Wednesday, February 12, 2014

Code of Ethics for a Society

The concept of ethical and moral behavior in our society is of paramount importance to the survival and continuation of our society. Today we are surrounded by endless cases of unethical behavior by individuals and corporations around the world. The lack of morality and ethics has had a deleterious effect on the world.
In recent years, our country has had an endless series of scandals by corporations in the United States being involved in frauds, scams, and scandals. The list of corrupt corporations seems endless of which some ended in bankruptcy. (http://current.com/items/89684450_10-worst-corporations-of-the-year-unethical-and-harmful-activities.htm) recently listed the 10 worst corporations of the year, AIG, Chevron, Philip Morris, Dole, Cargill, Chinese National Petroleum Corporations, and Roche. The common threads that tie them together are there harmful and unethical behavior that has influenced the livelihood of millions of people. In 2009 the list included AIG, Target, HP, Best Buy, Apple, Bank of America, United Health Care, Verizon, Sprint, etc. The list of corporations seems endless that having violated the consumers trust and confidence. These corporations are guilty of not supporting the needs of their employee’s medical benefits needs, poor customer services, cutting the employee benefits, 401K plan holdings, price fixing, and pollutions into the environment. It is a disaster in modern society how so many hundreds of corporation are only interested in profit and will go to any lengths to increase those profits regardless of which it will effect or what negative impact corporate greed will impact the environment. Today even one person who has no or low morals can affect millions of people’s lives. Bernard Madoff is such a man who admitted to the largest Ponzi scheme in history. He was a former stock broker, and investment advisor. He pleaded guilty to eleven federal crimes of defrauding thousands of investors of billions of dollars. The losses were over $18 billion dollars. Thousands of people lost their entire retirement funds and live savings as result of his actions according to (http://en.wikipedia.org/wiki/Bernie_Madoff). Even though he was sentenced to more than 40 years in prison, it would not return the money lost due to the greed and arrogance of such a man. The impact of what he did has made us examine what the moral versus immoral standards are of today’s corporate businessman. According to (Business Ethics, pg 9) five characteristics of moral standards are, involved with serious injuries or benefits, not established by law or legislature, should be preferred to other value including self-interest, based on impartial considerations, and associated with special emotions and vocabulary. Man for thousands of years has had to deal with personal and business ethics. Business ethics deal with the specialized study of what is morally right and wrong. Business organizations utilize the resources of land, labor, capital, and technology to create usable goods.  They form various consumer products and contribute to employee salaries, investor’s return, and government taxes. Mining, manufacturing, retailing, banking, marketing, transporting, insuring, constructing, and advertising are all different aspects of the productive and distributive processes in today’s’ modern business institutions.” (Business Ethics, pg 13).  Appropriate business ethics are when people are treated fairly, honestly, and with respect for those businesses or individuals who deal with a local and international business. There are aspects of moral responsibility that incorporate the fair dealing with various professional and honest dealings with a company’s structure such as: manufacturing, marketing, service, or administrative operations of a company, even in different parts of the world.
Ethical relativism is truths that apply to people of all societies throughout the world. Many countries may condone slavery, racial, and sexual discrimination, genocide, patricide, and torture of animals. But, The United Nations and other world organizations have deemed these practices as unethical and immoral to perpetrate on mankind. There is today child slavery and the trafficking of children which is prevalent in many countries, with 158 million children 5 to 14 in child labor worldwide according to UNICEF. Somalia, for example, in 2002 signed the Convention of the Rights of the Child, or CRD. Factories in many countries violate international law to use child in their factories and make these children conduct hazardous work. Countries such as Fiji according to BBC, monitors Asia Pacific. Africa still has child slavery in many areas, forcing children to spend all day in cacao fields, chopping down plants along the Ivory Coast in Africa to make chocolate, according to Intelligencer Journal. These children are involved also with the unethical practice of mining for conflict diamonds in South Africa which is unethical in immoral war in the region. Slave labor is used by corporations to mine for diamonds which are sold to the United States, which are used to buy weapons and explosives for various third world war activities. We are almost fifty years ahead of most countries in workers’ rights. We treated our workers and employees a hundred years ago the same way workers are being treated in many countries such as: in Pakistan, in Iraq, in Saudi Arabia, in China, in India, in Philippines, and in South Africa. These countries are morally unethical by American standards in regards to their human right violations. But, they do not think they are doing anything wrong when they have their workers exist in a dirty and unhealthy work environment. They give their workers slave level pay, no medical or dental, no days off. It is interesting how with most people in the world aware of slavery during Moses time with the Pharaoh of Egypt paying the Jews next to nothing in wages and with their constantly being beaten. Today, many corporations and manufacturing facilities in other countries have not learned from those biblical lessons. It appears that when religious teaching is removed from the schools and philosophy removed from schools and universities, the amount of corruption, stealing, cheating, stealing, and falsifying corporate records increases.
Society is devoid of ethical relativism because the morally right thing to do in any given situation has not been taught by these generations of parents to children. Relativism privileges the current moral standards in a society, but people do not learn the lessons from other people’s lack of sound judgment and moral upbringing.
Moral development is something that starts in childhood with the forming of relationships with other people. We are taught to treat our piers with dignity, respect and honesty. As we get older, we hopefully develop a moral compass or a moral reasoning. We learn the difference between right and wrong. The federal government has conducted surveys and found that the average twelve year old does not know the difference between right and wrong or good and evil.
We have had Dr. Spock, a psychologist, influence a generation of children with his approach to disciplining children. According to his book “Baby and Child Care”, published in 1946, he proposed the children’s needs and family dynamics. His views on permissiveness and children’s need of instant gratifications have had an influence on the accountability of the actions of children’s morally in society.  Many people believed that ethics and morality were neglected by Dr. Spock. Many parents felt that this let to children lying, cheating, stealing, or doing what it took to attain their sense of instant gratification. Time outs in the corner and other ridiculous child behavior techniques further confused children into understanding the need of basic respect, and moral self-discipline in our society. Lawrence Kohlberg was a psychologist who helped develop moral education and reasoning, he is best known for his theory of stages of moral development. (Business Ethics, pg25-26) Kohlberg’s six stages were as follows:
Level 1 (Pre-Conventional)
1. Obedience and punishment orientation
(How can I avoid punishment?)
2. Self-interest orientation
(What's in it for me?)
Level 2 (Conventional)
3. Interpersonal accord and conformity
(Social norms)
(The good boy/good girl attitude)
4. Authority and social-order maintaining orientation
(Law and order morality)
Level 3 (Post-Conventional)
5. Social contract orientation
6. Universal ethical principles
(Principled conscience)

