Business Ethics and Corporate Governance †MyAssignmenthelp.com

Question: Discuss about the Business Ethics and Corporate Governance Inference. Answer: Introduction: It is very important for a company to follow the ethical decision making to maintain its position on the top just by working for the profit motive, but rather by maintaining Ethical values. Coca-Cola is the world?s largest company in providing beverages. It nearly provides more than a billion goods throughout the world. It is the world?s most valuable logo and brand. It is well known for providing its consumers a regular supply of the products without any interruption. Due to all this features the company has been successful in developing long term relations with the consumers and thus providing a huge profit to the organization. Thus all this features has helped this company in reaching this height of success. It has also given a great importance to the overall development of the society by improving both social and economic situation of the society. It has initiated various programs for the betterment of the society. It has also supported various sustainable development intension based technology that will be helpful to only the present society but even to the coming generation. It has also taken various steps to stop the wastage of water and also has taken various steps to improve its present situation. It has also helped the people by helping the local organization to maintain peace and initiating overall health betterment. Some of these examples are that the company is helping the UNAIDS and is helping in curing the AIDS/HIV epidemics that is prevailing throughout the world. (Douglas R McKay, 2015) Along with this various scholarship programs and other initiative in the education sector has helped many students of the poor areas to come forward and get successful. Thus the company has always given importance in marinating the company?s name as one of the most valuable brand by maintain loyalty and sincerity towards the customers throughout the world. For this they have got recognition and has also be awarded with various prices at international level. But despite this fame the company has also been in the news for various wrong deeds, of which Ethical discrimination is one of the major problems. The price of its stocks has remained unchanged for about a decade because the company has been charged several times for racial and other ethical discrimination with its staffs, customers, other officials, etc. (Terblanche, 2015) The major charges that created the biggest problems for the Coca-Cola company are as follows:- Belgium Crises:- In 1999 several children fell ill by consuming the company?s products. But as no much action was taken post the incident by the company that led to large scale opposition against the company. The Belgium stores owners boycotted all the Coca-Cola products that resulted to a great loss to the company. Even other countries like Luxemburg and Netherlands followed the steps of the Belgium people. (Freeman Greenwood, 2015) Racial Discrimination charges:- After the Belgium crises the problem of the company didn?t improved. In the same year the company was charged with racial discrimination allegations by the African American employees. The company was criticized for its policy for placing the African American employees at the bottom of the salary scale. Thus a huge financial loss was suffered by the company as it had to pay the compensation to the employees to solve the issue. (Bain, 2017) Other issues:- Other issues like problem with the Burger King Market Test, earning through inflationary prices, problems in distribution, etc. Along with this various scholarship programs and other initiative in the education sector has helped many students of the poor areas to come forward and get successful. Thus the company has always given importance in marinating the company?s name as one of the most valuable brand by maintain loyalty and sincerity towards the customers throughout the world. For this they have got recognition and has also be awarded with various prices at international level. But despite this fame the company has also been in the news for various wrong deeds, of which Ethical discrimination is one of the major problems. The price of its stocks has remained unchanged for about a decade because the company has been charged several times for racial and other ethical discrimination with its staffs, customers, other officials, etc. (Terblanche, 2015) Thus even after reaching the heights of the success due to several issues internally and externally the resulted in the fall of the company?s reputation. (Clarke, 2014) A brief history of the organization:- Coca-Cola is one of the most valuable company and foremost in the beverages section. It is well known for its varieties of the products. Due to its value out of the top five sold beverages of the world, four are a Coca-Cola product. These products mainly include the regular Coke, Diet Coke, Fanta and Sprite. Thus due to its regular services and plenty of stock it has developed such a relation with the consumers that they will remain intact with the company for a long term and will be benefited to the company throughout their life. The major competitor of the Coca-Cola products is the Pepsi products that also hold a large share of global beverages supply. (Goel., 2014) Thus both these companies targeted the international market and by providing the demanded goods they are running in a race to capture more market since ages. Thus firstly Coca-Cola was just an American company selling its products in all corners of the world but now it is recognized as an international company that also sells its products in America. Thus, even Coca-Cola has the same main target of maximum market capturing like all other companies. But to make this