Free Essay: World’s Most Ethical Companies
Global Best Moral Corporations
According to studies, almanac world’s most ethical corporations are listed by the Ethisphere Institute. The listed corporations go beyond making declarations based on morally doing business; they undertake the translation of the statements made into actions. The world’s most ethical companies institute (honorees), agitates ethical practices and values within, and it also surpasses permissible acquiescence smidgens (Boone, 2009). This assists in the determination of the future industry values through the establishment of finest practices recently.
Basically, for a company to get a spot among the list of several other global ethical players, it has to be clear on its ethical responsibility position right from within. Ethical responsibility generally entails the act of just dealing with partners that offer products and services as agreed through giving full disclosure of all important information. It is at this stage that contracts are written to make sure that the players abide by the stipulated agreements.
In essence, ethical responsibility is related to the duty of a particular establishment to abide by the perceived right path. Businesses bear ethical responsibilities to their clients, employees, and the society where they operate. For example, small business owners are responsible for acting honestly towards their employees in order to influence them towards making informed decisions based on their careers. Besides, the owners have within their power, the mandate of showing respect to their customers, considering that clients expect to always get the equivalent of what they pay for.
On the other hand, the proprietor is accountable for capitalizing in the public setting onto which the security of the organization is pinned (Phillips, 2011). Another key duty is responsible for the environment. For reasons of public good, individuals, businesses, and governments have an interest in keeping the environment healthy. This entails activities that result in the limitation of waste and garbage, through the efficient use of energy in the reduction or mitigation of harmful carbon dioxide emissions (Boone, 2009).
Customers increasingly expect corporations to exercise good citizenship, for example, clients who are environmentally conscious avoid throwing in their support onto businesses that are reliant on unsustainable practices or those that emit heavy pollutants. This indicates that on top of ethical responsibility, the morality of a company in the eyes of various stakeholders impacts its performance and profitability. Therefore, it is important to act ethically towards building a reputation for handling and production of goods and services in a way that is ethical and right; a factor that will give the company an upper hand among its unique competitors (Boone, 2009).
Cisco Systems which is also among the world’s most ethical companies is committed to achieving such ethical standards is putting into place measures, and building an ethical culture from within its borders. The company has set up guidelines that will make sure that employees are accorded fair treatment and behave in the most ethical way while still attached to the company (Boone, 2009). Hence, staff members are prohibited from being offered aptitudes, given any softeners, errand, money, perquisite, amusement or anything that has value in order to acquire better treatment.
The constraint is extended to any household associates of both the members of staff at Cisco Systems and also other people with whom the company’s employees have a noteworthy individual relationship in exchange for retaining or obtaining the organization’s commerce. The ethical requirement is extended to the business relationship that staff members engage in with other interested parties of the organization. Base on this, employees of Cisco cannot accept initial public offering stock from the company’s suppliers. They can only accept gifts given by suppliers only when it is not intended to earn favors by the latter, do not give the impression of bribes, kickbacks, payoffs, and irregular kinds of treatment. It is stipulated that ethical behaviors at the company should be part of the daily endeavors of all employees from the top management downwards.
Every action by an employee should be a reflection of ethics. Therefore, each action, assignment, or even instruction that is taken has to always showcase value to the employees. Cisco is, therefore, committed to making sure that all employees are accorded fair treatment and that the company’s culture is pegged onto ethics; where people undertake their duties, behave and reason along ethical lines. Furthermore, the company created ethics offices where all cases regarding ethics are reported and handled. Besides, the office is open to all inside and outside the company through a toll-free number and reverse call number for those in other nations. This is set to assist people who are having ethical issues to report directly to the ethics office so as to facilitate investigations.
Cisco is essentially also committed to treating customers ethically by putting into consideration various measures. Based on this, the company and all its affiliates across the globe are dedicated to the highest values of merchandise excellence and truthfulness in every transaction with clients and merchants. The merchants, dealers of Cisco, and personnel that work with the merchants are expected to behave in ways that are upright, just, and true. The corporation holds the trust that it is important for merchants and personnel to uphold high moral values by operating within all the appropriate decrees.
