Business Ethics Essay Example | Topics and Well Written Essays - 2250 words - 1

Business Ethics - Essay Example The main body of the essay will be structured using the STAR format. According to Kotler & Armstrong (2004, p. 127), â€Å"written regulations cannot possibly cover all potential marketing abuses and existing laws may be difficult to enforce. However, beyond the written laws and regulations, business is also governed by social codes and rules of professional ethics.† Therefore, companies that are enlightened always encourage their managers to focus on doing the right things always for the betterment of the company. It is imperative for businesses to try to create a balance between the goals of the organisation as well as its CSR initiatives. Careful consideration should always be taken given that there are often conflicting interests whereby certain situations can give rise to disagreements about the right course of action that can be taken in a given situation. Ethics Basically, business ethics refers to the values, principles and standards that operate within business and th ese attempt to make a distinction between something that is morally good from bad (Rossouw, 2004). As such, values can be described as the â€Å"essential and enduring tenets† that help define the company and are â€Å"not to be compromised for financial gain or short term expediency,† (DesJardins, 2006, p.5). Cultural environments in which organisations operate shape the values of the organisations given that there are many forces that affect the way people behave such as perceptions about situations, preferences as well as attitudes which influence people to behave in a particular way (Kotler & Armstrong, 2004). It can be noted that there are different types of values in the organisation such as financial, political, historical as well as cultural. Corporate social responsibility On the other hand, the concept of corporate social responsibility (CSR) suggests that there is need for an organisation to establish goodwill with the values and norms of a particular societ y in which it would be operating. Whilst there is no agreed definition of the concept of CSR, it has been defined as a function that transcends but includes making profits, creating jobs and producing goods and services that satisfy the needs and interests of the stakeholders (Oketch 2005 as cited in Smith 2003). Strydom (2004, p.11) suggests that â€Å"CSR is the concept that maintains that businesses are part of the larger society in which they exist and are accountable to the society for their operations.† This means that there is need for the organisations to try to build a relationship between the goals and objectives of the organisation, needs and interests of the stakeholders and the society at large. This concept is also related to ethical issues in the organisation. Situation In this particular case, Gino, the CEO of DMBC intends to divide the windfall of the company between the new CSR program focused on Batten disease and employee bonuses. This follows the diagnosi s of his daughter with Batten disease and this is the major reason why he is pushing for this initiative. However, of notable concern is that the company had not given any pay rises to the employees for almost three years and in some instances, it had been forced to cut salaries for the employees but it seems that Gino is more concerned about the welfare of his daughter at the