Business Ethics - Environmental Ethics

7/27/2019 Business Ethics - Environmental Ethics

1/6

PROFESSIONAL ETHICSJULY 26, 2013

TRY TO ANSWER THE FOLLOWING:

1. In Oposa vs. Factoran, Jr., G.R. No. 101083, July 30, 1993, the Supreme Court held that the personalityof the petitioners to sue is based on the concept of:

a. ecological responsibility;b. environmental accountability;c. intergenerational responsibility;d. interdisciplinary responsibility.

2. How does culture influence the environment in the same way that the organization is influenced byculture?

3. It is the accumulation of ideas, beliefs and skills that a group possess.

4. Culture comprises the following except:a. religion

b. languagec. valued. fate

5. It refers to the people and conditions external to the organizations which affect and are affected by theorganization

6. Whos responsibility is it to protect and preserve the environment?

7. What are the reasons why business should get the bigger share of te responsibility in protecting andpreserving the environment

8. Enumerate the different dimensions of ecological problems

9. What are the traditional attitudes of business towards the environment.

10. What is environmental ethics?

11. It is a complex web of interrelationship and interdependence of all entities in the environment that wecall.

12. What are the three factors that must be considered to be socially responsible to the environment?

13. What are the reasons for social responsibility of business towards the environment?

14. Enumerate the Valdez principles

15. what is the philosophy underlying business?

16. In the management of organizations, what should be given top priority?

17. This is one responsibility that a manager should try to delegate to others to give him additional timefor his managerial activities.

18. Enumerate the steps necessary to implement successfully the objectives of the recruitment andselection program of an organization

19. What is the the most significant substantive element in personnel recruitment?

20. In business, who initiates the promotion process?

21. Explain the two-way action in promotion process.

22.

A state of order based on submission to rules and respect for authority.


2/6

VI. BUSINESS AND ITS ENVIRONMENT

Culture is an assimilation of traditions and patterns of life The environment is influenced by culture in

the same way that culture influences the organization. HOW? Culture may influence the organization in

terms of values inculcated into the managerial class, which in turn, influences the organization. Thus,

business significantly alters the social relations in the environment.

A. Culture and Its Effect on the Organization

Culture is the accumulation of ideas, beliefs and skills that a group possess. It is in other words, its way

of life.

A persons approach to business is influenced by his culture. Culture,is a complex whole comprising,

for instance, religion, language and value.

Value is a set of principles or standards. As such, organizational values are related to the actual policies

that business pursues.

B. Factors Affecting the Environment

Work situation characteristics are factors in work environment of the individual. Do colleagues

encourage low productivity? Do supervisor reward high performance, or do they ignore it? Does the

organizations culture foster concern for members of the organization or does it encourage cold and

indifferent formality?

Work environment involves tools and workplaces needed to maximize work accomplishments and

employees satisfaction.

People change to meet changed situations. The individual may alter the environment in which he

behaves.

The nature and rate with which changes are demanded influence the operation of the organization.

Successful executives are people in control. They are in control of their environment and most

important of themselves. A primary rule for staying in control is that when everything begins to slip and

everything begins to get the better of you, the wisest course of action is to stop, or to say nothing until you

once again have control. Then proceed.

C. The Individual and the Environment

Environment refers to the people and conditions external to the organizations which affect and are

affected by the organization. However, it is only people who can establish and maintain the relationship

between the organization and its environment.

Behavior is a function of both the individual who is behaving and the environment in which he or she is

behaving.

In fact, ones surrounding environment is relating to his perception.

D. Business and Its Environment

The task of protecting and preserving the environment is EVERYBODYS RESPONSIBILITY. Business,

however, should get the bigger share of this responsibility for the following reasons:

1. Business uses natural resources in the production of goods and services; and2. Business disposes wastes to the environment.

1. DIFFERENT DIMENSIONS OF ECOLOGICAL PROBLEMS:


3/6

1. Population Explosion- The main reason for the dramatic growth of the worlds population is largely due to improved

medical care which lessened the rate of infant mortality (number of people who died within a

population) and increased the lifespan of human beings

- The population explosion is a problem that humanity has to deal with squarely because theearth and its resources are limited.

-

If human population on earth continues to grow, the whole human race will soon come to apoint where the earths space and resources will be used up.

2. Depletion of Natural Resources- The growth of this problem worldwide is largely due to activities of business. Aluminum, zinc,

copper, Nickel, Iron and the oil reserves are gradually depleting. Other earths re sources are

projected to be used up in a hundred years.

3. Pollution of the Environment- The wastes of our increased population and from our modern industrial lifestyle are detroying

the land, air and waters of our planet earth. Because of pullution, the earth is rapidly becoming

unsuitable for decent human living.4. The Destruction of the Earth

- Forests, mangrove, lands are depleting.2. TRADITIONAL ATTITUDES OF BUSINESS TOWARDS THE ENVIRONMENT

1. Business people, for a long time, believed thatthe world is free and unlimited. Because of thisparadigm, businessmen found a justification to exploit and abuse the earth without regard for the

future generation

2. The businessmans pursuit for private interests at the expense of the common good . This attitudehas created an imbalance between individual gain and social costs, e.g., some companies do not

treat their chemical wastes properly, instead they release them into the rivers. In this case, the

private (production) cost is minimized but the social (environment) costs are increased.

