My assignment is on business ethics, factors that influence them such as culture and society plus their importance in modern corporate culture. This I have done with the example of Atlas Honda Cars Pakistan Ltd.

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Letter of Transmittal:

To,        Prof. Mr. Anwar Bukhari,

        Informatics.

Respected Sir,

The scope of this assignment is to find out what Ethics are, that is when they are taken in account for an individual or an Organization. The difference between ethics and morality plus what is the effect of culture and society on part of professional ethics. By the help of luminous example of Atlas Honda Cars Pakistan, I have tried to find out; how possibly ethics and culture affect the health of an organization. What under ideal circumstances an ethical organization should sound like and investigating whether Atlas Honda is really carrying its activities out under the flag of ethical awareness. If yes, coming paragraphs will disclose that and, if not, this document still has some Hondaness to go with.

Yours sincerely,

1407-1201-5475

Abstract:

My assignment is on business ethics, factors that influence them such as culture and society plus their importance in modern corporate culture. This I have done with the example of Atlas Honda Cars Pakistan Ltd. Business ethics is a very broad and confusing topic that can have many meanings to different individuals. After studying what ethics are to an Organization, I found out that some people believe that awareness of ethics may lead to better business practice, while others say that If ethics training does not provide a "how to" for putting ethical theories into practical environment unlike several other business theories, how come one feel easy to implement this confusing aspect to their business. Taking the example of Atlas Honda Cars Ltd, I tried to keep an open mind and think about how variably an organization can apply some of these ideas into their own structure and decisions.

    I will begin with the definition of ethics as well as the definition of business ethics.  From there, I will summarize the main points of an ideally ethical organization, and then I will go back over each point and try to elaborate it with the under consideration company “Atlas Honda Cars Ltd”. 

What are Ethics? 

"In law, a man is guilty when he violates the right of others. In ethics, he is guilty if he thinks of doing so… (Immanuel Kant)

Ethics in Dictionary:

Ethics coming from the Greek roots 'éthiké' meaning the ways and habits of a group of people, which would translate into the actual customs, and practices characterizing specific cultures. (Oxford English Dictionary)


General Ethics:

Reference: Carter McNamara, Complete Guide to Ethics Management
Online Library at
 http://www.managementhelp.org

Values such as respect, honesty, fairness, responsibility, etc. How these values are applied is sometimes called moral or ethical principles.

Ethics involves learning what is right or wrong, and then doing the right thing, but "the right thing" is not nearly as straightforward as conveyed in business ethics literature. Most ethical problems in the workplace are not simply a matter of "Should I as a manager do this?" or "Should I talk about it with my Boss?"

However, ethicists assert that there is a right thing to do based on moral principle, and others believe the right thing to do depends on the situation.

What is "Business Ethics"?

Reference: Carter McNamara, Complete Guide to Ethics Management
Online Library at
 http://www.managementhelp.org

 The concept is different with different people, but generally it's what is right or wrong in the workplace and doing that's right. This is also in regard to company’s products/services and customers. Attention to ethics in the workplace gives sense to leaders and staff on how they should act. Perhaps most important attention to ethics in the workplaces helps to ensure that when leaders and managers are struggling in times of crises and confusion, they stick strongly to moral values.
People think that business ethics, with its emphasis on "doing the right thing," only asserts the things like ("be good," "don't lie," etc.), and so these people don't take business ethics seriously. In times of stress, people with vague idea about business ethics usually end up forgetting them.

Two concerns about Business Ethics:

Reference: Madsen and Shafritz, "Essentials of Business Ethics”. New York, N.Y., U.S.A.: Meridian, 1990.

1. Managerial mischief. "Managerial mischief" includes "illegal, unethical, or questionable practices of individual managers or organizations, as well as the causes of such behaviors and remedies to eradicate them."

2. Moral mazes. The other broad area of business ethics is "moral mazes of management" and it includes the numerous ethical problems that managers must deal with on a daily basis, such as potential conflicts of interest, wrongful use of resources, mismanagement of contracts and agreements, etc.

How ‘Business Ethics’ got an enormous significance worldwide:

Reference: Madsen and Shafritz, "Essentials of Business Ethics”. New York, N.Y., U.S.A.: Meridian, 1990.

Social responsibility movement in the 1960s laid the foundation stone of Business ethics as Management Discipline. In that time, social awareness movements raised expectations of businesses to use their influences to affect social problems. That is because businesses were making a profit from using country's resources, these businesses owed it to country to work and to improve society.
For example, organizations realized that they needed to create positive image to the public and so discipline of public relations was born. Organizations realized they needed to better manage their human resources and so discipline of human resources was born. As commerce became a grand phenomenon, organizations realized they needed more guidance to ensure their dealings did not harm others, so
business ethics was born.

Understanding how do we get to adapt Ethics?

The relationships among factors that influence ethical behavior are shown in a framework in which:

  1. Societal culture and standards (norms), affect the outcome of ethics.
  2. Business culture and common industry practices, affect it.
  3. Business culture and expectations, all of which affect and are on the other hand affected by ;
  4. Personal moral thinking and ethical behavior.


Reference: Above diagram from Chapter4 in ‘Business Ethics Notes’ subscribed to students at;
Link:
http://www-rohan.sdsu.edu/~renglish/370/notes/chapt04/Chapter 4

What is a Highly Ethical Organization?

Reference: Mark Pastin, The Hard Problems of Management

Following are the four principles for highly ethical organizations:

  1. They are at ease interacting with internal and external stakeholder ( an independent party with whom money is deposited ). Nice interaction with stakeholders is good for the organizations' own good.
    2. They are obsessed with fairness. Their rules emphasize that the other persons' interests count as much as their own.
    3. Responsibility is taken individually rather than collectively. These organizations' rules tell that individuals are responsible to themselves.
    4. They see their activities with respect to the purpose of work. And this purpose ties the organization to its environment.

    Doug Wallace asserts the following characteristics of a high integrity organization:
    1. There exists a clear vision and picture of integrity throughout the organization.
    2. The vision is owned and maintained by top management.
    3. The reward system is in concordance with how much integrity one exhibits.
    4. Policies and practices of the organization are aligned with the vision of the Organization.
    5. It is understood that every significant management decision has an ethical value.
    6. Everyone is expected to work through conflicts and difference in perspectives of stakeholders.
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Company’s Culture:

Reference: Madsen and Shafritz, "Essentials of Business Ethics”. New York, N.Y., U.S.A.: Meridian, 1990.

Company’s culture can be looked at as a system. There are inputs to it and outputs from it. Inputs include feedback from, e.g., society, professions, laws, stories, heroes, values on competition or service, etc. The process is based on e.g., our values on money, time, facilities, space and people. Outputs or effects of our culture are, e.g., organizational behaviors, technologies, strategies, image, products, services, appearance, etc.

Some Types of Company Cultures:

Reference: Researcher Jeffrey Sonnenfeld
Link:
http://www.mapnp.org/library/org_thry/culture/culture.htm

There are different types of culture ...

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