Ethics and Unethics and its Impact of Business Communication
Introduction:
The word ethics comes
from the Greek word “Ethos”, which means “character or customer”, writes
philosophy professor Robert C. Solomon. According to the author Solomon, the
etymology of ethics suggests its basic concerns; (1) individual character,
including what it means to be “a good person” and (2) the social rules that
govern and limit our conduct, especially the ultimate rules concerning right
and wrong, which we know as morality. Garret Thomas says that ethics is
concerned primarily with the relationship of business goals and objectives to
specifically human ends. It studies the implications of acts on the good of the
individuals, the firms, the business community and the society. Thus
business ethics studies the special obligations which a man accepts when he
becomes a part of business. For example, philosophical ethics, religious
ethics, Social ethics, business ethics and above all normative and professional
ethics
Business involves a
number of objectives including profit maximization within a framework of social
and other obligations. Ethics in business is related to national factors as
well as global perspectives, varies from country to country, and potentially it
is affected by many factors including the strength of legal, business
regulation and human characteristics such as ethnicity, gender, level of
education and socio-cultural environment. There is often a conflict between the
pursuit of profit and the exercise of ethical conduct in business as managers
pursue profit to maximize returns to investors and often to maximize their own
self-interest. However, investors are no longer regarded as the only
stakeholders in business organizations and managers must be cognizant of the,
sometimes conflicting, interests of other parties such as government,
employees, and various other social groups that may be affected by business
operations and activities. Under competitive conditions when a free market
economy prevails, managers make choices to maximize short-run profit, but to be
sustainable in the long-run business organizations must usually satisfy both
profit expectations and acceptable norms of ethical business practice.
Ethics reflects a society’s notions about the rightness
or wrongness of an act. Ethics also involves the evaluation and application of
certain moral values that a society or culture has come to accept as its norms.
It is generally described as a set of principles or moral conduct.
Business ethics refers to the various perceptions of the morally right way of
carrying out business practices and procedures, which has some very generally
applicable meanings and some that are more individual or specific to businesses
located in a particular geographical area due to influences from the culture or
particular manner of perceiving such ethical concepts in the area. The
different types of business ethics concepts are those subjects that form the bulk of the thrust toward
the application of ethical considerations in the conduct of business. Such
business ethics concepts include the relationship between the management of the
organization and the employees, the relationship between the company and the
customers, distributors and suppliers, the issue of corporate responsibility, and the relationship of
the company with the environment.
Overview
of Business Ethics:
·
Metaphysics:
Deals with the Truth
about the Metaphysical Nature of the Universe, cause & Effect
Relationship, the Functions & Nature of Mind
|
·
Epistemology:
Deals with Nature
and Worthiness of Knowledge, Methods of Knowledge, etc.
|
·
Axiology
Deals with values,
Types of Values, Methods of Value Realization, etc.
|
(a) Logic:
Deals with Thoughts,
Methods of Thoughts, etc.
|
(b) Ethics:
Deals Fundamentally
with the rules of Human Conduct from Moral Point of View
|
(c) Aesthetics:
Deals fundamentally
with the Theory of Beauty, Relation between Truth and Beauty, etc.
|
Element
of Ethics in Business:
a) Honesty and Fairness
Honesty refers to
truthfulness, integrity, and trustworthiness; fairness is the quality of being
just, equitable, and impartial. Honesty and fairness relate to the general
moral attributes of decision makers. At a minimum, businesspeople are
expected to follow all applicable laws and regulations. In addition, they
should not knowingly harm customers, clients, employees, or even other
competitors through deception, misrepresentation, or coercion. Although
businesspeople often act in their own economic self-interest,
ethical business relations should be grounded on fairness, justice rowers.
b) Conflicts of Interest:
A conflict of interest
exists when an individual must choose whether to advance his or her own
interests, those of the organization, or those of some other group. For
example, federal investigators are looking into where a $1 million donation by Citigroup
to the 92nd St. Y nursery school represents a conflict of
interest. Jack Grumman, an analyst for Salomon Smith Barney, upgraded his
rating for AT&T stock after San-ford Well, CEO of Citigroup (the parent
company of Salomon Smith Barney), agreed to use his influence to help Grumman’s
twins gain admission to the elite Manhattan nursery school. Grumman has denied
elevating his rating for AT&T’s Stock for a quid pro quo, but his children
were enrolled. 20 If Grumman placed his family’s interests ahead of his
company’s and the investors who paid his company for imperial advice then those
stakeholders are likely to consider his action a conflict of interest.
c) Fraud:
When an individual
engages in deceptive practices to advance his or her own interests over those
of his or her organization or some other group, changes of fraud may result. In
general, fraud is any purposeful communication that deceives, manipulates, or
conceals facts in order to create a false impression. It is considered a
crime, and convictions may result in fines, imprisonment, or both. Fraud costs
U.S. organizations more than $400 billion a year; the average company loses
about 6 percent of total revenues to fraud and abuses committed by its own
employees. Among the most common fraudulent activities employees report about
their coworkers are stealing office supplies of shoplifting, claiming to have
worked extra hours, and stealing money or products. In recent year, in recent
years, accounting fraud has become a major ethical issue, but as we will see
fraud may also relate to marketing and consumer issues.
D) Discrimination:
Although a person’s
racial and sexual prejudices belong to the domain of individual ethics, racial
and sexual discrimination in the workplace creates ethical issues within the
business world. Once dominated by white men, the U.S. work force today in-clues
significantly more women, African Americans, Hispanics, and other minorities,
as well as disabled and older workers. Experts project that within the next
fifty years, Hispanics will represent 24 percent of the population, while
African Americans and Asians/Pacific Islander will comprise 13 percent and 9
percent, respectively. Theses groups have traditionally faced discrimination
and higher unemployment rates and been denied opportunities to assume
leadership roles in corporate America.
E) Information
Technology:
The final category of
ethical issues relates to technology and the numerous advances made in Internet
and other forms of electronic communications in the last few years. As the
number of people who use the Internet increases, the areas of concern related
to its use increase as well. Some issues that must be addressed by business
included the monitoring of employees’ use of available technology, consumer
privacy, site development and online marketing, and legal protection of
intellectual properties, such as music, books and movies.
