MORALITY AND THE MARKET

Capitalism is the social, political, and economic system that lets rights to
property be transferred by market transactions among private individuals,
alone or in groups. Systems of thought that oppose capitalism oppose this
way of fixing legitimate property claims and substitute other criteria for the
legitimacy of property transfers, or prohibits such transfers altogether.

In either allowing or disallowing market transactions, capitalist and
non-capitalist systems either allow or disallow business. Business is a set of
organized human activities which take place in markets. So it is appropriate
to engage in a general consideration of the morality or immorality of
markets and of market institutions, in a business ethics text. Much of what
makes for good business or bad business is the suitability of business
practices to engage in market activity. But if market activities were
essentially bad, that badness would transfer back to the business activities.
On the other hand, if it is a good thing for humans to participate in
markets, then good business can be good human activity.

In any event, this chapter is a discussion of the morality of markets and
of market institutions. Since this is an introductory essay, I shall explain
everything that is taken up in the essay. So I start by explaining what
markets are and what morality is.

What is morality? The study of morality is an attempt to formulate
rational standards that can be used to distinguish between right and wrong
action and also between good and bad things. For example, most people
think that peace and prosperity are good things and should be pursued.

to be continued….

What are Business Ethics and how do they affect your Company?

Business Ethics have only come to the fore recently. They state that there is more to business than just making a profit. The new focus is also on how the business treats the environment, reacts with the local community and works with its staff to build a responsible company that is both sustainable and adds value to the people that it interacts with.

6 Steps for Ethical Leadership in nowadays organizations

Perhaps no other issue can so dramatically define the difference between management and leadership, than the attention the individual gives to ethics.

A manager must focus on the on the day-to-day aspects of keeping the department, team or organization running smoothly. This includes making sure the department is staffed appropriately, that the company is on target for sales, that production is on target, etc. A leader, on the other hand, must be able to set goals and aspirations for the team, set the tone of the organization, motivate and inspire the group, etc. Realistically, managers must be able to do both. They must inspire and motivate and they must ensure that the company operates effectively. Setting the ethical tone of the organization is a leadership function. The challenge for most managers is to spend enough time focusing on leadership functions without becoming totally consumed by the day-to-day operations of the team. Because “business ethics are about the morally functional nature of our business relationships…giving them the attention and care they deserve is crucial to an organization’s success” (Hamm, 2003, p. 1). I suggest six steps for a manager to take to lead ethically.

1. Reflect on Values. To focus the appropriate attention on the ethical tone of the organization, a leader must “draw on their own fundamental values and capabilities” in order to optimize their leadership potential (Quinn, 2005, p. 76). To do this, leaders must find time to reflect and identify their own personal moral compass as well as to ask themselves what are the key ethical questions and dilemmas facing their organizations. Just as a manager must take time to understand their market, budgets, production timelines, etc., an ethical leader must take time to understand his/her own personal values, the values of the team, what the value statements of the organization should be and identify the gaps that exist in aspired goals and current behavior within the organization (Hamm, 2003, p. 3).

2. Establish Trust. Build an environment of trust with employees in order to create an environment where employees feel free to discuss ethical dilemmas and issue with management.

3. Establish a Shared Ethical Vision. To ensure buy-in and commitment from the organization, include members from various levels of the team to help create a “Code of Conduct” that is aligned with the Ethical Vision of the organization (p. 3).

4. Communicate the Ethical Vision and Code of Conduct. A leader must ensure that the vision and code is communicated to everyone within the organization. This can be done through policy manuals, training events, one-on-one and team coaching, newsletters, team meetings, etc… “Communicating the program frequently is another important success factor (p. 3), as is establishing a way for employees to communicate their concerns back to management in a safe and confidential manner.

5. Act. To be effective, the leader must show that all the organization is serious about ethical behavior. All reports of unethical behavior must be investigated thoroughly. Furthermore, all violators of ethical standards must be punished equally and justly throughout the organization, irregardless if the perpetrator is a senior executive or first line hire. In addition to punishing negative behavior, effort should be made to reward and recognize positive ethical behavior (Trevino and Nelson, 2005, p. 304). Just as a good manager knows that rewarding employees for reaching goals is important, the ethical leader will recognize that equal importance must be given to recognize those who exemplify ethical behavior within the organization. Acting also means leading by example by letting ethical behavior guide the actions of the leaders at all times. Doing so will help establish and sustain a culture of ethical behavior.

6. Monitor and Sustain Ethical Behavior. The leader must consider ethical leadership a key aspect of their role as a manager. It cannot be seen as a passing organizational fad. Effort must be made to gather feedback through surveys, focus groups, one-on-one interviews, etc., to identify employee concerns regarding the ethical environment where they work. This should be a continuous improvement process to identify concerns and to improve the overall ethical environment.

There are at least seven benefits for a manager to focus on being an ethical leader, including; improved public image of the organization, restoration or enhancement of investor confidence, prevention and reduction of criminal penalties, preventing civil lawsuits of employees who could not have their grievances met satisfactorily inside the company, improved employee retention, market leadership through by improved customer satisfaction and setting the example for others in the market

LOVING YOUR EMPLOYEES

By Melvin Polatnick

Owning a twelve room house is very expensive, my cleaning lady and her sister who is my cook cost me fifteen hundred dollars a week for six days work. Health insurance is provided by me. Both are is well worth what I pay them. I like my clothes and linens washed daily by hand and my two cars washed and waxed. The washing machines destroy the quality of material so they are not used except by them. Both have been with me for over five years. we are all lovers but never on working hours.

My cook is three years younger than her sister, she is forty three years old. She once worked as a stripper but gave it up to work for me. The food shopping and kitchen cleanup is done by her. Breakfast is served at eight but lunch and dinner can be served at any time. I always like a late night snack and a dry martini. The sisters live with me and have their own rooms. I cannot sleep well with any one in my bed. When we make love it is in the large bedroom that my deceased parents used to share.

Sunday is my employees day off so we all go mall shopping followed by dinner and dancing. We never return home until the wee hours of the morning. Both sisters are usually dead drunk. I am the driver so I keep my self down to a martini or two. We are all up at eight A.M. to start the working day of with a hot breakfast. Life is good to us all and we are one happy bunch.

On a Sunday night when we were dinning and dancing I asked the sisters if they would like to retire and live with me in a residential hotel. The staff of the hotel would provide all the services needed including cooking and cleaning. They were delighted to hear such a kind offer but were frightened at the thought of losing their salaries. I explained that the salaries would continue and so would our relationship as friends and lovers. They agreed and I sold my house. We then all moved into a luxurious three bedroom suite.

My parents were business people and employed over one hundred workers. Before they died in an automobile accident they explained to me the importance of being fair to your employees. I never forgot their teachings. The sisters that live with me were my employees and if my parents were alive they would be proud of me.