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Ethical Practices in a Business

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Ethical Practices in a Business

Introduction

In business, there are either ethical or unethical practices. It depends on the nature of the practice and its implications. Every employee has a right to receive the reward for services offered. The employees are motivated to work tirelessly by the salaries/ wages they receive. Good rewarding keeps them loyal to their employer. This creates a good relationship between the employees and the management/owner of the business. Any unethical practice by the management to the employees creates mistrust, disloyalty or poor performance. It indicates that the employees are not satisfied with what the organization pays back. In this essay, the discussion with be on the ethical practices, non-ethical practices, ethical dilemma, ethical relativism and moral universalism .

An ethical issue is a right practice that upholds the will of the society. In business, it is the practice that upholds the rights of its clients, employees or its suppliers. It is a practice that makes the group, or the individual concerned feel appreciated. It is a practice that appreciates or recognizes the economic and social well-being of the parties concerned. For instance, it is ethical that Josh the head of Biotech Company decides to move the business to Iceland. He intends to open a new distribution center in the country. In doing so, he will employ the unemployed youth in the nation. According to Bryman, A., & Bell, E. (2015) the decision is ethical in that he needs to create job opportunities to minimize the unemployment rate in that nation. He feels for the suffering young men and women in Iceland.

It is also ethical that Josh is not interested in the success of the Company but also the success of others. He finds that the minimum wage rate in Iceland is higher than in other nations like Germany and the US . The labor cost will increase the expenses of the Company . He still decides to go ahead and relocate the business to Iceland. He feels that he will uphold the social welfare of the youth in Iceland. His interest is to ensure that he minimizes the poverty level in that developing nation. This is an indication of how Josh is not only interested in making profits but also take of the economic welfare of others Bryman, A., & Bell, E. (2015).

Non-ethical practice is a practice that violates the rights of employees, suppliers or clients of a Company. It infringes that expected economic and social welfare of its stakeholders. This can be; low salaries/wages to employees, late payment for goods supplied by their creditors or providing poor quality product to their clients. From the case scenario presented, it is unethical that Josh decides to relocate the business to Iceland. In doing so, he was avoiding to pay their employees a fair wage Bryman, A., & Bell, E. (2015). He will also make the workers from getting a full-time job. This is because on attaining the age of 18, an employee’s contract was to be renegotiated.

Josh is trying to decide to benefit the Company but violates the rights of their workers. He will relocate to Iceland and minimize the distribution costs by 50%. This is because Iceland is halfway of transatlantic region. He will avoid the need for shipping long distances which are very costly. This means that the Company’s earnings will rise. He will benefit from high returns he will draw. The workers in Germany will lose their job and other benefits related to the job. Carroll, A., & Buchholtz, A. (2014) stated that the benefit on one side (to the investor) is not significantly ethical in business. Some adjustments should be made to ensure that no violation occurs as a result.

An ethical dilemma is a situation where an entrepreneur is faced with a challenge in deciding between two convincing decisions. It can be to choose one of two business steps where each looks beneficial or risky. It is a situation that makes the business person to remain confused on the step to take. In the case scenario provided, Josh is in an ethical dilemma. If he chooses to relocate his business to Iceland, he will violate the rights of his existing workers. The workers will lose a job, and they will not enjoy higher wages on getting a full-time job Carroll, A., & Buchholtz, A. (2014).

Josh also has an option to retain his business in Germany. In Germany, the distribution costs are very high. This means that the earnings from the business are low due to high operating expenses incurred. Here Josh is in a dilemma on whether to retain the business in Germany or relocate it to Iceland. He has to make a wise decision, but the two options must be making him be unrest. Relocating will give him more profits, but it will not be ethical to the workers losing their job DesJardins, J. R., & McCall, J. J. (2014). Remaining in Germany will make him ethical, but he will lose high profits which he can make while operating in Iceland. Making a choice here is confusing (dilemma).

Ethical relativism is a philosophy that says that a certain practice can be ethical to a certain group of people and be unethical to another. This means that the practice is positive to one group and negative to the other. Goodpaster, K. E. (2015) urged that ethical universalism is a case where an impact of a business practice generally applies to everyone. No group in the economy will fail to feel the impact of the decision made. The decision made by an entrepreneur or any other stakeholder will affect every participant in the economy.

Ethical relativism is illustrated in the case scenario provided. If Josh relocates his business to Iceland, he will benefit the youth in Iceland. The workers in Germany will lose a job and fail to get a better paying full-time job. The decision will be ethical to the youth in Iceland and unethical to those in Germany. So the same decision is both ethical and unethical to two different economies. In Iceland, they will term the decision as an ethical business practice. This is because it will be positive to their economy (Jain, A et al., 2018). In Germany, they will term the decision as an unethical practice.

In conclusion, it is very clear that there are both ethical, unethical practices in business. The practices are conducted to bring a change or benefit a certain group in an economy. What creates the distinction between ethical and unethical practice is the implication of the act. Ethical has a positive impact on an economy while the unethical practice has a negative impact. Other practices bring dilemma; they bring a confusing state where a business person to choose between two critical options. The difficulty is brought in by the likely ethical and non-ethical implications of the decision. Ethical relativism is also available in businesses. This is where the entrepreneur’s decision will be ethical to one stakeholder and non-ethical to the other.

References

Bryman, A., & Bell, E. (2015). Business research methods. Oxford University Press, USA.

Carroll, A., & Buchholtz, A. (2014). Business and Society: Ethics, sustainability, and stakeholder management. Nelson Education.

DesJardins, J. R., & McCall, J. J. (2014). Contemporary issues in business ethics. Cengage Learning.

Goodpaster, K. E. (2015). Business ethics. Wiley Encyclopedia of Management, 1-6.

Jain, A., Leka, S., & Zwetsloot, G. I. (2018). Responsible and Ethical Business Practices and Their Synergies with Health, Safety, and Well-Being. In Managing Health, Safety and Well-Being (pp. 99-138). Springer, Dordrecht.

�What do you mean

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�You can said this will enable the hiring of the unemployed

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�United States

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�He feels that the social welfare of the youth in Iceland will be upheld.