We wish to demonstrate how corporate ethics may bring people together by applying key concepts from Parsonian functionalistic sociology. As a result, a theoretical framework for business ethics is developed, providing strong theoretical arguments against typical objections leveled at the discipline. Critiques of corporate-societal relationships often undervalue community-building activities due to misconceptions about economic and bureaucratic systems. However, business ethics may become politicized if it fails to recognize that there are not always ideal moments to apply ethics in business. There are several different ways in which corporate ethics can become ideology. Check out these functions of business ethics to broaden your horizons.
Employees are critical to the company’s success since they are an integral part of its operations. By adhering to business ethics, a corporation demonstrates that it cares about the welfare of its employees. The company should not just focus on its employees, but also on achieving its objectives, which include increasing revenue and expanding swiftly. Stay informed by reading more to learn more about the sources of business ethics subject.
Functions of Business Ethics
The fact that different organizations have diverse desires and aims makes it difficult to provide a single, general description of the ethical function. Ethics is addressed differently in different firms, based on how the company is structured and the industry in which it operates. The first step in successfully managing an ethics function is to thoroughly document the role’s primary responsibilities in a given firm. Remember that there isn’t a single set of guidelines for being ethical in business. For your convenience, we have provided an overview of functions of business ethics with a brief explanation.
The Customer Service Function
When a consumer or client has a problem, any reputable organization will resolve it. Nowadays, clients have very high expectations. When people visit a business, they want to receive a prompt, pleasant, and knowledgeable response. Not reaching their service and satisfaction requirements increases the likelihood that they will seek alternatives in the future.
The Sales Function
Increasing revenue should be a company’s primary priority. Don’t waste your time and money on good products or services that no one will want. For this reason, most businesses incorporate sales goals as part of their overall plans and objectives. These tasks are the responsibility of the sales personnel or team. Salespeople may be responsible for a variety of tasks depending on the firm. It is unnecessary for establishments that offer ordinary items such as candies or papers to be overly forceful. When individuals call to purchase something, they usually simply select what they want, pay for it, and leave.
The Research and Development (r & D) Function
This position is in charge of both developing new products and improving existing ones. It also include designing items for a variety of industries. Customers’ feedback and market research are frequently used to improve modern products. These novel inventions include ring-pull cans, microwaveable ready-made food containers, see-through jug kettles, and computer memory sticks. You’ll see them everywhere.
The Human Resources (hr) Function
Human resources is in charge of managing a company’s employees. Smart organizations invest in their personnel because they understand that having a dedicated and well-trained workforce increases a company’s chances of success. The Human Resources department is in charge of hiring new employees and filling open positions with the most qualified candidates. This is a crucial consideration because employing individuals is both expensive and time-consuming. If they hire the wrong individual for the position, they may end up wasting money and having a lot of issues.
The Ict Function
In today’s environment, even the tiniest organizations require employees who understand how to use ICT and what to do when things go wrong. Because the data stored on the system is critical, and many vital business activities depend on computers, this must be done immediately to avert disaster if the system fails. Most firms utilize servers to connect their employees’ computers to the company network.
The Distribution Function
Distribution is the process of ensuring that items get to their destinations on schedule and undamaged. Stores such as Amazon and Debenhams provide direct-to-consumer shipping options for online shoppers to use. Companies such as B&Q and Sainsbury’s use large regional warehouses to store their items before distributing them to stores throughout the area. Vehicles designed specifically for hauling perishable goods, like those commonly seen at shops, exist. Other companies must transport big engineering parts, automobiles, chemicals, and other commodities that are difficult to transport or may be dangerous.
Relationships between Different Functional Areas
The various sections of a firm cannot function without talking with one another. When people are in charge of diverse positions at the same small business, they typically communicate and collaborate in a more informal manner. Managers can identify whether employees are passionate and hardworking even if they are not instructed. Salespeople can detect which consumers are still behind on payments and cannot purchase more on credit until they pay off their balance. Customers in queue can also see which customers are still behind.
The Production Function
To ensure the quality of final products, you must do more than simply inspect them. Quality is now “built-in” at all stages of the process, beginning with the raw materials. Marks & Spencer is one of the sellers that provides thorough information on the products they wish to purchase. The company has tight guidelines for all of the producers it works with.
Functions of the Accounting and Finance Unit
This may be the most essential working area for the company. This is because a business cannot function properly without enough cash. Finance is in responsible of creating budgets and obtaining fresh loans, whereas accounting is in charge of maintaining track of a company’s finances. This department’s responsibility is to ensure that the company’s money and funds are well managed. The accounting and finance department must additionally monitor and evaluate the company’s financial transactions.
The Administration Function
Boring administrative tasks include document sorting and filing, responding to emails and faxes, and checking and opening the mail. Travel arrangements and large events, such as staff gatherings or visits from international clients, are examples of scenarios requiring greater inventiveness and flexibility. Many managers have to deal with consumers from outside the organization. The way they are addressed questions regarding the firm influences how those clients see it.
Insurance and Risk Management Unit
Every business owner will tell you that owning a business has several risks. As a result, insurance and risk management are responsible for ensuring that certain risks are adequately managed. Risk management and insurance are both approaches for businesses to reduce the likelihood of negative events occurring and the harm they can cause when they do. This is what I believe is superior.
The Marketing Function
Marketing is all about determining what people want and then offering them what they desire. Different people regard this as a marketing-focused endeavor because of the amount of attention it receives from different companies. In this made-up scenario, all staff are instructed to prioritize the needs of the client. Both the person in production and the person in accounting have vital responsibilities. The individual who works in production is in responsible of ensuring that the things are of excellent quality. On the other hand, the accounts worker must respond to client inquiries fast and appropriately. The functions of business ethics encompass guiding principles and practices governing ethical behavior within organizations.
FAQ
According to you what are the most Critical Ethical Issues in Business Today?
If leaders and institutions want to grow, they must reconsider how they build things. This is what led us into this economic problem in the first place: making decisions solely on the present. To get there, we must focus on creating long-term enterprises. As a result, sustainability provides a solid foundation for long-term growth, innovation, and importance. A firm must demonstrate long-term dedication to its relationships with people, the communities it serves, the governments permitting its business, and the ecosystems in which it operates.
What are the Functional Areas of a Business?
People will sometimes use the word “business unit” to describe specific areas of a company. A company’s key components include sales and marketing, finance and accounting, risk and insurance management, human resource management, operations and production, and hiring and human resources.
Are Ethics Important?
You can utilize ethical values to help you make better decisions and achieve good in the world.It is critical to consider about ethics not only in our personal life but also at business. Of course, we are all taught to make moral decisions and behave decently in all aspects of our life.
Final Remarks
Launching the ethical function requires securing access to the company’s top management, ensuring their participation. As a first step, it is beneficial to have the support of top management, such as the board of directors and executive officers. This is because the tone established at the top of an organization has an impact on lower levels. Many individuals believe that this is the most important strategy to support social function. Summing up, the topic of functions of business ethics is of great importance in today’s digital age.
