TRANSPARENCIA FOCALIZADA

Ethics commonly refers to a set of rules or principles that de ne right and wrong

conduct. Understanding ethics may be dif cult, depending on the view that one holds of the topic. Regardless of one’s own view, whether a manager acts ethically or unethi- cally will depend on several factors. These factors include the individual’s morality, values, personality, and experiences; the organisation’s culture; and the issue in ques- tion. People who lack a strong moral sense are much less likely to do the wrong things if they are constrained by rules, policies, job descriptions, or strong cultural norms that discourage such behaviours.

For example, someone in your class has stolen the  nal exam and is selling a copy for $50. You need to do well on this exam or risk failing the course. You ex- pect some classmates have bought copies. Do you buy a copy because you fear that without it you will be disadvantaged, or do you refuse to buy a copy and try to do your best?

The example of the  nal exam illustrates how ambiguity about what is ethical can be a problem for managers. Codes of ethics are an increasingly popular tool for reducing that ambiguity. A code of ethics is a formal document that states an organisation’s primary values and the ethical rules it expects managers and opera- tive employees to follow. Ideally, these codes should be speci c enough to guide organisational personnel in what they are supposed to do yet loose enough to allow for freedom of judgement.

In isolation, ethics codes are not likely to be much more than window dressing. Their effectiveness depends heavily on whether management supports them and how employees who break the code are treated. If management considers them to be impor- tant, regularly con rms its content, and publicly reprimand rule breakers, ethics codes can supply a strong foundation for effective corporate ethics programme.

1. READING FOR COMPREHENSION Answer the below given questions.

1. State the new concern of business ethics.

2. Do you agree or disagree with the diatribe by Nobel-winning economist Milton Friedman entitled “The social responsibility of business is to increase its pro ts.” Discuss this issue.

3. Differentiate stockholders from stakeholders.

4. Identify the purpose of the corporation. Illustrate it with appropriate examples. 4. De ne social responsibility.

5. How do managers become more socially responsible?

2. MATCHING EXERCISES

Match the three levels of business or business ethics on the left-hand side with their explanations on the right-hand side.

1. Micro-ethics (a) The institutional or cultural rules of commerce for an entire society – “the business world.”

2. Macro-ethics (b) It concerns the basic unit of commerce today – the corpora- tion.

3. Molar-ethics (c) The rules for fair exchange between two individuals.

3. PREPOSITIONS

Supply the missing prepositions to complete the below given text.

Manufacturers are and should be liable …… dangerous effects and predict- able abuse …… their products, e.g., the likelihood …… a young child swallowing a small readily detachable piece …… a toy made specially …… that age group, and it is now suggested …… some consumer advocate group that such liability should not

be excessively quali ed …… the excuse that “these were mature adults and knew or should have known the risks …… what they were doing.” This last demand, how- ever, points …… a number …… currently problematic concerns, notably, the con- sumer and the question …… reasonable limits …… liability …… the part …… the producer. …… what extent should the manufacturer take precautions …… clearly idiotic uses of their products? What restrictions should there be …… manufacturers who sell and distribute provably dangerous products, e.g., cigarettes and  rearms – even when there is considerable consumer demand …… such items – and should the producer be liable …… what is clearly a foreseeable risk …… the part …… the consumer? Indeed, it is increasingly being asked whether and …… what extent we should reinstate that now ancient warning, “Buyer beware,” to counteract the runa- way trend …… consumer irresponsibility and unquali ed corporate liability.

4. TENSES

Fill in the blank spaces in the text with correct verb forms.

We sometimes ………… (HEAR) employees (and even high level execs) ……… (COMPLAIN) that their “corporate values con ict with their per- sonal values.” What this usually ……… (MEAN), I suggest, ………… (BE) that certain demands that ……… (MAKE) by their companies ………… (BE) unethical or immoral. What most people ……… (CALL) their “personal values” are in fact the deepest and broadest values of their culture. And it ………… (BE) in this context that we ……… (UNDERSTAND) that now-familiar tragic  gure of contemporary corporate life – the “whistle-blower.” The whistle-blower ………… (BE) not just some eccentric that cannot “ t” into the or- ganisation he or she ……… (THREATEN) with disclosure. The whistle-blower

……… (RECOGNISE) that he or she cannot tolerate the violation of mo- rality or the public trust and ……… (FEEL) obliged to do something about it. The biographies of most whistle-blowers ……… (NOT/MAKE) happy reading, but their very existence and occasional success ……… (BE) ample testimony to the interlocking obligations of the corporation, the individual and soci- ety. Indeed, perhaps the most singularly important result of the emergence of busi- ness ethics in the public forum ……… (BE) to highlight such individuals and ……… (GIVE) renewed respectability to what their employers wrongly ……… (PERCEIVE) as nothing but a breach of loyalty.

REVIEW AND DISCUSSION QUESTIONS