The Importance Of Ethical Behaviour And Stakeholder Management In Business

Different Views of Ethical Behaviour

The success of the business organisation depends on its integrated approaches that remain connected with its customers, employees and the community. The organisation remains aware of the business ethics and creates codes of ethics so that all the ethical dilemmas can be easily resolved. Code of ethics recognise the ethical issues.

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The utilitarian view of ethical behaviour argues that good things are done when the right things are done. It means that the behaviour & the decision of the managers and the employees of the organisation contribute to the good of the people and the society. The ethical behaviour focuses on the social benefits.  

The individualism view focuses on the freedom of making choice by the employee of an organisation. The individual gets the liberty to work as an autonomous agent. The individual can make decisions about his or her life, but the individual cannot infringe the rights of others (Valaentine & Bateman, 2011).

Justice view gives people equal access to the products & services of the organisation irrespective of their culture, religion, gender, the level of education, ethnicity & social and economic status. The organisation follows the code and conducts for the distribution of the goods & the services in a fair and just manner. The cheating related to financial accounting, harassment, discrimination etc. are considered as unfair & unethical behaviour (Beams, Brown, & Killough, 2008).

Moral right view of ethical behaviour focuses on the most important aspects of the existence of human being. Freedom, equality and the integrity of human are the most important aspects of existence. The unethical behaviour in the work place focuses on sexual harassment and discriminations. The company that employs from different cultures focus on respecting the norms and moral of the cultures ( Woiceshyn, 2011).

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All Good Organics of New Zealand has been listed as one of the most ethical companies in 2013. The company follows the correct ethical approach and follows the ethical business policies that help the organisation to have a sustainable approach and financial benefits. The utilitarian & individualism of the ethical behaviour of the company focus on the individual interest of the employees and contribute to the social development. The moral rights & the justice view of the ethical view help the organisation to focus on fair ways to avoid any discrimination in the company.

The organisation employs people from different culture and ethnicity. The organisations avoid cultural differences by understanding the preferences of the people, their beliefs and their values. All Good Organics employs people from different cultures and ethnicity. The cultural differences could influence the culture of the organisation (Watson & Sheikh, 2008). There may be discriminations, harassments and unethical behaviours.  .

All Good Organics as an Example of an Ethical Company

The company should ensure similar standards apply to all the employees in the organisation.  The code of conduct should be equal for all types of employees of the organisation so that there will be no discriminations among the employees.

For the successful collaboration, trust is considered as the foundation. Trust among each other acknowledges the success and failures. People value the potentials of the individuals and an open culture is established to accept the new ideas, respectful interaction and good communication. This will avoid the fear of criticism & ridicule.

The organisation can establish an alternative culture by offering the coaching for relationship building & practices based on collaborations.

The organisation employs people from different culture with different social values.  The structure of the organisation identifies the divisions and coordinates and communicates the systems to reach the organisational goals (Daft, 2010).  The social structure influences All Good Organics and the organised efforts of the employees promote the objectives of the organisation. The employees obey the code of conducts and it influences the organisation favourably.

Collective efforts of the employees of the organisation promote a sense of community. The open communication and acknowledging the potentiality of the individual employee help the organisation to grow. The share of knowledge and experience will avoid unprofessional behaviour of the employees (Weiss, 2009). The non-competitive relationships of the employees will bring confidence in them and they will enjoy in the work place. In order to avoid and manage any unprofessional behaviour in All Good Organics the management of the organisation can formulate the following strategies.

1. To make the employees know that unprofessional behaviour is not accepted. 

The company will adopt a zero tolerance approach to the unprofessional behaviour and the policy will be implemented for all.

2. Policies & process for the management of the unprofessional behaviour

The culture of the organisation will be followed by all the employees when the policy and process of the organisation are very strict and systematically designed. The employees will never violate any law if the unlawful behaviour of the employee is recorded and action is taken (Ferrel, Ferrell, & Fradrich, 2008).

3. Ensuring that employees are aware of the expectations of the behaviour and the process of the reporting

This will help the employees to work as per the expectation of the organisation.

4. Addressing the problems

The problems related to the unprofessional behaviour should be addressed. This will not linger the problems and constructive action will have a positive impact.

