Corporations when faced with difficult decisions have to keep in mind that the decisions that need making not only affect the corporation and the employees that work for the corporation, but it affects the corporations’ stakeholders, and the public communities. The decisions made still need to keep the best interest of everyone involved without losing more of the corporation than what needs to be lost.
THE ROLE OF ETHICS AND SOCIAL RESPONSIBILITY
Corporations have a great deal of responsibility to their stakeholders to make the best decisions for them as possible. However, the decisions should not be unethical that the reputation of the corporation is jeopardized. “Ethical responsibilities of an organization’s management are to follow the generally held beliefs about behavior in society (Wheelen and Hunger, p. 58).” The courtesy to the community and the stakeholders of informing those affected of layoffs, closing business, or any other act that directly affects those involved is not required but expected on a society thought basis. This act allows the people to adjust to the upcoming events gradually as oppose to suddenly and prevents anger and hostility toward the corporation. This is the portion of the social responsibility that the corporations have to the community where making a profit isn’t as important as how the affects of dramatic change can take a toll on the communities that rely on the business for their needs.
The Essay on How Does Groupthink Affect Decision Making in an Organasation
Colman(2001) in a dictionary of psychology defines groupthink as “ a collective pattern of defensive avoidance , characteristic of a group decision making in organisations in which group members develop rationalisations in supporting illusions of their own infallibility and invulnerability within the organisation . ”p. 318. It entails that there is more of concurrence than critical thinking when ...
OVER STEPPING ETHICAL BOUNDARIES
The Enron scandal is most likely the most talked about scandal to this day. Those involved and those who listened will always remember the impact it created on Corporate America. Top executives actions were in the form of “off-balance sheet partnerships used to hide the company’s deteriorating finances, revenue from long-term contracts being recorded in the first year instead of being spread over multiple years, financial reports being falsified to inflate executive bonuses, and manipulation of the electricity market-leading to a California energy crisis (Wheelen and Hunger, p. 63).”
Enron is one of many corporations that have and some continue to over step the ethical boundaries. Corporations are caught up in how much money can they make, and stakeholders who have invested time and money in the corporation push for the maximum results. Having an outside, unrelated agency to take care of the ethical and social responsibilities of a corporation is a great solution to preventing unethical behavior. This means excluding any stakeholder that has a direct affect from profiting and making gains from corporate activities. An agency that does not make more money if something good happens for the corporation, but an agency that is there to check and double check the balances in how the corporation is functioning for society and is directly over managing and documenting all transactions. Addressing the importance of ethics and remaining consistent in not wavering the values of the corporation will instill the importance of ethics and social responsibility the corporation has to itself as well as to all members of society.
Every stakeholder has to identified and taken out of the equation when legal decisions happen. There cannot be room for persuasion or bargaining from them to stop an action or document to be processed.
Problems can arise when corporations are on a global market level, as each country has their own set of ethical and social responsibilities. An additional strategic plan needs to be incorporated for dealing with these certain dilemmas so that all parties involved are satisfied without in compromise to the corporate reputation and standards.
The Business plan on Is Business Bluffing Ethical
Albert Carr stated that legality and profits are the only standard that people in business should follow. In Carrs article Is business bluffing ethical? he compared and found the rules of business to be similar with the rules of poker. In a game of poker, bluffing is a central part of the game and this is known and accepted by all the players. So bluffing in poker is not considered morally wrong. ...
WHAT IS BEST?
It is hard to say what is best for a corporation in big decisions. So many people are directly affected by the choices made, and much can be lost if the decision is not made correctly. The strategy to follow is the one that keeps the behavior and moral of the organization legal and ethical. Stakeholders play a large role in how a corporation functions and maintains in business, but they should never be allowed to force an organization to do illegal and unethical business practices. Setting boundaries, and staying firm on the decision that when stakeholders begin to pressure and bargain to get the corporation to make more or partake in unethical business practices, the leaders of the corporation will come together as a force to not allow such things to happen. Too much is at stake when compromising business ethics and responsibility to society.
References
Wheelen, T. L., & Hunger, J. D. (2008).
_Concepts in strategic management and business_
_policy._ (11th ed.).
Upper Saddle River, NJ: Pearson Education