·
Small businesses:
Small scale business
from a major part of a country’s productive sector . Although numerically they
constitute the majority of the bank’s clientele it seems difficult to provide
them with the necessary financing under the PLS scheme, even though often the
banks are seen to suffer from liquidity overhangs. Due to the comprehensive
criteria to be followed in granting loans and monitoring their use by banks,
small-scale enterprise have, in general encountered greater difficulties in
obtaining financing than their large-scale counterparts in the Islamic Republic
of Iran. A similar situation is known to be prevailing in other countries.
·
Running business:
Running business
frequently need short-term capital as well as working capital and ready cash
for miscellaneous on-the-sport purchases and sundry expenses. This is the daily
routine chore in the business world. The PLS scheme is not geared to cater to
this need. Even if there is complete trust and exchange of information between
the bank and the business it is nearly impossible or prohibitively costly to
estimate the contribution of such short-term financing on the return of a
given business. Neither is the much used mark-up system suitable in this
case. It looks unlikely to be able to arrive at general rules to cover all the
different situations. Added to this are the delays involved in authorizing
emergency loans.
·
Government borrowing:
In all the countries the
Government accounts for a major component of the demand for credit—both
short-term and long-term. Unlike business loans there borrowings are not always
for investment purpose, nor for investment in productive enterprise. Even when
invested in productive enterprise they are generally of a longer-term type and
of low yield.
·
Ethical Behavior in Business:
Ethical actions are
not, in the final analysis, the responsibility of the individual alone.
Instead, most actions are the result of managers and employees following the
norms of accepted behavior in the companies in which they work. As Bangladesh
is an economy in transition the evolutionary process of transforming its
business ethical values, norms and moralities has greatly hampered its
organizational development. Business organizations are not yet fully
implementing international standards or codes of ethics.
Business Ethics & Corporate Social
Responsibility:
Business
ethics are moral principles that guide the way a business behaves. The same
principles that determine an individual’s actions also apply to business.
Acting in an ethical way involves distinguishing between “right” and “wrong”
and then making the “right” choice. It is relatively easy to identify unethical
business practices. For example, companies should not use child labor. They
should not unlawfully use copyrighted materials and processes. They should not
engage in bribery. However, it is not always easy to create similar
hard-and-fast definitions of good ethical practice. A company must make a
competitive return for its shareholders and treat its employees fairly. A company also has wider responsibilities. It
should minimize any harm to the environment and work in ways that do not damage
the communities in which it operates. This is known as corporate social
responsibility.
·
Ethics & Partnership:
When
getting involved in a partnership, one of a number of issues you will have to
face relates to ethics and the choice of your partner. Making sure any partner
you choose to work with does not prompt ethics queries or issues is a very
important part of choosing the right business or community group to work with. A
mistake in choosing your partner that does raise ethics issues can be a very
serious drawback for a community group or business, and can do more harm than
good when it comes to the reputation and standing of your organization. Not
only that, but it would also mean any partnership you have entered into will
only be a short-lived (and not very successful) one. In reality, these sorts of
ethical dilemmas are ones faced more often by a community group looking to
partner with a business than vice versa. It is also often community groups we
think of as having to contend with "selling out" or compromising
their ethics and beliefs in the pursuit of support or exposure. However,
business partners can still have to grapple with ethics issues in some
circumstances, which means both community organizations and businesses, need to
be aware of making the right decision on whom to partner with. This two-part
Help Sheet is not designed to be a "cure-all" that addresses every
single ethics issue. It is meant as a guide to identifying potential and
present issues that could cause ethics problems and looking at some ways to
avoid or reduce the heartache they bring about.
·
Ethics
and Community Groups:
Most
of us would be able to think of a number of contentious ethics issues off the
top of our heads. However other ethics issues can arise that don't have to be
as contentious.
Some
can be as simple as a potential business partner having questionable attitudes,
practices or philosophies in a field your group feels strongly about, having
associations that are in conflict with your group's beliefs, or are behind products
that contradict values your group promotes.
·
Ethics
and Businesses:
It
is important to remember that businesses can also have certain ethics-related
issues when they are looking for potential partners. Like some challenges that
face community groups when looking for a partner, not all ethics issues for
businesses have to involve highly controversial topics. Some can relate back to an organization's
social attitudes or associations with other businesses or individuals your
business does not agree with.
·
Relationship between Ethics and business:
Many experts suggest that
the relationship between business ethics and profits can be very complicated. In some cases, the
values needed to make a profit will totally conflict with an ethical viewpoint,
leading to unethical business behavior as company leaders strive to bring in
the most money possible. In other cases, companies actually benefit in numerous
ways from operating with higher ethical standards, and the overall mindset of
companies that consider ethics to be a high priority often seem to have
advantages in unrelated areas. A complicating factor that may muddy the water
in regards to the relationship between business ethics and profits is that each
culture may have slightly different ethical ideals and expectations when it
comes to corporate behavior.
·
Business ethics network:
Business ethics network is
used in reference to organizations that are specifically formed for the furtherance
of the goals or ethical considerations in the practice of business. Such groups
are usually in the form of professional business organizations or Non-Profit
Organizations (NGOs) that are started with the intention of catering to the
furtherance of the practice or application of various business ethics by the
members of the organization. The business ethics network may be formed for
individuals in the business world, in which case the membership will be based
on an individual basis. Otherwise, the membership of the organization will be
drawn from corporate entities, rather than individual members. In the case of
the corporate entities, their employees will participate in the business ethics
network since the members of the company are the ones to consume the corporate
ethical practices in order to inculcate them in their practices.
·
Business Ethics causes:
The main reason for the
application of business ethics in various business transactions stems from the fact that a
business world without any ethical considerations would be a chaotic one where
anything would go . As such, the need for business ethics is related to the
order, consideration and integrity that ethics infuses into the business world.
Bearing in mind the fact that while some ethical considerations may be
considered universal because they are derived from basic morality, the real
meaning of ethics in business is not something that can be referred to as an
established set of laws . This means that the perception of ethics in business
is somewhat malleable and can have different meanings for companies, especially
in the global business community where different cultures and values play an
important role in determining the exact business ethics that will guide the
operations of the company. The reasons for the application of ethics in
business could be for marketing, corporate image or other personal
considerations unique to the company.
