Law and ethics assignment essay help: Ethics and social responsibility – Lehman brothers
1. Introduction (Literature Review)
Ethics has been defined as moral guidelines which distinguish what is wrong at right. According to (Binns J. 2008) ethics is being interlinked with factors such as integrity, competence, openness, objectivity, intellectual property, social responsibility, carefulness and etc. He states ethical aspects needs to be managed at organizations for meeting expectations of all the stakeholders. He also explains that fair practices of business must be implemented for driving moral values all across the organization and its people. According to him an era of Globalization ethical aspects are being diluted to increase profits of business by following corrupted practices such as bribery, falsification of documents, violating the legal guidelines and impacting the overall environment. As per (Thompson 2010) multinational organizations have a desire to expand their business in several host countries in small span of time. According to Thompson the multinational Leaders inculcate unethical leadership practices by ignoring interest of all employees, engaging child labor, asking employees to work in unsafe working environment, exploiting rights of employees, ignoring the interest of society and its people, evading the taxes of host country, producing harmful product and services without following quality standards, and competing with competitors on unfair basis. He also states that organization cannot be considered unethical but it is the people and their leaders of multinational which makes them unethical. Ethics plays a vital role for managing the business on systematic basis by executing moral beliefs and values among multinational. According to (Ojumu 2007) the aim of multinationals is to commercialize business by generating trust of all stakeholders of host and parent countries. The high level of competition and rating being given by the consumers plays a vital role in managing ethical aspects at multinationals. The multinationals and their business cannot be kept away from society because both need to serve each other on mutual basis. The host countries give importance to multinationals because that have believe that opportunities will be created and it will directly support in growing their economies. As per (Sevesson 2003) ethics at multinationals depends upon factors such as culture and time. The culture of multinationals defines what things are ethically accepted and unaccepted which are also being influenced by value systems, religion and traditions. He states that whenever multinationals expand their business they need to follow several rules, regulations, and norms of the host countries. It is being explained by him that proper code of ethics also become the part of culture for multinationals while managing their business at host countries. There are several multinationals such as Enron, Lehman Brothers whose business failed in international market because its leaders and employees failed to implement ethical business practices. As per (Johnson 2005) multinationals needs to follow three levels of business ethics while expanding their business which impacts organizations and societies. He states that according to first level multinationals must consider macro aspect for following legal procedures to manage the business. In the second Level he highlights that corporate social responsibilities must be performed by multinationals inculcating ethical practices. The third level is being highlighted with respect to behavior and actions of employees and leaders of multinationals. According to researchers there are so many multinationals such as Shell oil company, Cadbury Nigeria, World com, Manville Corporation and Arthur Anderson which revealed their unethical practices and questions in minds of all stakeholders globally. Johnson also states that employees working at multinationals are also found engaged in whistle blowing process which signifies that organizational confidential reports and information are being shared with outsiders for fulfilling their requirements. He also states that multinationals are found unethical in several such situations such as when there is high level of competition; there is shortage of labor, and lack of availability of resources.