It is unfortunate that none of these stages were taught to me or any children in elementary school or college. I believe that due to the fact during the 1970’s to current times, parents were so involved in trying to make ends meet they never spent time with their children to help instruct them in moral development. That is what churches and synagogues were supposed to be for. As a result there have been millions of children who became “latch key” children.” Children let at home unattended when both parents were at work. Many of these children lacked proper parental guidance in life and ended up in street gangs and became criminals with no moral or ethical compass to guide them in life.
Morality is defined as that and individual or group has about what is right and wrong or good and evil as illustrated in (http://en.wikipedia.org/wiki/Morality) and (BE) (Business Ethics) pg 8). People who were children in the 1970’s are today the leaders. They are CEO’s and directors of national and international corporations. They were taught how to run a company, but many were without moral reasoning or had an understanding of ethical values. Many corporate CEO’s who are ethical have a history of profitable operations. Ethical conduct by senior management creates happy workers, good stock returns, and profitable growth of an ethically sound corporation. Social responsibility and behavior has a great deal to do with how corporations survive during hard economic times. During economic hardships, many corporations become unethical by cutting employees benefits and pay to deal with hard times. Many companies cut corners on safety or environmentally ethics when dealing with manufacturing processes.
There are thousands of manufacturing corporations around the world that have dumped their waste into American rivers, and oceans around the world. They become environmentally unethical by improperly recycling the waste products of high technology products. Companies that product electronics often dump chemical and copper or toxic waste into dumpsters and landfills without properly handling of such items. These toxic chemicals leech into the ground water of the area, in many cases, causing birth defects in the children of the contaminated areas. In third world countries, Dow Chemical, have been accuses of periodically introducing pesticides into the environment without adequate testing before hand. Many pharmaceutical companies today are under investigation by the FDA due to the thousands of people that get have develop complications and death after taking newly released prescription drugs. The corporate managers and CEOs think that by taking shortcuts in the development of their drugs they are saving money, but not lives. There is a growing movement to make the corporate leaders who are responsible for such actions to be held accountable for their actions. The moral compass of a country with is virtues and principles is one of the principles of utilitarianism, right, justice, and caring that should be judged on it character. Ethics of virtue is associated with justice and the caring, which cultivates by the people in the organization. When corporate manager conduct themselves in a virtuous, and ethical manner, the incidence of corruption and unethical behavior diminishes.
The value of multinational corporations comes from the moral compass of the political administration of the country. During the last eight years, the Bush administration ignored may international laws and regulations, in turn so did many of the American corporations. Corruption in this country was at an all time high during the Bush administration due to its corruption and dealing with international issues. We ignored the world wide desires for the passage of the Kyoto Protocol, an international pack, to reduce greenhouse emissions and fight global warming. It is only due to selling out by various oil companies and large corporations who spend money on influencing Congress and that Administration from large contributions to senators and congressmen to influence the environmental policies. Corruption in the governments of Vietnam, North Korea, Cuba, and Russia are examples of corrupt governments that illegally deal with the market economy for their selfish ends. The command economy is an economic system based on government authority making economic decisions. Many countries own and control their corporations to further the countries best interest. China is such a country that controls all of their corporations. They mandate what pay, human rights and working conditions their workers are subjected. Unethical behavior by China has given rise to the import of dog food, cat food, and baby food that is poisonous or contaminated due to poor quality controls. China recently finished the Three Gorges Dam, but the dam flooded archeological and cultural sites and displaced 1.3 million