importance of organization and individual ethical practice and thinking, theories that underpin ethical issues

importance of organization and individual ethical practice and thinking, theories that underpin ethical issues

Decisions of business individuals and organizations are guided by a system of ethical or moral beliefs within a business firm. The behaviors, values, and determination are examples of ethical guidelines and ideas known as business ethics. Business ethical requirements are typically codified into governmental laws, minimum wage, environmental regulations, restrictions, and cooperation. Organizational and individual ethical thinking and practice helps an organization to build a positive reputation in the society. An ethical business organization is also able to retain its employees by building stronger bonds in the team of management, thus stabilizing the company. The role of business organizations in society is to satisfy the demand and the needs of the public. Ethical theories are critical in decision making since they offer a view point where an individual can seek guidance when making decisions. However, it does not provide the necessary answer to practice. The paper will focus on the importance of organization and individual ethical practice and thinking, theories that underpin ethical issues, and the characteristics of ethical manager and a leader in organizational culture.

1a)

Tuna, the biggest Tri marine company in the world has faced various scandals for the past few decades. The pacific provides not less than 80 percent of the tuna catch across the globe. According to 2016 reports, the company income worth was US$20 billion. The demand, however, increased in that year but according to the human rights report, the company engages in human trafficking, forced labor, child labor and slavery. In the year 2018 and 2019, the human rights and business resource center surveyed at least 30 companies of canned Tuna and supermarkets. The human rights center found that some of the tuna supermarkets and companies conduct due diligence robustly. The company had failed to support the policies of the public practically. Despite the exposure of the shocking abuses, the company has taken little action regarding the protection of its workers. The company must step up efforts that address, prevents, and identify the issue of modern slavery providing redress for its employees for the company to stamp up the unethical abuse.

The issues that surround Tuna companies could be explored as unethical. There must be specific measures that all the Tuna firms must substantially enhance transparency in all supply chains. In essence, it is ethical for a business company to ensures human rights of unions and workers are upheld. The company’s stakeholders and managers should ensure that the business implements and develops productive and meaningful meaning in ending sea slavery. It is ethical for the companies to ensure that it minimizes its cost, especially in logistic deliverables, for example, the publication of the license list. Also, it requires adopting requirements that could assist in the identification of vessel number. Furthermore, it could lead to the end of violence, abuse of human rights, and minimize unsustainable and illegal fishing in Tuna fishing companies.

Role of Businesses in the Society

Similar to the Tuna fishing company, all business organizations play a significant role in the society. The ethical and social responsibilities of business companies is the central issue, especially in economic and financial debates. Globally, charges of unethical conduct by companies and managers have been levied, leaving the market economy in a suffering state. In essence, it is difficult for business companies to flourish when the country or the universe is parallel. In the same case, business cooperation cannot operate in a vacuum. In the example, Tuna, a business company, require people’s acceptance and trust. In short, they should not only serve the “real economy” but its consumers and society. The manager of Tuna companies should consider social responsibility as a performance element and an integral determinant of companies’ performance. Therefore, the company should live up to the ethical duties by recognizing employees’ and unions’ grievances to increase the chances of their success. The company should view corporate social responsibility for the benefit of society and the business.

Striking or enhancing balance between the business stakeholders and shareholders is a significant role of a business organization in the society. Tuna companies are unable to achieve sustainable profits while reconciling customers, employee, its shareholders, and the members of the public. All business organizations must strike a balance with all its players in the business firm. Globalization and increasingly diverse societies, however, make the balancing act even more difficult. For the Tuna companies to maintain 2016 economic figures, there is a need for the firm to transform its branches into multinational business centers by being ethical to all players of the society. Also, the company should be ready to meet the challenges that are brought by conflicting interests. The disagreement in Tuna marine companies could be solved by an understanding of more profound company’s viewpoints. The policy could help the company to presents its rationale and position, thus communicating its position to society.

Key Stakeholders

Engagement of business stakeholders in decision making and research is highly endorsed, especially when dealing with marine issues. Stakeholders’ agreement is critical for the success of managers’ plans. Ideally, the first desire of every stakeholder is to foresee the improvement of scientific knowledge and data for governance and management of all business. In Tuna fisheries and marine companies, the stakeholders are interested in the management and science of marine and fisheries environments. The representative organizations of Tuna companies and the fish are the principal stakeholders. The other types of stakeholders entail dependent industries, fishing communities, civil society organizations, and Tuna companies’ management agencies. In essence, the responsibilities and stakeholders interest determine their management role in the overall management of the marine firm.