3. ENVIRONMENTAL ETHICS

Every human being has the right to a livable environment. It is also our duty to ensure that survival

of the next generations of human beings. Although man as a creature priveleged to live in a decent

environment, ironically, he is also the only creature who has been tampering with the environment. For

this reason, man has a paramount duty to arrest the total degradation of the environment and preservemother eath.

ENVIRONMENTAL ETHICS the study of mans moral obligation to preserve the environment and the

natural order of things. Thus, in the preservation and protection of the environment, man has three

important things to imbibe:

1. Man has a moral obligation to preserve the environment. The idea of moral obligation in thiscontext is the perceived duty to perform an act as good and to avoid an act as evil.

2. Man has a primary duty to take care of the environment. Man is part of a complex web ofinterrelationship and interdependence of all entities in the environment that we call ECOSYSTEM.A destruction of one part of this ecosystem affects the relationships of these entities.

3. Man must submit to the demands of natural law (agere sequitur esse) and must not intervenecarelessly with the work of Nature. Thus, man must fit his technology with ecology.

4. THE MORAL AND SOCIAL OBLIGATIONS OF BUSINESS TO THE ENVIRONMENT

Business depends on the natural environment for its operations, specifically, for its energy, raw

materials, and waste disposal. The natural environment in turn is affected by the industrial and

agricultural activities of business. Since business is dependent on the natural environment for its


4/6

operations and obviously, for profit, business must take the lead in the effort to protect and preserve the

environment to which it is totally dependent.

THREE FACTORS THAT MUST BE CONSIDERED TO BE SOCIALLY RESPONSIBLE TO THE ENVIRONMENT

1. Business cannot use with impunity the different categories of creatures and resources, whetherliving or inanimate, simply as they will.

2. Business must realize that the natural resources are limited. Our natural resources, once depletedare not renewable

3. Business must comprehend that the evil effects of industrialization is the pollution of theenvironment, with serious consequences on the health and safety of the population.

REASONS FOR SOCIAL RESPONSIBILITY OF BUSINESS TOWARDS THE ENVIRONMENT

1. Business is socially responsible to the environment because it is an important part of the macro-ecological system. Business is part of the society and as the same time part of mother nature, such

that any separation made between business and nature is artificial and false.

2. Business depends on the natural environment for its operations, e.g., energy, raw materials andwate disposal. It is socially irresponsible for business to destroy the very resources that they

depend on.

3. Business must also take into account the ethical issues when it relates with environment, eg., shortterm profit vs. long-term gain of the environment.

5. THE VALDEZ PRINCIPLES

1. Protection of the biosphere2.

Sustainable use of natural resources

3. Reduction and disposal of waste4. Wise use of energy5. Risk reduction6. Marketing of safe products and services7. Damage compensation8. Disclosure9. Environmental directors and managers10.Assessment and annual audit

BUSINESS AND SOCIETY

Business has a responsibility to society. Business cannot be fully appreciated without some knowledge of

the social and economic context in which it operates. As changes overtake each other, there is where

business can contribute to societys development.

While the goal of business is the pursuit of profits for itself, it is also an agency of society. Business is a

social institution. Its very nature and purpose has a social dimension. It is regrettable, however, to note

that it is the social responsibility that is getting business down in its relationship with society. Social

responsibility is equated with good. This is possible if business will take a long range view regarding it.

The philosophy underlying business, it is said, is toprovide service, and only incidentally to derive profit.

But the case, more often than not, prioritizes the deriving of profit and not of service, which is the primary

end of business. This brings us to the conclusion that no businessman is an honest one. Remember the

adage, business is business.

Ethical considerations play a part in management decision about its social responsibility. Social

responsibility is a contemporary issue in business relations. Thus, society must decide between the

competing demands of its people when different interests clash. The issue is not issue to resolve since the


5/6

continued survival of a free society is dependent upon a high degree of values and moral conduct of its

people. Social and political consciousness are needed in this undertaking. Moreover, there is a genuinely

difficult dilemma on the social responsibility of business.

VII. BUSINESS AND ITS PEOPLE

In the management of organizations, career goals should be given top priority and must include

standards in the recruitment, promotion and discipline of its employees in terms of equal employment

opportunities within the organization. In career development, management should take the long rangeview of it rather than the immediate one.

Personnel management is one responsibility that a manager should try to delegate to others to give

him additional time for his managerial activities.

Small opportunities, skillfully and properly managed, can yield big returns for both the employees and

the business organization. In tight competitive career situations, the employee uses whatever ethical edge

he has at his disposal.

