Sample Business Studies Paper on Ethics

Business Ethics

Business ethics play a vital role in organization. In addition, business ethics aims to protect the employees and stakeholders who are a crucial part of a company. Employee behavior determines the repute of the company in the market. Organizations that prioritize shareholders and employees are more productive.  Mondragon Cooperative Corporation represents a business group composed of service, retail, and industrial cooperatives. On the other hand, Satyam Computer deals with IT services globally. This paper aims at discussing how the Mondragon Cooperative Corporation (MCC) and Satyam Computer differ in terms of issues concerning the stakeholders and employees.

An organization’s political ideologies are essential as they determine the company’s future.  Satyam Computers works under its own interests and only considers less government laws. Additionally, the company is managed by board members who make policies.  All employees are expected to abide by the organization laws. However, Satyam Computers puts employees under risk since some laws are not as per government interventions. MCC implements the numerous political ideologies to thrive well in the market. Mondragon Cooperative Corporation abides to the government laws. As for Mondragon Cooperative Corporation, the owners of the organization are also the employees. Hence, the individuals create policies and rules that they deploy to manage the company. The company implements a democratic approach for the management. The employees take part in the decision making to ensure that all their needs are considered. In terms of the future goals of the company, all employees are expected to give their opinions and new ideas. Government rules are essential for all organizations. The laws protect the employees and the business too.  In the context of the members of staff, the government laws ensure that the workers are safe and are paid what they deserve. In addition, the business laws regulate the business practices in the region. For instance, the government ensures that the business activities do not have a negative impact on the stakeholders (Griffith et al., 2020). The laws also entail the taxation system, which is important in the country’s economy.   Thus, all organizations should formulate laws based on government laws. Additionally, companies should outsource auditors to check whether their policies follow the government’s guidelines. In general, MCC abides by the government laws, while Satyam Computers does not consider all the government rules.

Mondragon Cooperative Corporation implements libertarianism, since the employees have a freedom of speech. The company is formed in a structure that the employees are the owner. Hence, their participation in formulation of policies is vital. In MCC, every employee knows what is happening in the organization due to transparency. In case of any amendment or new rule, the company deploys a voting system to ensure that each employee participates. In this context, the individuals vote as per what they believe is best for them. Thus, freedom of speech is evident in Mondragon Cooperative Corporation. However, employees are not considered in Satyam Computers. The board members create policies based on their interests since the employees are not involved in decision-making. The employees may not agree with the policies, but they are required to follow them. At times, the workers can only complain about certain things they are not comfortable with, but they cannot do anything about it. If a shareholder raises an issue, it is taken foe consideration compared to employees. In every organization, employees are crucial since they generate profits for the company. Members of staff who are involved in decision-making have a higher morale (Ramlall, 2004). In addition, workers who are involved feel empowered and work hard towards achieving the company goals. Employees feel valued when mangers considers their interests and needs (Dobre, 2013). Managers who involve workers have a good relationship with their workers. When members of staff are vocal on their opinions, the company has more inputs. Employees can have brilliant ideas that can be implemented as solutions in the organization (Markos and Sridevi, 2018). Additionally, engaging members of staff in decision making promotes teamwork in the organization. Overall, all organizations should observe libertarianism.

Satyam Computers has a Human Resource team that manages the policies. However, Mondragon Cooperative Corporation, employees set the rules. The members of staff then elect a board of member who maintains the policies. Before any amendment is done, all departments must first hold meetings to discuss the strengths and weakness of the new rules. Satyam Computers focuses on new projects and shareholders. The company only focuses on the interests of the investors rather than members of staff. As for Mondragon Cooperative Corporation, the board members ensure that the employees’ needs are a priority. For instance, the company does not focus much on the growth. When members of staff exceed 500, the management may decide to create a new organization and select new board members. In most companies where the Human Resource is in charge of the employees, ethical dilemmas arise. Some of the individuals may only focus on the stability of the business rather than the employees. On the other hand, some are only in the company for a salary. Also, most management fails because employee objectives are not in the picture.   At times, the human resource team fails because the organizations fail to conduct frequent audits.  Mondragon Cooperative Corporation is more productive since the policies are managed by one of the owners. Hence, the individual makes sure that the interests of the employees and the business are well represented in the rules. In this context, companies should implement a third party to conduct unbiased study. The auditors can check whether the human resource considers employees when creating policies. Also, the third party can check whether employees are paid as per the work done.  Transparency acts as a vital tool to promote an organization’s success.  In Mondragon, each department is aware of everything that happens.  Satyam Computers is capitalistic company and it observes minimal transparency.  The board members decide what information to share with the employees. For instance in 2009, the company knew that it would dissolve soon, but the employees had no idea (Luo and Zhou, 2020).  Satyam Computers closed abruptly risking the future of the workers. The members of staff did not know until it was too late. The incident happened due to personal interests of managers. All organizations should implement Utilitarian. Thus, the employee and business interests will be considered.  With Utilitarian all actions are ethical, if the consequences are good (Crane et al., 2019. In general the two companies differ in terms of management.

Another major ethical dilemma in most organizations is discrimination. All leaders elected in a company should be qualified and people should not vote them in because of their background. Mondragon Cooperative Corporation does not support discrimination. The company ensures that the rule is deployed at all means. For instance, no individual can buy more shares than the others. Hence, everyone is equal in the organization. Additionally, everyone is subjected to equal rights. As for Satyam Computers, the public can buy the shares, which makes the company vulnerable to discrimination. An individual can buy shares and become a board of member although the person has little knowledge in regards to the company. The individual can buy more shares than the rest, and lead the company as per their interests. Additionally, the board of director can also discriminate other employees. Thus, the company can have major problems. All organizations should ensure that members of staff are protected from discrimination (Jones, 2017). The companies should have policy that entail on how to deal with any form of discrimination. For companies that advertise their shares to the market, there should a clearly-written policy that protects the organization from personal interests. In general, Satyam Computers is vulnerable to poor management from new members in the company.


Political ideologies are crucial in all organizations. Mondragon Cooperative Corporation and Satyam Computer differ in terms of business ethics. Organizations should ensure that employees’ interests are considered. Managers should observe libertarianism; hence workers should be involved in decision making.



Reference List

Crane, A., Matten, D., Glozer, S. and Spence, L., 2019. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, USA.

Dobre, O.I., 2013. Employee motivation and organizational performance. Review of applied socio-economic research, 5(1).

Griffith, A., Smit, L. and McCorquodale, R., 2020. Responsible Business Conduct and State Laws: Addressing Human Rights Conflicts. Human Rights Law Review, 20(4), pp.641-673.

Jones, K.P., Arena, D.F., Nittrouer, C.L., Alonso, N.M. and Lindsey, A.P., 2017. Subtle discrimination in the workplace: A vicious cycle. Industrial and Organizational Psychology, 10(1), pp.51-76.

Luo, Y. and Zhou, L., 2020. Satyam Scandal. In Corporate Fraud Exposed. Emerald Publishing Limited.

Markos, S. and Sridevi, M.S., 2010. Employee engagement: The key to improving performance. International journal of business and management, 5(12), p.89.

Ramlall, S., 2004. A review of employee motivation theories and their implications for employee retention within organizations. Journal of American academy of business, 5(1/2), pp.52-63.