Greek word ethos – stands for Ethics, ethos means custom or moral character. Morality originates from the Latin word moralis – manner or customs. Both these words deal with the manner or customs of the people in which they do things. The modern dictionary defines these words as the way people act – that can be either good or bad. A set of agreed rules and the code of conduct within an environment that openly states what is acceptable and what is not acceptable within a society is referred to as Morality. The concept of morality changes with time and situation, this can explain as killing (murder) is an immoral act but in the state of war or in a battlefield killing, murder is allowed, so it be said that morality is synced with ethics. Morality addresses the queries related to ethics on the moral conclusion that can be derived Continue reading
Business Ethics
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and business organizations as a whole. Business ethics can be both a normative and a descriptive discipline. As a corporate practice and a career specialization, the field is primarily normative. In academia descriptive approaches are also taken. The range and quantity of business ethical issues reflects the degree to which business is perceived to be at odds with non-economic social values.
Case Study on Business Ethics: Madoff Investment Scandal
Bernard “Bernie” Lawrence Madoff is an American investment adviser and stock broker who operated Madoff Investments in an unethically acceptable manner. He used the company as a front to commit a Ponzi scheme which fleeced investors of over $65 billion. This has been regarded as the largest Ponzi scheme ever. Madoff grew up in a humble background and he established the Madoff Investments Company with support from the father in law. A few friends and family members also supported Madoff with the operations and growth of the business. Madoff used the returns from investment to support several charitable and political causes which his firm believed in. However, in 1999, there was concern that the profits made by Madoff Investments surpassed the normal profits expected from a firm in such a venture. Markopolos, an expert in investments informed the exchange commission that it was not possible to achieve the level of Continue reading
Case Study: The Coca-Cola Company Struggles with Ethical Crisis
Coca-Cola is the world’s largest beverage company that operates the largest distribution system in the world. This allows Coca-Cola companies to serve more than 1 billion of its products to customers each day. The marketing strategy for Coca-Cola promotes products from four out of the five top-selling soft drinks to earn sales such as Coke, Diet Coke, Fanta, and Sprite. This process builds strong customer relationships, which gives the opportunity for these businesses to be identified and satisfied. With that being said, customers will be more willing to help Coca-Cola produce and grow. Pepsi and Coca-Cola, between them, hold the dominant share of the world market. Even though Coca-Cola produces and sells big across the United States, in order for the company to expand and grow, it had to build its global soft drink market by selling to customers internationally. For example, both companies continued to target international markets focusing Continue reading
Case Study: The Rise and Fall of Enron
Background on the History of Enron Enron was an American Gas Company that was originally called Natural Gas Company in the early 1930s. InterNorth was a holding company that was located in Nebraska and in 1979 purchased Natural Gas Company. In 1985, Enron was born following the merger of InterNorth and Houston Natural Gas. Following the merger, in 1987 Enron discovered that oil traders in New York have overextended the company’s account by $1 billion dollars, which they were able to work down to $142 million. This put Enron in massive debt. For the new company to survive, Enron needed new, innovative, and strategic business plans to generate profits and improve cash flows. In 1988 Enron opened its first overseas office in England. “Come to Jesus” was a gathering by the top heads at Enron to come up with a new strategy to get the company out of debt and Continue reading
Cause Related Marketing (CRM) – Meaning and Types
Corporate Social Responsibility (CSR) is a subject of much current interest within the managerial world. CSR has the attention of the business community, investors, customers, and the business media. CSR as both the philosophy and practice of for-profit organizations voluntarily acting to positively assist society in ways beyond that required to obtain profit objectives. The concept of CSR is becoming transformed such that it is no longer a radical concept concerning the responsibilities of corporations to society, but simply a tool of managing stakeholders and improving reputations. CSR is the idea that it reflects the social imperatives and the social consequences of business success. Corporate Social Responsibility is business decision making linked to ethical values, compliance with legal requirements and respect for people, communities and environment around the world. It could also be likened to open and transparent practices that are based on ethical values and respect for employees, communities and Continue reading
Case Study on Business Ethics: The AIG Scandal
American International Group, Inc is a company whose operation began back in 1919. It was established back then by Cornelius Vander Starr as an insurance agency in Shanghai, China. AIG left china in 1949 after Starr had established himself as the westerner the sell insurance to the Chinese people. AIG headquarters then shifted from china to New York City, which is still the headquarters up to date. It is from here that AIG began its expansion tapping into other markets such as the Latin America, Asia, Middle East and Europe through use of its subsidiaries. It was in 1962 when Starr transferred management of AIG United states holdings to Maurice R. Greenberg. Greenberg introduced policies that made the company shift from its original personal insurance background to anew high market corporate targeted cover. The new management under Greenberg went on to focus mainly on selling AIGs’ insurance packages through independent Continue reading