Bussiness ethic as a key factor in corporate success
Business
ethics is an interesting branch of business theory, primarily because of the
fact that they are inherently interesting in a market economy. People tend to
be extremely distrustful of corporations in market economies and the bigger
they are, the worse that problem of trust usually gets. Business ethics
therefore are politically charged in many different circumstances and that in
turn serves to make them interesting. Aside from this academic interest
however, are also important for a company and its success. Here are some ways
in which this is true.
Ethics
concern an individual’s moral judgements about right and wrong. Decisions taken
within an organisation may be made by individuals or groups, but whoever makes
them will be influenced by the culture of the company. The decision to behave
ethically is a moral one; employees must decide what they think is the right
course of action. This may involve rejecting the route that would lead to the
biggest short-term profit.
Ethical behaviour
and corporate social responsibility can bring significant benefits to a
business. For example, they may:
·
Attract customers to the firm’s
products, which means boosting sales and profits
·
Make employees want to stay with
the business, reduce labour turnover and therefore increase productivity
·
Attract more employees wanting to
work for the business, reduce recruitment costs and enable the company to get
the most talented employees
·
Attract investors and keep the company’s
share price high, thereby protecting the business from takeover.
Knowing
that the company they deal with has stated their morals and made a promise to
work in an ethical and responsible manner allows investors’ peace of mind that
their money is being used in a way that arranges with their own moral standing.
When working for a company with strong business ethics, employees are
comfortable in the knowledge that they are not by their own action allowing
unethical practices to continue.
Customers are at ease buying products or services from a company they
know to source their materials and labour in an ethical and responsible way.
Public
Image
It
is impossible to discuss business ethics as a branch of academia without taking
a look at the relationship between business ethics and public image. Each
corporation has a particular public image, which represents the way in which
the public views the corporation.
A
corporation's environmental policy, the way they treat their employees and the
way they treat the communities they exist in are all part of their overall
behavior and this in turn is the principle factor in determining their public
image. Since public image is largely a result of company behavior, business
ethics play a large role in determining public image since they determine
behavior. And public image is important to success in most cases, which is one
of the reasons as to why business ethics are important to a company's overall
success.
Investment
Another reason that business ethics are
important is the relationship they have to investment. When a person or an
entity is considering investment in a particular stock, there are a number of
things they take into account. Therefore, a company that would like to
encourage extra is a company that has a strong sense of business ethics. Part
of business ethics is responsibility to the investor and for that reason
companies with strong reputations in the field of ethical business behavior are
also companies that tend to attract more investment from people that are new
into the market. Investment is most definitely important to success.
Partnerships
In
the business world, joint ventures happen all the time. They happen all the
time because they are ultimately of great importance to the bottom lines of businesses.
A business can be made or broken on just one joint venture and part of the
reason that joint ventures are successful is that they combine the forces of
two extremely powerful companies on occasion.
If
you want your company to do well in joint ventures, then you need to have good
partners. The only way to get good partners is to have a good reputation both
in terms of a track record and in terms of your business overall. And of
course, the best way to get a good reputation is to ensure that your company
has a strong tradition of ethical business behavior.
Examples
of corporations that use business ethics as the key to their success
McDonald’s
Business Ethics
Aim
and Purpose
This report on the CSR and
business ethics for McDonalds will aid the management and executives in the
board of McDonalds to better deliver their CSR to their strategic business
partners and the public in general. The report also illuminates areas that
perhaps McDonalds should consider incorporating into its CSR plan for the next
operating year.
This report shall assume
certain factors. Firstly, that McDonalds CSR is uniform throughout all the
countries that it operates fast food restaurants in. secondly, the report shall
also assume that the CSR and business ethics that McDonalds has implemented and
will implement have gained general acceptance amongst its business partners,
customers and the public in general.
Situation Analysis
In each and every country,
McDonalds has thrives to develop a menu that fits the tastes and culture of the
people in those countries. This has made McDonalds unique in its delivery of
fine and quality fast food products. Its CSR strategies have helped it to
identify the needs of the people within these destinations and develop fast
food solutions that best fits their needs. McDonalds is thus mindful of its
customers’ diverse needs. In addition, McDonalds strives to promote healthy
diets that benefit its customer.
Factors and Discussion
McDonald’s core values are
all aimed at promoting the Corporate Social Responsibility of the firm. This is
achieved through giving value to the customers, the supply chain as well as the
other business partners with whom McDonalds does business. McDonalds indeed
acknowledges the fact that its customers are the reason behind its success and
existence. McDonalds values its employees and states that it is committed
towards the career growth and development of its employees through a
comprehensive training plan.
Sustainable supply chain
McDonald’s suppliers are
required to adhere to the strict Code of Conduct which enhances the supply
chain ensuring that the fast food giant gets the best quality products as raw
material for preparing the fast food restaurants.
Nutrition and wellbeing
McDonalds is always
committed to the wellbeing of its customers through producing fast food products
that have no adverse health effects on the customers. The company follows the
strict advice of its nutrition experts. There have been concerns about obesity
that McDonalds has taken seriously and strived to avoid producing fast food
products that may lead to obesity among its customers.
Environmental
responsibility
McDonalds takes its social
responsibility concerning the environment seriously. The firm established its
very own Global Environment Commitment (Houk and Williams, p.134). The company
has continued to focus on improving its commitment towards the environment. As
far as McDonalds CSR regarding the environment is concerned, the fast food
giant has in the past and present focused on three main areas namely; energy
efficiency, sustainable packaging and waste management as well as green
restaurant design. McDonalds has sort to use more energy efficient strategies
such as the use of natural gas in the fast food restaurants. McDonalds
continues to seek ways of increasing energy efficiency. Furthermore, the fast
food giant also seeks to reduce the impact of its operations on the
environmental impact.
Employment experience
McDonalds has a policy
within all its subsidiaries and fast food restaurants worldwide of giving its
employees a priority over all other things. The firm indeed identifies that
employees are core in the company’s success. McDonalds has in the past devised
training programs aimed at employee development. Moreover, the firm empowers
its employees to take up new challenges in the fast food market. Furthermore,
McDonalds supports human rights which forms part of it global business conduct.
Community responsibility
For ages, McDonalds has
been supporting the Olympic Games through feeding program aimed at feeding the
athletics. McDonalds is also involved in various charities and also supports
education in the developing countries where it has its franchises and fast food
restaurants. As part of its bid to return back to the society, McDonalds has
sponsored several children programs involving eradication of illiteracy and
poverty.
Conclusion
McDonalds has been able to achieve high success
through its identification of the elements that make it succeed most. These
elements include its employees, customers and the suppliers. McDonalds values
its employees and has various training programs to support their bid towards an
excellent service provision. The company draws its success mostly from its
employees. McDonalds also hires quality and highly valuable employee’s thus
ensuring continued success for the company.
Kelompok
3
·
AGUNG SEDAYU MULYONO (10115290)
·
BAYU BUDIARTO (11115280)
·
MUCHAMMAD MUJI (14115330)
·
JULIAN DINI (13115622)
·
NADYA ARMELIA (14115934)
Source
:
https://www.slideshare.net/y4ss1r/business-ethics-14811885
https://www.streetdirectory.com/travel_guide/161760/corporate_matters/why_business_ethics_are_important_for_a_company_and_its_success.html
https://blogs.accaglobal.com/2014/11/25/why-is-ethics-important-to-business/
https://www.ukessays.com/essays/business/mcdonalds-business-ethics.php