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Provide an essay for article examines the importance of ethical business practices.
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#“Motivating Corporations to do Good” Report (Assessment)
##Introduction
The article “Motivating Corporations to do Good” highlights the ethical issues associated with business organizations. The author begins his article by identifying the behaviors, actions, and strategies undertaken by different companies within the past one century.
A company that engages in ethical business practices will attract more stakeholders. Such a company will also support the changing demands of its customers. This discussion examines the importance of ethical business practices.
Ethical conduct in business organizations
According to Porter (2014, p. 4), “businesses and corporations should be ready to address the economic, social, political, and environmental challenges affecting their stakeholders”. According to the article, business corporations should undertake the best practices in order to emerge successful.
The article also explains how ethical corporations will always attract more customers. This approach will eventually make such companies successful. The author explains why “Henry Ford (the owner of Ford Motors) decided to increase its wages to $5 a day” (Gagnon, 2007, p. 12).
This effort supported the needs of its employees. The approach empowered more workers in order to support the company’s goals. More companies such as Coca Cola decided to examine the needs of their customers, communities, and employees.
This development established better labor relations in order to produce the best outcomes. In 2004, new concepts emerged in order to support the concept of Corporate Social Responsibility (CSR). Many companies started to support the rights of their workers and consumers. Many firms created new policies in order to deal with corruption. This practice has continued to support the changing needs of many stakeholders.
The above article explains why business organizations should promote the best ethical practices. This strategy will ensure every company supports the needs of its stakeholders. This development will eventually increase the profitability of many companies.
The author offers concrete examples to explain how the ethical practices of various companies have supported their goals. Ford Company “became a profitable company after increasing its wage costs” (Porter, 2014, p. 3). The approach satisfied the needs of many laborers thus improving the level of productivity.
Positive ethical practices make it easier for companies to support their consumers, marketers, and laborers. Some of these ethical practices include “the production of quality goods, provision of the best working environments, effective remunerations, and appropriate consumer information” (Porter, 2014, p. 7). Such practices can make every company transparent and successful.
Most of the ethical practices identified in the above article can support the goals of many companies. Many companies such as Ford, Costco, Novo Nordisk, and Unilever have always embraced positive business practices. Such companies have also addressed the environmental and social issues affecting their communities.
This practice has made most of these companies successful (Porter, 2014). Their employees and consumers have also achieved the best goals in life.
Many companies are usually motivated by the power of capitalism. Many corporations “have been motivated by self-interest” (Velasquez, 2011, p. 34). This fact explains why such firms have promoted unethical business practices. The ethical practices identified in the article can therefore support the needs of many societies.
For instance, many companies such as Unilever and Ford Motors introduced new strategies in order to support their communities. These initiatives have also supported many communities. Companies and entrepreneurs should therefore implement new policies in order to support their business goals.
Such policies will ensure every company addresses the changing needs of its stakeholders. Several challenges such as “climate change and global warming are forcing many companies to engage in environmentally-friendly practices” (Velasquez, 2011, p. 84).
NICET code of ethics
Many business ethicists encourage entrepreneurs to examine the best practices that will support their goals. The “government should identify the best ethical principles in order to support the practices of different corporations” (Gagnon, 2007, p. 29).
NICET offers several codes of practice to monitor the performance of different organizations. Managers and stakeholders should “be transparent and honest” (Gagnon, 2007, p. 31). These principles discourage business firms from engaging in any form of corruption.
Companies should also safeguard the information of their stakeholders and consumers. Corporations should also be ready to safeguard the needs of their clients. This approach will make them ethical and profitable. Business organizations should also undertake the most appropriate assignments.
They should also complete such assignments in a competent and ethical manner (Gagnon, 2007). The above article examines how different companies have embraced these ethical principles. The author has identified the best practices that can make more organizations profitable.
Ethical actions can improve the participation of employees and laborers. The practice also empowers companies to support the changing demands of their customers. Eduardo Porter’s article offers powerful discussions and arguments that can make many companies profitable (Velasquez, 2011).
Organizational leaders should examine the effectiveness of different ethical practices in order to realize their potentials. Ethical practices can therefore support the goals of many organizations.
Concluding remarks
Many individuals will support a company that engages in friendly or ethical business practices. Many companies such as Wal-Mart have engaged in unfriendly business practices. Such practices have affected the performance of many employees in the company. Corporations should therefore be ready to address every social concern affecting their surrounding communities.
Positive business practices “encourage more consumers to purchase their services and products from their favorite companies” (Gagnon, 2007, p. 42). According to Velasquez (2011), this approach will encourage more companies to become socially responsible in order to realize their potentials.