The New Ethics Concepts for doing Business
The New Ethics Concepts for doing Business is essential for any kind of Business. The new economy has provided more openness and flexibility, but it has also brought more complexity, which has resulted in new and larger hazards. It is now critical to consider how the new economy has increased the complexity of the business environment, altering the ethical component and introducing new ethical challenges.
It goes on to describe the various aspects of the new economy, including globalization, technology, assets, framework, talent recruitment, and retention.
These variables have resulted in numerous changes and challenges to corporate policy in terms of management methods, relationships, and content in various local, international, multinational, and global contexts. So, in order to build an ethical infrastructure and incorporate ethics into organizational operations, we must study ethics in the new economy while taking into account the aforementioned characteristics.
Over the last few years, one of the most highly disputed themes in international economies has been the rising integration of economies and cultures around the world. Globalization is driven by a number of factors, including communication, increased infrastructure, technology, regulation, free commerce, and free movement of people. Globalization has resulted in rapid growth and poverty reduction in India, China, and other nations that were impoverished 20 years ago. Globalization, on the other hand, has sparked widespread international criticism due to fears that it has expanded inequality and exacerbated environmental damage.
Ethics, morality, and globalization are all intertwined, and the ethical dimension of globalization is currently being argued around the world.
“To what extent should leaders see their mission narrowly, in terms of advancing the interests of their citizenry everywhere,” says the renowned utilitarian philosopher Peter Singer of globalization problems.
In their book The Stakeholder Corporation: A Blueprint for Maximizing Shareholder Value, D. Wheeler and M. Sillanpaa calculate that 200 firms in the world have sales equivalent to one-third of global economic activity.
So, when corporations opt to participate in the developing global economy and establish themselves in foreign markets, we talk about globalization on a corporate level.
To achieve the objectives, they must first adapt their products and services to the linguistic and cultural requirements of the ultimate user, which is not an easy process for managers who must manage their staff in several languages, cultures, and tax procedures.
The essential goal in the globalization period is to keep ethical conflicts to a minimum, albeit this is not always possible. Though there are a few options that might be suggested, such as—
- Attitudes toward local customs that are sensitive and empathetic.
- Knowledge of the world’s pressure groups.
- Be familiar with and follow local tax, employment, and financial laws.
- Managing diversity both within and across national borders is essential.
Technology is a driving force that enables businesses to meet the difficulties of today’s competitive marketplace. It’s changing the way people communicate within and across firms, as well as how quickly they communicate.
It facilitates all of the organization’s functional areas, including marketing, finance, human resources, and production.
Technology has a significant impact on the global expansion of businesses. This progress has been aided by technology.
Technology does, however, raise several social and ethical issues:
b) Complexity and integrity
These are some guidelines that managers can use to address various technology-related ethical concerns—
- Maintain the flow of data-related information into and out of the organization.
- Effectively monitoring the use of e-mail and the internet.
- Participative management development in order to talk about the details and gain feedback.
“Everything that can be counted does not always count; everything that counts does not always count.” [American theoretical physicist Albert Einstein (1879–1955)]
In the new economy, tangible assets are the most valuable assets in terms of an organization’s environment. Non-scarce intangible assets rise in value when employed since they are not subject to diminishing returns like tangible assets, but instead have increasing returns.
Because all intangibles (customer, employee, leadership, culture, strategy, brand, innovation, knowledge, and intellectual property rights) are directed toward the future, they generate future value.
The ethical points of intangible asset discussions are similar to these:
(a) Intangibles are difficult to manage and exclusively control
(b) Intangibles investments are often riskier
(c) Intangibles cannot be directly quantified and their worth cannot be determined.
The Competition for Talent
A Land Mark Mckinsey and Company research published in 1997 identified the “War for Talent” as a strategic business challenge and a key driver of corporate performance. The authors of the original study show in their new book “the war for talent” that in tough economic times, smart talent management is vital to every company’s success.
People with new ideas are among the most valuable assets (intangibles) of the twenty-first century, and they are becoming more valuable than ever. Recruiting, selecting, and retaining talented people has always been a difficult task.
Companies are behind in recruiting and retaining talent by offering appealing financial incentives, but they are insufficient. For this, the 95 theses of the clue train manifesto provide some unique insight into what are the key causes that encourage people to be in an organization. “In particular, people want their firms to learn to communicate with them in a new, honest, and empathetic manner. Employees will vote with their feet if corporations do not learn to accomplish this (thesis 89).”
Companies that do a better job of meeting the requirements of Generation X will be in the greatest position.
The New Ethics Concepts
After Douglas Coupland’s novel of the same name, the Cluetrain manifesto defined the generation “X” group. They are gifted, have a valuable ethical value system and set of attitudes, are self-assured, and have direct influence.
Their working relationship with their boss must be mutually beneficial and win-win.
These people will stay in organizations when their personal values and the values and beliefs of the organization are truly aligned.
Companies who do not have a recruitment and retention plan, on the other hand, will quickly find themselves spending significantly more money to acquire the top employees.
According to studies, organizations that are most responsive to employee needs had reduced staff turnover.
Based on research undertaken by Hewitt, a human-resources consulting, Fortune magazine presents a list of the 100 greatest companies to work for in the United States. Companies are most sensitive to their employees’ needs where skills shortages are most acute; 42 percent of the top 100 are IT or financial services firms.
In summary, if you truly want to keep and hold talent in your organization, you must take the following practical steps in the war for talent:
- Find out what motivates talented people to join or stay at a company.
- Compute the complete package, which must contain all tangibles, and compare it to the competition.
- Evaluation of the discrepancies between employee expectations and reality.
- Discover why people leave the company and strive to avoid repeating the same mistakes in the future.
- Strive for a healthy balance between the work and personal lives of your employees.
Simply telling individuals or teaching managers about ethics isn’t enough to inspire ethical behavior in the workplace; further efforts are required. In reality, developing a commitment to ethics is the first and most critical step.
- The most valuable asset a company can have is a commitment to ethics. Which one is the most difficult to get and maintain?
- It’s possible that it’s present in the company, but not at all levels or in all locations to be effective. In these circumstances, immoral business activities emerge, demonstrating the failure of commercial firms to pay attention to ethical concerns posed by their own systems, policies, and procedures.
According to Walton, business ethics is concerned with truth and fairness and includes elements such as societal standards, healthy competition, customer freedom, and decent behavior. Everyone expects each and every action and activity to be founded on a strong basis of ethics, yet in actuality, it is discovered that business is involved in unethical practices.
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