Assignment Writing Help on Business Ethics and Corporate Social Responsibility

Business Ethics and Corporate Social Responsibility

The chief executive officer as an official of the public

Summary

Many tragedies occur in the business sector leading to the loss of lives, and making national news. Mismanagement and criminal negligence may be some of the factors constituting to the occurrence of these tragedies. A penitent leader launches investigations, promises transparency, and at times meets the affected families. People with good reputation for efficiency and integrity are called to provide advice on the processes to handle claims and to establish the funds to be compensated to the family members. Some special personalities may at times be called before the congress in order to testify. For instance, President Bush testified before the congress after the occurrence of Hurricane Katrina.

The CEO should always mind the interest of the public and should also mind about their safety when producing different products. There was a revelation that a defective ignition switch had led to the deaths of thirteen people. The ignition turned off while the car was in motion causing powered systems e.g. breaks and steering inoperable. The CEO of General Motors; Mary Bara took the initiative to testify before the senate and to hold some press conferences. In a panel, Mary explained her roles that included legal and civic responsibilities. She also explained on how she called the GM’s actions that discovering the problem and failing to respond to it by fixing it. This was troubling and unacceptable, and Mary was very sorry about it. She hired Ken Feinberg to take an objective look at what is in the victims’, publics, and GM’s interest and to take a consideration on all the aspects (Newell, 2014).

The acknowledgement by Berra of possessing not only legal responsibilities but also civic ones, and her seeking for advice on the public interest illustrates that she is willing to take on many responsibilities as a CEO. She demonstrated that that her company’s bottom line is measured both in dollars and in public trust. Berra is a true example of what many people may expect from all other leaders. In the social media world, leaders in the private sectors can’t isolate their firms or have command of on the expectations that govern their behavior. They can’t segregate their images from the light of the public. Multinational corporations, depending on the nature of their businesses, and their wealth can impact the environment, the economy, politics, and health of the nations and the entire world. With respect to this, they have both foreign and domestic policies (Newell, 2014). They therefore cannot hide behind the dividing line of the private and public sector. The privacy in the private sector no longer exists. This derives implications on how corporations should scrutinize their role in the world. They should exercise social responsibility by being environmentally friendly, avoiding the abuse of foreign workers, supporting charitable works, etc.

The notion that leaders of corporate entities are public officials has a connection on their training, selection, and reward. Some skills that are important for government officials include; meeting the expectations of the public, building public trust, managing public crises, testifying before congress, etc. these skills will be associated with the success or failure of CEOs and presidents of the private sectors.

Reflection

According to the article, a healthy and strong private sector is important to the society. There is a need to preserve corporate agility, efficiency, and entrepreneurship. The goal shouldn’t be aimed at using oversight and regulation to prevent the ability of a corporation to function. But if the leaders of private sector do not use their skills and accept the public officials’ ethical responsibilities, there will be increased calls to control and direct them. Ethical corporate behavior sometimes calls for the leaders to do the right thing at the expenses of the firm. Efficiency isn’t the principal standard for making decisions in government. It should not also be the main criterion when making some decisions in the private sector. Mary Berra may is a good example of a private sector CEO, and other private sector leaders should take after her in leadership. This is an important article that can be used to challenge CEOs and other leaders who do not look into the interests of the public when executing their powers and when performing their routine chores (Fram, 2014).

How seriously a nonprofit board takes matters of ethics

Summary

Almost all members of a board are conscious about their responsibilities to ensure their compliance with some standard regulations concerning nonprofit. Some of these standard regulations include avoiding potential fraud, submitting IRS Form 990s, and the payment of taxes. A missing subject in the environment of nonprofit is the responsibility of the director to provide for and sustain a feasible ethics program. Directors represent the public or community, and the industry or profession. They, therefore have a responsibility to moderate or lessen risks for their supporting populations. In order to maintain their integrity and to prevent polluting the reputation of the organization, there is a need for the existence of an internal ethical culture. Ethical conduct should cover all persons in the organization i.e. all board members and employees (Keim, 2012).

Some thoughts of putting ethics in their rightful place include: the responsibility of the audit committee; Different organizations and firms have a corporate officer or a corporate counsel whose duty is to seek evidence of unethical behaviors. Nonprofits need to provide power and authority to the audit committee on ethics responsibilities. The audit committee requires an installation of a hotline system with the ability to surface questionable issues and behaviors. This is a starting approach for 21st century.

Another thought is starting ethical behaviors with the board; during the orientation of new employees or board members, a review of the ethical standards of the organization should be included. These ethical standards should also be briefly reinforced every year. A conflict of interests between or among board members can distort the process of decision making and jeopardize the outcomes. For instance it isn’t unusual for nonprofit organizations to seek out for grants to support programs that aren’t directly linked to the mission of the organization. Similar standards’ relaxation may drive the organization down the slippery slopes of ethical boundaries. This is also applicable to senior managers who possess inappropriate behaviors (Keim, 2012).

Seeking information is also applicable in putting ethics in their rightful place. According to Sarbanes-Oxley, directors propelled to seek information from the people below top management. In some case, this is controversial, especially in the nonprofit environment. In the community type organizations, dissatisfied workers may circumvent management in order to share their grievances with a member of the board. In an attempt to seek for information, there is a need for the board to review the available information appropriately, together with the management. Boards require several procedures in place so that the directors search for information from a variety of sources. This s based on the understanding that the directors have a responsibility to provide feedback or information to the management.

Reflection

There must be pervasiveness in the compliance with ethics. The set of ethics need to be reviewed annually to ensure that these ethics cater for all aspects in the organization. On the other hand, these ethics should be provided to all employees during orientation to ensure that the employees are aware of them and failure to observe them would only be as a result of ignorance. The existence of ethics in any organization enhances the maintenance of a healthy culture in the organization. The directors should reward ethical behaviors and at the same time mitigate risks so as to protect themselves and to preserve the shareholders’ values. This article is essential and can be of importance to nonprofit organizations as it provides some knowledge on ethics (Eisenberg, 2004).

References

Eisenberg, P. (2004). Challenges for nonprofits and philanthropy: The courage to change: three decades of reflections. Hanover, NH [u.a.: Univ. Press of New England [u.a..

Fram, E. (2014). How Seriously Does Your Nonprofit Board Take the Matter of Ethics? The Huffington Post, p. 1.

Keim, D. B. R. (2012). Handbook of official and social etiquette and public ceremonials at Washington. Washington: Keim.

Newell, t. (2014). The CEO as a Public Official. The Huffington Post, p. 1.