Management 2022 Research Paper

Running head: MANAGEMENT
Management
Name of the Student
Name of the University
Author Note

1MANAGEMENT
The ethical practices inside the business organizations is observed to be crucial for the
improvement of the sustainability in the business operations. The practice of the business
ethics in the modern world of business has greater significance for the business houses in
improving their reputation amongst the customers (Crane et al., 2019). On the other hand, the
unethical practices conducted by the organizations for generating larger profit or increasing
the sales of the companies, are considered to have detrimental impact of the efficient
management of the business operations. The unethical practices from the part of the
organizations have the potential to provide considerable amount of reputational damage to the
organizations and at the same time, it also have the capability to place the organizations in
front of monetary penalizations (Trevino & Nelson, 2016). Hence with a precise
understanding of the consequences of both ethical and unethical practices, it becomes evident
that the modern managers have the necessity to incorporate the business ethics in their
business activities. The paper elaborates regarding the importance of ethics in the modern
business world and for effective understanding of the concept, one such business case where
the Commonwealth Bank was involved, is discussed. The paper evaluates the Transactions
Monitoring Law Violations that happened in the company in the year 2017. The paper assess
the case with the application of the three different perspectives such as the Individualism,
Kantianism and Utilitarianism.
Discussion:
With a precise focus on the concept of ethics in the modern world of business, it is
evident that the companies have the necessity to follow the ethical practices for considerable
number of reasons. One of the prime factors that influences the senior managers for
incorporating ethics in their business operations is seen to be the urge of them in improving
the corporate image of the companies (Hoffman, Frederick & Schwartz, 2014). Considering
the enhanced business competition in various business industries, it is evident that the

2MANAGEMENT
companies have the necessity to conduct the business in such a manner that has the capability
to provide the much required belief to the customers that the companies consider their
association and have the capability to value that. Kolk (2016) claimed that the purchase
intention of the customers get significantly influenced with the belief that the companies
value their involvement and design the products in accordance to their preferences. Hence the
capability of the companies in treating the individuals in equal manner is considered to be
one of the major reflections of the ethical business practices conducted by the organizations.
Apart from this, the ethics is seen to play a crucial role in improving the
accountability of the employees towards their business operations. Along with that, the
ethical practices inside the organizations have the capability to contribute in the formation of
an effective corporate culture of the organizations (Warrick, 2017). The ethical practices
inside the organization are seen to be crucial in managing a free flowing working
environment inside the organizations.
Apart from this, the ethical practices have greater significance for the companies in
avoiding any sort of reputational damage. Along with this, the incorporation of the business
ethics in the modern business organizations also enables the companies in avoiding the
financial losses.
Business Case:
With a precise focus on case of Transactions Monitoring Law Violations of 2017, it is
pretty prominent that the company Commonwealth bank was involved in one of the most
horrendous act of unethical practice and business negligence in the history of the company.
Considering the case, it is understandable that the company was accused of violating the
legislations that ensure that the banking organizations are monitoring the transactions that are
taking place in their organizations. The main objective was to make sure that the company