Running Head Ethics Portfolio 2

Running Head Ethics Portfolio 2ethics Portfolio 2ethics Portfoli

ETHICS PORTFOLIO 2 Ethics Portfolio LaScherrie Wilson Ethical Problems MSL-624 Instructor Dr. Jackie Smalls April 24, 2021 Ethics Portfolio Ethics is a very important factor in the operations of a business organization. Ethics helps to define the code of ethics to which the leaders and all the employees need to adhere in their daily operations. According to Crane, Matten, Glozer, & Spence (2019), more than 30% of business organizations around the world have implemented various ethical programs in their business companies. This is because most sponsors and financial institutions are usually attracted to organizations that enhance ethical programs. Examples of business ethics that most companies usually strive to achieve include gender equality, diversity, and equal treatment of all the employees among other practices. However, Ferrell and Fraedrich (2016) state that there is a huge difference between ethics and compliance. First, ethics requires organizations to operate while taking into consideration the interests, priorities, and values of other people. Therefore, it prevents the leaders or business organizations from being biased in their day-to-day management. However, the process of compliance requires the leaders, the staff members, and all the stakeholders in a business organization to follow the rules, the standards, and the policies that are set by a particular organization. Therefore, in such a case, the area of operation is defined by the standards and the best practices that are set by that business organization (Ferrell & Fraedrich, 2016). In a business organization, ethics is a collective responsibility that lies on the shoulders of every member of an organization. However, the leaders must ensure that ethical programs are followed in their respective business organizations. In most business organizations, inclusion councils are usually developed to implement and oversee various business ethics that are to be followed by every member of that organization. However, in the case of ethical problems, various methods can be used to solve such problems. The most common method is by using the inclusion councils. Their work is to report such cases to the top-level management where a meeting is conveyed to address and solve the dispute.

Paper For Above instruction

Ethics remains a cornerstone of effective and responsible business management. As organizations increasingly recognize the importance of ethical practices in fostering trust, loyalty, and long-term success, it is crucial to understand both the principles that underpin business ethics and the practical mechanisms for addressing ethical dilemmas when they arise. This paper explores the nature of business ethics, differentiates it from mere compliance, discusses the role of ethical programs and councils within organizations, and examines strategies for resolving ethical conflicts effectively.

Business ethics broadly refers to the moral principles and standards that guide the conduct of individuals and organizations within the commercial sphere. Ethical business practices encompass a wide range of issues including honesty, fairness, respect, transparency, and social responsibility. For instance, promoting gender equality and diversity within a workplace not only aligns with ethical standards but also enhances organizational reputation and performance (Crane, Matten, Glozer, & Spence, 2019). Such practices contribute positively to organizational culture, employee satisfaction, and stakeholder trust. Moreover, adhering to ethical standards is vital in fostering sustainable business operations that respect societal and environmental concerns.

In contrast, compliance pertains to the adherence to specific laws, regulations, rules, and standards that are mandated by external authorities or internal policies. While compliance is essential to avoid legal penalties and sanctions, ethics extends beyond mere rule-following to encompass a moral responsibility toward wider societal impacts (Ferrell & Fraedrich, 2016). For example, a company may comply with environmental regulations by minimizing waste, but ethically, it may also seek to implement environmentally sustainable practices that surpass legal requirements. Therefore, ethics involves a proactive approach rooted in the organization's core values, rather than a reactive approach driven solely by legal obligations.

Implementing and maintaining ethical standards within organizations requires deliberate efforts. Many organizations develop ethics programs to embed responsible practices into their corporate culture. These programs often include codes of conduct, training sessions, and communication strategies aimed at promoting awareness and alignment with ethical principles. An essential component of these initiatives is the establishment of inclusion councils or ethics committees tasked with overseeing ethical compliance and addressing concerns promptly. Such councils function as internal oversight bodies that receive reports of ethical misconduct, investigate complaints, and propose corrective actions (Crane et al., 2019).

When ethical problems emerge—such as conflicts of interest, harassment, or misconduct—the organization must have effective mechanisms to address and resolve these issues. The most common method involves the use of inclusion councils or ethics committees. These bodies serve as an intermediary, providing a safe channel for employees or stakeholders to report concerns confidentially. Once a report is made, the council reviews the case, consults relevant policies, and recommends resolutions, which are then escalated to top management if necessary (Ferrell & Fraedrich, 2016). This process ensures that ethical conflicts are managed transparently and consistently, maintaining organizational integrity and stakeholder trust.

Furthermore, the role of leadership is pivotal in fostering an ethical culture. Leaders set the tone at the top by demonstrating ethical behavior, communicating the importance of integrity, and supporting ethical initiatives. Training programs tailored to ethical decision-making equip employees with the skills to navigate complex moral dilemmas, reinforcing the organization's commitment to responsible conduct. Additionally, organizations can implement whistleblower policies that protect individuals who report unethical behavior, thereby encouraging a culture of accountability and openness.

In conclusion, ethics in business is a fundamental aspect of responsible management that underpins organizational credibility and sustainability. While compliance with external standards is necessary, cultivating an internal culture that values ethical principles is critical for long-term success. The development of ethics programs, the appointment of inclusion councils, and leadership commitment are key strategies for embedding ethical practices into organizational operations. Addressing ethical problems through structured reporting channels and proactive resolution mechanisms strengthens organizational integrity and enhances stakeholder confidence. As businesses continue to operate in increasingly complex environments, a steadfast commitment to ethics remains essential in guiding responsible decision-making and fostering societal trust.

References

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