Mgmt 512: Ethical/legal Aspects of Management - Light and Shadow

...

These principles affect the employees by making their jobs more service oriented and taking away the superiority complex that some employees have when dealing with consumers or other employees. They now have to be accountable for their actions instead of trying to find a way to cover up their mistakes. Lastly, their employers are obligated to pay them a fair wage and to treat them with respect (Frisch, C. and M. Huppenbauer, 2014, p. 32). By doing this the employees will respond in a like manner, that is to say, they will also treat their employers with respect and be more willing to accomplish their goals.

These principles affect the consumers by making their experiences with the business more pleasant. They will come to expect good service, upstanding quality, honesty, and responsible business practices. This will build trust with them that will keep them coming back. Since repeat business is a large percentage of the consumer portion of business, this will go a long way towards creating profit. But more importantly, it will go a long way towards showing the consumer God’s morality.

These principles affect other stakeholders by providing many assets for the business area. A stakeholder can be defined “as any group or individual who can affect or is affected by the achievement of the organization’s objectives” (Frisch, C. and M. Huppenbauer, 2014, p. 25). First, the business will pay taxes that will help the government with projects for the community. Second, the business will be able to provide jobs for those who wish to work in the local area. Third, the business will help local charities by being able to give to them financially and with volunteers through company support (Salvador, R.O., Al. Merchant, and E.A. Alexander, 2014, p. 357). Lastly, they will be able to show the community God’s views through their adherence to moral laws as well as legal laws.

How suitable is it to use Scripture as a basis for business ethical decision making for global managers and what challenges or problems might exist for the Christian manager using White’s five principles as an ethical guideline?

The writer feels that it is very suitable as well as a moral obligation for business managers to use scripture in decision making. This is because it gives them a moral compass to guide them in their decisions. Over the past decade, given the deceitful practices of Enron as well as other businesses, a need for ethical leadership and morality has become apparent. “Ethical leadership is defined as the demonstration of normatively appropriate conduct through personal actions and interpersonal relationships and the promotion of such conduct to followers through two-way communication, reinforcement, and decision making’’ (Sharif, M.M. and T.A. Scandura, 2014, p. 187). Most business owners and managers believe ethical leadership is just good behavior and good decisions. “Good behavior requires deliberation in deciding to carry out an action. Making sound moral judgments is previous to making a good decision. In this deliberation, practical wisdom plays a crucial role (Morales-Sanchez,R. and C. Cabello-Medina, 2013, p. 724). However, ethical leadership and decision making have no base if God is left out of the process. Scripture is the way to include God and also helps to put the decisions on a more balanced level. In other words, Scripture becomes the way to balance the expectations of the world and God without compromising on either.

The challenges are; employee cooperation, shareholders expectations, and respect for other cultures. First, employees may be reluctant to follow some of these principles. This is because they may not have religious views or feel that these views are strict. They also may feel that business and God do not mix. Second, shareholders will be reluctant to follow these guidelines. This is because they are investing in the company for profit and they may feel that these principles will limit their profits. Lastly, consumers and employees from other cultures may feel that these principles do not respect their views. This is because God is the focus of White’s guidelines and many cultures do not believe in the same God. The answer to all of these challenges can also be found in scripture and by using the guidelines. Respect and service is at the core of all of this. Therefore, they will be a key asset in alleviating the fears of the employees and consumers. As to the issue of profits, the shareholders do not need to worry. This is because the company will prosper due to the fact that they are following the guidelines. In other words, as White states “it is God we serve and it is God to whom we are accountable” (White, J., 1978). If the business follows God’s will, then they will always be on the right track.

---------------------------------------------------------------

References

Caux Round Table. (2010, May). Principles for Responsible Business. Retrieved from Caux Round Table: http://www.cauxroundtable.org/index.cfm?menuid=8

Frisch, C. and M. Huppenbauer. (2014). New Insights into Ethical Leadership: A Qualitative Investigation of the Experiences of Executive Ethical Leaders. Journal of Business Ethics, 23-43.

Morales-Sanchez,R. and C. Cabello-Medina. (2013). The Role of Four Universal Moral Competencies in Ethical Decision-Making. Journal of Business Ethics, 717-734.

Salvador, R.O., Al. Merchant, and E.A. Alexander. (2014). Faith and Fair Trade: The Moderating Role of Contextual Religious Salience. Journal of Business Ethics, 353-371.

Sharif, M.M. and T.A. Scandura. (2014). Do Perceptions of Ethical Conduct Matter During Organizational Change? Ethical Leadership and Employee Involvement. Journal of Business Ethics, 185-196.

Thomas, M. and C. Rowland. (2014). Leadership, Pragmatism and Grace: A Review. Journal of Business Ethics, 99-111.

White, J. (1978). Honesty, Morality and Conscience. Colorado Springs, Co.: Nav Press.

---------------------------------------------------------------