Teropitka Business and Finance

Posts Tagged ‘relations’

* Value ethics and corporate action

In one study, Domenec Mele refers to the impact they have on business relationships, and through them, the results, actions ethical and moral qualities of people. According to him, these actions are given in various ways, which we’ve outlined:

1. Motivation for the job.

2. Practical wisdom (prudence).

3. Corporate culture.

4. The reputation and good image.

5. Building trust.

The motivation to work, no doubt, depends largely on the degree of worker satisfaction, along with the work environment, as well as being conditioned by the human qualities of managers and colleagues. This may deteriorate with the gossip of colleagues and collaborators, rather than known are the negative effects of: gossip, negative reviews, spreading false rumors or just grounds, slander, contempt, and so on.

When talking about practical wisdom refers to wisdom in making business decisions, accompanied by maturity of character, initiative and sense of responsibility for the events and situations that arise. In services, it is desirable that all who work are a little management and that requires all these qualities we have mentioned.

The third point mentioned, namely the development of an entrepreneurial culture, including knowledge, experience, practice or usual ways of doing those belonging to the company, underpinned by certain values and convictions, by those who are.

The author emphasizes that corporate culture affects the way decisions and how to act, or that is dynamic, where each one by his conduct induces cultural change.

It is also known the importance of good ethical image or reputation for attracting customers. According to the same author, Professor D. Mele, is very important to have a deep conviction that … “a good reputation for loyalty and honesty in business is a major business assets, which should encourage all workers with the utmost care. We must be clear that when a company does wrong, whether in breach of its promises and payments, not giving the quality of a product offered, or simply give poor service, complaints appear creates a bad reputation and sales fall.

Finally it is worthwhile to recognize that building trust is much more than warn a good reputation, with large commercial operations, always require some confidence, since in some areas to break this trust could mean even be excluded from the business.

For this there are certain requirements: a more or less prolonged, favorable testimony from a third party is already known, have relationships that are not purely utilitarian ethical actions in addition to continuous and constant professional competence.

* Common Good Theory and Stakeholder

This theory of business ethics is defended by Antonio Argandoña, Professor of Social and Economic Analysis for Management at IESE, Universidad de Navarra.

He argues that the theory of corporate responsibility vary between two extremes: one, which reduces that liability to the following maximum benefits to its shareholders and one that responsibility to a wide range of agencies with which the company does business (stakeholders) from the shareholders themselves to the local community, society and the world, through managers, employees and workers, suppliers, customers, interest groups, unions, competitors and many other participants.

For proponents of the Theory of Common Good, the beginning, the subject and purpose of society and all institutions is and should be the human person, that is, the common good is being:

“everything that is good, which puts more of a being, is a” common good “to all of them (…) all those conditions of social life which enable groups and each of its members achieve more fully and easily their own perfection. ”

According to this definition the common good is the end of every society, as this should provide individuals (with the cooperation of these people) and the help they need to fulfill their personal ends, for the purpose of society is not independent of the order of its members.

Argandoña makes a distinction as to what it is particularly well (when it possesses and enjoys a person or a limited number) or group (where the community owns it, but is not shared by all its members, such as State housing) and common or universal good (when is not communicable to all or part of all, at least potentially, everyone can admire the beauty, truth, all can possess entirely, at least those who can understand, you can not exclude anyone from his possession and each one can have integrity, it personally), so that no confusion between similar words but different meanings.

The common good of society is just above the good of the person if it respects their dignity and flows back toward it, perfecting it.

After an analysis of what is “good” for society, we can ask what this author advocates as the common good of the company:

… “Is fulfilling its purpose as a company to create conditions that allow its members achieve their individual order (…) because the company facilitates the achievement of the objectives of people indirectly through of his own end. ”

To the extent that the company develop the common good, all though it will participate differently and in varying proportions and all in one form or another may benefit the company as members and as members of society.

But what is meant by Stakeholders?, Well according to this author, which in turn take the concept provided by RE Freeman, Stakeholders are:

… “Any group or individual who can affect or be affected by the achievement of the objectives of the company” …

Social relations will lead to a dimension of welfare, which is why the list of stakeholders expands to include provider customers, banks and unions, local community, authorities, interest associations, competitors and so on, until cover all men of all time, for the unity of the human family.

The common good theory introduces a major change in the traditional approach of stakeholders, provides a solid enough basis and means to develop in each case the rights and duties of those participating in the common good of the company, the particular society which is believed between company and stakeholders, and society as a whole.

* Theories of Corporate Social Responsibility.

Within these theories have several authors that defend them, but each from their perspective, such is the case of Jose Luis Fernandez, who does so from the perspective of social responsibility and business models.

This author says that the lack of morality in the business world due to the lack of ethics of the organization, pointing to a lack of entrepreneurial culture, and the mental model we have on the business paradigm.

… “In the Anglo-Saxon begins to learn a new business model, corporate citizen.”

The purpose of a company, according to Jose Luis Fernandez is to build on a sure thing on the road towards the institutionalization of a more ethical practices in the world of negotiations, which aim is to create value, generate wealth, optimize investments, but not in any way at the expense of whatever, but on the contrary, from the great respect the good work and careful attention from the impact of social and environmental dimension, the consequences of actions, or with a conscious social responsibility.

… “being socially responsible means not only fully comply with legal obligations but also going beyond compliance, voluntary progress toward new challenges, greater investment in human capital, better relationships with partners, and greater respect for the environment” .. .

It is ethical aspirations, proposals axiological, moral requirements really are crucial to the survival of the company itself and for its subsequent development.

