Ethical objectives

Ethical objectives - a concept of acceptable behaviors and a set of organization's goals that comply with fair business practices, ethical guidelines and established moral principles. Thee rules identify what is considered ‘wrong’ and ‘right’ in the company, but are not necessarily lawfully required. These set objectives that underpin business behavior within and outside of the company must be attached to the context of the times and the society in which the business operates. Ethical objectives should be considered as both, internal and external goals.

Benefits of setting ethical objectives

There are a few main advantages of implementing ethical objectives to the company's set of principles. From the company perspective it:

• helps to build employees, investors and customers loyalty
• creates a positive company image
• increases employees motivation
• helps to attract potential candidates for employees
• reduces social pressure
• helps to avoid or reduce legal prosecutions (consumer rights, labor law)

Corporate social responsibility and responsiveness

Corporate social responsiveness (CSR$_{2}$) refers to how businesses and their representatives actively interact with and manage the environment in which they operate, or simply how they respond to social issues. In contrast, corporate social responsibility (CSR) represents the direct efforts made by a business to improve aspects of society by the firm as compared with the responsibilities that every company have with respect to their employees, customers, investors and suppliers. The term accentuates the ethical obligations that the company has to society and aims to contribute to the societal goals of a philanthropic, activist, or charitable nature or by take part in or support volunteering and other ethically-oriented practices .

Examples of Ethical objectives

• Respect for human rights: creating an ethical work environment that respects all employees regardless of their race, gender, religion, ethnicity or sexual orientation.
• Responsible business practices: adopting business practices that promote social responsibility, such as reducing the company’s carbon footprint, minimizing waste and pollution, and supporting local communities.
• Fair wages: establishing a fair wage structure and providing job security to employees.
• Transparency: maintaining transparency in all aspects of the business and its operations.
• Confidentiality: protecting the confidential information of customers and employees.
• Respect for the environment: implementing practices that minimize the use of natural resources and reduce the company’s impact on the environment.
• Animal welfare: avoiding testing products on animals and supporting animal welfare organizations.
• Support for the community: engaging in activities that contribute to the local community, such as sponsoring local charities, volunteering, and providing employment opportunities.

Limitations of Ethical objectives

• Ethical objectives can be difficult to implement in a business and may require considerable resources to ensure that they are adhered to.
• Ethical objectives are often subjective and not all stakeholders may agree with the objectives set.
• Ethical objectives may be open to interpretation, making it difficult to enforce and measure compliance.
• Ethical objectives can be difficult to maintain over time due to changing social and economic conditions.
• Ethical objectives may not be applicable in all countries or cultures, so there may be difficulties in ensuring that the organization is compliant with local laws and regulations.
• It can be difficult to ensure that all employees are aware of and adhere to the established ethical objectives.

Other approaches related to Ethical objectives

• Corporate Social Responsibility (CSR) - This approach is focused on the company's responsibility to society through ethical practices and the commitment to contribute to economic development while reducing poverty, protecting the environment and helping to improve the quality of life of their employees.
• Corporate Governance - Corporate Governance is the set of rules, processes and procedures that companies use to ensure that their business operations meet the expectations of their stakeholders, including shareholders, customers, employees, regulators, and society at large.
• Business Ethics - Business ethics is a system of moral principles used to guide decision making in the business environment. It is concerned with how organizations should behave and how they should treat their stakeholders, such as customers, employees, shareholders, communities and the environment.
• Sustainability - The sustainability approach focuses on ensuring that companies are able to meet their current needs without compromising the ability of future generations to meet their own needs. Companies must consider their environmental, social and economic impacts when making decisions.

In summary, other approaches related to ethical objectives include Corporate Social Responsibility (CSR), Corporate Governance, Business Ethics and Sustainability. These approaches focus on the company's responsibility to society, its stakeholders, and the environment in order to make sure that their business operations meet the expectations of their stakeholders and future generations.

Footnotes

Ethical objectives — recommended articles

Model of corporate governance — Ethical factors affecting business — Corporate social performance — Socially responsible business — Corporate governance theory — Importance of business ethics — Public tasks of local government — Espoused values — Management by values

References

• Agle B. R.(eds.), (2014), Research Companion to Ethical Behavior in Organizations: Constructs and Measures Edward Elgar Publishing
• Davies P.W.F., (1997), Current Issues in Business Ethics, Routledge, New York
• Halbert T., Ingulli E. (2014), Law and Ethics in the Business Environment, Cengage learning, Mason, Ohio
• Shaw L., (2012), SAGE Brief Guide to Business Ethics, Sage Publications, Thousand Oaks, California
• Sims R. R., (2003), Ethics and Corporate Social Responsibility: Why Giants Fall, Greenwood Publishing Group
• Swanson L., (2012), SAGE Brief Guide to Corporate Social Responsibility, Sage Publications, Thousand Oaks, California

Author: Anna Strzelecka