Business Ethics Task 1
BusinessEthics: Task 1
BusinessEthics: Task 1
Globalizationhas allowed the creation of multinational corporations that have apresence in multiple markets globally. This has necessitated thedevelopment of separate corporate policies and value systems fortheir businesses in the different countries based on thecharacteristics of that market. TechFite is UK based but hasestablished a subsidiary in the US, in the city of Dellberg. As theDirector of Human Resources for TechFite, I have seen the need ofdeveloping and implementing new corporate policies on therelationships between the company and its employees and the localcommunity (Wheldon& Webley, 2013).This is after observations of increased employee complaints and anunwelcoming surrounding due to the initial policies that failed toaddress their ethical needs. The Organization culture and unsatisfiedemployees create the primary challenges for multinationals around theworld. New informed policies will ensure the acceptability andsuccess of the company operations in the foreign location.
Corporate Policies: TechFite
Thefollowing explicit policies will be used to guide the businessoperations of TechFite in the US. These policies aim to resolve theconflicts between the company and its key stakeholders – thecommunity or environment, the company employees and the USgovernments at both federal and state levels.
Full company benefits will be enjoyed by any member of the company’s labor force that works for at least 1,000 hours in any given calendar year irrespective of their class or position in the organization
Any changes in the average working hours for the company should be based on the prevailing conditions and the standards in the market, but also in consultation with the employees (Wheldon & Webley, 2013). Restructuring of labor to maintain the hours and productivity per employee should be considered.
The board of directors should approve any executive bonuses as per the budget and in practicing fairness and equity.
The company should set aside a budget dedicated to corporate social responsibility approved by the board of directors planned and spent by the country managers guided by the overall organization culture.
Any declarations and commitments for support of corporate social responsibility (CSR) activities to the public must be approved by the board of directors of the company and should be in consultation with the set budget.
Justifications for the policies
Benefits.Thefirst policy will guarantee workers that despite the reduced level ofactivity in the organization – which has resulted in the reduction ofthe overall working hours full company benefits will be enjoyed.This will also ensure that the firm will be in compliance with theFair Labour Standard`s Act (FLSA) of the federal US government(Tricker,2015).The policy will, therefore, reduce employee complaints and improvetheir morale, thus increasing productivity. This policy is strategicto maintaining the organization’s culture of employee empowerment.
WorkingHours. Theaverage working hours – which also determines whether one is apart-time employee – for the US is 34 hours while that of the UK is32 hours per week.Thenecessary adjustments to the labor structure should ensure that theaverage working hours for TechFite do not fall below the Country’sstandards. The policy also ensures compliance with the organization’sculture of employee empowerment and the FLSA.
Bonuses.Thepolicy is aimed at ensuring that the company assets – mainly cashare managed responsibly and directed towards the actualization of theorganization’s goals and policies. It also touches on TechFite`sculture of workplace collaboration by ensuring no class of employeesis treated unfairly for the benefits of another.
CSR.Someof the activities organized to help the community include supportingsome environmental initiatives contributing directly towardsdevelopment to the city, support for local events and youth programs.Aplan should be in place to identify these activities and budget forthem accordingly in any financial period to avoid failed promises.
AgencyRelationship in Reporting. Anymessage or promises of strategic nature made to the public on behalfof the company should be approved by the Board of Directors. Thiswill ensure that the correct information is relayed to the public(Tricker,2015).It also ensures that the message supports the budget and reflects theculture of the organization in involving themselves with thecommunities they have a presence in.
There is a presence of employee discrimination by providing company benefits to full-time employees. This has resulted in complaints, and reduced morale from the part-time workers as a big percentage of the workers are forced to work in those terms.
Reducing the working hours of the per-hour employees below the average weekly rate for workers in America – 34 hours. This should not be based on the UK average – 32 hours.
The top executive of the company is enjoying excessive bonuses despite the company having a budget shortfall to maintain its level of activity – misused resources. This has reduced the per-hour payments to the other class of workers.
