Principles Of Business Ethics Narrative Essay Example

including minimum wages, employee treatment, safety standards, and worker compensation. Currently, Dellberg is facing challenges in allocating funds for employee benefits within its budget. To address this issue, Techfite will undertake a reconstruction of its financial statements to accommodate the needs of its workers. As the HR director, I will also review the allocation of substantial funds for high-ranking executives to ensure that even lower-ranking employees are empowered and receive their fair share.

One suggestion for Techfite to reduce wage costs is to employ workers from Dellberg, which is currently experiencing bankruptcy, instead of outsourcing. Additionally, Techfite should focus on producing products that are worker, society, and environment-friendly. Since Techfite deals with high-tech products that may involve hazardous materials, the human resources department should prioritize employee safety.

Moreover, the corporate structure should ensure that the products are not hazardous to the surrounding business environment. This policy will align with the company's corporate social responsibility efforts. A prime example of this policy can be observed in tech companies that utilize radioactive elements and lack proper disposal methods in the community, resulting in diseases and heart conditions.

Ethical Issues

There are multiple ethical issues at stake in Techfite's situation. The first concern is the mismanagement of resources. Given the difficulty Techfite is experiencing in providing worker benefits, it is evident that improper leadership has contributed to resource abuse. A budget review reveals that top executives are enjoying excessive benefits, thereby reducing the availability of benefits and leading the company towards bankruptcy.

Additionally, the budget also restricts benefits for full-time workers, leading to a lack of incentives to motivate employees. Techfite had pledged its support for a community event, which aimed to

promote youth development programs and invest in infrastructure. However, none of these projects have been completed. This demonstrates that Techfite is facing significant mismanagement of funds. This issue arises because when budgeting for these endeavors, the company had set aside sufficient funds to address the ethical concerns, but the top leadership has misappropriated a majority of the funds. The second ethical concern relates to whistleblowing.

Whistleblowing is crucial for ensuring companies uphold their ethical obligations and fulfill their commitments. In the pursuit of maximizing profits, businesses often overlook certain ethical concerns in order to gain a competitive edge (Rezaee, 2009). Unfortunately, Techfite lacks sufficient whistleblowers to ensure that all incidents are appropriately addressed. This indicates a lack of effective communication among employees, resulting in a failure to report any misconduct to management.

Regarding the differentiation between ethical issues and legal matters, Techfite has encountered legal issues as well. One instance is the violation of company policies by reducing the minimum working hours. Furthermore, failing to uphold commitments to community development and infrastructure is considered a legal issue as specified in the enterprise's policies. Violating company policies is legally problematic as it may breach various contracts outlined in the policies.

Notably, disregarding the policies will trigger a cascade effect within the company's policies. For example, there are policies related to the community, and violating these policies will result in legal actions being taken against the company. Ethical concerns, such as the observation of environmental pollution, also involve external policies such as those that establish limits for carbon footprints. Consequently, failing to adhere to the company's policies will lead to undesirable legal complications.

Role of Ethics Officer

The responsibilities of an

ethics officer encompass the development, implementation, and monitoring of systems (Rezaee, 2009).

Techfite faced ethical issues due to inadequate supervision from its moral officer. The officer's involvement in creating new ethical guidelines is vital to ensure they align with the company's culture. Furthermore, it is crucial for the officer to review these policies beforehand to avoid mistakes, prejudice, and ensure they fit within budget limits. During implementation, closely monitoring compliance with these policies and making adjustments when societal changes occur is of utmost importance. Additionally, the officer is responsible for tracking policy progress and confirming adherence to the corporate plan (Vilcox & Mohan, 2007).

If Techfite had an ethical officer, they would have noticed the lack of policy implementation while monitoring their progress.

