This paper discusses the situation of Benji Watson who is about to sign an employment contract with a financially prospering company but which has been reported to have committed unfair or dishonest practices with purchase distributors. The recruiter also admits to the artificial presence of the company code of ethics. On top of these, the CEO boasts that his company will change the image of the nation and make big money from the effort, which includes dishonest practices. The advice is for Benji not to sign the contract. There is a new demand for honest companies and he will easily be taken in by one of these.
Contract Offer
COMING TO A HEAD
Legal and Ethical Issues in Business
Ethics in Business
Three normative ethical theories were developed in Western capitalist societies in guiding the ethical conduct of business (Fort, 2014). The stockholder theory considers the maximizing of profits as the sole objective of business and above all considerations. It does not recognize social responsibility. It is completely utilitarian and one-sided. The stakeholder theory considers the welfare and needs of customers, suppliers, owners and employees along with maximizing profit. When called for, it believes that the interests of stockholders should be sacrificed in order to insure its survival. It developed from Immanuel Kant's philosophy, which respects the dignity and participation of all people. And the social contract theory is the most widely used business theory. It draws from the 18th-century philosophies of Thomas Hobbes and John Locke. Their philosophies argued that business should be dedicated and committed to the interests of humanity itself. It should hold integrity as an inviolate principle. It must be built on social welfare and justice. It is characterized by very high standards of social responsibilities (Fort).
Dobson: the Virtue Concept in Today's Business Ethics
This concept is increasingly in use for two basic reasons (Dobson, 1994). One is because other concepts of business ethics did not work. MacIntyre explained that these concepts failed because other conceptual foundations themselves failed too in the broader realm of moral philosophy. Business ethics was found to be without logical foundation. Analyzing business ethics would show that it is basically opposed to the competitive spirit, structure and goal of business enterprise itself. Those in business just cannot cultivate or uphold virtue. In order to combine ethics and the true goal of business, the discipline must broaden its very concept of market-driven competition (Dobson).
"Depositories of Dishonesty"
This is how the recent media describe American businesses today (Norman, 2014). A survey for Lawyers.com found that 58% of office employees admitted to using or taking company property for their personal use. A global study sponsored by the International Association of Business Communicators reported that 2/3 of surveyed companies provide minimal or no training on ethics for their employees. And a Hewlett-Packard study on board members who committed security breaches said they publicly revealed confidential information, for which five company officials were later sued and later charged for criminal fraud for illegal investigative tactics. An annual Gallup poll revealed that nurses were the most honest professionals and telemarketers the least honest from a range of 21 occupational categories (Norman).
"Mea Culpa"
The newly evolving but certain trend searching for honesty and integrity in business is an important lesson and instruction for business innovators and small business owners (Gerzema, 2011). They too will face the crisis now faced by existing and big businesses. Denials can be expected. But candor can lead everyone to the eventual and inevitable realization of the importance of honesty in business. It can strengthen an organization and empower its people to take risks. A leader's courageous admission of his company's weaknesses or problems makes him an authentic person. Since the truth always comes out eventually, there is no sense in wasting time on denials and cover-ups (Gerzema).
Additional reports disclosed that 72% of American consumers are looking for companies whose moral or ethical values are compatible with theirs (Gerzema, 2011). This finding indicates that adopting the values of transparency and accountability must be a crucial part of a workable strategy in a company (Gerzema).
The Value of Honesty
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