Importance of Business Ethics:
The importance of business ethics should be obvious throughout every
area of the business. When a business is known for dealing honestly with all
people, from its employees and customers to shareholders and vendors, it is
often more likely to become successful. While ethics is a subjective topic that may mean
different things to different people, it's still very important in all types of
corporate settings. Business ethics play an important role in hiring and business management practices. The first people
hired should be aware of the company's values and ethics practices, so as the company grows and
expands, those practices continue to be upheld. When a business is managed well, employees will
usually feel that they are being treated fairly; this can help the company to
hire and retain excellent employees, which is instrumental to its overall
success. Of course, the importance of business ethics goes beyond the direct relationship
between its employees and management team, extending out to how the company
deals with the local community and its social responsibility. A business that behaves in an ethical way as a
member of the community will often find that the community offers its support
in return, which can also be invaluable to the success of the company. This may
be done by assisting with community events, donating funds in support of local
charities, or simply behaving honestly in dealings with other local businesses.
Business ethics are also important in financial
matters. This becomes clear when the business is dealing with people such as
vendors and shareholders. A business that does not behave with integrity
may have difficulty conducting business, as vendors who supply the materials
it needs might not be willing to extend credit, while shareholders might no
longer be willing to invest their money. While the initial profits might be
high, the appearance of ethical problems within the business can make investors uncomfortable
risking their money. Customers who do not feel as if they are being treated
fairly by a business will often not hesitate to do something about it. Social
networks have made sharing negative information about a company much easier,
and customers do not hesitate to do so. It does not take much bad press for
sales to decline. This principle works in the opposite direction as well,
however: customers who feel as if they are dealt with honestly are more likely
to tell their friends to visit the business.
There are many
reasons that business ethics matter. Companies that have made a commitment to
behaving in a socially responsible manner know that committing to ethical
behavior is not only the right thing to do – it's also good business.
·
Understanding
Business Ethics:
To answer the
question of why business
ethics are important, you must understand
what the phrase "business ethics" really means. At the most basic
level, business ethics are nothing more than the code of values and principles
that govern the actions of a person, or a group of people, regarding what is
right versus what is wrong.
A person's sense
of ethics has an impact on the type of conduct the individual will exhibit.
When people are able to tell the difference between right and wrong and they
choose to do what is right, then they are acting in an ethical manner. Business
ethics aren't just about the
difference between right and wrong; they are the actual application of that
knowledge to business.
Impact of Ethics and Unethics in Business:
Primarily it is the individual, the consumer, the
employee or the human social unit of the society who benefits from ethics. In
addition ethics is important because of the following:
- Satisfying Basic Human Needs: Being
fair, honest and ethical is one the basic human needs. Every employee
desires to be such himself and to work for an organization that is fair
and ethical in its practices.
- Creating Credibility: An
organization that is believed to be driven by moral values is respected in
the society even by those who may have no information about the working
and the businesses or an organization. Infosys, for example is perceived
as an organization for good corporate governance and social responsibility
initiatives. This perception is held far and wide even by those who do not
even know what business the organization is into.
- Uniting People and Leadership: An
organization driven by values is revered by its employees also. They are
the common thread that brings the employees and the decision makers on a
common platform. This goes a long way in aligning behaviors within the
organization towards achievement of one common goal or mission.
- Improving Decision Making: A
man’s destiny is the sum total of all the decisions that he/she takes in
course of his life. The same holds true for organizations. Decisions are
driven by values. For example an organization that does not value
competition will be fierce in its operations aiming to wipe out its
competitors and establish a monopoly in the market.
- Long Term Gains: Organizations
guided by ethics and values are profitable in the long run, though in the
short run they may seem to lose money. Tata group, one of the largest
business conglomerates in India was seen on the verge of decline at the
beginning of 1990’s, which soon turned out to be otherwise. The same
company’s Tata NANO car was predicted as a failure, and failed to do well
but the same is picking up fast now.
- Securing the Society: Often
ethics succeeds law in safeguarding the society. The law machinery is
often found acting as a mute spectator, unable to save the society and the
environment. Technology, for example is growing at such a fast pace that
the by the time law comes up with a regulation we have a newer technology
with new threats replacing the older one. Lawyers and public interest
litigations may not help a great deal but ethics can.
Ethics tries to create a sense of right and wrong
in the organizations and often when the law fails, it is the ethics that may
stop organizations from harming the society or environment.
Ethical
issues of business communication:
Communication is
the process by which individuals exchange information between other individuals
or groups of people. Throughout the process, effective communicators try as
clearly and accurately to convey their thoughts, intentions and objectives to
their receiver. Communication is successful only when both the sender and the
receiver understand the same information. In today's business environments,
effective communication skills are necessary due to the highly informational
and technological era. Regardless of context, communication involves choice,
reflects values, and has consequences. For better communication, understanding
the obvious and the subtle issues relating to communication is necessary. Any
company that aims to be socially and ethically responsible must make a priority
of ethical communication both inside the company and in its interactions with
the public. In theory, many consumers prefer to do business with companies they
believe are ethical which gives those ethical businesses an advantage in the
market.
Ethical issues of business communication are
one such issue. Some of the vital characteristics of ethical communication are
discussed below.
·
Conveying the point without
offending the audience:
While
communicating to the audience, conveying the desired message to them in a
significant manner is of primary importance. For instance, the employees in a
company can be asked to increase their efficiency in a demanding manner whereas
managers and executives will feel offended if the same tone is used on them.
There are different ways to explain the exact things to them in a much smoother
manner.
·
Maintain a relationship with the
audience:
Maintaining
the same wavelength with the audience is very important for a communicator to
ensure the audiences feel at home. Experienced communicators immediately build
a relationship based on trust with the audience as soon as they start speaking.
Great orators such as Winston Churchill and Mahatma Gandhi always were able to
maintain a relationship with their audience because they were masters at
striking the same wavelength of the audience.
·
Avoid withholding crucial
information:
In
the modern era, information is vital for all decisions. Hence, it is vital for
any organization to be cautious when communicating with the public. The
communicated information should be absolute and all vital information must be
conveyed appropriately. Purposely withholding crucial information might result
in the public conceiving a bad image.
