Business ethics challenges include balancing shareholder responsibility with social responsibility, executive compensation, working conditions, compliance with laws and regulations, and conflicts of interest. Ethical businesses prioritize community improvement over profits and seek to hire and train employees who share their values.
Business ethics challenges typically include balancing responsibility to shareholders with social responsibility to the community and employees. Decisions that balance corporate profits with worker compensation could also present business ethics challenges, especially during an economic downturn. Other challenges may involve philanthropic activities that contribute to the economic good of the community. These challenges could also involve legal compliance with laws and regulations.
Executive compensation and the distribution of wealth could stimulate discussion of business ethics challenges. Some critics argue that multimillion-dollar bonuses and executive benefit packages should be linked to actual contributions to the company. The compensation ratio between upper-level executives, shareholders and lower-level employees could create challenges for business ethics.
Working conditions and outsourcing are additional challenges that business owners may face. At some companies, executives who successfully increase profits by moving operations overseas could be rewarded, even if they put people out of work. If employee pay and benefits are cut while executives receive bonuses based on savings, it could be classified as an ethical dilemma. Both situations typically present challenges in business ethics.
Ethics could also involve trying to hire employees who share the company’s values on the environment and customer relations. Business ethics challenges include identifying and recruiting workers regardless of gender, age, or ethnic origin. Once hired, an ethical business usually seeks to share power and leadership through training programs. Training could include equipping employees with tools for solving ethical dilemmas in the workplace.
In the area of compliance, business ethics challenges could include overcoming adherence to laws and regulations. For example, a business might follow environmental law because it’s necessary, but an ethically responsible business might improve the environment because it’s the right thing to do as a corporate citizen. The company that operates under a strict code of ethics typically makes decisions that improve the community rather than decisions based solely on profits.
Other issues that emerge as ethical concerns could center on conflicts of interest and corruption. News about some big companies cheating investors in high-profile scandals has often brought business ethics to the fore. Other cases could involve political contributions in an attempt to influence regulators to relax compliance laws.
Protect your devices with Threat Protection by NordVPN