Another author who defend the idea of corporate social responsibility, is Carlos Llano author of several works, the person who originally conceived and intended for morality, for it believes that ethics should be developed from and for the person. According to him within this contemporary society plays a very important undertaking, as this is defined as:

“The company is a community of people where the condition of being a person, takes precedence over any other condition, including the condition that derives from membership in this community we call business. This is true for any type of community” … In turn the company characterizes as:

… “the company in terms of community people, has its axis in the characteristic sound of people and their main task involves the synthesis and harmony and to empower all the interests of the people who are” …

From this we can realize that the understanding of the company as a community of people requires us to understand that business is mostly governed by the laws and principles derived from the people, and that these have more respect for their membership the company, and in general, more respect of any property in which are included and any activity you undertake.

Carlos Llano makes a distinction between different levels of personification of the business activities in or around the company:

1. The personification of managerial work. (by the close relationship with the subject who performed this work)

2. The embodiment of operational work. (by the close working relationship that keeps the operator, although not a full relationship, as operational work is closely linked with the object on which it operates.)

3. The personification of the investor or capitalist. (How linking investments with the person who invests never disappears)

4. The personification of the act of purchase in connection with whom no longer buy (which corresponds to the first or second degree), but in relation to whom we buy, that is, the person of the supplier, and the personification of the act of selling in relation to whom sells.

For him the concept of responsibility is key in the current business address, as the direction is the allocation of responsibilities and in making men take responsibility for the functions assigned to them.

… “The responsibility is an inherent property of freedom” …

This recognizes that moral responsibility, that is, that he carries the weight of the undertaking requires four types of responsibilities include:

* The responsibility for the consequences (consequences of the action).

* Disclaimer antecedent (the principles).

* Disclaimer congruent (of projects and acts of my life).

* Disclaimer transcendent (from the mission to which my life I’ve been assigned).

* Theory of Moral Character of Work.

María de los Angeles Gutierrez Lapi is the author defends this theory, according to which, the work ethic in the company is in:

… “Teamwork, accept and look for the sensibilities of others, requires good listening skills and be willing to cooperate as a team, and this has the advantage that the combined group has greater resistance to the problems of company ‘…

This approach only serves to demonstrate that a proper ethical relationship between several people, makes that relationship more solid and durable.

… “Two marching together consume less energy than two fighting each other, and that, without doubt, is a principle of economics ethics” …

The work is a means of socialization, a mechanism through which the man gets the goods that favor their survival and strength that gives the man dignified his work but is the company responsible for sending work cordially and filial, as the lack of horizon is the disappearance of any perspective, the end of man himself, and consequently, the vanishing of the joint project, in short, the company is responsible for the dignity of work, ethical relationships that exist between members that she lie, and in principle of an ethics.

* Theory of ethical company, governed by transparency.

This theory is defended by Carles Rafols, Industrial Technical Engineering, which is based on the information society only an ethical company that is governed by the principle of transparency, achieved a strong presence in a market that is increasingly more global.

… “The company is the business ethics of the future for reasons of human dignity, Business Logic on the globalization and expansion of knowledge” …

There are processes in civil society that lead to the improvement of companies, both in technology and in terms of its ethical requirement. Anyone who purchases a product is entitled to a range of technical safeguards, starting with a complete assurance that the product you purchased will work. And in the same way that technology will produce a certified check to objective criteria, it will go forward on the idea of an ethic of transparency criteria, because the bet ethics imply the form of quality industrial and technological development of trust mechanisms in today’s world.

… “An ethic based on the principle of transparency works at two levels. Accountability, authorities and relationships should be transparent, but also must take into account that the principle of transparency requires to be clear who the stakeholders, these can be internal (those working in the company), external (consumers, suppliers, shareholders, financial, and local community, among others), or simply absent (future generations to whom the current activity of the organization may produce some load) “…

Obviously an undertaking is not intended to ethics, but the benefit, which rewards the work of many people in common, but no consolidated company ethics, this ultimately yields benefits, expelling cheaters market and therefore either in the form of governance rules as codes of ethics, transparency is needed because it gives security to the investor confidence to the market and strengthens the rights of workers and society in general.

… “The” Business Ethics “is a step forward in the direction of extension of rights, carrying a information society. It is a requirement evolutionary process that runs the honesty in the production process, to act with criteria of sustainability and environmental friendliness. The fundamental ethical principles in the design of the business ethics are:

1.Transparencia coming to all stakeholders.

2.Información understandable. Be provided to stakeholders in an intelligible and understandable, as often as necessary.

3.Implementación with concrete actions of the ethics code of conduct.

4.Mejora continued in the exercise of ethical responsibility, social and environmental.

5.Posibilidad to verify data management system of ethics. ”

* Theory on the Management of Business Ethics.

At the academic level there are different theoretical concepts, consider the concept of

Irene Ratés Samper, author stating that ethical management is inherent to management by values, institutionalized through such means as:

1. Corporate Values Statement

2. Codes of Business Conduct

3. Social Balance

4. Mention of compliance with ethical codes in annual reports

5. Ethics Committees

6. Training programs in business ethics

7. Figures such as the “Customer Advocate”, “Investor Advocate”, etc.. Guaranteeing the rights and obligations of subjects.

The system for managing ethics should be part of the management of the company. Managing a business under ethical criteria at an early stage involves measuring the human capacity for the company.

There are certifiable and measurable standards of ethical business management as these are products of society’s needs in relation to social behavior, economic and environmental impacts of the same.

These standards cover the areas of enterprise management and are based on:

1. Area senior management

2. Area of customer relations

3. “Relations with suppliers

4. “Relations with the company’s own staff

5. “Relations with the social environment

6. “Relations with shareholders

7. “Relations with competitors

8. “Relationship managers