The ability to deal with or recognize ethics in decision analysis is a significant priority in the 21st century. In recent years, several well-publicized scandals led to public outrage about fraud and deception in businesses. Hence, a subsequent demand for greater corporate responsibility and ethics.
The debate and publicity behind ethics behind decision analysis highlight the need for integration of ethics and accountability in every other decision in business. On the other hand, significant ethical lapses rarely occur in mass media for their conduct. Most of the visible business ethical issues influence the attitudes of the public toward the company and finally destroys trust.
Ethics in companies are part and parcel of everyday life for employees in organizations. Ethics plays a larger part at all management levels. Business ethics is not just isolated to personals issues; informal communication, rules and codes of responsible conduct.
Making a good ethical decision is as important as commercial success as mastering accounting decisions, finance, marketing, and management. While training and education emphasize functional areas of business, business ethics is to master something that takes place with a little effort. The exact contrast is the case. Decision-entailing ethical components are daily occurrences that require people to identify issues and make quick and precise decisions. Identification of issues, understanding the areas of risk, and approaches employed in making decisions in an organization are prerequisites to ethics in decision analysis.
Ethical blindness is as a result of failure to sense and identify ethical issues by individuals. Some ethical approaches in companies lie on the individual’s philosophical approaches and the social consequences of their decisions. This article will help you better understand essential business ethics and how to practice in the actual business world.
It is important to employ business ethics during a decision analysis process in an organization so as to achieve career advancement and goals. But businesses don’t exist in vacuums. As stated, a decision in a business has implications on its society, suppliers, customers, employees, and shareholders. Ethics in decision analysis must put into consideration all these stakeholders, for lack of ethics in decision analysis can negatively affect the whole society. Our approach emphasizes on the positive outcomes and consequences for lack of sticking to ethics in decision analysis.
Accepted ethics, business practices, and specific conduct are major concerns in the field of business. For example, should salesperson ignore poor safety records of products when in a sales presentation to customers? Should accountants write-up or report inaccuracies discovered when auditing for a client, knowing that the auditing company contract will be terminated by the client for such practices? Should automobile tire manufacturers deliberately disguise safety concerns so as to avoid massive and costly tire recalls? Regardless of their legitimacy, some will judge actions taken in situations like these as right or wrong, unethical or ethical.
Ethics is defined as decisions made or behaviors within the values of a group. In this case, we are dealing with decision analysis groups of people who represent an organization or business. Since the Supreme Court defines companies as holding individual rights, it is illogical such that organizations have an identity that entails core values. This is referred to as being part of a corporate culture.
Within such cultures, there are set rules and regulations that govern decision analysis of employees and considered right or wrong. Such good/bad evaluations, right/wrong are judgments by the institution and are defined as ethics. The difference of ethical and ordinary decisions lies in the point where accepted rules no longer suffice, and decision makers are faced with responsibilities for weighing values and reach judgments in situations not quite the same as those they faced before. Another difference is on the amount of emphasis a decision maker places on his/her values and conventional values within the organization.
Building on the above definitions, we then develop a concept of the ethics of decision analysis. Most people are in agreement that organizations/businesses should hire individuals who have sound moral principles. However, certain special aspects must be put into consideration when applying ethics in decision analysis.
First, to survive, the business must earn a profit. However, if profits are realized without ethics in decision analysis, then the organization’s life is shortened. The good news is that the world most successful companies employ ethics when making decisions. They have developed rules-both implicit and legal- to govern their businesses in efforts to making profits in ways that society or individuals are not harmed, and they contribute to economic well-being.
The benefits of ethics in decision analysis
Ethics in decision impart to employee dedication
Commitment is realized when workers have the willingness to make personal sacrifices for the business/organization and when they feel that their future is tied to that of the institution. The more a company dedicates to take care of its workers, the more likely the workers will take care of the business.
Issues that foster development of ethical cultures for workers includes the fulfillment of contractual responsibilities toward workers, competitive salaries and the absence of offensive behavior. Ethics and compliance programs support appropriate conduct and values. Social programs for improving ethical culture range from community service to stock-ownership plans to work-family programs.
The perception of employees that their organization has an ethical culture result in performance-enhancing outcomes within the institution. Corporate cultures that integrate positive business practices and ethical values increase the creativity of groups, job satisfaction and eventually decrease turnover. Ethical decision analysis keeps employees, and when they also feel that there is a strong community involvement, they become more loyal to the company and feel positive of themselves.
Contribution to investor loyalty
Ethical decision analysis results in shareholder loyalty hence contributing to successes that support broader social causes and concerns. Nowadays, investors are progressively concerned about the social responsibility and the ethics that create the company’s reputation in which they invest. They also recognize that ethical cultures provide foundations for profits, productivity, and efficiency. They are aware too that lower stock prices, fines, lawsuits and negative publicity diminish the loyalty of customers and threaten the long-term viability of a company. Therefore, gaining trust from investors and confidence is essential to nourishing the fiscal stability of a business.
Contribution to customer satisfaction
Customers serve the most important function in a prosperous business strategy. Even though companies continue to develop and adapt products to keep pace with the changing preferences and desires of their customers, they must also develop long-term relationships with their stakeholders and customers. Organizations with strong ethical environments, usually focus on the core values of placing clients’ interests first. However putting the interests of clients first does not mean that interests of local communities, investors and employees should be ignored. Ethical cultures focus on customers and incorporate the interests of suppliers, all employees, and other interested parties in making decision and actions hence supporting the organization’s goals.
Contribution to profits
Companies cannot develop and nurture ethical cultures unless they have achieved adequate fiscal performances in terms of profits. Corporations with greater resources have means of practicing community social responsibility while establishing trust, valuing workers and serving their clients. Ethical conducts toward clients build strong competitive positions that positively affect product innovation and business performance.