Essay on Mid-Term

Submitted By ehollembaek
Words: 2846
Pages: 12

1.) Some of the many benefits of a company acting and being known for acting ethically are new customers will be continually drawn in, highly qualified professionals seek employment opportunities by you, and banks are more willing to supply you with capital for expansion. Thus, it is in the best interest of a manger to run an ethical company because ethical companies are capable of greater growth over time. To help themselves as well as their employees make ethical decisions, managers must implement four rules or principles to analyze the effects that their business decisions have on stakeholders. The utilitarian rule is that an ethical decision is a decision that produces the greatest good for the greatest number of people. Managers must consider how different possible courses of action would benefit or harm stakeholders to decide which is the most ethical course of action. They must be able to choose and execute the course of action that provides the most benefits or the course of action that does the least amount of harm to the stakeholders. Under the moral rights rule, an ethical decision is one that best maintains and protects the fundamental or inalienable rights and privileges of the people affected by it. The book brings up the old adage, “Do unto others as you would have them do unto you,” which sums up the key principle of this rule. A manager needs to compare and contrast the different potential business actions on the basis of how each action will affect the rights of the company’s different stakeholders. The justice rule is that an ethical decision distributes benefits and harms among people and groups in a fair, equitable, or impartial way. Gender, race, and religion must not factor in to the distribution of pay, treatment, or overall outcomes. An example of the rule would be similar pay for employees with similar level of skill, responsibility, and performance. The practical rule is that an ethical decision is one that a manager has no reluctance about communicating to people outside the company because the typical person in society would think it is acceptable. To follow the practical rule effectively, managers must be able to ask themselves questions such as: Am I following the current accepted values or standards that apply to business activities today? Am I willing to see my decision communicated to all groups and people affected through channels of communication like television and newspaper? Will my friends and family approve of my decision? Ethical issues are not always clear because the rights, goals, and incentives of different stakeholders often conflict. These four rules are useful guidelines that help managers decide proper courses of action to take in situations where it is necessary to balance the interests of stakeholders and as well as the company’s self-interest.

2.) According to the book, restructuring means the downsizing an organization by eliminating the jobs of large numbers of top, middle, and first-line managers and non-managerial employees. This shrinking of the business/organization is done to lower operating costs because the business/organization’s revenue has decreased on account of their customers spending less money. The business may dismiss employees, eliminate departments, or even close some of its locations. A business attempting to downsize may also outsource some of their operations out of the country to save money. Modern technology’s ability to improve efficiency has also increased the amount of downsizing in recent years because new IT innovations makes it possible for fewer employees to perform a given task. A positive to an organization restructuring is downsizing may decrease the business’ operational costs. Also, when a business eliminates layers of management during its restructuring, communication and decision making may often improve due to the elimination of bureaucracy. New advances in IT may also make records become more accurate and