The impact of ethics beyond businesses and how sense of responsibility affects the action of leaders
https://ilokabenneth.blogspot.com/2014/10/the-impact-beyond-businesses-and-how.html
Author: Iloka Benneth Chiemelie
Published: 24-October-2014
Introduction
In
the modern business, ethics is no longer an ordinary philosophy that is studied
in books. Instead, it is now part of every business decision making process as
companies are obliged to review their business activities and limit harms to
the environment from such activities. Considering that they are different
approaches (e.g. individualistic and psychological) leadership, it wouldn’t
come as much surprise that literatures on ethical leadership has focused mostly
on virtue ethics – which is based on the ethics of character of leaders.
Majority of the studies on ethical leadership has focused on the impact on
businesses (e.g. profitability through increased brand loyalty), while
neglecting the impacts beyond businesses. Thus, understanding the impact beyond
businesses and how sense of responsibility affects the action of leaders (as
individuals) and businesses (as a unit) is the center of this discussion.
Implications of ethics to
organization: a view beyond the business side
Takala (1998) presented one of the most
comprehensive argument on how ethics impacts on organizations beyond its
borders by stating that “the virtue of responsibility or justice as is
fundamental to moral philosophies of virtue ethics allows people to recognize
as well as respect others’ rights, which emerges as the foundation of defined
obligations and sense of duty exercised for the welfare and happiness of other
people (Arjoon, 2000, p. 162). Thus, ethics
allows both business leaders and followers to respect the rights of other
people (whether in the organization or outside the organization); promoting
equality, harmony, respect, and togetherness in the process. It could be said
that, ethics has a positive impact beyond the organization by reducing
conflicts due to lack of respect for other people’s rights.
Since
ethics entails doing the right thing at the right time, it also reduces
negative impact of corporate activities on the society. For instance, an
ethical system will ensure that the company doesn’t emit and spill toxic
materials into the system; doesn’t poison the air; doesn’t undertake business
activities in ways that contradicts with local cultures and belief, and so on.
Thus, ethics can be said to have positive impact on sustainability (Arjoon, 2000, p. 162) by eliminating dangers that
business activities pose to overall sustainability of the environment.
Influence of sense of
responsibility on individual and corporate decisions
On
the individual sense, responsibility for others calls to mind the fact that
individuals are not independent. This is because for actions or conversations
to occur, individual engage in face-to-face interaction with other, and it is
necessary to bear in mind that these orders also have needs that must be meet. The
face ushers in the primordial discourse whose first word is the obligational
word (Plato, 1993). Thus, sense of
responsibility influences individual decisions by highlighting that the needs
of other people cannot be denied just because of existing rights or simply
because these other people exist. The very existence of others makes
individuals morally responsible and this responsibility is both limitless and
undeniable. In essence, ethics influences individual decision making by
highlighting that “others” exist and such decisions should reflect the needs of
others (communism and centralized) instead of the liberal individualism,
utilitarianism, or deontological nepotism.
Influence
of ethics in corporate decision making focuses more on the unavoidability of
failing into law (Levinas, 1998), once a
multiplicity comes into play. Bauman (1993, p. 113), made known that this is
the point decision makers depart from the realm of “proper morality” and enters
into the realm of “social order.” Rules and regulation are important when it
comes to maintaining social order (Durkheim, 1887
quoted in Giddens, 1971, p. 70) and they are many ethical rules for
corporations across the world. In essence, the influence here is that ethical
decision making in the organization are those based on respect and value for
the laws and cultures of the society that such businesses exist. As such,
ethical decision making in the business sense allow businesses to undertake
their activities in ways that doesn’t violate existing laws of the state.
Conclusion
In
conclusion, ethical practices should focus more on those that promote values
and solidarity in the communities, instead of those that express heroism in ethical
sense of liberal individualism. Ethics is important for both individual and
corporations. This is because it allows individuals to include other people’s
feeling in their decision making process, while ushering the right path for
corporations to obey the laws and cultures of the society they operate in.
References
Arjoon, S.: 2000,
Virtue Theory as a Dynamic Theory of Business, Journal of Business
Ethics 31, 65–76.
Giddens, A.: 1971, Capitalism and Modern Social
Theory: An Analysis of the Writings of Marx, Durkheim and Max Weber (Cambridge
University Press, Cambridge).
Levinas, E.: 1991/1998, Entre Nous: On Thinking of
The Other (European Perspectives). Translated by Michael B. Smith and Barbara
Harshav (Columbia Univ Press).
Plato: 1993, ‘Republic’ translated with an
introduction by Desmond Lee (Penguin, London).
Takala, T.: 1998,
Plato on Leadership, Journal of Business Ethics 17, 785–798.