Business // Evaluating Business Ethics in the Context of Positive Social Change
Evaluating Business Ethics in the Context of Positive Social Change
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Evaluating Business Ethics in the Context of Positive Social Change
Introduction
Effective business frontrunners know the relevance of business ethics in their daily operations. They are very much aware of the implication and worth of business ethics as it plays a fundamental role in determining and influencing the impact of strategic decisions. Of course, business leaders who consider the importance of ethical considerations in business strategy can decide on their route to progress business ethics guide them to grow and succeed in the process. They know how failures in corporate governance and ethical culture can drag their operations negatively. At such points, business executives need to evaluate themselves and their performances while exploring the essential details of their management operations. They have to include their failures and successes in terms of corporate governance while learning the causes of their ethical culture failures. In this way, they can propose new ethical policies that prevent them to fail in the future. In other words, these business leaders who manage to behave and perform such functions can then discuss and uncover new choices for them to effect positive social change.
Essential Details of the Event and Causes of the Crisis and Negative Impact
One of the challenges in business operations is to focus on the decision of managers and supervisors to innovate and adapt to new developments and trends. The decision to stay true to good values despite the challenges in the competitive market can be a force of good to succeed in many operations. One particular event under evaluation involves a pharmaceutical company, which prioritizes profits over patient safety. This challenge can impede healthcare operations and demoralize healthcare practices and services. As business leaders, they must not release drugs with severe adverse effects that can public health. A wrong decision to sell drugs and medicines to patients because of profits can generate a crisis and negative impact on society. Another case in point is to prove the idea that wrong decisions can destroy the goals and objectives to succeed in business. Aside from that, it is not right for healthcare providers to make rush decisions and demand immediate approval processes on the selling of drugs, for example. It is unwise to approve aggreements ignoring the harmful effects of those drugs and disregarding its proper testing. It is unwise for healthcare providers to highlight profits over patients’ safety. Instead, healthcare experts and professionals must uphold certain standards to protect their patients and the people in society regardless of the reasons. As these issues can harm patients and society, business leaders can gain profits without harming the general public. As Michaela Driver (2012) says, business managers and their entire operation must meet social needs (p. 429). For that reason, business executives must uphold ethical standards while promoting products and services.
Failures in Corporate Governance
More than a few business organizations fail to succeed in the global market. A few of these businesses, such as Enron, Satyam, Cadbury, Wal-Mart, Xerox, and many others do experience failures due to corporate governance failures. According to research, corporate governance failures happen when the board of directors, as well as the senior management officials, fail to adopt methods and exercise effective monitoring. Aside from that, many fail to incorporate ethical norms and integrity to guarantee ethical behavior. Aside from that, adherence to regulatory standards helps business managers focus on their responsibility to safeguard the interests of their stakeholders. Ethical policies and corporate strategies are important measures for business executives to lead their business operations. Moreover, the collapse among businesses, such as Enron, Toys R Us, Blockbuster, BHS, Woolworths, and Comet, as well as Kmart and Compaq, can only transpire because of a lack of capability and poor corporate governance. If this idea happens, business managers can suffer from a lack of acceptable views and poor corporate management. Many of these corporate managers can succeed in the business process if they learn to consider appropriate assessments to check if they learn and understand the importance of their role in the workplace and society. In the end, the proper assessment of the business performance is crucial in the process of growth while acknowledging, creating, and concentrating on financial performance and shareholder value exclusively.
Failures in Ethical Culture and Climate
Effective corporate administrators can drive success. Whether these business leaders come from healthcare, hospitality and restaurant, retail, or any, they can promote growth and progress if they adhere to their effective management plans and strategies. If business leaders work hard to impart good values among members, then they can prosper in creating good and welcoming workplace scenarios as essential in strategic management (Dyer, Godfrey, Jensen, & Bryce, 2020). However, if corporate executives fail to establish a friendly ethical culture and good climate within the company, then they lose the chance to grow and survive. In doing so, these business leaders must impart clear ethical guidelines and important values to be entrenched in the culture of the new business organizations. Business leaders across all sectors must encourage their employees to strengthen their ethical decision-making skills and intensify them while inspiring workers to exclaim about the potential concerns and risks in business. These business leaders can accomplish growth and progress if they work hard to create a favorable and open-minded culture of hope and success. To improve all business operations, business managers have to undertake the role of accountability and the task of manufacturing a gratifying culture that can benefit them economically and socially.