The company expects all its suppliers to sign and return the ethics certification form as part of its supplier qualification package. In case this is not done, the supplier is automatically disqualified. This will make sure that all suppliers are in compliance with the ethical requirements set by the company towards making sure that similar ethical standards are replicated from top to bottom. Cisco requires all its suppliers to abide by the set laws, regulations, and policies that are applied in their dealing with the organization. This is watered down to all the requirements of government contracts that are also covered in Cisco’s contracts. It ensures that commerce suppliers act on behalf of the company, and this is conducted in the most ethical manner so as to retain the similar image that the company desires its clients to see all through its business dealings (Gitman, 2008).
In order to retain a high quality of goods and services, and information passed on to clients, Cisco requires all its suppliers to act accordingly at all stages. Therefore, if the suppliers have information about the material, non-public information that relates to Cisco and its business, they should not buy or take any action that will portray them as taking advantage of that information. Therefore, they will not disseminate that information, and the same applies if the suppliers get information pertaining to materials, and non-public information about the customers of Cisco, they will neither buy nor take advantage of suck kind of information. This will make sure that customers and the public always receive high-quality goods and services, and information.
All the suppliers of Cisco are prohibited from taking part in unfair business practices; hence, the suppliers will not be involved in price fixing or rigging of bids with competitors. Besides, merchants will not assign clients or marketplaces with contenders through switching present or forthcoming rating data. This will help Cisco in retaining its performance in the market at all stages and therefore, ensuring that clients get the best quality products and services at all stages.
Cisco also has social environmental responsibility, which adopted the ‘’electronic industry citizenship coalition code of conduct ‘’ (EICC). The cryptograph of the EICC highlights that the corporation operates in an environment that is just and harmless so as to give assurance for the protection of the personnel by preferring innocuous actions (Gitman, 2008). Through the IECC code, the company generally ensures that all its activities are well conducted in ways that guarantee the safety of the environment. As a result of this, all hazardous wastes are well taken care of before being released into the environment. The company has put in place, measures through innovation to deliver products that allow for the use of sustainable energy in order to prevent the release of hazardous carbon dioxide and other gases into the environment.
Through these morally conscious decisions, Cisco makes a step in its operations, whereby all operations are run in a manner that is fair and transparent. This will ensure that every employee is satisfied and happy about the working environment with regard to treatment. This will boost the morale and also enhance the output of employees. Besides, it will also result in an increase in the quality of products since each employee is aware that their actions and honesty are important. Similar standards will always trickle down to clients through suppliers and this will assist the company in retaining its loyal customers.
The company should enhance the way it treats the environment by creating various programs through training that are aimed at engaging employees more in making ethical decisions based on the environment. The same has to be done in the communities around the company for the sensitization of the people about the value of the environment. With this, the company can begin undertaking environment projects whereby the locals are also involved so as to get the best results.
The company should also create innovative sustainable energy products as part of its product portfolio (Gitman, 2008). A survey should be regularly conducted, preferable on a quarterly basis to target the customers, in order to collect their views based on ethical behaviors of its staff, quality of products, pricing, and suppliers. With this, the concerns of customers will be acted upon and corrective measures will enable the company to retain an ethically upright image in its products and actions.
To conclude, the most principled business institute in the world (honorees), has instilled moral values and practices within its structures, and also goes beyond the allowable acquiescence smidgens. This assists in determining the future commerce values through the creation of the best practices recently. Basically, a company has to be very clear on its ethical responsibility view right from within in order for it to be included in the institute’s list among other global ethical players. Generally, ethical responsibility entails the act of just dealing with partners through the provision of products and services within the agreed standards by providing full disclosure of all important information. It is at this stage that contracts are written so that agreements are followed.
Thus, the ethical concern is related to the duty of a particular establishment to conduct itself in line with the requirements of the right perceived path. Companies are ethically accountable to customers, employees, and the society where they run their operations. For example, small business owners are responsible for acting honestly to their employees so as to inspire them towards making informed decisions based on their careers. With this, companies try to always achieve ethical standards and activities in the businesses, not just to acquire the top spot among the world’s most ethical companies, but to portray the correct image to the customers and society at large.
Boone, L. (2009). Contemporary Business 2010 Update. Washington, DC: John Wiley & Sons.
Gitman, L. (2008). The Future of Business: The Essentials. New York, NY: Cengage Learning.
Phillips, J. (2011). Organizational Behavior: Tools for Success. New York, NY: Cengage Learning.
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