Business Essay

2450 Words May 9th, 2012 10 Pages
Introduction
As a business it is essential to comply with the law, allowing the government to put in place regulations in which businesses may not be able to do harm to society, there are also some factors which may be of free choice or personal choice which businesses can also use. However as with their being a diverse gap between what the law requires of an organisation and the free/personal choice there is inevitably a ‘grey area’, this can be interpreted as ethics. Lewis (1985) described defining ethics will be like ‘nailing jello to a wall’ there by suggesting it is virtually impossible to pin point exactly what ethics truly is. There are many factors, which distinguish what is right, and wrong however they are decided predominantly
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Furthermore Hartman & Desjardins (2008) agree with Green by suggesting legal requirements provides an important guide to ethical decision making although the legal norms and ethical norms are not identical nor do they always agree with each other. For instance a manager does not have to treat an employee with respect but this will not be ethical not illegal conversely firing an employee would be legal but not ethical. Managers have a difficult task of determining what actions should be taken taking in to account all the outcomes, which may occur with the final decision. For a manager ethics is a vital factor in management as it is their decision, which can result, to the image and perception of an organisation and furthermore it could result to the manager without a job. As the manager they are responsible for making strategic decisions and ethics can be seen as a strategic decision, Ferrell et al (2007) illustrate a clear link with businesses that operate in ethical activities and increased financial performance (see figure 1). Additionally it is

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