Corporate Social Responsibility

The concept of Corporate Social Responsibility (CSR) involves a business model that effectively addresses social-cultural, economic, and environmental concerns for all stakeholders' benefit (Vilcox ; Mohan, 2007). In this case, socio-cultural issues include fostering a positive employee culture by embracing American society customs and supporting community events. Additionally, Techfite should contribute to youth development and improve infrastructure in Dellberg. Moreover, the company must adhere to corporate principles when evaluating environmental matters. Both internal and external business environments are crucial in emphasizing the importance of the environment in this case.

For example, by supporting environmental programs in Dellsberg, Techfite can fulfill its corporate social responsibility.

Improving Community Reputation

Techfite must take steps to enhance its reputation in society. Firstly, it should prevent the misuse of funds, which indirectly contributes to ethical problems. By establishing a comprehensive budget, the company can ensure that its employees receive their benefits and working hours are improved. Additionally, Techfite should fulfill its

commitment to community and youth development programs.

Course of Action

The company's success is heavily influenced by its existing environment; therefore, Techfite must improve its relationship with society. In instances like these, certain communities go on strike and refuse to contribute human capital and other resources because the company has neglected corporate social responsibility. A third instance is the company's failure to develop infrastructure in Dellberg. This lack of sustainable infrastructure can also have long-term impacts on the company's input and output supply. Lastly, the organization has yet to shift its British organizational culture to embrace the new American culture. Techfite's main courses of action should focus on social and ethical approaches. The first step is to incorporate Dellberg's social practices into its policies.

They ensure socio-cultural activities of workers are conducted to establish fair working hours and equitable pay rates. Furthermore, examining social structures will aid the company's corporate positioning in relation to its current stakeholders.

Procedure

Moral strategies encompass engagement in community-related matters. In the case of Techfite, it must prioritize initiatives for youth development to foster a mutually beneficial relationship with the community. Implementing youth programs will diminish societal problems like crime, subsequently enhancing the company's long-term security. Additionally, Techfite must take environmental measures to prevent any adverse impact on Dellberg, thus necessitating pollution-reducing initiatives.

Techfite’s reputation to its stakeholders and the society will provide a suitable environment for production (De Cremer, 2009; Kamieniecki, 2006; Rezaee, Z.).

(2009). Corporate governance and ethics (1st ed.). Hoboken, NJ: J. Wiley & Sons.

Contemporary issues in business ethics (1st ed.). New York: Nova Science Publishers.

Employee rights

1. Employees have the right to understand
   

and participate in the ethical standards of the company.

The aforementioned employee rights ensure that all employees are accountable for their actions. This scenario highlights how important it is for employees to receive ethical training, which fosters overall ethical responsibility within the company. Through this training, employees gain the necessary skills to make moral decisions by considering diverse perspectives and experiences from team members, resulting in competent decision-making.

Furthermore, comprehending moral rights will enhance the way employees interact with customers and themselves in alignment with ethical principles. These rights will boost the overall employee culture by altering employers' attitudes towards their workforce. For example, offering incentives and guaranteeing social recognition will improve working conditions and maximize profits.

Rights and Responsibilities of Employees

Within the workplace, ethical obligations encompass both the duties employers owe to their employees and the rights that employees possess (Pinnington, Macklin, and Campbell, 2007).

The text highlights the significance of employees having a thorough understanding of their rights in the workplace, which guarantees equal treatment and opportunities for advancement (Pinnington, Macklin and Campbell, 2007). It also encourages ethical behavior among employees and cultivates mutual respect. For instance, ethical training assists employees in resisting the influence of cultural differences such as race or religion. Additionally, employers demonstrate respect for employees' moral choices by allowing breaks for religious or cultural activities without any pay deductions.

Ethical Business Dilemma

An effective way to evaluate a company's ethical standards is

by examining how they handle situations related to sexual harassment or bullying behavior (Fraedrich and Ferrell, 2012).

