Ethical Issues Facing Business
As the world shrinks, workplaces become increasingly diverse and members of the public demand increasing transparency and social responsibility from big business, companies face myriad ethical issues. Understanding the more common ethical dilemmas facing business today helps you become a more savvy business leader.
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Transparency
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For companies, being transparent is a double-edged sword. On one hand, it shows that they have nothing to hide and are operating on the up and up; consumers appreciate this. On the other hand, transparency can be dangerous for companies from a competition standpoint. By being open about their business and financial practices, they risk giving competitors information that can be used to one-up them. Thus, companies must find a delicate middle ground.
Responsibility
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More than ever, consumers are clamoring for companies to take responsibility for their impact on communities, the environment and the world. For companies, this can present a challenge. For instance, it's often easier and cheaper to take the out-of-sight, out-of-mind approach with manufacturing byproducts and wastes than to find ways to produce less waste or dispose of it in ways that minimize the environmental impact. Yet, when all else is equal, consumers often prefer to purchase goods and services from companies that show social and environmental responsibility.
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Globalization
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In an ever-shrinking world, even small businesses can take advantage of cheap labor in Third World countries. However, this isn't always the ethical thing to do. For one, employing people from other countries means fewer jobs for people locally, who are often the ones purchasing goods and services from these businesses, thus keeping them alive. Second, paying a peasant in a poor country a pittance perpetuates a cycle of poverty.
Diversity
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America is more a melting pot now than it ever has been. When people from different cultures, national origins and belief systems come together in a single workplace, discrimination can ensue and stereotypes can stir up trouble. Although it may be easier to simply hire a homogenous workforce, diversity can greatly benefit businesses: People from different backgrounds bring different strengths, skills sets and perspectives, which can come in handy in solving problems or completing projects that require a wide range of abilities.
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References
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