·
Well organized value system:
In
order to ensure that this concept is successfully practiced and understood in
an organization, a well-organized value system must be established throughout
the organization by the top management. If an organization functions on the
base of value systems common to both the top management and the employees,
mutual respect between them will be present. A sound and healthy value system
can make way for ethical communication.
·
Accuracy of information is
necessary:
Any
information that is to be passed on must be true and accurate. Communicating
without checking the truth of the information can be highly dangerous for the
organization. Identification of the source and testing the information is
necessary before communicating it.
Communication & Ethical Issues in Business:
Business ethics is a subject that can
vary greatly from one business to the next as far as how it is interpreted and
implemented within the small business. What may seem ethical to one business is
not to the next–and the same goes for employees. That is why it is important to
clearly communicate the ethical stance of the business to all employees.
Employees should not only be expected to act in an ethical manner, they should also
fully understand the ethical stance of the small business.
Why are Business Ethics Important?
While many
businesses have codes of ethics, the words written in a formal code are
valuable only if their intent is reflected in the actions of the people who
represent the organization. A business cannot be any more – or less – ethical
than the people who run it and who work for it. Within a company, people take
their cues regarding the behaviors that are acceptable based on how they see
the company's leaders acting and the behaviors that they see being
rewarded in their peers. Businesses that are managed by leaders who conduct
themselves in an ethical manner and who reward employees for doing what is
right are much more likely to be characterized by a positive ethical culture.
Importance
of Ethical Communication:
In order for employees to effectively
understand what the business considers to be ethical practices, it has to be
communicated effectively to employees. Ethical behavior should be communicated
daily to employees and that includes recognizing employees who have acted in an
ethical manner. This not only gives praise to those employees for a job well
done, it helps to set ethical standards for other employees in the business.
·
Ethics Policy:
Every business should have a written
ethics policy that details what is expected of employees within the business.
It should communicate what the business believes are its ethical standards such
as always being honest in communications, dealing with customers and other
employees fairly and reporting ethical violations that the employee witnesses.
The policy should also outline the consequences of acting unethically within the
small business. This policy should be signed by employees upon their acceptance
of employment as well as reviewed and signed on an annual basis.
·
Ethics Training:
Because everyone’s idea of ethics can
differ, it is important that the business conduct ethics training for all
employees. Some employees may see taking business supplies for personal use as
unethical whereas they don’t believe that taking a business pen home with them
is the same. The business should educate the employees about its own ethical standards
through role play as well as hypothetical scenarios. This can help employees
recognize what the business considers to be ethical and unethical.
·
Management Role:
Management’s role in ethical
practices for the business is to always demonstrate ethical behavior in verbal
and non-verbal form. Management should reinforce ethical behavior in others
with praise while using unethical behavior as a teaching tool for other
employees. In addition, management should realize they are role models for the
business and must act accordingly. If they expect employees to act in a certain
way, they must also act in the same way and lead by example.
·
Considerations:
In monthly employee meetings, use
stories from the news to reiterate the business stance on ethics. Pass the
story out to employees to read and review before the meeting. During the
meeting, discuss the article and have employees identify the ethical and
unethical behaviors demonstrated in the story. Also ask the employees what
should have happened and what they should do if they encounter the same or
similar behavior in this business.
Top 10 Unethical Business Actions:
This list was originally titled “Most Evil Corporations” but
the author thought it would be best to keep the site’s neutral status and minimize
the probability of this list being classified as slander. As long as there has
been big-business there have been dubious and flat-out immoral actions taking
place to preserve profit, market share and public image. This list cannot be
ranked too effectively, as the extent and severity of the misdeeds cannot be
measured, but the items have been chosen because of their human and long-term
cultural impact.
Tip of the iceberg can describe the story below.
Wal-Mart is company No. 1 in the world. It has the most revenue over any other
company ($421 Billion). But its riches equal its controversies. This story is
probably the most apt at describing the unethical treatment of its workers,
because of the sheer senselessness of it. In 2000, a collision with a semi-trailer
left 52-year-old Deborah Shank with permanent brain damage and in a wheelchair.
Her husband and three sons were fortunate for a $700,000 accident settlement
from the trucking company. After legal costs and other expenses, the remaining
$417,000 was put in a special trust to care for Mrs. Shank. However, six years
later the providers of Mrs. Shank’s health plan, Wal-Mart, sued the Shanks for
the $470,000 it had spent on her medical care.
Wal-Mart was fully entitled to the money; in the fine
print of Mrs. Shank’s employment contract it said that money won in damages
after an accident belonged to Wal-Mart. A federal judge had to rule in favor of
Wal-Mart, and the family of Mrs. Shank had to rely on Medicaid and
social-security payments for her round-the-clock care. Wal-Mart may be
reversing the decision after public outcry. However this case pinpoints
Wal-Mart’s often criticized treatment of employees as a commodity and its
sometimes inhuman business ethics. Earlier in the year, there was media frenzy
in the U.K. over celebrities getting court injunctions to silence the press
from reporting on their various misdeeds and grubby encounters. This story
actually stems from a far more serious beginning, in 2006.
Ways to overcome ethical
dilemma:
·
Message ahead of the person -
Common good approach:[5]
Most
people in organization face ethical dilemma when they want to withhold crucial
information because of conflict with an individual or a group. In such
situations, importance should be given to the message to be communicated and
not on the person or the group to which the message is to be communicated.
Hence people should give priority to the common good of the organization rather
than interpersonal or inter-group conflicts.
·
Decisions that produce more good
and less harm – Utilitarian approach:
When
in ethical dilemma consider the effects of various alternatives after a certain
period of time. Ethical decision is to choose the alternative which provides
more good and less harm to the organization.
Ø Code of Ethics:
The
International Association of Business Communicators has developed a code of
ethics for business communication. The IABC code of ethics requires business
communicators to be truthful and accurate and to personally correct any
inaccuracies they have the opportunity to correct. They are also expected to
support human rights, such as freedom of speech and to respect and understand
the values of different cultures and belief systems. They must refuse to
participate in any unethical business communication practices, follow all laws
and regulations affecting their industry, avoid plagiarism in communication,
maintain confidentiality except when it would be legally or ethically
inappropriate to do so, avoid the appearance of bribery or conflict of
interest, avoid promising unrealistic results or benefits to clients or
customers and practice honesty with both self and others.
What are the Ethical Decisions that Impact any Organization?