task possible it has constantly bring new ideas and ways so that other companies doesn?t affects it position. The success of Coca-Cola even after all this struggles was possible due to its unique products, its merging strategy with other international firms, its services and quality, its focus on snacks business along with beverages, etc. Thus various stats shows that out of its total earnings about 25-30% share comes from America while rest is obtained from the other companies of the world. (Rossouw, 2005) Argument:- Coca-Cola is considered as a top level company as it survived even after facing many national and international issues that affected the company financially, morally, socially and ethically. But one question that arises in the mind is that despite being the top firm why such low level of acts was done by the company. It is a known fact that about 3/4th of the company?s sales is in the other countries. Many developing company has a large share in the company?s sales. So discrimination on the bases of race, skin color, earning profit by manipulating with the price and quality, cheating with its distributors, manipulation in the earnings, etc. should not have taken place. Thus you should not cheat with the ones on whom you are dependent for the earnings. The more you take care of them the more they will take care of yourselves. (Rossouw G. (., 2015) Oppositions Argument or Position:- As a company, it has not always been in a clean image and had gone through a lot of ups and down. When we come across the history it carries till date, we witness a series of incidents like the racial discrimination cases; it was accused of, the problems with whistle blowers sharing the incidents of how a frozen coke took a demised turn for a kid due to toxins of stale contents etc. There isn?t much to be done by the competitors here as they have been a witness to all the possible cases wherein it not only shows the series of cases of customer dissatisfaction, chances of how many times it has been sued by the customers, multiple layers of agitations files against the company, channel stuffing and inflated profits due to retail investors making a high margin are just another incidents witnesses by the competitors. (Eastern Michigan University, 2015) There are a series of observations wherein it even had trouble with the distributors, unions of the employees and retail and whole sale sector, problems with the trade secrets unions of coco-cola, there are enumerate examples wherein the ethical compliances of the company were kept stake and still it could not recover the same. The position of the company in the market is in a swing of controversies, series of cases, indemnity cases, health files, union issues reimbursement, customer dissatisfaction, and these are not minor problems for the company and have taken lot more than the reputation and clientele it carried before few years and the same as on date. As on date, it is trying to o reduce their ethical cases to negligible and to focus on reaching across the globe. What all we witnessed, are all problems that could be amended and while we gave instances of how they could have handled the problem differently and how efficiently they are trying to come up with a solution altogether. It is trying to amend the issues it had witnessed till now and come up with a clearer image with the unions, trade committees, sales, retail and wholesale sector, distribution channels etc. (Governance, 2016) Ethical decision making approaches and theories relied upon While coming across the issues wherein it is stuck as on date, the areas which we tried to come across and resolve are with the manner it dealt with the unions, trade committees, sales, retail and wholesale sector, distribution channels etc. shall be in a systematic and better manner, it should have a process flow which only defines how effective the same shall be handled but also signifies that the process should be transparent, have a decentralization which would specify that who is responsible for what and what will be the accountability of the same and how much responsible the SPOC will be for each line item. (Salehi, 2012) This will give a broader image and set up an ethical process as a whole which will not only signify how much compliances the company is able to comply with but also that the same shall be strived for sustaining in the long run as well. These practices shall target that the clientele shall be continued with and able to capture more market with the help of its objectives, whether they are in line with the industry ones and gradually there should be a bridge between the decided objectives and achieved ones. (Libraries, 2015) Summary/Conclusion:Coca-Cola is one of the most valuable companies of the world. So it should not neglect these above mentioned ethical issues as the impact of these issues is can be responsible for the future fall of the organization. This in the practice of becoming the top company of the world ethical principles should not be forgotten. Because forgetting these ethical principles can affect the reputation of the company and also the trust of the global consumers in the company. (Springer, Journal Of Business Ethics) Thus Coca-Cola has reached this height of success just by the support of the consumers. So valuing them along with their employees who has helped the company to maintain this large scale business will lead the company to the greater heights. For this the above mentioned ethical and other issues should be solved as soon as possible by implementing the ways that will bring the organization out these problems. Because if quick solutions are not brought for these issues than the fall of even such a big global firm is confirmed as one can sustain in the till it has long term consumers, once this support is lost the company can be replaced by