Case Study Business Ethics Marketing Essay

Case Study Business Ethics Marketing Essay In this essay I would like to consider personal and organizational ethics and provide my own behavior concerning this issue. To begin with it should be noted that personal ethics and morality are the actual core of human behavior.  It can be said that installation of our personal ethics are the guiding for our further actions.  In this context, it is important to understand two principally different systems of personal ethical behavior.  It can be said that one of the systems can be named as system of full personal responsibility.  It includes only human personal principles and ideals and, on its basis chooses different options of human actions and thoughts.  The opposite of this system is a system of strong subordination principle.  As a rule, these systems are distributed among such religions as Islam and Judaism.  Both these systems are very comfortable and have a number of advantages.  I presume that for me, the closest is the Catholic ethical system.  However, as a fact, I have my own principles and beliefs that form my own ethics and determine my actions and words. Nevertheless, all my personal views are corrected by certain higher value system a system of values à ¢Ã¢â€š ¬Ã¢â‚¬ ¹Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬ ¹of the Catholic religion. According to Sayali Bedekar Patil (2010), it should be noted that business ethics is one of the most important, but at the same time the least studied areas of modern business life.  As a fact, scope of business ethics deals with issues how certain business practice is acceptable.  For example, does the vendor have the moral right at an organized presentation of products to hide information from the client about the low standards of a product safety?  Should the accountant report inaccuracies found in the audit, knowing that in this case, that the client is likely to cease cooperation with the firm?  Should car manufacturers use expensive new parts, providing security, knowing that for this reason that car becomes too expensive for the client? Despite the legality of such situations, decisions and actions, the latter should be evaluated in terms of various indicators, not just in the scale of true-false.  Business ethics is contradictory in nature.  Without any doubts, su ch questions relate to business ethics sphere of activity. As a matter of fact, business and ethics can not be considered separately from each other.  In their daily work and activity, people (at any level) will inevitably face the need to make ethical decisions.  As a rule, ethical issues arise in the field of management, marketing, manufacturing, research, human resources, financial management, business strategists, and many others. It can be said that ethical and responsible activity contributes to the creation of new competencies, because it draws its members within the entire organization and contributes to the future-oriented/ holistic approach to leadership style and better prepares the company to both external and internal changes, crises.  Hence, business ethics creates confidence, improves reputation, and helps to maintain good relations with various groups, including, customers, partners, owners, investors and organizations, as well as banks and the media.  I am convinced that ethical and responsible activity helps to impr ove the attractiveness of the company in finding good employees, to maintain the goodwill of members and enhance the value and reliability of an enterprise, to provide a consistent and constant development of the enterprise.  As a fact, ethical and responsible activity affects not only individuals and interest groups, but also the interests and profitability of the organization.  Thus, in other words, business ethics is a way to better manage the enterprise. Many experts have different definitions of what ethics  is. To find a common ground I would like to provide some of them, which in my opinion, characterize this concept the most accurately. According to Chris MacDonald (2002), ethics is a measurement of human thought and behavior that emanates from the principles of goodness and correctness. Ethics is an attempt to define the rules that should guide human activities and life values.  Ethics defines how people should treat each other. Ethics is a set of values à ¢Ã¢â€š ¬Ã¢â‚¬ ¹Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬ ¹that are positive and correct. Personally I think that all these definitions bear in themselves the answer for the question what is ethic. For me, ethics is a set of behavior rules of a person or organization that create its image and attitude to the person or organization by customers, partners, investors, media, authorities and so on. According to Chris MacDonald (2002), there are following ethical values: Honesty, integrity, promise-keeping, fidelity, fairness, caring for others, respect for others, responsible citizenship, pursuit for excellence and accountability. However, business ethics also include such concept like ethic dilemma. It should be noted that ethic dilemma is a problem of difficult choice between this or that way of behavior. Situations and conflicts that from time to time require making a decision in real life, often raises the ethical dilemma. As a fact, the two possible solutions of the ethical dilemma may involve behavior, which is not acceptable from the standpoint of morality. Ethical conflicts may occur in following cases: There is a significant conflict between different interests; Alternative solutions can be justified equally; The consequences are very important for those, who are concerned. I would like to provide two examples of business ethical dilemma, that in my opinion are of special interest. The first one: a client wishes to receive from a company any product or service, but when he heard the price, the client states that this price is unacceptable to him.  An employee of firm knows that the client can get the same service at competitors store.  Should the employee of the firm tell customer about the competitor or not? The second business ethical dilemma is following: my colleague tells me that he is going to leave the company and begin work on a new site, which is promised to him.  At the same time my boss gives me to understand that he will not give me a promotion, because he is going to give it to my colleague. Should I tell my colleague about it? Without any doubts it is hard to answer these dilemmas unequivocally. In my opinion, business ethical dilemma is always a compromise with yourself. On the one hand, everybody has own interests or interests of t he company. On the other hand, people should behave  themselves towards  others, as well as they  want  people to  behave towards  them. I think that that a person should decide for himself what is more important to him long-term image and honor or short-term benefit. In this part of the essay I would like to provide an analysis of my own work experience at Starbucks Corporation, where I used to work as barista. It should be noted that Starbucks believes and does business ethically and also strives to do the right things that are vital to the success of the company.  