Ethics: principles, applications, and contemporary issues

Ethics

Evaluate the planning function of management in an organization that is familiar. Describe how legal issues, ethics, and corporate social responsibility impact management planning in this organization.

I am evaluating the planning function of a small company referred to as "Community Mart." It conducts its business according to the highest moral, ethical, and legal standards. According to Community Mart's management, good ethics and behaving responsibly are synonymous with good management.

In order to re-affirm this policy, the Board of Directors has adopted the following written policy statement and manual to which every employee, officer and director of must adhere. The Company, its employees agents shall comply with all legal and ethical requirements and standards of the United States and each country in which its business is conducted, as applicable. While traditionally the company's emphasis on efficiency and returns to stock-holders has been the key indicator for measuring the productivity of the business, but in recent years, the company has begun to incorporate 'values,' 'ethics,' and legal issues in its planning function. For example, Community Mart makes countless of tactical decisions every day, however, company's mission makes it clear that in order to earn profits that company cannot do business with those vendors and suppliers who do not treat their workers in the third-word countries properly.

The planning committee believes that by considering business ethics as a critical view for the long-term profitability of the company, the management begins to restructure the mission of the company as a means of building trust and creating value for the customers. Therefore, the ethics cannot be relegated as a means to circumvent the short-term challenges and profitability of the company, rather ethics should be seen as means for increasing the longevity and profitability of the firms in the long-run.

In order to make it clear that all of the Community Mart's employees and management follow the standard ethical, legal, and social rules of the company, it mandates that if one is concerned that a particular practice or activity does not comply with the strict rules and regulations laid down by the planning division of the company, one must personally report concerns to Community Mart's Human Resources Director. This complaint can be done anonymously by the employees.

Second, the company's planning makes accountability as the number one priority for following the ethical, legal, and social responsibilities.

Each employee in the company is accountable to the supervisors and managers. In addition, managers must set an appropriate example for those they manage. The planning function -- that lies in reporting- makes is clear that it does not serve Community Mart well when management hides an ethical or a legal problem.

Therefore, it becomes the responsibly of the management that it hold them accountable who look for short-term returns and violate the company's rules. As part of its planning function, the company provides all employees with regular training directed specifically to their respective compliance obligations. This training consists of initial training upon retention and refresher training. Employees are required to attend all training courses for their division.

Recognizing interdependence between business and society, the company's planning function looks closely at the role of the ethics and legal issues for the organizations. By clearly able to look at the interdependence, management begins to see how the profitability of the firm is linked with the profitability of the society. Therefore, one of the planning tasks -- making decisions -- for management becomes that they carefully visualize the linkages between their actions and the social responsibilities. Only when there is a synergy between actions and social obligations, the company should take those actions that seek to justify as necessary means for attaining the ends of profits (Hochschild, 1997).

In sum, the company has taken following steps in its planning functions:

The company is making is mandatory that the company does its business only with those firms that offer priority to ethical relationships with employees, distributors, customers, regulators, and shareholders.

The company is ensuring that each employee in the firm can understand and interpret the meaning and implementation of the ethical, legal and social issues in the business dealings.

Open communications regarding ethical, social, and legal issue and business practices with and to employees, distributors, customers, regulators, shareholders, and the public.

Beyond that, the company's planning is making it mandatory that its Human Resources Departments should invest considerable amount of time and efforts in enhancing the diversity in the company. The company planning motto describes on the strength of diversity. The company is making sure that it creates diversity by hiring minority people, since its social responsibility lies in ensuring that each employee deserves the opportunity to work and grow in an environment that is free of discrimination and harassment and that supports work/life flexibility (Solomon, 1993). Therefore, the company also believes that by hiring people of different backgrounds and race, it can tap the innovation and energy that results from a diverse workforce.

The company is also taking steps to ensure that it can provide treatment to employees who are involved in substance abuse. Because the company's planning committee believes that the employees who have worked their most of the years in the company successfully should be provided treatment so that they can effectively contribute to the company's productivity. As of recently, the company has taken aggressive roles in preventing substance abuse, whether it involves alcohol or drugs. The Company offers an Employee Assistance Program for those who want help in overcoming substance abuse problems.

The other issue that the company is dealing with is that it can provide a safe and healthy environment of work to its employees. The company believes that it is its serious ethical responsibility that it must provide its employees safe environment to participate.