Ethics

Business ethics refers to the study of the activities that a business undertakes particularly with regard to how morally adequate those activities are (Chryssides  Kaler, 2006). The main concern of business ethics is how the individuals in an organization apply moral standards as they perform their duties in the organization. All individuals in an organization regardless of their position in an organization do encounter ethical issues at some point in their undertaking of duties (Chryssides  Kaler, 2006). Sometimes the issues encountered pose a dilemma to the individuals and more often than not they are tempted to handle them unethically. However, it is important for all individuals in an organization to apply business ethics as this is the only way an organization can show its social responsibility (Chryssides  Kaler, 2006). It is important for any organization to realize that its responsibility goes beyond just making products to gain profits it also includes using a part of its resources in trying to improve the condition of the community in which they are operating in. Due to the changes in economy and society, many organizations more than ever before are being forced to strike a balance between economic betterment and social responsibility.
       
In todays business environment, there are several ethical issues that organizations are encountering. Some of these are laying off people, how to produce goods and services without polluting the environment and globalization. These are brought about by the legal systems of societies, public opinions, government regulations and politics, technological advances as well as community attitudes (Chryssides  Kaler, 2006).

Laying of employees has become a common occurrence in the current business world. This has been due to poor economic conditions that are forcing the organizations to downsize in order to cushion themselves from the effects of economic hardships. This action though necessary for an organizations survival, it usually has its negative effects with regard to an organizations social responsibility. An organization has the social responsibility of improving the living standards of the community it is operating in. The laid off workers usually suffer economically as well as psychologically and this serves to taint the image of the organization (Agalgatti  Krishna, 2007). Due to the bad publicity the organizations suffer huge losses both in the short term and in the long term.
     
Another ethical issue is how to carry out their operations without polluting the environment. Ethically, organizations are not supposed to endanger the lives of the members of the community in which they are operating in. In cases of industries, their activities usually result in formation of wastes which can be solid or gaseous. These pollute the environment when released. To avoid polluting the environment, organizations are usually required to employ means of containing the pollutants. These means are usually very expensive and many cannot afford while those who can afford do not want to further constrain their budgets (Agalgatti  Krishna, 2007). On the other hand, if they continue to pollute the environment, their public image is damaged and this results to huge losses. The organizations are usually faced with the ethical dilemma of protecting the environment thus creating a good image while at the same time advancing economically.
         
In the current business environment, globalization is rapidly gaining popularity. However, it has posed a lot of ethical problems to organizations that have gone global. Rules and laws that govern labor differ from country to country. Some companies such as Nike contracts companies in other countries to carry out their manufacturing functions (Chryssides  Kaler, 2006). The governments in these countries may be lax in implementing the labor laws. This may lead the management in these contracted companies to apply unethical practices in their manufacturing plants such as use of minors as a source of labor. This in general will affect the image of the parent organization negatively.
       
It is clear that how to balance economic betterment and social responsibility is one of the major dilemmas facing the management of organizations in the current society. However, this balance is key to an organizations success and so an organization that wants to succeed must find a balance between these two issues.