In this scenario, a person with a higher rank may sexually harass colleagues who are lower in the hierarchy due to their superior status. This creates a difficult situation for the victim, as reporting the harassment to higher authorities could indirectly impact their job. Such bullying and harassment negatively affect work performance and create a culture of fear, as few lower-ranking employees are willing to risk their positions by reporting the misconduct. However, by participating in employee ethical training, individuals can develop strategies to safely report harassment without fearing job repercussions. Additionally, the employer's ethical responsibility training helps them understand the moral dilemmas faced by employees in such situations.

Ethical Business Dilemma: Evaluation

From a utilitarian perspective, the dilemma presents a scenario for decision-making that prioritizes maximizing overall well-being. According to utilitarianism, the most favorable course of action would be addressing the sexual harassment issue to promote greater well-being within the company. On the other hand, from a relativistic standpoint, this dilemma may not have an absolute truth due to insufficient evidence or validity.

Instances of false allegations of sexual harassment made by employees can occur due to reasons such as jealousy or self-interest. It is crucial to have substantial evidence and a clear motive in order to establish the truth in such cases. Additionally, different ethical cultures may hold differing opinions on what constitutes a personal dilemma as sexual harassment, depending on their values and morals that may tolerate such behavior (Garber, 2008).

Corporate Structure

The assessment of an organization's structure showcases how effective planning and management of business activities can contribute to

the organization's success.

The operations of a business venture are subjected to a prototypical approach, which is formulated in line with the targets of the firm as well as the environment factors. One of the key contributors of organizational structure assessment is Alfred Chandler who examined the correlation between structure and strategy in an organization. This section examines Chandler's thesis and provides a review of the implication of structure on organizational performance. Alfred Chandler established a theory-based thesis that described how corporate structure follows strategy. Chandler evaluated how the structures used in businesses organizations are created to assist in the implementation of strategies. The historian established his arguments based on the evaluation of case studies involving American conglomerates.

Chandler's research studied dominant firms such as General Motors, Standard Oil of New Jersey, and Sears Roebuck. While the M-form approach varied in its implementation among these organizations, there was a significant correlation. Chandler concluded that long-term achievements are determined by organizational strategies. However, achieving specific targets requires a comprehensive operational framework known as an organizational structure. Despite opposition to Chandler's thesis, the study's analysis aligns with current business experiences in areas such as capital management, customer satisfaction, supply chain, and firm growth. Therefore, when Chandler stated that structure follows strategy, he meant that organizational forms are the outcome of strategies associated with the enterprise.

Numerous studies have linked the performance of organizations to their corporate structure. One such study conducted by Nakano (2015) explored the relationship between structure and strategy in supply chain management. By analyzing Japanese corporations, the research aimed to determine how organizational structure affected the administration of the supply chain. The findings revealed that the

management approach used in the internal arrangement of an organization influenced the performance level of active and efficient firms. Similarly, Al-Kayed, Zain, and Duasa (2014) investigated the impact of capital management structures on performance levels in Islamic Banks. Their assessment sought to provide recommendations for enhancing capital funds within the bank.

The evaluation involved considering two options in capital management: reducing investment returns or increasing capital ratios. According to the scholars, controlling the macroeconomic environment leads to improved financial market performance. The results confirmed the principles of the signaling theory in banks, which suggests that high capital management ensures better performance. Another study focused on the capital structure from the perspective of Agency Theory. Dawar (2014) examined how the capital structure affects performance in organizations based on the Agency Theory, using Indian corporations as the data source. The findings demonstrated that leverage negatively impacts financial performance, contradicting the predictions of the Agency Theory.

Furthermore, the bond markets have a significant influence on the capital structure and strategies, particularly compared to emerging or developed economies. Consequently, it is suggested that utilizing analytic methods focused on market performance can enhance the performance of companies in the country. Additionally, Darko, Aribi, and Uzonwanne (2016) investigated the organizational structure through the lens of corporate governance. The study evaluated how the director and board structure affected ownership and control within businesses. The research employed samples from Ghana's companies that are listed on the stock exchange.