its alternatives (Larcker, 2016) Bibliography Bain, D. S. (2017). Journal of Academic Buisness Ethics. Journal of Academic Legal Issues, 1-1. Clarke, T. (2014). Ethics, Values and Corporate Governance. Open Mind, 1-1. Douglas R McKay. (2015). Corporate governance and business ethics. PMC Libaries , 271-272. Eastern Michigan University. (2015). Research Guided, 1-1. Ethics, M. C. (2017). Corporate Governance. Sata Clara University, 1-1. Freeman, Greenwood, M. (2015). Ethics Corporate. Journal Of Business Etics, 1-1. Goel., M. (2014). Business Ethics and Corporate Social Responsibility ? Is there a Dividing Line. Elsevier, 49-59. Governance, A. C. (2016). The Corruption Index 2013: . Applied Corp Governance, 1-1. Larcker, P. C. (2016). Causal Inference in Accounting Research. Journal of Accounting Reseach, 477-523. Libraries, U. M. (2015). Business Ethics: An Undergraduate Research Guide : . UW Madison Earliers, 1-1. Rossouw, G. (. (2015). Business ethics and corporate governance in he Second King Report: Farsighted or futile? . Departmemt of Philosphy, 1-1. Rossouw, G. J. (2005). Business Ethics and Corporate Governance in Africa. Sage Journals, 1-1. Salehi, M. (2012). Business Ethics. International Journal of Scientif Research Institute, 1-5. Springer. (Journal Of Business Ethics). Special Issue: on Responsible Business in Social Media. Springer, 1-1. Terblanche, N. S. (2015). Corporate governance and business ethics: Pictures of the policies. Research Gate, 1-1. Business Ethics and Corporate Governance – MyAssignmenthelp.com Question: Discuss about the Business Ethics and Corporate Governance Challenges. Answer: Introduction: The scientific research demands the researcher to use the quantitative approach. Additionally, the researcher will conduct interviews and offer the questionnaire to 50 individuals within Maharashtra in Mumbai state in the view of assessing or rather evaluating the corporate governance of the Indiana company reliance commonly referred to as Reliance Industries Limited. This evaluation and collection of data will be done in accordance to the ethical structures that have been formulated to see that the whole activity is a success and is conducted without any form of bias whatsoever (Pandit, 2016). The researcher will go to different organization in the bid of collecting requisite data from different personalities. Practically, the researcher has to put into consideration other individual by allowing different personalities within the organization participate in the auspicious research so as to get clear analysis of data and representation in their work (Zimmerli, Richter, Holzinger, 20 07). This therefore manes that the researcher will use all appropriate tools to collect data in very explicit manner so as to aid them in their analytical work upon collection of the said data. Notably, the conclusions will be made basing their results on the collected data. Similarly, the summation of the collected information will be realized through the use of both Ms Excel and SPSS. It is ideal to state that corporate governance implies the regulation, practices, strategies and rules that is primarily aimed at making the organization dispense their services well. This is majorly aimed at controlling the business effectively in order to meet the set objectives in the market. Therefore, corporate governance is aimed at balancing the interests of the company and that of other stakeholders in the. organization (Vallabhaneni, Association of Professionals in Business Management, 2008). It further provides some of the measures that ought to be adopted by the organization in order to realize its objectives in the business. A total of 39 employees were interviewed from different departments so as to collect important information from those departments and how they carry out their activities in those areas. Similarly, a total of 9 departmental heads were, also interviewed in the same and lastly 2 managers. This data is a clear representation of all the segments within the organization. Analysis of the Corporate Governance The report from the Centre for International Corporate Governance Research., Victoria Graduate School of Business (2006) indicate that the board of directors do influence the corporate governance in an organization since they are the major stakeholder. For this reason, their decision may in one way or another affect the functionality of the venture if it is not well informed. Therefore, it is always prudent for the board of the directors to always deliberate well before coming up with the conclusively decisions so as to allow the firm to continue operating effectively. It is common knowledge that bad governance would result to great loss and thereby poor performance of the organization. This is evident where the Management fails to fully cooperate with the auditor during the auditing process. It has been observed that at times the auditor is provided with inadequate information to carry out their duty effectively. The current chair and the Managing According to Simpson andTaylor (2013) Director of RIL is Ambani Mukesh who has seen the organization realize a lot of success through his constant consultation with the other stakeholders. It is important to state that the firm has really grown in the recent time. This is attributed by the god performance at Forex report which clearly shows the stability and good performance of the firm amid stiff competition posed by other investors in the same line of business (Keinert, 2016). The National Stock Exchange of India Limited showed a substantial improvement of the firm in its operations. It was explicitly clear that approximately 3.46 per cent of its overall shares are captured in on Luxembourg Stock Exchange (Klein, 2016). This is a clear indication of its good performance in the market. There are major subsidiaries and associates of this firm namely; reliance retail, reliance institute of life science and many other firm working closely with the other firm. From the interviews or interrogation with the employees, it was clearly evident that the Management does hear the plight of its employees and puts it into considerations due to their noble role in the organization. 