Business ethics is an area of
corporate responsibility where businesses are legally and socially obligated to
conduct business in an ethical manner. Business ethics includes five key
elements: honesty, integrity, trust, confidentiality and openness. Within the
business world, ethical decisions are made each day that have an impact across
all organizations.
·
Ethical Advertising Decisions:
Most businesses, at one time or another
will need to advertise their products or services so they can increase their
customer base. It is important they do this in an ethical manner. Ethical
advertising is considered honest when it truthfully portrays what is being
sold. Unethical advertising is deceitful or misleading and can even be
considered negative. Advertising that's considered negative often degrades a
competitor's product so the business can make its product look better.
·
Ethical Policies on Confidentiality:
Almost all codes of ethics used by
businesses involve at least some guarantee of confidentiality. Customers want
to know that their private information will not be used in ways in which they
do not approve. Employees want to know their personal files won't be accessible
by anyone other than authorized personnel. When businesses fail to disclose
their intended business practices, such as selling customers' information to
third parties, it's considered unethical behavior.
·
Employee Performance:
A lack of ethics has a negative
effect on employee performance. In some cases, employees are so concerned with
getting ahead and making money that they ignore procedures and protocol. This
can lead to additional paperwork and careless errors that result in the task
having to be completed again. Additionally, employees who feel acting ethically
and following the rules will not get them ahead in the business sometimes feel
a lack of motivation, which often leads to a decrease in performance.
·
Employee Relations:
When a manager or head of a business
exhibits a lack of ethical behavior, he faces losing the respect of his
employees. It is difficult to have a successful business without well-respected
leaders. A lack of ethical behavior can also cause tension among employees,
with some employees resenting those who do not play by the rules and still
manage to get ahead. Unethical behavior in the workplace also has the potential
to lead to a lack of trust among employees, which is detrimental to a business
that relies on collaboration and a sense of community.
·
Company Credibility:
If a lack of ethics in a business
becomes public knowledge, that business loses credibility. While some
businesses survive public knowledge of a lack of ethics through reimaging and
advertising campaigns, many lose a key customer base. Even if a business
recovers from news about its lack of ethics, it takes a lot of time and money
to restore its image and consumer confidence. Preventing Unethical Behavior. Often
a lack of ethics appears because of poor planning and faults elsewhere in the business.
To prevent unethical behavior, set realistic goals for employees. If employees
are expected to meet unreachable quotas and goals, they could engage in
unethical behavior to attempt to reach those goals. Consistently monitor
employee performance. Employees left unmonitored sometimes slack in their
performance and take credit for completing tasks that were left uncompleted.
Properly train all employees. Untrained employees often cut corners and make
excuses for not completing work up to the standards the business requires.
Ethical Marketing:
That question has never had a satisfactory answer, but in
recent years it has become a hot button issue. According to the Bureau of
Economic Analysis, corporate profits soared to all time highs in 2011. At the same
time, the world was suffering through a crippling economic downturn made worse
by unscrupulous business practices. The vast disparity between corporations and
their customers has made ethical business practices an extremely relevant
issue. Companies realize the importance of acting in more ethical way, and
broadcasting this transformation to their customers. One of the easiest ways to
achieve this is through their marketing practices. If a company makes an effort
to advertise more ethically, it reflects positively on every area of that
business.
·
What is Ethical Marketing?
Ethical marketing is
less of a marketing strategy and more of a philosophy that informs all
marketing efforts. It seeks to promote honesty, fairness, and responsibility in
all advertising. Ethics is a notoriously difficult subject because everyone has
subjective judgments about what is “right” and what is “wrong.” For this
reason, ethical marketing is not a hard and fast list of rules, but a general
set of guidelines to assist companies as they evaluate new marketing
strategies.
There are distinct
advantages and disadvantages to ethical marketing. Unethical advertising is
often just as effective as it is unethical (See
also Black). And since unethical behavior is not necessarily against
the law, there are many companies who use unethical advertising to gain a
competitive advantage.
Many people buy diet
pills even though they are rarely, if ever, effective. This is because some
diet pill companies use exaggerated and manipulative claims to essentially
trick customers into buying these products. If that same company committed to
using ethical advertising they would probably go out of business. However
sneaky their business model may be, it is not illegal and it is keeping their
doors open.
·
Who Employs Ethical Marketing?
Every company has the
opportunity to engage in ethical marketing. Any business, from the smallest mom
and pop store to the biggest multinational corporation can choose to be open,
honest, and fair when they advertise to their customers. When done in a
thoughtful way, ethical marketing can be an economical and effective form of
advertising. Similarly, unethical advertising doesn't guarantee higher sales or
lower advertising costs.
Some companies operate
according to lofty personal principles. For these companies, advertising in an
ethical way is a natural and necessary extension of their corporate character.
Corporate responsibility can be a major selling point to consumers who are
interested in more than just price and quality. Companies that are known for
treating workers fairly, sourcing sustainable materials, environmental
stewardship, and charitable donation have to reflect these principles in their
marketing efforts.
Types
of Unethical Advertising:
·
Surrogate Advertising – In
certain places there are laws against advertising products like cigarettes or
alcohol. Surrogate advertising finds ways to remind consumers of these products
without referencing them directly.
·
Exaggeration – Some
advertisers use false claims about a product's quality or popularity. A Slogan
like “get coverage everywhere on earth” advertises features that cannot be
delivered.
·
Puffery – When
an advertiser relies on subjective rather than objective claims, they are
puffing up their products. Statements like “the best tasting coffee” cannot be
confirmed objectively.
·
Unverified Claims – Many
products promise to deliver results without providing any scientific evidence.
Shampoo commercials that promise stronger, shinier hair do so without telling consumers
why or how.
·
Stereotyping Women – Women
in advertising have often been portrayed as sex objects or domestic servants.
This type of advertising traffics in negative stereotypes and contributes to a
sexist culture.
·
False brand comparisons – Any
time a company makes false or misleading claims about their competitors they
are spreading misinformation.
·
Children in advertising – Children
consume huge amounts of advertising without being able to evaluate it
objectively. Exploiting this innocence is one of the most common unethical
marketing practices.
·
How is an Ethical Marketing Plan Developed and Implement?