The unethical management of Tuna fisheries companies affect both primary and secondary stakeholders. The principal shareholders usually engage with the financial and economic transactions of the firm, for example, stockholders, creditors, suppliers, employees, and consumers. The secondary shareholders involve the business supports groups. In Tuna companies, the shareholders may be affected after the fall of the company according to the report made by the Business Rights Resource Center. The report stated that some of the companies were still in their starting blocks. The report also highlighted that the workers of the Tuna companies were in a slavery state. All these issues and complaints could affect the stakeholders and shareholders. For example, the secondary shareholders and stakeholders could not be able to enjoy the income and profits from the Tuna company. On the other hand, the consumers, creditors, employees, and suppliers, the primary consumers could be affected since the company does not have the resources that facilitate the daily operations of the company.

Impacts of Ethical Choices

Good ethical choices have a significant impact on the company’s success. According to the reports, Tuna companies violated the policies and practices in pacific supply chains in terms of slavery. Furthermore, some of the branches of these companies had more different plans compared to others. Its wrong choices affected its economic and financial departments and the entire company leading to losses. Unethical conduct affects the performance of the business employee. Ethical companies make their employees feel motivated, increasing the performance of the enterprise. Also, an ethical company can attract more consumers and suppliers since they c have a earned positive reputations, thus maximizing its income at the end of the trading period.

Recommendations

Tuna’s business company has failed to support some of its policies by taking some practical actions. For the company to get back into its financial position, the owners of the marine firm should take control of the enterprise Gurzawska (2019). In this case, the business managers and entrepreneurs should take part in the day to day operations. It means that they should be able to impose management techniques and skills to ensure that the companies follow ethical standards as (BHRRC) had highlighted it. Moreover, when the company takes part in slavery in the marine enterprise, the leaders should change their management team to develop new departments of leadership to improve the economic position of the company. Additionally, the company should ensure that it makes its products relevant through advertisements to bring back its reputation, attracting more consumers in the company.

1b)

Ethical Theories

Ethical theories are crucial for decision making. Business corporations are entities in the society where individuals communicate and interact, forming units that are critical for organizational development. Conversely, conflicts in business organizations have become inevitable due to workplace ranks, income differences, organization hierarchies. It has led to the introduction of theories and concepts to understand ethics and corporate governance. Typically, theories produce viewpoints critical to seeking guidance when making business decisions. Utilitarianism theory, for example, could be applicable in marine Tuna companies. The argument is mostly based on its ability to predict various consequences for business action. The two types of utilitarianism theory entails rule utilitarianism and act utilitarianism. Act utilitarianism describes how an individual or business organization performs different activities to benefit other people regardless of their societal or personal feelings or authority Hodal (2019). The theory tries to determine the right from the wrong outcomes. It asserts that ethical choice tends to produce better for a specific large number of people. Also, the theory postulates that happiness or pleasure has its intrinsic value Gurzawska (2019). Tuna’s business company could have been ethical in ensuring that it serves its employees according to the (BHRRC). In real sense, the main aim of the company is to maximize profit. Also, the social responsibility of the company is to serve the consumers and its employees. It should therefore aim at benefiting the most people that are the consumers and the employees in the society. It means that the management of this company had no other option other than following the rules of the law of the (BHRRC). The rule utilitarianism theory considers the law and fairness. It means that the method includes beneficence and justice of the shareholders. In Tuna fisheries, the company could have just followed the utilitarianism theory Gurzawska (2019). It could have followed the law on ethical considerations in business companies. By doing this, the business income could have increased more than the financial status of the year 2016. The utilitarian theory is mostly concerned with the achievement of the maximum good. It means that the right of an individual could be infringed to benefit a group of people.

Kantian theory is another ethical theory that elaborates more on the ethical practices and concepts. The theory postulates that individuals have rights and moral obligations to righteously act regardless of the unforeseen and foreseen nature of any outcome, mainly when an action occurs intentionally Hodal (2019). The theory or the concept tends to urge the corporate owners and managers to foster values and include democracy that exists or diffuse in the management of any business enterprise Nakamura et al. (2018). The theory asserts that the workers or the members of business organizations should understand the moral actions that do not lead to unprecedented harm but better. His ideologist, Kantian, focuses on the responsibility of business companies considering the irrational decision, legal manipulation, culpable ignorance and false allegations as elements of business practices that are somewhat unethical.

The theory postulates that employees or any human being can develop business choices under any given set of laws to significantly justifying an effective action. Despite practical guidelines and regulations offering or governing business organizations practically, the rules and laws tend not to influence the righteous will of the people in an organization. In Tuna business firms, the (BHRRC) is a practical law firm that governs Tuna fisheries firm, but it is hard for it to influence the will of the employees, owners, and managers of the business firm. Generally, business ethics upheld the Kantian theory that encourages the members of an organization such as the owners to work hard when independent action benefits tend to be integral to the business society. It asserts that human actions focuses on sustaining and stabilizing communities instead of making self-progressions merely Gurzawska (2019). In the company’s context, it means that the members of a business organization should solely act for the wellness of the firm but not for will of individuals. In theory, it is assumed that every decision must promote or contribute to one business goal in that every member of an organization or a society enjoys the business outcomes.