Ethical Policy to Prevent Future Scenarios
Good governance across many business organizations, such as Enron, Satyam, Cadbury, Wal-Mart, Xerox, and many others can happen if its leaders favor ethical guidelines and rubrics. To prevent similar scenarios in the future, company frontrunners must expect nothing except for the idea that they want to enforce ethical policies as part of good strategic management (Dyer, Godfrey, Jensen, & Bryce, 2020). These policies centered on patient safety and societal welfare, which are free from biases and prejudices as cited in the case of Abercrombie & Fitch (Robson, Campbell, & Cohen, 2013, p. 1). In the healthcare industry, for instance, the company policy, which underlines specific, systematic, and see-through testing of drugs, can then materialize while warranting submission with governing standards and ethical procedures. Moreover, business managers need to stand firm to uphold growth and progress while encouraging a culture of ethical decision-making. They can show how these employees and workers can integrate their voice concerns and engage in open channels of communication without any dread of reprisal. In the end, company policies can then build new mechanisms for regular auditing, ethics training, and monitoring to make certain of ongoing compliance and ethical behavior.
Choices for Leaders to Effect Positive Social Change
The success of the business depends on the leaders. As leaders within the company, they can include several choices to make things differently and to effect positive social change. As described, leaders must prioritize patient safety and welfare over interim financial gains in the context of good governance and strategic management (Dyer, Godfrey, Jensen, & Bryce, 2020). The prime goals of these soldiers concentrate on the idea of ensuring rigorous testing while observing ethical guidelines during the course of the growth and development process. Business leaders need to realize the importance of a culture of ethical behavior by creating and setting clear expectations, as well as gratifying principled decision-making. As well, many business leaders can inspire others to obey while promoting open communication and transparency throughout business operations. The prime duties of business executives are to make effective decisions and employ corporate social responsibility and sustainability initiatives to bolster different stakeholders and take part in the new business systems. Based on a source, these organizational leaders, who possess diminutive experience and capability, can grow and succeed in the process (Wilburn, & Wilburn, 2016, p. 212). These corporate executives can then recognize their major mistakes by letting them learn and understand the major negative unintended consequence of snuffing the power of trust of the stakeholders to create trust within the business organizations (Wilburn, & Wilburn, 2016, p. 212). Social entrepreneurship, according to Driver, can find a positive impact on society. These corporate managers with their relevant goals can succeed in the competitive market while adopting social entrepreneurship (Driver, 2012). In other words, they can thrive in the process if they engage in stakeholder discussions while addressing fundamental and major concerns. Good governance becomes the top priority in the process to avoid the case of Abercrombie and Fitch (Robson, Campbell, & Cohen, 2013). If business leaders want to adopt the change in the whole operation, they can proactively shape their business strategy while crafting a new ethical culture to generate positive social change.
Conclusion
In the end, business managers across all sectors need to assess and evaluate their performance. They have to consider the importance of evaluation to stress the prominence of business ethics. This concept can drive positive social change as it underlines the need for robust corporate governance. Other corporate leaders must understand that an ethical culture including its implementation of ethical policies can prevent crises and negative impacts on society. What happens to Enron, Toys R Us, Blockbuster, BHS, Woolworths, Comet, and Kmart, as well as Compaq, is due to poor corporate governance. If business managers now learn to concentrate on highlighting those ethical considerations, they can make corporate executives convey a positive social change in the business while upgrading their strategic decisions to align with their cultural and societal values. In the end, the strategic decision of business managers can affect the business environment while assessing business ethics in the context of positive social change.
References
Driver, M. (2012). An interview with Michael Porter: Social entrepreneurship and the transformation of capitalism. Academy of Management Learning & Education, 11(3), 421-431.
Dyer, J., Godfrey, P., Jensen, R., & Bryce, D. (2020). Strategic management: Concepts and cases (3rd Ed.). Hoboken, NJ: John Wiley & Sons.
Robson, K., Campbell, C., & Cohen, J. (2013). Abercrombie & #FitchTheHomeless. Richard Ivey School of Business Foundation: Ivey Publishing.
Wilburn, K. M. & Wilburn, H. R. (2016). Asking “What else?” to identify unintended negative consequences. Bloomington, IN: Kelley School of Business.
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