Ethical Business Behavior

Question 1: The Coyote and the Road Runner 

Ethical business behavior is an important aspect in a business setting because it sets an acceptable culture in an organization. The case of the Coyote and the Road Runner is a typical example of a breakdown in the application of the ethical behavior. The Coyote’s incessant injuries often resulted from the use of faulty equipment. The coyote was to blame in part because of obsession with commercialism. I worked for a small company producing coffee products from freshly handpicked berries on farmlands in sub-Saharan Africa. The unethical behavior was the coffee was sourced from farms which employed underage children to pick the coffee beans. The practice went on for years unaddressed and every new employee who knew about the practice acted indifferently. Child labor is prohibited worldwide and any products manufactured from such unethical practices are illegal too. Additionally, the company sold inferior products at a dear price to unsuspecting clients. Just like the coyote, the consumers of the products were the victims of a bad culture enshrined the company. The company management should be changed to embrace a pro-ethical behavior culture. Furthermore, the consequences of such unethical behavior would lead to heavy penalties by the law. 

Question 2: Local Regulations to be improved 

Regulations are important for any business entity but they become irrelevant when their outcomes hurt sizable populations. Locally, small business enterprises make up to two-thirds of businesses in my community but they are the most affected by the environmental regulations. For instance, the small business enterprises contribute highly to the labor force in the local setting. However, the environmental protection regulation bears similar penalties for both larger industrial players and the small business enterprises. The irony in the regulation is that industries contribute more to environmental pollution than the small business enterprises. Factually, the larger industries have done more damage to the environment, especially through the burning of fossil fuels, than the small business enterprises. Ethically, the larger industries score poorly because they are driven by a desire for enormous profits without consideration for the environment. Surprisingly, the larger industries are less often punished for their unethical business practices than the smaller counterparts. Therefore, the policymakers should consider mapping specific penalties for every breach of regulations committed by the businesses but the size of the penalty should reflect the scope of the business. Generalizing penalties hurt the economy more than the specifying regulations to the size and offense of the business enterprises to the environment. 

Question 3: Possible Consequences of Unethical Business Behavior 

The Hawkeye Pierce and BJ Hunnicutt case shows that unethical business behavior has the potential to develop into a norm (culture) in an organization if not addressed promptly. Consequences of unethical behavior in an organization are twofold. Firstly, businesses worry more about bad reputations for a business brand presently than in recent decades. Popularizing a bad brand name is akin to filing for bankruptcy because businesses lose customer loyalty in days. It takes years to build customer loyalty but only days to lose it in the event of an ill reputation of a brand. Furthermore, the essence of any business in a competitive market is to gain a competitive advantage against market rivals but the claims of unethical behavior against a given organization regularly favor competitors.¬¬ Secondly, and most importantly, unethical behavior leads to having penalties in legal fees and compensations paid to victims of unethical behavior. Additionally, failure to follow ethical standards may involve both fines and imprisonment of the perpetrators. Business closures, although not common, may be the ultimate consequence especially if the action affects the health of the population. 

Question 4: Ethical Stance and Detracting Events 

Tragedy has dilemmas which affect the very core of human ethical stances, especially in the pursuit of tragic pleasure. Psychologically, tragedy has an impact on humanity’s sense of humility and the limits people can reach, thus affecting the type of rationale against decisions. Thus, the question, “What motivates people to make either ethical or unethical decisions following a tragedy?” is outstanding. Unfortunately, compliance policies or values statements may not sustain an ethical environment in an organization implying it takes more than values or policies to change a cultural orientation in an organization. At a personal level, tragedy distracts ethical decisions because of the perceived pleasure an individual derives in making an unethical or ethical decision. Ten years ago, I worked for an organization which manufactured skin care products targeting the female market segment. I wrongly mixed the reagents but kept quiet of fear of losing my job as a consequence despite knowing that the products would be harmful to the skins of consumers. Indeed they were because affected users sued the company leading to heavy compensations for negligence. I could have reported the incident instead of keeping quiet because it was unethical to harm many people by letting fear of losing my job to cloud my judgment. 

Question 5: Ethical Corporate Culture 

Corporate culture and ethics in an organization affect every aspect of an organization and their application depends on the type of leadership in an organization. I worked in a software development company which nurtured a culture of team development above other qualifications. The employee team was very motivated leading to commendable client satisfaction which was translated into profitability. Notably, the management played a pivotal role in the ethical sustenance of the corporate culture in the following ways. Firstly, the leaders were the role models of behavior in the organization because they exercised corporate policy and practiced the values statement’s essence. Secondly, the organization clarified each team member’s role and explicitly defined the role’s ethical and unethical impacts on the organization. The company’s purpose was to achieve exemplary customer satisfaction through a unique, “Customer experience.” The purpose was communicated to each employee by creating the connection between each role to the expected outcome. Lastly, the management ensured everyone was accountable to the ethical or unethical impacts of the individual roles as aligned to the organization’s purpose. Accountability was enforced at all levels because even the management accounted for any deviations from the “Team-first” corporate culture. 

Question 6: Company with Good Code of Ethics 

Practicing a code of ethics remains elusive for many organizations because they have to create a critical balance between making profits and ethically sustaining how the profits are made. However, many companies have succeeded in implementing a functional code of ethics which would be emulated by others. One organization I witnessed had the following code of ethics standards that marveled every staff and other watchdogs of ethical standards enforcement. Firstly, despite making comparatively smaller profits, the company paid the full medical expenses of all employees and their dependents. Additionally, the organization allowed an all-expenses-paid-for vacation once a year for all employees to a destination of their choice. This aspect ranked the company amongst one of the best to work for in the world. Secondly, the ethical code of the company encouraged giving back to society through its philanthropic scheme by quarterly donating $100 million to fund research and education of people in the use green energy sources, particularly solar energy. The world is grappling with the impacts of climatic change resulting from heavy usage of fossil fuels implying that usage of renewable and greener alternatives must be embraced. Therefore, I can lend such ethical codes to a willing organization because any organization embracing such a code of ethics cares for employees, society, and the environment.