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Using Relevant Theories And Examples Outline The Arguments For And Against An Organization Adopting An Ethical Approach To Management

2533 words - 11 pages

Using Relevant Theories and Examples outline the arguments for and against an organization adopting an ethical approach to management.

The purpose of this essay is to compare and contrast the case for and against an organization adopting an ethical approach. This essay will look into the two sides of the argument in depth using relevant theories, examples and case studies. The first part of this essay will look into why an organization adopting an ethical approach to management could ultimately benefit the firm. The essay will look at various strengths that could be achieved by an organization, these theories and ideas will be backed up with possible case studies and real life examples. ...view middle of the document...

This definition also uses the key word mentioned earlier being ‘morals’. Both definitions suggest that an ethical approach to management is generally acting right to benefit the community and the environment not solely concentrating on maximizing profits. It is also important to define what exactly acting morally is, one good definition suggested that morality is the notion of what is good and bad (Macintyre, 1998). Business ethics are more widely described as ‘social responsibilities’ as more user friendly and less threatening when applied to business behavior (Mullins, 2005)

As mentioned in the introduction, the first part of this essay will look at the case for an organization adopting an ethical approach. One of the main benefits that an organization would gain from this behavior is that it could be used as a USP (unique selling point). This is evident in a variety of organizations today; the Body Shop was one of the first organizations to build on this trend. Body shop sells products that are kinder to the environment, and also boast the fact that they are 100% against animal testing. In fact Body Shop released a statement saying ‘The Body Shop takes positive action to bring about an end to the use of animals in cosmetics testing and to ensure no such testing is carried out by us or on our behalf. We operate a strict purchasing rule that ensures that we don't use any ingredient that has been animal tested for cosmetic purposes by our suppliers since 31 December 1990 (www.thebodyshop.com). A key point is that not only does the company strive to improve the communities in less developed countries, but it publicizes these actions in order to get support from possible consumers.
This strategy appeals to customers a great deal; there are plenty of consumers who choose not to buy products that have been tested on animals so choose to buy products only from the Body Shop. Similarly there are consumers that may not have such strong opinions against animal testing but buy products from the body shop because it seem like ‘the right thing to do’. These ethical approaches to management has seen Body Shop’s profits rise over the years, and are now one of the largest cosmetic retailers in the country as a result. As well as advertising the fact that they are against animal testing, The Body Shop also promotes community trade, active self esteem, defending of human rights, and the protection of our planet. This real life example portrays one of the main reasons why it is an advantage to adopt an ethical approach to management.
There are many other organizations that act ethically in order to gain a larger consumer base, petroleum giant BP being another example. BP is trying to portray the oil business as environmentally friendly.

Organizations will also gain significant public relations advantages from ethical behavior. There are examples of organizations that have not acted ethically, and as a result have received very negative publicity. One key...

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