Ethical marketing
doesn’t refer to a plan in and of itself, but offers tools for companies to
evaluate the marketing strategies they use in the past, present, and future. If
a company decides that an ethical marketing strategy can increase their profits
or advance their public image, they can take steps to revise their existing
marketing (See also Public Relations Specialist).
In some cases this involves minor changes; in others it will require entirely
new ad campaigns.
Any ethical marketing
effort will begin with a careful analysis of the company, its customers, and
the markets it operate within. Ethical marketing has many advantages, but few
companies would undertake an ethical marketing strategy if it reduces profits.
Careful research is the best way to predict the effects of a change in
strategy. If ethical marketing proves to be cost prohibitive, many companies
will abandon the effort.
A company will then
decide which features of their advertising to perform in ethical ways. As
previously mentioned, the field of ethics is notoriously abstract. What is
right to one may be wrong to another. Marketing professionals must reach an
agreement about how they want to deliver their campaigns. They might decide to
focus on making honest claims, avoiding marketing to children, or falsely
criticizing competitors. A delicate balance has to be struck between the truth
of the ad and its ability to persuade the customer.
Finally, ethical
marketers need to make difficult choices about how to leverage the capitol of
their ethical decisions. For most companies, the simple knowledge that they are
doing the right thing will not be enough of a motivating factor. Ethical
marketing often highlights the ethical choices a company has made in order to
improve their public reputation. This can be a powerful way to connect with
customers, but it also runs the risk of seeming self congratulatory. Any effort
at ethical marketing has to balance a company’s self interest with their social
responsibility.
Careers in Ethical Marketing:
·
Ethicist:
Ethicists study the
practical and philosophical dimensions of ethical choices. Many work in
academic departments, but some larger companies employ their own in-house
ethical officers. In a corporate setting, they will draft policies outlining
the ethical obligations of the company, evaluate
An advanced degree in
philosophy is necessary to find work as a professional ethicist. Corporate
ethical offices will also need to have bachelor's degrees in business,
marketing, or communications. Specialized training in the industry or
department the ethicist works for will make the counsel they provide more
relevant
·
Marketing Manager:
Marketing managers
supervise every aspect of a marketing campaign. They will conduct market
research, guide the design of ads, monitor performance metrics, and negotiate
deals with ad buyers. As the person responsible for making the final call about
advertising decisions, the marketing manager will decide how ethical a
company’s marketing strategy will be.
·
Education/Experience:
A bachelor's degree in
marketing is the minimum educational requirement for marketing managers. Many
have advanced degrees in specialized forms of marketing. Additional training in
business, public relations, or graphic design can also be helpful. Managers get
promoted into their positions after several years of working in the industry.
·
Education/Experience:
A degree in marketing
is helpful but not absolutely necessary to become a copywriter. Some people
enter the field after getting degrees in English, public relations, or
communications. Strong language skills and an ability to write informatively
and persuasively are the most important features of a copywriter.
·
How Can a Degree in Marketing Help You Find a Job in Ethical Marketing?
Ethics are an abstract
subject that can easily get overlooked in the high pressure world of business.
Some companies treat ethical behavior as an obstacle and make only shallow
efforts to behave responsibly. In some cases this has consequences, in others
it does not. The only way to remain aware of the ethics of business decisions
is to have a team constructed of ethically minded business people. Getting a
degree in marketing from an accredited institution is a proven way to maintain
this ethical focus. The ethics of marketing will be a feature of any marketing
program. Students will study famous examples, consider case studies from the
world, and have in-depth discussions about what is “right” and “wrong” in
marketing.
·
Ethical System Implementation:
The function of developing and
implementing business ethics into an organization is difficult. Due to each
organization's culture and atmosphere being different, there is no clear or
specific way to implement a code of ethics to an existing business. The
implementation should be performed to the entirety of the business including
all areas of operations. If it is not implemented pragmatically and with
caution for the needs, desires, and personalities (consider the Big Five personality
traits) of the
stakeholders, the culture, and the employees, then problems may arise. Although
a great deal of time may be required, stakeholder management should consider
the Rational
Decision-Making Model for
implementation of various aspects, details, and standards of an ethical system
to the stakeholders. If implementation has been performed successfully, then
all stakeholders have accepted the newly designed ethics system for the
organization.
·
Theories and Models:
Refer to the following theories and
models for more information:
Ø Social
Responsibility:
Small companies also have an
obligation to protect the community. For example, the owner of a small chemical
company needs to communicate certain dangers to the community when explosions
or other disasters occur. The owner must also maintain certain safety standards
for protecting nearby residents from leaks that affect the water or air
quality. There are state and federal laws that protect people from unethical
environmental practices. Business owners who violate these laws may face stiff
penalties.
Organizational Structure of Ethics:
Ø Financial
Ethics:
Business owners must run clean
operations with respect to finances, investing and expanding their companies.
For example, organizations must not bribe state legislators for tax credits or
special privileges. Insider trading is also prohibited. Insider trading is when
managers or executives illegally apprise investors or outside parties of
privileged information affecting publicly traded stocks, according to the
Securities and Exchange Commission. The information helps some investors
achieve greater returns on their investments at the expense of others.
Executives in small companies must strive to help all shareholders earn better
returns on their money. They must also avoid collusive arrangements with other
companies to deliberately harm other competitors.
Ø Considerations:
A small company's organizational
ethics can also include taking care of employees with mental illnesses or
substance abuse problems, such as drug and alcohol dependency. Ethical business
owners help their employees overcome these types of problems when possible.
They often put them through employee advisor programs, which involves getting
them the treatment they need. Employees may have issues that lead to these
types of problems. Therefore, they deserve a chance to explain their situations
and get the help they need.
Ø
Organizational
Communication of Ethics:
In
this chapter we examine how the philosophical world of ethics can be applied to
organizational communication. When people hear the word “ethics” used in modern
society, many different images and incidents quickly come to mind. Sadly, the
21st Century has already been plagued with many ethical lapses in the business
sector. Turn on any major global news station, newspaper, magazine, or podcast
and you’re likely to hear about some business that is currently in a state of
crisis due to lapses in ethical judgment.
Ø
Nature
of Ethics:
Objectives:
- Define
the term “ethics” and how it relates to both means and ends.
- Explain
the four different ethical frameworks discussed in the ethical matrix.
