bbc.com/news/business-23156879>

2. ‘FRAUD IN THE WORKPLACE – REAL CASES (THE WATER COMPANY

CAPER OR, A MOST UNFORTUNATE DRAIN ON PROFITS)’retrieved

from <http://www.hhcpa.com/blogs/business-valuation-

litigation-blog/fraud-in-the-workplace-real-cases-the-water-

company-caper-or-a-most-unfortunate-drain-on-profits/>

3. ‘Bullying: The hidden problem in the workplace’ retrieved

from <http://www.hrmasia.com/resources/employee-

engagement/bullying-the-hidden-problem-in-the-workplace/

179921/>

4. ‘"My married boss sexually harassed me” retrieved from

<http://business.asiaone.com/career/out-office/my-married-

boss-sexually-harassed-me%E2%80%9D>

5. ‘IT boss who hit intern in video charged with hurting and

abusing employee‘ retrieved from

http://singaporeseen.stomp.com.sg/singaporeseen/this-urban-

jungle/it-boss-who-hit-intern-in-video-charged-with-hurting-

and-abusing-employee

6. ‘Man apologises for slapping co-worker in viral video taken

by SIM student’ retrieved from

https://sg.news.yahoo.com/video-of-man-hitting-worker-in-

office-goes-viral-043238636.html

7. ‘Indian workers in Malaysia may get minimum wages’ retrieved

from http://archive.indianexpress.com/news/indian-workers-

in-malaysia-may-get-minimum-wages/749899/

8. ‘Malaysian govt to impose hiring costs on foreign workers’

retrieved from

http://www.thehindubusinessline.com/news/international/malay

sian-govt-to-impose-hiring-costs-on-foreign-workers/

article4364967.ece

9. ‘Ethnic and religious discrimination big challenge for

Malaysia's minorities - See more at:

http://www.minorityrights.org/10815/comment-amp-analysis/eth

nic-and-religious-discrimination-big-challenge-for-

malaysias-minorities.html#sthash.XSQPew0K.dpuf’ retrieved

from <http://www.minorityrights.org/10815/comment-amp-

analysis/ethnic-and-religious-discrimination-big-challenge-

for-malaysias-minorities.html>

10. ‘SukaGuam terima banyak aduan Melayu didiskriminasi’

retrieved from

<http://www.utusan.com.my/utusan/Dalam_Negeri/20131211/dn_10

/SukaGuam-terima-banyak-aduan-Melayu-didiskriminasi>

11. ‘Minimum wage gazette on July 1, takes effect in

January 2013’

retrieved from

<http://www.themalaysianinsider.com/malaysia/article/minimum

-wage-gazette-on-july-1-takes-effect-in-january-2013/>

APPENDIX