Business ethics

Business ethics

Introduction

Ethics refers to a person's moral sense of wrong and right. Decisions in an organization are taken by individuals as well as groups. Whether it is an individual decision or group decision, it effects an organization. Therefore, every person in the organization should be accountable ethically and morally. Business ethics can be described in simplest way as the learning and inspection of the business activities, circumstances and observances that incorporates an issue of wrong and right. Every business should make efforts to promote an ethical climate in the organization and should formulate a proper code of conduct.

Analysis of Ethical climate of Wal-Mart

Wal-Mart facilitates people to save money and live a better life throughout the world through its retail stores, portable devices and online shopping anytime and anyplace. Over 200 million clientele and associates visit Wal-Mart's 10,700 stores in 27 states and e-commerce websites in 10 nations. For the fiscal year 2013 it had a sales of just about $466 billion, Wal-Mart provides work for 2.2 million links globally. With such extensive operations, the ethical implications are also large. An analysis of the ethical climate of Wal-Mart is as follows (www.corporate.walmart.com).

Ethical orientation

Ethical environment in an organization consists of three components, which contribute to, ethical behavior in an organization. The three components are ethical climate, ethical practices and ethical leadership (Mayer, 2011). Ethical climate of any organization can be categorized on the basis of norms members utilize to make a selection and on the basis of the groups; members refer to when making ethical determinations.

Ethical orientation of Wal-Mart can be classified as rules climate. Wal-Mart follows the rules, procedures and policies designed in the organization (Johnson n.d.). Wal-Mart's global ethics office visions to endorse possession of the ethical culture of Wal-Mart to all the stakeholders worldwide. Wal-Mart has set specific laws and policies for ethical conduct in the organization. Those laws and policies are being communicated to all the associates. All associates have to follow these laws strictly. If anyone is seen or being reported violating the rules and laws, urgent action is taken against them. When any ethical concern is raised, associates have to report it to the manager. If no action takes places, then the person can even directly contact global ethics office (cdn.walmartstores.com).

Moral development

According to Kohlberg, there are six moral development stages (Kohlberg 1971). Wal-Mart is at the stage 5 of moral development which is called Social contract orientation. Wal-Mart safeguards the human rights and forms laws for the welfare of community and its associates. Individual liberty is given to people but only if their free will does not interferes into the other person's autonomy (cdn.walmartstores.com).

Wal-Mart believes and practices passionate dedication to ethics. It believes that it can gain value and trust of people through ethical conduct, which is crucial to their success. This also enhances their ability to make community live well. Wal-Mart's associates expect each other to maintain the utmost principles of conduct each ...