I presume that business ethics supports the mission of Starbucks and helps to protect its culture and reputation by providing resources to help partners make ethical decisions at work.   According to Kate McClelland (2007), Starbucks has its own program, which is aimed at comprehensive development of business ethics within  the company  and  as well as in  contact  with the external environment. The program develops and disseminates information materials, including business standards, promotes compliance and ethics training. Also Starbucks program explores sensitive issues such as potential conflicts of interest, and also provides additional channels for partners voice concerns.  Partners are required to report all types of questions or concerns to the program through their choice of communication channels.  As a rule, the majority of reports received on business ethics and compliance involve labor relations issues.  It can be said that Starbucks believes that company should conducting business ethically and always tries to improve its business ethical standards. According to Starbucks Ethical Sourcing (2011), Starbucks business ethics includes social responsibility and its component, among them are: Taking care about countries that produce coffee; Taking care about the environment; Taking care about communities; Taking care about employees. I would like to consider all these concepts more closely. As a matter of fact, taking care about countries that produce coffee is a very important ethical issue for Starbucks. It can be said that Starbucks takes serious measures to help coffee farmers improve their lives and protect the environment in which they grow coffee.  Starbucks has carefully studied many problems, which farmers are faced by today, including economic and environmental.  By taking care about countries that produce coffee Starbucks at the same time maintains a stable state of their plantations, pays attention to the protection of the environment and maintains high standards of coffee quality. Because Starbucks success depends largely on the stable supply of quality coffee, the company has taken steps to maintain the stability of coffee production with a simultaneous concern for the environment.  Starbucks also supports community projects to improve the welfare of families in coffee regions. The second element of Starbucks business ethics program is taking care about the environment. It should be noted that taking  measures to  reduce  waste  production and  processing  allow the company to  preserve  the natural  resources  and raise living standards  around the globe.  Starbucks actively  seeks out  opportunities  to minimize impacts on  the environment  and  contributes a lot of money and time to make our planet healthier. The third element is taking care about communities. As a fact, local Starbucks coffeehouses have become a central part of many neighborhoods, they serve as a place where people can gather, talk, talk, have a good time.  But Starbucks believes that by make their partners responsible neighbors and active participants in the events of those areas in which they live and work, together they can bring more benefits to local communities.  This is an important part of the business ethics and the culture à ¢Ã¢â€š ¬Ã¢â ‚¬ ¹Ãƒ ¢Ã¢â€š ¬Ã¢â‚¬ ¹of the company. The forth element of Starbucks business ethics program is taking care about employees. More than 63,000 people work at Starbucks and all these people the company calls partners, who are a tool for success. And since Starbucks success depends largely on the dedication of the partners, the companys primary goal is to show them how much Starbucks appreciate and respect them, according to Tom Allen (2009). In my opinion, Starbucks has positive attitude to business ethics. However, I would like to say that even this business ethics structure needs some changes. First of all, there have to be made certain improvements in the sphere of business ethics because Starbucks is working globally and not in every country ethical principles are identical. That is why Starbucks can not permit to lose its image in the international business. Often, one of the ethical principles plays a considerable role in a customers decision whether visit Starbucks again or not. Good service and exemplary attitude of the staff in Starbucks Corporation always has to use ethical principles that will help the company to succeed. In order to provide the best service and unique products to the customers, Starbucks Corporation has to do everything possible to satisfy the customers needs. If I was a leader, I would create a plan of changes in business ethics and implementation of new approaches, I would take into consideration the analysis and evaluation of the current strategies, business ethical principles, newest technologies and innovative approaches that would have a company to succeed. As for specific steps, I propose the company to expand its presence in popular social networks and make a questionnaire survey in the coffee houses with the aim to improve its fairness and pursuit for excellence. I presume that open desire of the company to hear and take into account opinions and  suggestions of the customers concerning improving service quality will be the best way  to reflect its  business ethics  and  will have a positive impact  on  company image. I am convinced that this step will help Starbucks to gain more fans all over the world. This will show that Starbucks is taking care of people. To sum it up I would like to say that ethics is the humanity, honesty, respect, goodwill, fairness and trust.  It is not possible to provide effective management without business ethics, for the sake of success of the enterprise it is important to treat others with respect, appreciate other people and take into account what is happening in and around the enterprise.  Each organization is the part of the society and the wider environment, disregard for society and the environment can lead to a situation in which the company can no longer continue its activity.  Society and the environment can exist without any particular company, but the company without its environment and society will not survive.  It should be noted that people create the organization and the organization is created in the first place for the people.  All products and services that are produced and offered are created specifically for people and for their needs.   Without any doubts Starbucks Corporation has almost perfect business ethics standards. Although, if I would be a leader of the corporation I would propose the company to expand its presence in popular social networks and make a questionnaire survey in the coffee houses with the aim to improve such important ethical values as fairness and pursuit for excellence. I strongly believe that such step will help the company to hear and take into consideration opinions and  suggestions of the customers concerning Starbucks goods and service  quality and be the best way  to reflect its high  business ethics standards.