Ethics in Consulting
Ethics dilemmas in consulting
Ethics has become an important topic in business today with good reason. Just look at the headlines: Rajat Gupta Scandal, Anil Kumar and Rajaratnam scandal, Enron, Worldcom, Health South, Great depression, financial crisis due to unethical behaviour by the banks etc. All of these cases are related to consultants either directly or indirectly and they occurred due to the moral fallacy of some of them.
Ethics is an extremely relevant value in business and consulting. The presence of recognized ethics and/or ethical practices tends to diminish the need for informative or legal/contractual precautions in the formalization of relationships, for both of the parts involved in a
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For instance, both lawyers and accountants have agreed on profession-specific codes of professional conduct, and physicians still frequently take the Hippocratic oath. Regarding management consultants the professional associations have formulated different sets of ethical rules. The contents of the individual codes either specify what professional conduct is or they indicate what cannot be considered as professional conduct. However, it is also obvious that professional rules only serve as overall ethical guidelines. The consequence of this is that the professional when practising is exposed to several more specific ethical issues for which there is no explicit or written solution.
Whether they deserve it or not, it is notable that consultants and their business morals have been questioned and caricatured. Statements such as ``The new witch doctors'' or ``Consultants are people who borrow your watch to tell you the time and then walk off with it'' have often been quoted. A headline like ``They change colour according to the environment'' indicates a certain unreliability. However, it also has to be recognized that consultants often operate in situations characterized by ambiguity, sensitivity and bounded rationality. Therefore it can be expected that recipients in situations where they might be slightly criticized will react with
Ethics has been around for a long time. Merriam-Webster defines ethics as rules of behavior based on ideas about what is morally good and bad. It is an area of study that deals with ideas about what is good and bad behavior. Ethics has much to do with feelings and beliefs. If you feel deep down in your heart that something is not right, then it you should not do it. The Bible says, “So whoever knows the right thing to do and fails to do it, for him it is sin” (James 4:17 English Standard Version). Ethical business procedures include guaranteeing that the main legality is in place. Also, the company observes moral standards in its relationships with the people in its business community, which includes the most important people in their business, who are the customers. This report will discuss ethics in business, ethically transformed organizations; organizations preparation to make ethical decisions, ethical danger signs, and organizations that does business globally.
The author Robert Solomon argues that ethics has to an integral part with regard to business management. He does not believe that business management must include unethical or illegal methods to be able to succeed. Solomon preaches that business management is not as simple as obtaining revenue. “Businesses need to abide by fair policies and their owners have to be ethical in dealing with their customers” (Shaw p. 37). The author acknowledges that while illegal practices in business management could bring positive results at first, eventually the business is bound to fail. This is why Solomon recommended eight important policies that can help businesses in integrating ethics into their operations.
I and two other individuals have agreed to start a business that will provide management consulting services to nonprofit organizations. Because of the increased scrutiny on actions of corporations and those who act on behalf of organizations, we have determined that it would be essential to have our ethics program developed before we start offering our services. A business as a moral agent must prove that it has an effective ethics program to protect employees, the corporation, and businesses that the company will serve. It is also important to have an ethics program to support the ethical values of our corporation and to make it clear to employees what is acceptable behavior, and to make clear what policies and standards are to be
It is important for businesses and professionals to be versed in ethical issues because it helps with decision-making when faced with different situations that create a moral dilemma. Business and professional ethics help to develop a certain moral standard and expectation in the business world. The ethics in which a business or a professional operates within benefits both the giver and receiver. Engaging in the exchange of goods, services and information requires some level of trust in order to maintain civility. The thought that a person or a business is doing things that are unethical
As many things in life, ethics has evolved through the history of our society. As anyone who has ever has read the news can attest, there are certain behaviors and tradition typical in societies around the world that may seem unethical and, sometimes, inhuman when seen through our ethical point of view. However, we often forget that many of those behaviors and tradition were, not only accepted, but expected in our society at one time. As our society changes over time, our moral code and compass shifts changing our outlook and tolerance for certain behaviors. And, as in other aspects of our society, the way we conduct business is no different.
