Some ethical issues in modern business

SUPPLEMENTARY READING

SPEECH PRACTICE

1. A trade secret is defined as a formula, practice, process, design, instrument, pattern, or compilation of information used by a business to obtain an advantage over competitors within the same industry or profession. Comment on the components of the definition.

2. Imagine that you are a manager of a big trading company. Would you require your employees to attend seminars regarding business conduct and sign a non-disclosure contract?

3. Discuss the ethical choices in the situations below. Determine the alternative courses of action and tell what you would do.

· You are a production manager. A friend of yours tries to ask you about some secrets of the process of production at your company. Your friend works at the company which is your competitor.

· You are a sales manager and the employer makes you mislead investors by presenting false information about the soundness of your company.

Philosophers and others disagree about the purpose of a business in society. Some theorists contend that a business has moral duties that extend well beyond serving the interests of its owners or stockholders, and that these duties consist of more than simply obeying the law. They believe a business has moral responsibilities to so-called stakeholders, people who have an interest in the conduct of the business, which might include employees, customers, vendors, the local community, or even society as a whole. They would say that stakeholders have certain rights with regard to how the business operates, and some would even suggest that this even includes rights of governance.

Ethical issues can arise when companies must comply withmultiple and sometimes conflicting legal or cultural standards, as in the case of multinational companies that operate in countries with varying practices. The question arises, for example, ought a company to obey the laws of its home country, or should it follow the less stringent laws of a country in which it does business? United States law, for example, forbids companies from paying bribes either domestically or overseas; however, in other parts of the world, bribery is a customary, accepted way of doing business.

It is sometimes claimed that bad ethical practices drive out good ethical practices. In a competitive business environment, those companies that survive are the ones that recognize that their only role is to maximize profits. On this view, the competitive system fosters a downward ethical spiral.

Rushworth Kidder developed a fascinating way to address ethical conflicts. He calls it a ‘trilemma’. Instead of feeling stuck in a choice between violating your ethics and doing something painful but ethical, he suggests exploring if there is a third, unexplored option

Not everyone supports Kidder’s view and policies that govern ethical conduct. Sometimes there is disconnection between the company’s code of ethics and the company’s actual practices. Thus, whether or not such conduct is explicitly sanctioned by management, at worst, this makes the policy duplicitous, and, at best, it is merely a marketing tool.

To be successful, most ethicists would suggest that an ethics policy should be:

· Given the unequivocal support of top management, by both word and by example.

· Explained in writing and orally, with periodic reinforcement.

· Monitored by top management, with routine inspections for compliance and improvement.

· Backed up by clearly stated consequences in the case of disobedience.

· Remain neutral and nonsexist.

Дата добавления: 2014-11-29