17 out of the total 39 employees who were interviewed stated clearly that they are well motivated in the organization and they would prefer to continue dispensing their services in the venture. The dependent variables sourced from these cases are gifts, incentives, remuneration, and appraisals (Murthy, 2009). The major dependent variable in this case is the motivation which comes in different forms. This shows that, failure to satisfy the above needs, the effort put in place suffers extinction. Therefore, it can have stated that DV has to entirely depend on the Independent variable for it to function effectively (Adelopo, 2016). The good cordial relation in the organization he correlation of the motivation to workability is always a crucial, component that the governance o ught to critically look into so as to improve on the workability of the business in the long run. 22 other employees were not fully contented with the services since they purport that they have never been promoted from their position for a very long period of time and thereby they find this as something that is devastating. This makes most of them opt for greener pastures elsewhere. It is ideal to state that best governance is commensurate to good Management (Martin, 2006). When the manager is able to explain the underlying matter at hand to its staff it may be in a position to understand their situation and cooperate towards the productivity of the organization. Corporate Governance issues About the issue of governance processes, it was found out that the leadership at time is very harsh to its employees making some of them not ready to disclose their issues to the managerial team (Howell Sorour, 2016). Most of the staff that there is some level of variability in leadership applied in the organization and thereby unpredictable to determine the outcome of the leader in case of any query in the premise. Approximately two thirds of the interviewed employees preferred democratic type of leadership since they can be able to air out their challenges effectively to the management without fear of victimization unlike when the leadership being administered is the dictatorial one. Some of the interviewed employees greatly commended their departmental heads for their effort they are putting in place and that spirit of encouraging the employees to continue working as a team (Rezaee, 2009). They are viewed as the team leader since they fully support or advocate for team work. From the collected data it was simple for the researcher to determine the type of leaders using the Blakes managerial grid which characterizes different types of leaders in various categories due to the attributes they possess. Notably, the two managers who were interviewed on the other hand stated that they have been able to move a long way with their employees in a very good manner. However, they noted some of the challenges that they do undergo as an institution since every institution does undergo some level of challenges on their daily basis (Sison, 2008). They further stated they have put some mechanism to see to it that the corporate governance is effective and very accommodative to take into consideration divergent views from different levels of people. Conclusion It can be concluded that the type of governance solely determines the functionality of the organization. Best corporate governance realizes good results for the organization. Moreover. It makes sure that the set objectives of the business are met in a very explicit manner. This also creates conducive environment for the both the employees and the senior manager to dispense their services effectively for the good of the venture and thereby realizing some form of good production for the organization. The pressures or negative forces in the company come as a result of failure in the part of corporate governance which results to entropy in the whole system. Good governance ensures that the good strategies are formulated in the view of bettering the whole system for efficacy purposes. References Adelopo, I. (2016).Auditor independence: Auditing, corporate governance and market confidence. London: Routledge. Centre for International Corporate Governance Research., Victoria Graduate School of Business. (2006).Journal of business systems, governance and ethics. Melbourne: Victoria University. Howell, K. E., In Sorour, M. K. (2016).Corporate governance in Africa: Assessing implementation and ethical perspectives. Keinert, C. (2016).Corporate social responsibility and discrimination: Gender bias in personnel selection. Klein, E. (2016).Corporate governance: Principles, practices and challenges. Martin, D. M. (2006).Corporate governance: Practical guidance on accountability requirements. London: Thorogood. Murthy, C. S. V. (2009).Business ethics and corporate governance. Mumbai: Himalaya Pub. House. Pandit, V. (2016).Ethics, economics and social institutions. Rezaee, Z. (2009).Corporate governance and ethics. Hoboken, NJ: John Wiley Sons. Simpson, J., Taylor, J. R. (2013).Corporate governance, ethics, and CSR. London: Kogan Page. Sison, A. G. (2008).Corporate governance and ethics: An Aristotelian perspective. Cheltenham, UK: Edward Elgar. Vallabhaneni, S. R., Association of Professionals in Business Management. (2008).Corporate management, governance, and ethics best practices. Hoboken, N.J: Wiley. Zimmerli, W. C., Richter, K., Holzinger, M. (2007).Corporate ethics and corporate governance. (Springer e-books.) Berlin: Springer.