The operation of businesses and companies, comprises the board of directors, managers, shareholders and staff. Generally, all those involved in the dynamics of the company have a close working relationship. However, occurring issues that involve disputes of contracts between employees and employers are inevitable. In many instances, the agreed contract heavily favours the employers. In this case, employees sometimes do not receive fair treatment. This includes payment of salaries, bonuses, leave, overtime and dismissal.
In terms of salary, employers sometimes delay payment using various excuses. Bonuses paid do not reflect the profits of the company. Employees work hard to increase company profits, but these profits are not shared with them. It is even more unfortunate when employers do not announce these profits to the employees.
Ethical policies of companies are those that guard the welfare of, and are responsible towards, the employees. Employee rights have to be maintained so that workers not only carry out their tasks more diligently but also feel a sense of belonging to the company. A companyÊs policies should also stress on its social responsibilities by contributing to the welfare of the society. Members of society and traders depend on one another, where the company provides the necessary products wanted by the customers (members of society) and the members of society purchase these products. In other words, the company creates supply and the members of society create demand.
9.2.2 Higher Management
Among the higher management of a business or company, there exists a question on how we conduct ourselves in the office. The higher management often faces various problems related to its duties and responsibilities. Its officers have a responsibility towards superiors and its subordinates.
Higher management officers often face problems relating to work ethics where they cannot communicate well, especially with their subordinates. For example, they do not meet lower-ranked staff directly without an appointment, or they give out orders as though the lower-ranked workers are robots. Although this is a bureaucracy practised by organisations, there are sometimes moral issues where higher management officers are not friendly towards their subordinates. Ego and pride are usual flaws found in these officers. This opposes the moral ethics that oblige a good working relationship between the higher management officers and the lower ranks. Strictly speaking, higher management cannot stand
on its own without the support of the rank-and-file staff. In other words, a company or business is sustained by every employee.
9.2.3 Employees
Employees are the core of the success of a business or company. The moral issue that always arises among employees of a business or company involves their moral values. Among the issues are how much effort they put in to develop the business and the sense of belonging they feel towards the company. Or are employees motivated by salary alone?
Ethical employees will consider their employerÊs business as their own. Thus, they will work hard and strive to increase the companyÊs profits. They will be willing to work overtime, not just for rewards, but because they realise that by doing so, they are helping to improve the capability and profits of their company. When the company progresses, they will also reap the benefits such as high bonuses, or at the very least, enable the company to continue operations and maintain their jobs. Therefore, what is your role in developing the company and how far do you feel a sense of belonging towards your workplace?
9.2.4
Ethics of Business Management
Management is the key to the success of a business or company. If there is instability in the management, the company will also be in an unstable situation. Thus, the management of a company should practise ethics when carrying out duties. At the moment, there are many moral issues involving management. Though these moral issues are more focused on individual moral issues, they will always involve management. The management is an example for all members of the company.
9.2.5 Business Laws
Business laws are drafted to maintain the interest of all those involved in trade, from management to customers. Therefore, every worker is obliged to follow the law. Breaching these laws is a moral issue that usually occurs in trade. Breach of these laws is not only committed by management but also by employees.
In management, breached laws are linked to falsifying reports, selling goods illegally, breach of trust in finances and confidentiality, environmental pollution and so on. Among employees, breach of laws are linked to swindling of money from sales, working hours, unauthorised use of company property and facilities, among other things.
SELF-CHECK 9.2
Explain how the management of a company can be involved in breach of business laws.
ACTIVITY 9.1
Do you know your rights as an employee and employer according to the law? Gather this information from the book by Kamal Halili Hassan. 1994. Hubungan Undang-undang, Majikan dan Pekerja. DBP. Kuala Lumpur. Then, conduct an observation at your workplae. Discuss your findings.
9.2.6
Dignity of Employees
Employees are the lifeline of a company; without them a company or business will be paralysed. This can be seen when employees go on strike. This not only paralyses the business but also the economy of a country.
Imagine when employees of an airline go on strike. The delivery of export goods will be delayed and the income of companies involved will be jeopardised. This will lead to drastic reduction in profits and lead to severe losses. When this happens, the government will also suffer a drop in income, as the taxes on profits will decrease. This subsequently will jeopardise the national economy. Hence, the welfare of the employees must be preserved as much as possible.
Companies must create a comfortable, healthy, safe and non-discriminatory environment. A business climate like that will be motivation to all employees, from the higher management to the rank and file. Fair treatment must be accorded to both management and workers. This fair treatment and respect must be given at all times and place, without considering race, religion, creed and such.
Rewards and recognition should be given to workers and managers who display excellent performance. This will provide higher motivation for other employees. However, what often happens is that rewards and recognition are given to undeserving recipients. As a normal person, we are always influenced by what we see. An employee might show hard work and effort in front of the employer or manager only.
EXERCISE 9.1
1. How can business ethics and laws assure maximum profits in a business?
2. Why should the slogan „This is our company‰ be appreciated and practised by every member of a business or company?