- Differentiate
among the eleven philosophical perspectives of ethics and how they apply
to both business ethics and communication ethics.
According
to the Oxford English Dictionary (1963)The Oxford English Dictionary. (1963). Oxford, Britain: At the Clarendon Press., the
word “ethics” is derived from the
Greek ethos or the nature or disposition of a culture. Ethics is further
characterized as both a field of study concerned with moral principles and the
moral principles that govern or influence human behavior. Parhizgar and
Parhizgar (2006) Parhizgar, K. D., & Parhizgar, R.
(2006). Multicultural
business ethics and global managerial moral reasoning.
Lanham, MD: University Press of America. define ethics as the: critical
analysis of cultural values to determine the validity of their vigorous
rightness or wrongness in terms of two major criteria: truth and justice.
Ethics is examining the relation of an individual to society, to the nature,
and or to God. How do people make ethical decisions? They are influenced by how
they perceive themselves in relation to goodness and/or excellence.
·
Accessory
to unethical acts:
An
accessory to an unethical act is an individual who knows that an ethical
violation has occurred by another individual. This knowledge of ethical
violation could come either in the form of witnessing the ethical violation or
somehow helping the individual commit the ethical violation. Ultimately,
individuals who find themselves in the accessory position are faced with the
ethical dilemma of whether or not to report the ethical violation.
·
Moral
balance (ethical dilemmas):
The
idea of “moral balance” stems from a
philosophical debate about individuals who are faced with the possibility that
a good outcome of her or his behavior or decisions will lead to a secondary
outcome that is bad. For example, an issue of moral balance is at stake when an
organization wants to produce a new product that will save hundreds of
thousands of lives (primary outcome), but will destroy the fragile ecosystem of
a village and make it uninhabitable for the indigenous people who live there
(secondary outcome). An inverse moral dilemma could also exist: if the company
does not produce the product, the fragile ecosystem of the village will be
saved (primary outcome) but hundreds of thousands of lives will not be saved by
the product (secondary outcome). How do you decide which option is ethical?
Unfortunately, these types of ethical decisions are often the most complicated
to make.
Communication
Association, endorse and are committed to practicing the following principles
of ethical communication:
- We advocate
truthfulness, accuracy, honesty, and reason as essential to the integrity
of communication.
- We endorse freedom
of expression, diversity of perspective, and tolerance of dissent to
achieve the informed and responsible decision making fundamental to a
civil society.
- We strive to
understand and respect other communicators before evaluating and
responding to their messages.
- We promote access
to communication resources and opportunities as necessary to fulfill human
potential and contribute to the well-being of families, communities, and
society.
- We promote
communication climates of caring and mutual understanding that respect the
unique needs and characteristics of individual communicators.
- We condemn
communication that degrades individuals and humanity through distortion,
intimidation, coercion, and violence, and through the expression of
intolerance and hatred.
- We are committed
to the courageous expression of personal convictions in pursuit of
fairness and justice.
- We advocate sharing
information, opinions, and feelings when facing significant choices while
also respecting privacy and confidentiality.
- We accept
responsibility for the short- and long-term consequences for our own
communication and expect the same of others.
For
the purposes of this chapter, we are concerned with providing guidance about
organizational communication ethics. Previously, the basics of the
philosophical field of ethics, business ethics, and communication ethics were
discussed. In the next section, we will turn our attention toward
organizational communication ethics.
Findings:
Ø Ethical Organizational Communication:
Ethics research in business communication: The state of the art. The Journal of Business
Communication, 27, 251–272. Examined the state of ethics research
in business communication by examining the empirical research conducted on this
subject. Based on his analysis of 28 different research articles, Reinsch found
nine basic areas of agreement:
·
Communication behaviors vary in moral
worth, and various groups (e.g., advertising executives, general public)
demonstrate a relatively high level of consensus about the moral weight of many
specific practices.
·
Blatantly unethical behaviors sometimes
occur in business organizations.
·
Unethical business communication can be
effective in the short run.
·
A person’s behavior is related to his or
her ethical beliefs.
·
The concept of business communication
ethics is relevant to many different aspects of business including direct mail
marketing, management, and consulting.
·
The concept of business communication
ethics is related to other significant concepts such as honesty and trust.
·
Persons differ in ethical values,
beliefs and behaviors, and the differences may be associated with variables
such as gender, age, perceptions of an employer as typical or “generous,” and
the values, beliefs and behaviors of one’s cohorts.
·
Ethical analysis in business
communication has sometimes been impressionistic; consistent, careful attention
to the work of ethicists in other fields (e.g., philosophy, interpersonal
communication) is desirable.
·
Business communication ethics should
encompass oral communication as well as written.
In
light of the earlier discussions in this chapter, the majority of this list is
consistent with other perspectives on ethics. However, there is one major idea
in this list that had not been previously discussed in this chapter. Reinsch
(1990) concluded that sometimes unethical communicative behavior can be
effective in the short-run. If unethical behavior was never effective, there
would be no reason for anyone to engage in unethical behavior. The simple fact
is, quite often unethical behavior can help people get ahead in life and in
business. Reinsch noted that individuals interested in organizational communication
ethics tend to agree that unethical behavior is effective in the short-run, but
there is disagreement about the effectiveness of unethical behavior in the
long-run. Basically, the longer someone engages in unethical communicative
behavior, the greater the likelihood that others will start to notice, thus
establishing clear diminishing returns to unethical behavior (to use an
economics term).
Ø
Unethical
Organizational Communication:
As
part of Redding’s (1996)Redding, W. C. (1996). Ethics and
the study of organizational communication: When will we wake up? In J. A. Jaksa
& M. S. Pritchard (Eds.), Responsible
communication: Ethical issues in business, industry, and the professions (pp.17–40).
Cresskill, NJ: Hampton Press. call
for the field of organizational communication to “wake up” and start studying
ethics, he created a basic typology of unethical organizational communication.
The resulting typology of unethical organizational communication consisted of
six general categories: coercive, destructive, deceptive, intrusive, secretive,
and manipulative-exploitative.
