Sustainability and Ethics: Analysis of Business Decision Making

This report delves into the critical role of ethics and sustainability in business decision-making, providing a comprehensive analysis of ethical practices and their impact on organizational success. The report begins with an executive summary highlighting the importance of ethical considerations in avoiding negative consequences and fostering a positive reputation. It then explores the relevancy of ethics through a literature review, examining how ethical decisions attract customers, retain employees, and attract investors. The report further analyzes the importance of ethics in the context of Microsoft, showcasing how the company prioritizes ethical standpoints to shape its corporate culture and maintain stakeholder trust. Finally, it discusses the relevance of ethics for small businesses, emphasizing how ethical practices can drive growth, attract customers, and secure investment. The report emphasizes the importance of transparency, trust, and a commitment to ethical behavior as key components of successful business strategies.

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Title: Sustainability and Ethics
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Executive Summary
The manners in which ethics in business decisions prove to be important become quite apparent
when the various advantages are scrutinized and investigated. While executing the decision-
making session’s authorities in the organization must always try to adopt an ethical standpoint in
order to avoid backlashes and a bad reputation in the community. Unethical practices can easily
ensure the downfall of an organization and there will be an absence of investors and customers as
well. The stakeholders of the company will also remain dissatisfied to a great extent if personal
gains or short-term profits are given the highest forms of attention as opposed to ethical
practices. In order to prevent the long-term hazards managers and authorities should always try
to initiate better decision-making models by ensuring the highest grounds of transparency and
trust at the same time as well. Here the importance of ethics in business decision-making
sessions have been highlighted and the importance of ethics in the company of Microsoft have
also been stated precisely. Small organizations currently booming in the market also pay
attention to ethics while dealing with various strategies because they cannot risk the long-term
effects or possible dangers.

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Table of Contents
Introduction......................................................................................................................................3
Relevancy of Ethics for Business Decisions (Literature Review)...................................................3
Importance of Ethics for Business Decisions in Microsoft.............................................................6
Why Ethics is Relevant for Small Businesses.................................................................................7
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

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Introduction
Ethics lays high grounds of concern on an individual’s moral judgments about what is
right or wrong while executing decisions in an organization. The decision-makers in a company
must always be influenced by the culture and organizational policies that define acceptable mode
of conduct and behavior at the same time as well. If business decisions are approached with the
highest grounds of ethics then the reputation of the organization can increase staggeringly and
the right course of action can always be taken regardless of the situation. Authorities might have
to reject a particular route that could lead to a short-term profit if the steps and the methods turn
out to be completely unethical in a situation. A lot of benefits can be enjoyed when business
decisions focus on the grounds of ethics. Customers get attracted to the firm’s products and this
is the reason why there arrives a staggering amount of boost in sales and profit. Ethical decisions
made in a company can also make the employees want to stay with the business for a longer
period of time and this is the reason why labor turnover gets reduced extensively.
Relevancy of Ethics for Business Decisions (Literature Review)
Ethics have high importance whenever business decisions must be taken because they can
define the stability of the organization and its reputation at the same time as well in various
circumstances. According to Barry (2016), when businesses take ethical decisions, the authorities
and the executive members put personal gains and short-term profits aside in order to take part in
the greater good (Barry, 2016). Such attitudes and practices can easily attract more employees
towards the company and the recruitment costs can also get reduced to a great extent. In the
words of Bell et al. (2018), the ethical practices in the decision-making sessions usually turn out
to be customer centric and managers stand capable of paying attention to all the domains in an
equal manner (Bell et al. 2018). It can be impossible to take a self-centered decision for financial

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gains when the domains of ethics are tapped into. Because the decisions will focus on the
grounds of ethics, the reputation of the organization will improve to a great extent and this is the
reason why new investors will get attracted towards the company.
The organization can also keep its share price high thereby preventing bankruptcy at all
instances. Ethical practices in the decision-making sessions helps the authorities keep a clear
conscience whenever dealing with the situation. As observed by Bowie (2017), they can also
avoid a lot of lawsuits and conflicts from activist groups if the decisions are designed in this
manner (Bowie, 2017). Often organizations take part in unethical practices and this leads to a
lower brand image and other forms of struggles at the same time as well. Ethical decision-
making sessions help authorities treat stakeholders in a fair manner and this is ultimately
necessary for a company’s success. The company will not only be able to serve the interest of the
stakeholders or the consumers but also shareowners, customers, suppliers, business partners and
even the employees. Whenever ethics are given a shot in the decision-making sessions then
authorities are able to cover a lot of ground while thinking about the advantages and
disadvantages that will be faced by others. The decisions may ultimately impact someone in a
negative manner and this is the reason why ethics must arrive at the forefront in a promising
way. In the words of Chell et al. (2016), the employees in the organization must also understand
the company’s corporate value while trying to include ethics in the decision-making sessions
(Chell et al., 2016). Managers must clarify the behavior that they expect from the employees in
the other business units who take part in making executive decisions for the company.
The system of ethical and moral beliefs can actually guide the values, behaviors and
finally the decisions of managers in an organization in order to ensure productivity and
excellence at the same time as well. Certain ethical requirements for businesses are actually