The scholarly findings indicate that ownership concentration and female representation have an impact on performance. However, the relationship between the board or committee and performance was not established. Additionally, the analysis suggests that independent directors and the audit

team have an influence on performance as part of the organizational structure. Abou-El-Sood (2017) also studied the success of organizations in relation to corporate governance structures.

During the research conducted on U.S. banks from 2002 to 2014, it was discovered that banks with stakeholder concentration, managerial ownership, and small management boards had a stable level of financial adequacy and high performance. These structures were found to be beneficial in managing risks arising from external factors. In addition, Grassa (2016) conducted a study on Islamic banks to assess the relationship between ownership, income, and insolvency structures.

The study focused on the correlation between property concentration and revenue structure and insolvency. Data from Islamic banks between 2005 and 2012 were used for a quantitative analysis, utilizing the three-staged least-square approach to determine the magnitude of the interrelation. The results indicated that the income structure plays a defining role in insolvency exposures for firms that adopt a concentration of ownership approach, which greatly impacts their performance levels. The study found that deposits, which are influenced by income approaches, as well as the number of shareholders, significantly influence strategic decisions within an organization. Additionally, Afrifa and Tauringana (2015) assessed performance levels among small and medium-sized firms in the U.K. corporate sector.

The research study focused on the impact of governance structure and financial outcomes within a specific time period. It found that the performance of small and medium-sized enterprises (SMEs) is influenced by various internal factors, including corporate governance, board size, CEO age, and board tenure. These factors affect SME outcomes differently, underscoring the importance of strategic management for firms. Additionally, Reddy and Locke (2014) examined how organizational structure relates to performance

levels.

The study examined three important factors: ownership, capital, and governance. The samples analyzed included business entities in New Zealand. The results showed that the governance approach determines the agency costs related to management practices. Conversely, cooperatives and mutual firms preferred internal borrowing instead of outsourcing for obtaining extra funds. These findings have significant implications on performance from two perspectives.

In conclusion, a crucial study on the structure of organizations and performance levels involved examining the diffusion of knowledge and practices. Lupton and Beamish (2014) analyzed multiple multinational corporations to understand how their structures impacted the dissemination of knowledge and practices. The study found that formal and informal structures within MNC frameworks play a role in sharing knowledge. The research suggested that utilizing knowledge brokers and metric analysis is the most effective way to prevent hindrances to knowledge sharing.

Despite this, the findings also showed that performance can be enhanced by taking into account the structures that create interdependencies. In summary, a company's success hinges on the structure, which guides the strategy and subsequent actions. Many organizations have implemented various structures to manage internal affairs related to areas like customers, capital, ownership, culture, and leadership. The combination of substructures contributes to establishing the comprehensive structure that shapes the organization's strategies.

The framework used by an organization determines its level of performance according to the set targets and indicators. Chandlert's thesis provides the foundational elements that firms should consider when establishing, implementing, and sustaining the organizational structure. However, it is important for organizations to be observant of emerging trends and incorporate relevant changes to ensure continuous performance.

References

1. Abou-El-Sood, H. (2017). Corporate Governance Structure and Capital Adequacy: Implications to Bank Risk Taking.
   

International Journal of Managerial Finance, 13(2): 14 t 21.

Corporate governance and performance of UK listed small and medium enterprises.T Corporate Governance, 15(5): 719 t 733.

Agency theory, capital structure, and firm performance: evidence from India.
Grassa, R. (2016). Ownership structure, deposit structure, income structure, and insolvency risk in GCC Islamic banks.
Lupton, N. & Beamish, P. (2014). Organizational structure and knowledge-practice diffusion in the multinational corporation (MNC).
Nakano, M.

(2015). Exploratory analysis on the relationship between strategy and structure/processes in supply chains: Using the strategy-structure-processes-performance paradigm. The International Journal of Logistics Management, 26(2): 381 t 400.