Business ethics are crucial in determining the critical strategic decision for an organization. They help in establishing if the new or existing approach meets the moral standards set for businesses. Company managers should ensure that their vision, goals, and mission statements meet the set business ethics of the firm. The following discussion analyzes Pitts, S, and Rob, K article on business ethics.
Major Authors’ Arguments and Stakeholders
The article analyzes the increased emphasis by organizations and learning institutions on business ethics and the ways this value affects those in the business. It examines how current registrations in the moral standards have affected business, as well as the organization’s goal of reducing cost while disregarding ethics. The article emphasizes the significance of business ethics in society and the efficient approaches to teaching business ethics to students to equip them with ethical sense. There is no precise definition of business ethics due to the different standards set by society. However, most people agree that for a firm to maintain moral standards it needs to obey the law, be honest, and not infringe directly or indirectly on individual rights and freedom.
According to the authors, ethics is crucial for businesses as they build an organization’s public image, prevent litigation for fraudulent dealings, and help in cost variation for the firm. Business managers are held accountable for any illegal business practices by the company. This is crucial for business managers as it requires them to make ethical considerations when deciding for a company. In case, a firm fails to observe some of the set legal ethics a prosecutor may be lenient to the business if it has observed most of the moral standards. Schools have to train students on the importance of ethics to help them once they enter the corporate world. Most people have blamed the institutions for failing to equip the learners with the expected ethical behavior. Most schools have incorporated ethical classes to inform the students on the importance of ethics, various ethical issues, and ways of handling a complex situation. There have been claims that economic students are less moral compared to art students since they study Adam Smith’s theories of business. However, research has shown that although most business students in the U.S are well equipped with ethical skills, there are no major differences between art and economics students.
The author further argues that businesses should invest more in ethics due to its importance in improving the efficiency and effectiveness of the firm’s processes. Ethical investment is significant for a company since it has a good economic return. A business will benefit by improving their company image to the society as it will encourage consumption of its products. Furthermore, the ethical investment will reduce the chances of legal suits for failure to follow the set moral standards.
Despite the article’s efforts to analyze ethics, determine the key stakeholders in developing an ethical sense, and establish the importance of ethics, it fails to address various issues. First, the article has failed to provide a solution for the ethical dilemma that may occur when making decisions for the firm. Secondly, the article failed to examine the effect that corporate training has on individuals in the business. Education does not only occur in a learning institution, businesses also train their employees.
In conclusion, business ethics are critical in determining the success of a firm in society. Business managers should ensure that their company has followed the set moral standards to improve their corporate image and avoid litigation. Both learning institutions and organizations have a significant role in ensuring that students and employees are trained and equipped with skills that will enable them to solve ethical dilemmas.
Pitts, S., & Kamery, R. (2003). The Role of Business Ethics: Incorporating Values and Ethics into Business Decisions. Journal of Legal, Ethical and Regulatory Issues, 6(1), 77–89.