5. The early identification of the conflicts and report of the same to the appropriate people

Strategies to Manage Unprofessional Behaviour

The identification of the conflict is very important to resolve the conflicts. The causes of the conflicts are to be identified and the appropriate authority will be reported to deal the issues

Conflict among the stakeholders is a common issue in every organisation. The organisation has to balance the interest of the different stakeholders. This is very important as different stakeholders have different kinds of priorities. RELX Group also faces similar conflicts from its stakeholders.  Shareholders more interest on their investment and the employees expect a good working environment. The investors also want to see how the company manages to respond to the different issues like environmental issues.

The stakeholders’ participation in the decision -making process will influence the outcomes. The stakeholders like investors and the shareholders will learn that the company requires to work on some areas where the profits will not be there in the context of monetary values. Resolving the environmental issues and promoting social corporate responsibility will give the company reputation instead of financial gains (isixsigma.com, 2017).

Negotiations help to resolve the disputes in the organisation.  The fairness, efficiency, appropriate action and stable approach help the management to resolve the issues ( Parker & Evans, 2014). The employees of the RELX group will be retained if they are given good salary and appropriate training. The shareholders will accept the strategies of the organisation when they understand the goals of it.

The external environments of the organisation affect the ability it to function. The company requires to manipulate the external elements and some elements are required to be adjusted. ANZ has to monitor the external elements for its growth.

Marketing & strategies will influence the customers. The manager has to find the way to influence the customers to avail the services of ANZ. The manager will also convey what changes the company is going to do in the future for the improvement of the services.

The rules of the government also related to the product development also affects the ability of the company to expand its business.  The company requires to follow the international laws to launch its products in the foreign markets (Vitez, 2017).

Monitoring the economy will help the organisation to grow. This is very crucial when the elements of the organisation are external environment. This affects the product of the market.  This helps to determine how much to spend in the target market.

The competitors decide the success and failure of the company in the target market.  ANZ has chosen Asian market where it finds easy to enter in the market.

The perception of the public also contributes to the reputation of the organisation. Strategic information of the organisation will influence the public opinion. Monitoring the public opinion is also very important for the company (George, 2017).

Parker, C., & Evans, A. (2014). Inside Lawyers’ Ethics – Page 347 – Google Books Result. Retrieved from Christine Parker, ‎Adrian Evans: https://books.google.co.in/books?isbn=110764173X

Woiceshyn, J. (2011). A model for ethical decision making in business; Reasoning, interaction and rational moral principles,. Journal of Business Ethics, 104(3), 311-323.

Beams, J. D., Brown, R. M., & Killough, L. N. (2008). An experiment testing the Determinants of Non-compliance with Insider Trading Laws. Journal of Business Ethics, 4, 309-328.

Daft, R. L. (2010). Organization Theory and Design (10 ed.). South-Western CENGAGE Learning.

Ferrel, O. C., Ferrell, L., & Fradrich, J. (2008). Business Ethics: Ethical Decision Making and Cases (8 ed.). South-Western CENGAGE Learning.

George, N. (2017, 08 10). Five Components of an Organization’s External Environment. Retrieved from https://smallbusiness.chron.com/five-components-organizations-external-environment-17634.html

isixsigma.com. (2017, 08 10). Preventing Conflicts Through Stakeholder Management – iSixSigma. Retrieved from isixsigma.com: https://www.isixsigma.com/…management…/preventing-conflicts-through-stakeholder..

Valaentine, S. R., & Bateman, C. R. (2011). The impact of Ethical ideologies, moral intensity and social context on sales based ethical reasoning. Journal of Business Ethics, 102(1), 155-168.

Vitez, O. (2017). Decision Making in Business Ethics. Retrieved from https://smallbusiness.chron.com/decision-making-business-ethics-446.html

Watson, G. W., & Sheikh, F. (2008). Normative self interest of moral Hypocrisy? The importance of context. Journal of Business Ethics, 77(3), 259-269.

Weiss, J. W. (2009). Business Ethics: A Stakeholder & Issues Management Approach. South Western CENGAGE Learning.

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