Creating and defining my own ethical framework is essential in future success as a businessman, a leader, and a team player. As a business student, I have learned that it can be a very cut throat industry and in order to get ahead, at some point and ethical dilemma will undoubtedly be an obstacle I have to overcome. The way I handle these dilemmas can make or break my career; business ethics are a key part of earning and sustaining respect, trust, and a good rapport with both clients and competitors in your industry. Therefore a solid ethical framework is an important tool for me to have as a standard for handling these types of dilemmas so that I can grow successfully while staying true to myself and to
As a social worker and facilitator of a treatment group, you off-handedly remarked that you were going to give away a bunch of clothes that you have had stored and haven’t worn. A treatment group member hears this and asks that you give the clothes to him or her. Do you give them to her or him? Why or why not? Which NASW Code of Ethics does this situation relate to?
Ethical principles provide generalized frameworks that may be employed in the resolution of ethical dilemmas in our daily lives. These principles may be applied to our interpersonal relationships as well as to our professional lives. However, as members of a profession, we will encounter more specific codes of ethics that are designed to govern our professional behavior and to offer some guidance for the resolution of commonly faced ethical issues that occur in the practice of our chosen professions (Syracuse University,
Professional ethics are guidelines set by professional organizations that guide its members in performing the functions of their job appropriately, while behaving in a professional and ethical manner (Web Finance Inc., 2016). Some of the characteristics of professional ethics include “knowledge, honesty, accountability, integrity, loyalty, compliance with the law and more” (Reference An IAC Publishing Labs Company, 2016, para. 3). Professional ethics are important because it builds credibility and shows that the person is capable of doing their job appropriately, regardless of the situation,
The problem to be investigated is the application of business ethics. In the business world, ethics are extremely important. Ethics are prime elements that help a business to grow and to become more productive. It is by applying proper business ethics that a business can operate in a moral or ethical business environment and managed to conduct all activities in a manner that maximizes profits while not compromising all other non-economic concerns(Schwab, 1996). Businesses have over the years failed to nurture business ethics in order to fulfill shareholders' interests and to have a culture that is oriented towards profit maximization and high performance(Jennings, 2012; Sims & Felton, 2006). This has led business to have gray areas in their activities. Gray areas are those situations or problems that do not fit exactly into any ethical analysis. These are the activities which may be represented to be immoral as a result of lying and false representations on the part of the business.
This will be an over view of ethics as it relates to business in our society. Concepts from Philosophy will seek to describe the correlation between actions that are classified as morally right or ethical in our dealings with each other as human beings. Clear and concise examples will be given as well as ways in which to improve upon business ethics.
Ethical standards in business are important for every leader to know and understand. The book Ethics 101: What Every Leader Needs to Know by: John C. Maxwell discusses ethics in the world today. When people make unethical choices, the reason they do because of three main pitfalls. People do what is most convenient to them, people tend to do what they must do to win, and people rationalize their choices with relativism. In this summary, Maxwell’s definition of business ethics will be framed, examples of ethical standards and guidelines, the meaning and contrast of ethical thinking and ethical behavior, and how to avoid these major pitfalls to live an ethical life. The
Ethics is the application of one’s personal beliefs and the impact on how a person makes decisions regarding the relationships involving a company. The most common agents that involve a person’s decisions are owners, employees, customers, clients,
Ethical issues have greatly transformed in our lives since the great Enron, Xerox and other huge corporations proposed big profits showing earnings of billions of dollars and yet in reality facing bankruptcy. These corporations faced great trouble with the federals and state for manipulating financial statements. But not only corporations can be blamed on this, accounting firms were involved in this as much as the corporations were. With the business stand point, ethics comprises of principles and standards that guide behavior. Investors, traders, customers, and legal system determine whether a specific action is ethical or unethical. Ethical issue is a vast subject, but we will look at the niche
Ethical consideration is required when conducting business in the 21st century for many reasons. First of all, there is nothing wrong from being ethical, in the contrary you will gain people’s trust and chances for your company to be more reputable are much higher.