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The role of CEO in promoting ethics

CASE 1

Issues that should be addressed include;

  1. Business values of the organization
  2. Principles to be implemented towards achieving the highlighted business values
  3. Personal responsibilities entitled to the employees
  4. Compliance of the organization to government laws and regulations
  5. Management support through policies

Other elements of the ethics program include the following;

  1. Internal auditing and monitoring
  2. Line of communication for the policies and procedures
  3. Standards and procedures guidelines
  4. Quality improvement procedures
  5. Members encouragement towards adhering to standards and procedures

Defining success

In the ethics program, success will be delineated by the effectiveness of the program with regards to the smooth flow of the operational process in the organization with minimal or less ethical issues. This means that in defining success of the program some facts such as how individual employees have been solving ethical issues and the recurrence of ethical situations in the organization will have be gathered.

Primary stakeholders of the program

The primary stakeholders of the program will be employees because they are the focal point of implementing most elements of the program. As a result, focusing on employees will enhance the effectiveness of the program by making sure that they are not discouraged by the elements and provisions of the ethical program.

Interests of the stakeholders and the impact of the program

 Citing from the fact that the stakeholders of the program are employees, it is undeniable that their interests include supportive working environment and pressure free workplace. Therefore, the program will act as a resource for guidance and advice on how to recognize and deal with ethical issues. Furthermore, since the measure of the program’s success is effective progress of operations in the organization, the program will promote employees retention and attraction because the working environment will be conducive for each of them.

The role of CEO in promoting ethics  

Citing from the elements of the program, the role of the CEO will be implementing policies and procedures that obligate every staff member to adhere to the code of ethics (Hartman, MacDonald & Des, 2011).

CASE 2

Corporate Social Responsibility (CSR) benefits both the society and the organization by making sure that the firm achieves and retains the market and society expectations regarding its ethical performance (Hartman, MacDonald & Des, 2011). As a result, CSR improves profitability of the organization since it enhances the standing of the firm among its target consumers and stakeholders.

An organization embracing CSR should implement strategic approaches that will help it deal with market forces that do not encourage social responsibility. On the other hand, it is factual that customers should support the firm towards being socially responsible and if the firm fails to be socially responsible, they should take the respective action such as lowering their demands on the firm’s products by shifting to other alternatives.

Citing from the definition of CSR which is business approaches that promote sustainable growth    through economic, environmental and social benefits which applies to all stakeholders, it is undeniable that allowing irresponsible actions on profits from our purchases (consumers) grants us the responsibility under the provisions of CSR (Hartman, MacDonald & Des, 2011).

  1. Referring to the case that happened to P&G Company which offered more than $2.5 million in terms of products and cash but failed to publicize it, it is true that customers expect the company to publicize their financial inflow and outflow (Hartman, MacDonald & Des, 2011). This will depict how the firm expends the money obtained from purchases.
  2. Responsibility in this case is determined by that the firm is able to satisfy market demands through revenues collected from the sales. Therefore, it is recommendable to pay attention to consider this while making purchases because what a company does with its revenues helps determine the ability of it to ensure safety and quality of the products.
  3. The most influential consequence as a consumer of a firm’s products is a good investment for the stockholders because it determines the ability of the firm to guarantee safety and quality of its products in the market. This means that if the company fails on that, it is better to refrain from purchasing their products since quality and safety is not guaranteed.
  4. It is true that different purchasing decisions by consumers can affect the conduct of the company because it determines the status of market demand and revenues generated from sales. Thus, if the company realizes the problem, there is a higher responsibility of embracing CSR provisions.  

Reference

Hartman, L. P., MacDonald, C., & Des, J. J. R. (2011). Business ethics: Decision-making for personal integrity and social responsibility. New York: McGraw-Hill Higher Education.

   

 

766 Words  2 Pages
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