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codified in legal terms and they include environmental regulations, minimum wage, and all kinds
of restrictions against the domains of insider-trading. With the help of ethics managers can set
the tone for how the entire company should behave and run on a day-to-day basis while affecting
the lives of stakeholders, clients and customers at the same time as well. If the decisions are built
on the foundation of ethical behavior than a long-lasting positive impact can be generated easily
which will in turn drive sales and revenue. As opined by Connelly et al. (2017), a positive
reputation and perspective in the community can also be developed and these ethical decisions
will ultimately help in the framing of corporate social responsibilities (Connelly et al., 2017). A
stronger bond will also be present within the employees and the managers in the organization
thereby ensuring the highest forms of stability that can be expected in any given instance. If the
executive members in the organization enforce ethics in the decision-making sessions,
employees are also bound to follow the same footsteps thereby ultimately creating the most
efficient corporate culture that can survive promisingly in the market. In the words of Werhane et
al. (2017), often employees in the organization demand a high standard of business ethics in all
the domains of operations and in order to keep these employees within the company the
decision-making sessions must be redesigned to include the ethical element (Werhane et al.,
2017). The nature of business ethics can differ from one industry to another and it all depends
upon the state of operations because the maximum amount of influence is usually procured from
them. A striking example of business ethics can be considered in the domains of energy fields.
According to Crane and Matten (2016), companies that produce nonrenewable energy face a lot
of criticism and even scrutiny on the manners in which they treat the environment (Crane and
Matten, 2016). This is the reason why they always need to take ethical decisions while dealing
with various business processes in order to save a bad reputation and a negative outcome as well.

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Importance of Ethics for Business Decisions in Microsoft
Microsoft has always been extremely strict when it comes to taking an ethical point of
view while formulating important strategic and even business decisions in the organization.
Authorities in the company of Microsoft hold the central belief that these ethical standpoints
actually shape the corporate culture to a great extent. A diverse and inclusive culture is usually
aimed at and the ethical standpoints actually help when it comes to fostering trust. Such business
practices and decision-making sessions actually help the authorities in the company to a great
extent because employees can do their best work without any issues. Managers always believe in
making good decisions as stated by Satya Nadella, the CEO of the organization. In order to build
trust among employees and stakeholders, managers in the company always try to make good
decisions and even ethical choices. Harming personal integrity and the company’s reputation
cannot be tolerated under any circumstances.
The CEO of the organization also states that the company does not believe in short-term
gains even if they ensure a lot of financial promises (Microsoft.com, 2019). In that attempt
Microsoft has often taken an ethical standpoint just to maintain better relationships with
stakeholders, clients and even customers. The decision-making sessions are monitored by
various authorities so that gaps in ethics can be pointed out in a distinctive fashion. They are
more likely to make ethical choices when integrity, compliance and honesty arrives on the
sessions. Remaining transparent about the various motives also forms one of the key policies in
the organization. Employees and managers can try to learn from the mistakes and even ask for
help whenever there is an ethical dilemma (Trevino and Nelson, 2016). Leaders and managers
are expected to foster a culture where employees can easily uphold ethics and raise concerns
whenever they do not feel right about something.

