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Business, Essays

Ethical Business Management

Ethical Business Management

Businesses are expected to operate in a manner that is ethical and socially responsible. To maintain this standard, a business must maintain honest practices and develop business strategies that meet the legal and moral standards of the environments in which they operate. Volkswagen failed to uphold ethical business management and social responsibility standards when they used technology to avoid meeting emission limit standards.

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Organizational Structures and Hierarchies Presented in the Case

Volkswagen has a centralized organizational structure. Although this is a globalized company, its management operations are centralized at its Wolfsburg headquarters in Germany. The company has a functional hierarchical management structure, with top and lower-level managers managing different functional departments.

Role of Social Responsibility in Doing Business in Other Countries

Corporate social responsibility (CSR) is essential for businesses operating in other countries. CSR enables these businesses to achieve better engagement and market access internationally. CSR helps develop a trust bridge that links the business to its customers in the international markets (Van Hooft, 2014). Poor CSR strategy can damage customer relationships in the international market, thus, affecting the effectiveness of global business. For instance, Volkswagen’s decision to fool the international regulators into believing their cars met the emission standards was an act of poor CSR. This action caused the company to lose business relationships and destroy the trust of customers. The company had put the lives of its customers at risk by allowing emissions with negative implications on the environment and human health.

Philosophical Approach

Volkswagen should have applied the righteous moralist ethical philosophy to avoid the emissions scandal. The righteous moralist philosophy argues that the ethical standards of the home country are the appropriate ones to be applied internationally by a global business (Hill & Hult, 2019). This theory is mainly applied to businesses from developed home countries that have developed management rules and regulations protecting business stakeholders. For instance, Volkswagen’s home country is Germany. This country has developed regulations for minimum emissions to reduce environmental pollution. This means that Volkswagen’s application of the emission rules in Germany to international countries would mean that the company maintains ethical management and social responsibility in the global market.

Ethical Standing of Volkswagen

According to the systems approach to management, the organizational system is interconnected. Organizations are interrelated and interdependent (Asif et al., 2013). Therefore, the actions of one manager reflect on the management as a whole. The emission scandal at Volkswagen reflects the unethical nature of the company as a whole. Although not all managers may have been involved in the decision-making that led to the scandal, their ethical standing is tainted by the scandal. The case of Volkswagen shows the importance of having strong ethical standards and codes of practice to guide the behaviors of every individual. If an organization lacks strong ethical standards, the mistakes made by one person will be reflected in the organization’s ethical culture as a whole and not just the person who made the poor decision.

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References

Asif, M., Searcy, C., Zutshi, A., & Fisscher, O. A. (2013). An Integrated Management Systems Approach To Corporate Social Responsibility. Journal Of Cleaner Production, 56, 7-17.

Hill, C., & Hult, T., (2019). Global Business Today Asia-Pacific Perspective. McGraw-Hill Education.

Van Hooft, S. (2014). Cosmopolitanism: A Philosophy For Global Ethics. Routledge.

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Question 

[u03a1] Unit 3 Assignment 1

Ethical Business Management

Review your textbook’s “Philosophical Approaches to Ethics” section, beginning on page 125. Prepare an argument to support one of the straw men approaches (starting on page 125) to the “Emissionsgate” at Volkswagen case presented on page 125. Write a 250–500 word essay analyzing social responsibility’s role in doing business in other countries. Include the following:

Ethical Business Management

Ethical Business Management

  • Analyze the organizational structures and hierarchies presented in the case.
  • Analyze the role that social responsibility plays in doing business in other countries.
  • Identify and describe a philosophical approach, including why it applies.
  • Use a management perspective (how this approach reflects on the manager and company) to discuss the ethical standing of the company involved in the case and draw associated conclusions.

Support your position with one additional resource from globalEDGE or the Capella Library.

Your submission should be well-organized and written in clear, succinct language. Follow APA rules for attributing sources that support your analysis and conclusions.

As a reminder related to using APA rules to ensure academic honesty:

  1. When using a direct quote (exact or nearly exact wording), you must enclose the quoted wording in quotation marks, immediately followed by an in-text citation. The source must then be listed on your references page.
  2. When paraphrasing (using your own words to describe a nonoriginal idea), the paraphrased idea must be immediately followed by an in-text citation, and the source must be listed on your references page.

Resources

Ethical Business Management Scoring Guide (Looking for DISTINGUISHED – set up your paper to hit each Topic)
Due Date: End of Unit 3
Percentage of Course Grade: 2%.

CRITERIA NON-PERFORMANCE BASIC PROFICIENT DISTINGUISHED
Describe the role that social responsibility plays in doing business in other countries.
34%		 It does not describe social responsibility’s role in doing business in other countries. Discusses social responsibility in the context of doing business in other countries. Describes the role that social responsibility plays in doing business in other countries. Analyzes the role that social responsibility plays in doing business in other countries.
Identify a philosophical approach that applies in the case.
33%		 It does not identify a philosophical approach that applies in the case. Identifies a philosophical approach relevant to the case. Identifies a philosophical approach that applies in the case. Identifies and describes a philosophical approach, including why it applies.
Use a management perspective (how this approach reflects on the manager and company) to discuss the ethical standing of the company involved in the case.
33%		 Does not use a management perspective (how this approach reflects on the manager and company) to discuss the ethical standing of the company involved in the case. Discusses how this approach reflects on the manager and company. Uses a management perspective (how this approach reflects on the manager and company) to discuss the ethical standing of the company involved in the case. Uses a management perspective (how this approach reflects on the manager and company) to discuss the ethical standing of the company involved in the case and draws associated conclusions.