A. Recruitment, Promotion and Discipline

Recruitment of employees is one of the primary personnel functions of management practices and

business values could be tested. Thus, they could be uninfluenced by his own values.

One obvious approach to improving performance is to recruit more talented or capable people. This

approach requires a recognition of the abilities most needed by the organization, an ability to identify

potential recruits who possess these needed abilities, and the resources necessary to attract them to the

organization.

Experience is a great teacher and he will be one who has profited from his past mistakes. He strives for

victory where he once met failure.

One way for an organization to change its mix or level of abilities and motivation is in its recruitment

and selection of new members. Before these can be effective methods of change, however, the

organization must decide whether its GOALS are to bring in new or higher levels of ability, interest, or

motivation, and what costs it is willing to pay for these changes.

Manager determines in advance what he hopes to achieve for the organization and follow through to

its conclusion. Such decision requires the manager to have strong commitment to ethical values of the

organization. The bad feelings between management and its employees may stem from a lack of

understanding of their roles. The manager is the one who sets the pace, rather than waiting on others totake lead. He should know the right persons with whom to work with.

Once the organization has selected the objective of its recruitment and selection program, SEVERAL

STEPS ARE NECESSARY TO IMPLEMENT IT SUCCESSFULLY.

1. Determine how to measure or predict the ability, or motivation of job candidates.2. Identify the population from which the members wil be recruited and selected.3. Select candidates on these bases.4. Validate the selection criteria by evaluating performance and correlating performance date with

selection criteria.

The most significant substantive element in personnel recruitment is the managements commitment

to individual rights within the organization. Individual rights have to be associated with the ethical

standards of society. Integrating the individual and the organization is the responsibility of the manager.

While business relationship is complex, the individual rights within the organization is apparent. In this

regard, a distinction must be drawn between personal interest and business interest.

If a manager discriminates between applicants it must be on the basis of job-related qualifications.

This obligation arises not only from his basic duty to the firm, but from his obligation to treat people

equally in those areas where they are equal.


6/6

High moral standards and ethical conduct in business have contributed to the development of

employee relations.

PROMOTION

Promotion is one of the most controversial issues in the relation of business with its employees. The

knowledge and expertise that an individual possesses give him a slight edge over his competitors if ethical

standards on this matter are practiced in his organization.

The manager initiates the promotion process, it being an effective management tool. The knowledge ofwhom is gained through records covering each approved employees competence, and length of service.

Actually, promotion implies two-way action. It calls for action by the managers to open up avenues

along which employees can advance; and it calls for action by employees to qualify themselves for

advancement.

If an individual likes his work, the results will be both productive and profitable for himself and his

organization. Organizational objectives cannot be achieved unless they worked in harmony.

To prevent overemphasis on promotion, the salary structure should offer rewards for extraordinary

performance on the job that are comparable to the financial rewards of promotion. In other words, each

man might have the opportunity, without promotion, to advance in salary steps if his performance merits

it. But, financial rewards alone are not enough. People whether managers in business or outside need

rewards ofprestige and pride.

It may be possible that people might seek the assistance of influential friends or patrons to attain their

career goals. They might be required to heed to their intuition and follow their instincts on this matter.

Hence, they contact people who can play key roles in their careers in the organization.

Anything worthwhile achieved is likely to happen because of competent associates. Moreover, if an

employee does not think for himself in career situations, his associates with the firm convictions will

dominate him. Investigation often shows that the good guy made it because he was clever enough to

maintain his sure image while destroying his opposition.

Persistence is the critical ingredient which is needed for success. In fact, it could be observed that

many people rose to where they are now through persistence. Hence, one gets promoted because of

one's own efforts, which were given due recognition by the management. To be given the management's

recognition, the individual's undertaking should be consistent, not only with the goals and values of the

organization, but also with management's policies and procedures on that matter. Otherwise, such

individual's efforts are not factors for his promotion.

DISCIPLINE

Business ethics rests upon order, and order upon discipline, which among others, includes respect for

authority. Disciplinary measures and maintaining discipline in the organization need critical consideration.

In doing so, management should know the difference between right and wrong of doing right. As such, a

manager cannot arbitrarily exercise his organizational authority in disciplining his subordinates without

considering their individual rights and protection as guaranteed by the existing laws of the country. That

means that the determination of illicit or unethical action of business and its employees must be reviewed

in terms of their compliance to the ethical standards of society and/or as required by the law of the land.

As a result, there is a need to develop standards of right and wrong to guide them in the conduct of their

business affairs.

While the law grants the government power, the government must use it with certain degree of

responsibility. Certainly, business ethics presents problems in its practices. Thus, both management and

labor have responsibility for the enforcement of employee's discipline.

Any business that want to continue to prosper will have to accept that it is, on the long run, the ethicl

practice that leads and government policies will succeed only if they strengthen, or at least do not impair,the country's free enterprise system.

Documents

Business Ethics - Environmental Ethics