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Ethical System in Business Environment and Ethical Decision-Making Procedure

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Added on  2019-09-23

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This article discusses the importance of ethical system in business environment and ethical decision-making procedure. It also provides suggestions on how IBM can promote ethical conduct by its employees and a situation where company or employees require moral courage to forgo bribery. The article emphasizes the significance of ethical conduct in gaining competitive advantage and business value with minimum wastage of resources and money.
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ORGANIZATION AND BUSINESS MANAGEMENT11.Ethical System in the Business EnvironmentThe ethical system in the business environment relies on the principle that an attitude and behavior in the company should be understood by interrogating the interaction of various forces and factors and should not look for bad and good employees. IBM is one of the most reputed companies in the world but the company is facing some ethical issues, and the biggest challenge for the IBM is to maintain the ethical conduct. As the IBM is a global company, employees are facing difficulties in the various practices and standards in the other countries. As IBM was charged by the officials of the bribing government and the commission of Securities and Exchange, the company should file the report on the monthly basis in order to show their effort for the avoidance of violations of the act of foreign corrupt practices. Therefore, the advantage for IBM is trust and integrity among employees but sill the company is facing the issue in maintaining the ethical system. An ethical system is very important in the organization as it helps in gaining competitive advantage and the business value with the minimum wastage of resources and money. The ethical system helps in developing the good reputation of a company. If the system in unethical then it will impact the company badly and the huge cost and the chances of theft of ideas and products will maximize. The ethical system in the business environment helps in maximizing theproductivity by doing the activities in an ethical manner. The ethical system helps in reducing therough attitude and behavior of employees towards their colleagues (Ciulla, J. B. 2014). The ethical system helps in increasing morality and regularity among the employees. The organizations also conduct the programs for managing the ethics. In the programs, the various activities are conducted in order to test the morality of the employees and are given training accordingly in order to improve. Under this program, the ethical charter is created which includes the various attributes of the employees like honestly, faithfulness, secrecy, independence, integrity, consistence, etc. Further, these attributes are compared among the employees, and this helps to identify the level of morality among the employees. Today, most of the organizations are focusing more on the management of the ethical system in order to improvetheir moral and legal responsibility. The ethical system impacts the decision-making a process ofthe company positively in order to satisfy the mission and vision of the company. The ethical
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ORGANIZATION AND BUSINESS MANAGEMENT2system improves the relationship between the internal and external environment (Cohen et al., 2014). As a result, the employees and clients are treated faithfully.Therefore, the ethical system in the critical requirement for the organization and they should consider the ethics as the social responsibility as they are obligated to it. Hence, the best companies will grasp the opportunities which make ethic as a priority by developing relational expectations which will work effectively for everyone. The culture of value-based should be created in the organization in order to develop the trust and integrity among the employees.2.Ethical Decision-Making Procedure The procedure of ethical decision making pertains to the process of appraising and selecting among the given alternatives in an etiquette coherent with the principles of ethics. In ethical decision-making, it is important to sense and eradicate the various options which are unethical and choose the best alternative which is ethical (Thiel et al., 2012). There are some attributes which are important in the process of ethical decision making like the commitment- the urge to perform the right and correct thing/job regardless of the incurred cost. Consciousness- the observance to act or perform consistently and pertain the convictions of morality to the attitude and behavior. Competency- the capacity to gather and evaluate the information, create alternatives and anticipate the potential risks and consequences. The decisions made by the organization should be ethical and effective in order to survive in the competitive market for a longer period of time by satisfying the long-term strategic goals (Hartman et al., 2014).In order to support the evaluation of ethical decision-making process, being an individual, I would like to take an example of a manufacturing company where I worked for two months in order to gain some experience. The company was following both ethical and unethical code of conduct since the company came into existence. While I was working there, I found that the company is making new policies in order to follow the complete ethical code of conduct and the eradication of unethical activities. The company started the procedure of ethical decision making in order to find the unethical issue and eradicate it. The steps of the ethical decision-making procedure were:Identification of the problem-
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