Unfulfilled public promises to the city council are a result of unchecked agency relationships with the management of the organization in America. This is not in support of their culture of the organization on workplace collaboration.
The role of an ethics officer
The ethics officer will ensure that the information contained in this new policy are communicated effectively.
The officer will observe and receive correspondence on any issues arising during the implementation and escalate the same to the relevant authority.
Any ethical grievances and whistle-blowing can be directed to the officer.
The officer may also perform training for the team to ensure they understand their rights and obligations under the new policies.
Conducting annual ethical audits on the organization to ensure the system is functioning as planned.
Corporate Social Responsibility (CSR)
CSRrefers to the cumulative activities that the company performs tocompensate the environment for the inconveniences caused by itsexistence in the location in the form of resource depletion andpollution. The company may also take an initiative to support thelocal communities within its immediate environment without a profitmotive (Simply CSR, 2017). These activities improve the relationshipbetween the company and the environment which may translate tocustomer loyalty if performed strategically. TechFite’s culture isto get actively involved in the local environment and itscommunities. The company, through its leaders, committed to supportsome CSR activities within Dellberg city like supporting youthactivities, investing in the city`s development and sponsor somelocal events. These promises were, however, unmet by the time of thisreport which makes it unethical.
Ethical Desirability of CSR Activities by the Company
Consideringthe unfulfilled promises, the company’s reputation in the communityhas deteriorated (Wheldon& Webley, 2013).Actions to redeem the business name in the eyes of the community haveseveral ethical benefits including,
The organization will be respected and be seen to be important in the society which will give them negotiating rights in city-wide planning and decision making.
Conservation efforts on the physical environment will guarantee that the company will have factors of production from there for long.
Supporting youth activities will provide a targeted form of promotion for the company`s products considering the biggest consumers of hi-tech recreational products are the youth.
The local community and leadership will feel indebted to the company which may result in other forms of benefits.
The actions will ensure that the organization culture has been implemented across the board and thus maintain its brand name and popularity.
TechFite’s Ethical and Social Course of Action
Thecompany should honor its commitments to the community considering theagency relationship with its leader is binding on them. However,strategies should be developed by the corporation to satisfy theobligations in a piecemeal arrangement due to the earlier identifiedbudget constraints. ‘The company strives to be actively involved inthe communities where they are present,’ form a core culture forthe organization (Simply CSR, 2017). The unmet commitments by thebusiness threaten this position and as such ignoring them furthercannot be an option for the company. Future commitments and CSRactivities should be budgeted for and approved by the board ofdirectors before any communication is made.
Social, Ethical and Environmental Responsibility of the Course of Action
Socially,the action in 2 above will ensure that the relationship between thecompany and its key stakeholders – the community and employees isrepaired. This may be achieved by communicating the strategies forfulfilling the earlier commitments. This will benefit the company’snegotiation position in the city’s decision-making process.
Ethicallyspeaking, this course of action will ensure that the organizationculture on workplace collaboration is not separated by politicalboundaries. This will ensure that the American subsidiary employeeswill act ethically and guided by the organization culture in anybusiness decision, following the example set by the company (Wheldon& Webley, 2013).By implementing the announced CSR activities the ethical standards ofthe organization across the city will also be salvaged.
Thecompany has an implied contact to at least maintain the environmentin the position it was prior to their entry. The company committed tocontributing towards the rebuilding of the city with environmentallyfriendly materials. This course of action will help in fulfillingthis implied contract and the commitments made by the leaders of theorganization.
SimplyCSR. (2017). Thebenefits of CSR.Retrieved on 3thApril 2017, www.simplycsr.co.ke/the-benefits-of-csr.html
Tricker,R. I. (2015). Corporategovernance: Principles, policies, and practices.Oxford, United Kingdom : Oxford University Press,
Wheldon,P., & Webley, S. (2013). Corporateethics policies and programmes: 2013 UK and Continental Europesurvey.London: Institute of Business Ethics.
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