people according to (China Today, May 2010). Their record on human rights has been controversial. Ethically we should stop trade in China, but cannot due to the fact such a high percentage of goods is produced overseas today. As the United States makes the transition from an Industrial based economy to a technological based economy, many people have to return to school and be retrained for the jobs that are available today. Many corporations do not provide the funds to re-educate their workforce as technology changes and evolves on this planet. The ideology of our belief system has changed over the last few decades. Businesses have tried to cut cost by outsourcing their manufacturing labor overseas. The ethical dilemma is that with twenty million manufacturing jobs being transferred overseas, or outsourcing the Americans that are out of work are unable to gain employment. Many agricultural and industrial labor jobs that people were trained and worked for forty years ago are gone. These out of work people cannot train for computer jobs because this is the only type of work they are used to. The free market helps dictate what goods are desirable or popular, but corporations have reduced the money spent on training their workforce. People want to maintain their liberty and property with a good paying job, with the Lockean right.
In the United States the distribution of wealth in this new economy has slid to the far right. The top 1% of corporate America makes over $10 million a year. The CEOs of fortune 500 companies make four hundred times the average worker. This incredible profit is largely due to outsourcing to countries where workers make less than a dollar a day. For workers in third world countries, there seems to corporations for no need to pay for medical, dental, or take care of hazardous chemicals, which is mandated by state and federal law. Many believe that this new competition between corporations is a social Darwinism, that will create human progress and competitive for corporations to become more ethical and honest in their international dealings.
Governments should be used as an economic substructure and social superstructure to monitor the way the economics goods and materials are utilized by corporations as the forces of production in our economy. If we have responsible and ethical administration of our resources, corporations will then be better able to maintain profitability and responsible environmental ethics for the ecosystems that would help create a perfectly competitive market.
When you apply morality, ethics, and sound environmental policies that benefit the environment and people, corporations can maintain level of profitability. There is a lure by corporate greed for price-fixing, manipulation of supplies, tying arrangements, exclusive dealing arrangements, and price discrimination, as shown in (Business Ethics, pg 184-185.) There are so many temptations to cut corners and take the short cuts to overnight increased profitability.
In conclusion, when corporations are ethically managed, its executives, managers, and employees are morally honest with everyone involved, and the corporation has increased profitability, confidence and faithful employees. When you treat people with dignity and respect you get the same in return. When companies reduce wages, and reduce medical and dental benefits, you alienate the faith employees, and the desire to work hard and produce the highest quality product possible. When morality is low due to the feeling that the company is treating its employees badly, moral will lead to a drop in quality, and integrity at a corporation. People don’t care anymore about their jobs when they think the company has stopped carrying. When insurance companies have raised premiums and rates to all corporations and subscribers, people begin to hate them and will behave unethically towards them. When our government is unethical when dealing with the American people, we, in turn, have no respect for our government. Respect and honesty is a cornerstone for a society, without it. you will have distrust, anarchy and corruption. Hopefully someday the peoples of the world will mature, evolve, and grow up to realize we all have to get along together on this planet, and sometimes honesty is the best policy in day to day living.

 

References

Blackburn, S. (2001). Ethics: A Very Short Introduction. Oxford New York: Oxford University Press.
Brown, T. (2010, Jan 10). Fraudster feels full wrath of judge; 50-year sentence for $1-billion theft. The Province .
http://en.wikipedia.org/wiki/List_of_business_failures#2009. (n.d.).
Rothbard, M. N. (1998). The Ethics of Liberty. New York and London: New York University Press.
Velasquez, M. G. (2006). Business Ethics: Concepts and Cases 6th Edition. Upper Saddle River, NJ: Pearson Education.

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