Ethics is the discipline dealing with what is good and bad, right, and wrong, or with moral duty and obligation
Toby Ryan
University of the Cumberlands
Adv HR Management
Dr. Michelle Preiksaitis
September 1, 2022
Business Ethics, Corporate Social Responsibility, and Sustainability
Overview
Ethics is the discipline dealing with what is good and bad, right, and wrong, or with moral duty and obligation (Martocchio, 2018). Through the rise in social media and all information on the internet, scandals are unveiled frequently where companies and individuals have been behaving unethically. An example is Jeff Smisek, former CEO of United Continental Holdings, who was paid a severance package worth a whopping $36.8 million. He left the airline following alleged participation in a corruption scandal (Martocchio, 2018). When these unethical practices occur, not only does it affect the image of the company, but it also affects the morale of employees and impacts recruitment going forward. In addition, ethical standards and practices have been created in corporations to ensure that all employees behave ethically. For companies to maintain their competitive advantage, they need to lead their industry in ethical behavior and set standards that all members of a firm follow.
Question 1: How do firms benefit from a strong ethical culture? How can HR departments foster such cultures?
A strong ethical culture benefits the firm with its brand image, working environment, recruitment, and competitive advantage. Companies with strong ethics inside their corporation tend to see an increase demand for their products or services as customers know they are dealing with an honest company. The HR department can take to put all ethical standards and practices into employee contracts. When an employee signs their contract, they agree that they will abide by the corporation’s ethical standards and will be punished or fired if they break them. Furthermore, the HR department must ensure that the corporation continues to have ethical training programs for all employees. These programs may include workshops on problem-solving or how to address unethical issues.
Question 2: What is corporate social responsibility (CSR)? Identify and discuss the characteristics and the arguments for and against corporate social responsibility
Corporate Social responsibility is the implied, enforced, or felt obligation of managers, acting in their official capacity, to serve or protect the interests of groups other than themselves (Martocchio, 2018). CSR can be seen as a positive for corporations as it improves customer relations. Customers who demand a product or service are drawn to companies known to be ethical and have a good reputation. Specific customers are willing even to pay extra. An example is Starbucks, which approaches ethical sourcing by helping the farmers and suppliers who grow and produce their products use responsible growing methods (Martocchio, 2018). Customers are informed by these best practices and are willing to pay a premium for the product.
Furthermore, CSR improves the team internally and drives greater intrinsic motivation inside the company. If the company has created an ethical environment and offers good working conditions, employees are willing to go above and beyond to ensure the company’s success. That said, implementing a CSR plan can require much capital and can affect profits in the short term. Furthermore, if done incorrectly and corporations are unethical, greenwashing can occur, leading to a scandal that will impact brand image.
Question 3: Why is a code of ethics important? What should be included in a firm’s code of ethics?
First, getting a concrete idea of the code of ethics is important. The code of ethics helps employees know what to do when there is not a rule for something (Martocchio, 2018). The role of ethics has become so important that large corporations have even appointed ethics officers to guide all employees in ensuring practices are in place and updated with the fast-evolving society. In a corporation’s code of ethics, firms should include a CEO letter to employees about the company’s commitment to ethical behavior, company core ethical value and practices, ethical decision making, and how to report unethical behavior. The code of ethics should be visible and accessible to all employees at any time.
Conclusion
Market segmentation is a crucial aspect of business for a company to properly understand the market of customers for their product or service. Market segmentation “refers to identifying distinct groups of consumers whose needs, wants, and purchasing behavior differ from others in important ways.” (Hill, 2022). Being able to understand the different types of market segmentation also allows for companies to be able to better market their products to their consumers. In this report, various examples were highlighted to show that regardless of the industry, service, or product, being able to properly leverage market segmentation is one of the most critical aspects of any business.
References
Martocchio, J. J. (2018). Human Resource Management. Pearson.
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