List of Ethical Issues in Business
by Kenneth V. Oster, Demand Media
In the complex global business environment of the 21st century,
companies of every size face a multitude of ethical issues. Businesses have the
responsibility to develop codes of conduct and ethics that every member of the
organization must abide by and put into action. Fundamental ethical issues
include concepts such and integrity and trust, but more complex issues include
accommodating diversity, decision-making, compliance and governance.
Fundamental Issues
The most fundamental or essential ethical issues that businesses
must face are integrity and trust. A basic understanding of integrity includes
the idea of conducting your business affairs with honesty and a commitment to
treating every customer fairly. When customers perceive that a company is
exhibiting an unwavering commitment to ethical business practices, a high level
of trust can develop between the business and the people it seeks to serve. A
relationship of trust between you and your customers may be a key determinate
to your company's success.
Diversity Issues
According to the HSBC Group, "the world is a rich and diverse
place full of interesting cultures and people, who should be treated with
respect and from whom there is a great deal to learn." An ethical response
to diversity begins with recruiting a diverse workforce, enforces equal
opportunity in all training programs and is fulfilled when every employee is
able to enjoy a respectful workplace environment that values their
contributions. Maximizing the value of each employees' contribution is a key
element in your business's success.
Decision-Making Issues
According to Santa Clara University, the following framework for
ethical decision-making is a useful method for exploring ethical dilemmas and
identifying ethical courses of action: "recognizes an ethical issue, gets
the facts, evaluates alternative actions, makes a decision and tests it and
reflects on the outcome." Ethical decision-making processes should center
on protecting employee and customer rights, making sure all business operations
are fair and just, protecting the common good and making sure individual values
and beliefs of workers are protected.
Compliance and
Governance Issues
Businesses are expected to fully comply with environmental laws,
federal and state safety regulations, fiscal and monetary reporting statutes and
all applicable civil rights laws. The Aluminum Company of America's approach to
compliance issues states, "no one may ask any employee to break the law,
or go against company values, policies and procedures." ALCOA's commitment
to compliance is underpinned by the company's approach to corporate governance;
"we expect all directors, officers and other Alcoans to conduct business
in compliance with our Business Conduct Policies."
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