The individuals who follow the rule of common good tend to assist other business organizations, enhancing teamwork, thus fostering corporate cohesion for growth that sustains the employees and the organization. Ideally, business individuals that comfortably understand the common useful element of Kantian theory delineates self -interest thus allowing improved growth of business firms with ambitions and corporate aims Nakamura et al. (2018). Virtue ethics holds that significant rules and laws tend to guide individuals to leverage some of the business’s intended actions that could negatively affect the entire organization.

2

Characteristics of Ethical Leaders

As a business manager, there are differences between a leader or just an organizational boss. In most cases, business leaders inspire and guide while the boss manages and orders. A leader or an ethical manager nurtures her business workers, improving their performance. In real sense, ethical leadership is defined by respect for values and ethical beliefs for the rights and dignity of business employees Gurzawska (2019). Ethical behavior deals with the virtuous action of the leader, employees and the general moral improvements and development of the business firm.

First, leadership is the act of persuading an employee to perform business duties set by the leader as business goals. In this case, the leader’s role is to direct the behavior of an individual towards a common goal. Moreover, business leaders vary and depend on the personality traits that stem from the individual style of leadership Leschin (2018). For example, there are both transformational and charismatic leaders capable of engaging every department of business organization and the large group of employees in a firm. On the other hand, leaders tend to be characterized by the beliefs, attitudes, values, conducts, practices, and habits upon professional, institutional, and organizational culture.

Ideally, leadership brings out the relationship between his followers and the leader in organizational and situational context. Administration refers to value and power that is reflected by individuals defining their goals and mutual reasons Hodal (2019). Ethical leadership is crucial in a business enterprise in that it offers direction, enhancing the achievement of the company’s vision Nakamura et al. (2018). It is the most significant factor in managing organizations’ reputation, especially in the external environment. Authors propose that ethical leadership could be viewed as energizing and healing powers of love. Leadership reciprocates about the employees or the followers Wilhelm et al. (2020). The primary mission of leadership is to support by providing leading passion that originate from their compassion.

As an ethical manager, I would respect others, do justice, value decision-making techniques that are value-driven and lead by example. A moral leader is generally just and fair. These people treat every employee in a business firm equally. A leader that follows the management ethics holds that employees should not fear treatment that is somewhat biased in nationality, ethinicity, gender, or other factors that affect employees in all business firms Packer et al. (2019). Respecting other players in the business firm is the most ethical leadership that managers could offer to the given followers. These leaders display respect to all its employees by attentively listening to their aired views and complaints. By doing this, the leader tends to value employee’s contribution to the organization and compassion Nakamura et al. (2018). Also, these types of managers should act generously, considering the other parties’ views. All ethical leaders are generally loyal and honest. In real sense, the followers tend to trust dependable and reliable business managers and leaders since they convey transparent facts even when those facts may be unpopular.

Ethical leaders encourage initiative, focusing on building of the management team, and value sensible decisions. In some cases, business employees may be rewarded by business owners and managers, especially when they come up with innovative skills and ideas. In such a case, an ethical leader may encourage the rewarded, enhancing a good relationship and supporting the employee or the follower to work extra hard to for the business to achieve its primary goals and objectives Wang et al. (2019). Leading by example, is the characteristics of ethical leadership. Leadership does not only deal with taking the talk, but it also entails walking the walk. Managers expect their followers always to do right. Thus, they should lead by example.

Conclusion

Tuna is the world’s largest business company that fails to support various policies on modern slavery. According to the report produced by the Business and Human rights Resource Center (BHRRC), it is evident that Tuna had fallen into “policy over practice” when dealing with the supply of its fisheries in the pacific. The report stated that the company had unethical response to its workers. The human right authority noted that some of the Tuna companies had more relevant policies compared to others. The issue of slavery is unethical and could destroy the company’s reputation. The shareholders and the stakeholders of the business firm may also be affected after the closure of Tuna companies. The key stakeholders of the firm entail consumers, suppliers, creditors, owners and business managers. Ethical factors maximize the company’s profits at one of the trading periods. Business companies should take control of the business firm or delegate to maximize profits and attract more consumers. Utilitarian theory and Kantian ideologies help in viewing ethics on the Tuna marine companies. The practical approach holds that individual or organization actions determine the consequences of future outcomes. Kantian theory postulates that human beings could be capable of developing changes under rules or laws that justify specific actions. The two methods could be used in Tuna’s case. An ethical leader maximizes the profits of business firms due to her relationship with all players of the business firm. These types of leader’s respect others; they are honest, values the right decision making, and do not tolerate ethical violations. The manager expects her followers or employees always to do the right thing leading them by example.