Essay Example on Business Ethics

Introduction

First, the company utilizes an internal set of core values and standards named Good Citizenship that guide the company's behavior. Second, the organization applies ethics in their practice by abiding voluntarily to the rules that govern the industrial sector. The compliance aids the company to behave ethically in their treatment of workers, the communities they operate in and the environment (Peeters, 2012). Thirdly, the company sets up initiatives that assist hosting communities in growing economically. By promoting ethical behavior in its practices, Anglo-American improves its confidence among its stakeholders and investors, which contributes significantly in maintaining a competitive edge in the industry.

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Massey Energy Company has suffered a bad reputation for being a pollutant and even failing to take responsibility for accidents in its mines, for example, the explosion at its Upper Big Branch (UBB) that killed 29 miners. A report released by the U.S. Department of Mine Safety and Health Administration found the company responsible for the explosion. Nevertheless, Massey Energy Company is committed to conducting its business in agreement with the highest ethical standards. Mainly, it commits to upholding the highest degree of integrity and accuracy regarding its accounting and auditing practices.

Discuss the costs and benefits to an organization when that organization does or does not behave ethically

Various benefits accrue to an organization that acts ethically in its practices. First, such a company gains customer loyalty. Note that, having a loyal client base is essential to long-range business success. Furthermore, serving an actual consumer does not require marketing costs. When the organization behaves ethically, it builds a positive image in the industry, which attracts new customers through referrals. Second, when an organization acts ethically, it attracts and retains competent, consistent, and committed employees (Ciulla, 2014). Qualified workers want to be compensated well for their work and dedication. Notably, they desire both career and personal development. They want to participate in the dealings of the organization including decision-making. Therefore, companies that offer good employee relations have a better chance of attracting and retaining the most qualified employees. Third, when a corporation upholds ethical behavior, it facilitates high productivity, which gains it a competitive edge in the industry.

On the other hand, when an organization creates a bad reputation for unethical behavior it hurts the probability of the entity's chances of obtaining new clients, mainly in this era of social networking when dissatisfied consumers can share information about the bad experience quickly. Additionally, it suffers from employee turnover of all talented workers since it does not provide a safe working environment. Similarly, such a company suffers from many legal issues, which alongside hefty legal fees, fines, and sanctions that result in negative publicity (Ciulla, 2014). Consequently, its performance declines and finally loses business or exits the industry.

References

Ciulla, J. B. (Ed.). (2014). Ethics, the heart of leadership. ABC-CLIO.

Griseri, P., & Seppala, N. (2010). Business ethics and corporate social responsibility.

Peeters, J. (2012). The place of social work in sustainable development: Towards ecosocial practice. International Journal of Social Welfare, 21(3), 287-298.

Svensson, G., & Wood, G. (2008). A model of business ethics. Journal of Business Ethics, 77(3), 303-322.