Ø
Ethical
Principle:
The
third phase of Mattson and Buzzanell’s (1999) framework for ethical analysis is
applying the ethical principle. Mattson and Buzzanell explain what occurs in
this phase when they write “inclusion of emotion in ethical considerations;
refusal to develop or use single rules for identifying and resolving ethical
dilemmas; utilization of values and ideas that empower, give voice, and
emancipate people” (p. 63). According to Steiner (1997), “feminist inquiry is
generally unsympathetic to rule-based ethical theories or theories that—as they
usually do—exclude consideration of emotion” (p. 74). Mattson and Buzzanell
argue that it is important to include individual’s emotional responses when
thinking about ethical dilemmas because “these responses indicate what people
care about and might be willing to change” (p. 66). In the end, many aspects of
organizational life are accompanied with complex emotions, which should be considered
when examining the ethical nature of organizational communication.
Ethical Performance Improvement
Perspective:
While
the previous section introduced you to both concrete and abstract views of
determining the ethicality of organizational communication, this section will
examine a perspective on increasing ethical organizational communication as
proposed by Montgomery and DeCaro (2001). Montgomery and DeCaro proposed that
one of the best ways increasing organizational communication ethics is to use a
human performance improvement approach. “Ethical problems or dilemmas have
behavioral consequences. Analysis can measure and monitor the behaviors leading
to the unethical act, or the act, itself. By analyzing the antecedents and
consequences, they can then design an intervention to correct the behavior”
(32). Often, human performance interventions related to ethics happen in
hindsight: an ethical violation occurs first and then the human performance
improvement experts backtrack to determine how and why the ethical violation
occurred. At other times, human performance interventions related to ethics
start with a code of ethics (e.g., National Communication Association’s Ethical
Credo in Communication “or the
International Association of Business Communicators Code of Ethics in Note 2.35 "International Association of Business Communicators
(IABC) Code of Ethics") and then follow with suggestions for
action in order to ensure that the ethical codes are followed.
Problem or Unethical in Business:
Ø Disclose
the secrecy of Account: the prime relationship of a bank is to maintain the secrecy
of account. That is not t disclose or share the customer information with any
body. Sometime the bankers share such information with competitors.
Ø Availing
undue advantage from the customers.
Ø Tempering
customers financial information for emphasis own performance.
Ø Vague
certification from the bank providing account information such as solvency
certificate.
Ø Delay
in cascading important information circular to the customer.
Ø Sometime
Bribery practice for sanctioning large amount of loan.
Ø Taking
benefit from the supplies. Helping customer lending.
Ø Sometime
create illegal environment congenial to loan recovery.
Ø
Do not proper evaluation of invoice to cash trial of sales ledger.
Recommendation:
Ø
Do not disclose the secrecy of account and financial information.
Ø
Avoid the bribery practices for sanctioning larger amount of loan.
Ø
Create a legal environment congenial to loan recovery.
Ø
Loans collection and provides by the ethical aspect.
Ø
Proper security of invoice.
Ø
Legal action.
Ø
Proper evaluation of invoice to cash trait of sales ledger.
Ø
Appropriate and enforceable documentation (factoring agreement, demand
promissory note, directors personal
guarantees, power of attorney etc)
Ø
Recommend recourse to client or enforcement of security for recovery of
bad depts..
Conclusion:
Ethics involve systemizing, defending
and recommending concepts of right & wrong behavior. Business ethics play an important role in hiring and business management practices. The importance of business ethics goes beyond the direct relationship
between its employees and management team, extending out to how the company
deals with the local community and its social responsibility. From the above we
have seen that business ethics is highly importance in every sector of business
and banking in Bangladesh. In today’s world the slogan is ‘Business of business
is ethical business’. Ethical and social responsibility of business is
matter of serious concern in modern discussions of the policy planner,
management circles and government quarters. However, western civilization has
failed to provide a solid basis for the development of an ethical and moral
code of conduct for business. Its ethical values are largely utilitarian,
highly relative, and situational in nature and devoid of any spiritual
sanctioning power. Contrary to it, Islam offers a unique and ideal perspective
of business ethics.
It
considers business as a part of one’s worship, provided that it is conducted in
accordance with the commands of Allah and the moral code of conduct prescribed
by Islam. Principles of
ethics such as truthfulness, honesty, trust, sincerity, brotherhood, science
and knowledge and justice provide the general background for business ethics.
These principles have far-reaching consequences for the business ethics. The
focus of Islamic ethics is on changing the attitude, mentality and behavior of
people. Ethics is modern society has attention of all people from different
cultures and different countries. Violations of ethical code have taken place
in almost every segment of human endeavor. The effort to overcome such problem
in the area of business, both nationally and internationally, has been under
taken by the legal and educational systems, and by professional and business
corporations.
Business
ethics has emerged as a separate and distinctive discipline, largely drawing on
moral philosophy but often using a case study approach developed in management
schools to illustrate the ethical dilemmas which business decision makers face.
The literature on Islamic business ethics is much restricted, yet Islam has its
own code of business, which has both similarities and differences with the
practices. Businessmen in the Muslim world should apply their beliefs in their
commercial dealings. At the same time, non- Muslims operating in the Islamic
world need to be aware of what those beliefs are and their business
implications.
References:
1. Singh,
Meenakshi Raman, Prakash (2006). Business communication (2.
impression. ed.). [S.l.]: Oxford University Press.ISBN 0-19-567695-5.
2. Rogin,
Mary Ellen Guffey, Kathleen Rhodes, Patricia (2009). Business communication: process and product (3rd
brief Canadian ed. ed.). Toronto: Nelson Education. ISBN 978-0-17-650046-7.
3. A.
C. "Buddy" Krizan (2006). Business communication (7th
ed. ed.). Mason, OH: Thomson South-Western. ISBN 0-324-37485-2.
4. Jethwaney,
Jaishri (2010). Corporate communication: principles and practice.
Oxford University Press. ISBN 0-19-806365-2.
5. www.scu.edu/ethics/practicing/decision/framework.html". Ethical dilemma.
1. Principles of Communication. Retrieved November
30th, 2014.
2. Eadie, W.F. (2009). 21st Century
Communication: A Reference Handbook.San
Diego, CA. SAGE Publication Inc.
3. Thompson, S. About ethical communication in
business. Azcentral: A Gannett Company. Retrieved fromhttp://yourbusiness.azcentral.com/ethical-communication-business-8553.html
4. IABC code of ethics for professional communicators.
(2014). Retrieved from http://www.iabc.com/about/code.htm
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