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In this manner the company has been able to gain higher grounds of reputation in the
market that finally led to growth in sales and even revenue. The stakeholders of the organization
remain extremely satisfied with the ethical business decisions and the company has never faced
strong criticisms from the government or activist groups (Swanson and Frederick, 2016). Using
ethics in the decision-making sessions actually helps the company to move forward according to
the CEO of the organization. Satya Nadella believes that such practices allow a high ground of
confidence and even stability while making appropriate decisions in situations. Trust can be built
and relations can also be empowered in a promising manner with customers as well as partners
(Pearson, 2017). While making decisions authorities in the organization always try to notice the
impacts that will take place in the lives of the clients and customers and in this manner, they
remain able to drive away the negative aspects of all choices. Employees in the organization
admire the authorities and a high amount of trust easily becomes available in these
circumstances. Microsoft has been promisingly able to attract a lot of investors and it has also
been able to keep the organization’s share price high enough to surpass competitors.
Why Ethics is Relevant for Small Businesses
Ethics is extremely relevant whenever small businesses arrive and there are various
reasons that actually motivate such requirements (Davies, 2016). A small business is always at
its nascence where it needs to grow and evolve to a great extent as well. In these situations, if a
company is able to adopt an ethical point of view while formulating various business strategies
and even decisions, prosperity will arrive at the forefront and the business will be able to gain
significantly in the market (Dierksmeier et al., 2016). High revenues and profit structures can be
availed if the reputation of the organization improves steadily. Such ethical practices will easily
attract customers which will directly lead to a boost in profits and sales at the same time. A lot of

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sponsors and even investors will become interested in the company and they will try to partner
up with the organization in the best manners possible. Such possibilities are high because it is
more believable that this small organization will adhere to the ethical standards no matter the
circumstances and it would always put personal gains secondary (Ferrell and Fraedrich, 2015).
Employees in the organization will always remain comfortable while working with the
right choices and they will not prefer to leave the company at all. Money will be used in a
manner that supports moral beliefs and the lack of unethical practices actually keep the
organization from any form of bad reputation (Hill, 2017). A small organization cannot afford
negative criticism because it will threaten all form of growth and prosperity overnight.
Customers will also find ease while buying products or even services and they will not place
themselves in a moral or ethical dilemma leading to high grounds of profits and revenue returns
at the same time as well (Michalos, 2017).
Conclusion
Ethics proves to be very important in any given organization and the decision-making
sessions must be greatly influenced by the moral standards of employees and managers. Such
practices can easily help the business grow to a great extent and a promising brand image can
also be established sooner. The investors of the organization will feel at ease because they will
know that the money being invested will never go towards questionable practices or unethical
measures as well. The customers of the organization will also favor the products and the services
of the company due to the presence of a good reputation. In such ways prosperity and
productivity can arrive easily and the work relationships existing between various employees can
also be improved to a great extent leading to less employee turnover rates. It can be seen that
with the use of ethics a lot of advantages can be gained and the company can ultimately benefit

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in the long run as opposed to short-term financial promises. Employee loyalty and morale can
also get strengthened if ethical practices are introduced in the decision-making sessions. Workers
will feel a sense of pride while working for the organization and it will support all business
initiatives a unified fashion leading to a stronger image in the market.

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References
Barry, N., 2016. Business ethics. Springer.
Bell, E., Bryman, A. and Harley, B., 2018. Business research methods. Oxford university press.
Bowie, N.E., 2017. Business ethics: A Kantian perspective. Cambridge University Press.
Chell, E., Spence, L.J., Perrini, F. and Harris, J.D., 2016. Social entrepreneurship and business
ethics: Does social equal ethical?. Journal of business ethics, 133(4), pp.619-625.
Connelly, S., Mumford, M., Steele, L., Mulhearn, T., Watts, L. and Medeiros, K., 2017. What is
Working, What is Not, and What We Need to Know: a Meta-Analytic Review of Business Ethics
Instruction.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Davies, P.W., 2016. Current issues in business ethics. Routledge.
Dierksmeier, C., Amann, W., Von Kimakowitz, E., Spitzeck, H., Pirson, M. and Von
Kimakowitz, E. eds., 2016. Humanistic ethics in the age of globality. Springer.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Hill, A., 2017. Just business: Christian ethics for the marketplace. InterVarsity Press.
Michalos, A.C., 2017. Business Case for Business Ethics. Encyclopedia of Business and
Professional Ethics, pp.1-2.

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Microsoft.com. (2019). SBC Code of Conduct | Ethics & Compliance. [online] Available at:
https://www.microsoft.com/en-us/legal/compliance/sbc/default.aspx [Accessed 4 Apr. 2019].
Pearson, R., 2017. Business ethics as communication ethics: Public relations practice and the
idea of dialogue. In Public relations theory (pp. 111-131). Routledge.
Swanson, D.L. and Frederick, W.C., 2016. Denial and leadership in business ethics
education. Business ethics: New challenges for business schools and corporate leaders, pp.222-
240.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do it
right. John Wiley & Sons.
Werhane, P.H., Freeman, R.E. and Dmytriyev, S. eds., 2017. Cambridge Handbook of Research
Approaches to Business Ethics and Corporate Responsibility. Cambridge University Press.