Business Ethics Essay Examples & Outline

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Business Ethics

Organizations have to enforce the compliance guidelines in order to ensure that their funds are not used in the bribing and other corrupt undertakings with the view to increasing the business that the organization receives. Sarbanes-Oxley Act of 2002 issues the guidelines on the processes that have to be enforced. Due diligence ought to be enforced in all the processes.

Four broad policies are implemented to ensure that the multinational companies adhere to the requirements. The first policy touches on the adoption of a risk-based approach to the assessment of the risk of any activity leading to criminal conduct. Secondly, a high level personal is placed in charge of the reporting of any problem to the governing authority in the country of operations (Gavai, 2010). The high-ranking personnel is equipped and empowered to ensure that they can conduct their duties smoothly (Jeurissen & Rijst 2007). The third policy is the requirement for the periodic assessment of the risk of exposure to criminal conduct and constant revision of the compliance policies according to the new risk assessment. Finally, organizations ought to respond appropriately to any detection of criminal conduct (Jeurissen & Rijst 2007). The four strategies ought to be incorporated into the business strategy. Integration of the strategies ought to be according to organizational structure such that they are at every level of the business.

Question 2

Any foreign subsidiary located in the United States has to conduct extensive corporate social responsibility. Foreign subsidiaries can improve on their social responsibility by conducting their business activities in the most ethical manner (Jeurissen & Rijst 2007). Foreign subsidiaries ought to focus their efforts towards the immediate community in their respective areas of operation. The support entails development of standard business ethics and other governance programs. Structured business ethics ensures that the companies are adherent to the SEC’s compliance stipulations (Gavai, 2010). Additionally, subsidiaries ought to support the values and customs of the local communities.

With the increase in the number of foreign subsidiaries locating in the United States, corporate social responsibility is gaining importance in the United States. This development has emerged out of the need for the government to control and regulate its environment as well as the value systems that are in place (Jeurissen & Rijst 2007). The adoption of the corporate social responsibility will increase in order to enhance the address of the social and other concerns. The government is increasingly placing more value on the resources that it has. The government and consumer groups will play a vital role in the promotion of the adoption of formal corporate social responsibility. The increased focus on the importance of the social responsibility is primarily motivated by the need for the government to protect its resources from the exploitation by the foreign companies. The second motivating factor is the need for the promotion of business practices that protect the customers.

Question 3

Multinational organizations ought to engage in corporate social responsibility since it helps in the increment of the rate of integration in the global community. Corporate social responsibility is important since it give the business the legitimacy of operating in a certain business environment (Jeurissen & Rijst 2007). Corporate social responsibility differs according to the context of business operation. The ways through which it manifests are also different. Corporate social responsibility may be manifested in direct involvement of the organization in the affairs of the community irrespective of whether the activities relate to the organization’s core business. It could also be linked to the business purpose of the organization.

High level and proactive involvement in social responsibility entail the diverse involvement of a company in the activities of the community (Gavai, 2010). The company is involved in all aspects and activities of the community regardless of whether they are related to the core business. It entails the involvement in the direct interactions between the company and the community in the course of conducting their business and other activities of the community that do not necessarily relate to its business orientation. Low-level involvement is limited to the community members and activities that are involved in the process of value creation (Jeurissen & Rijst 2007). Controversies in social responsibility include the sincerity and adequacy of the involvement compared to the benefits that the companies get from the community.

Question 4

Questionable payments in the business environment include kickbacks and gifts to the people in power in order to influence their decisions. The questionable modes of payment are not direct and explicit. On the contrary, they have a connotation of the required course of action to the organization or the person being paid. Questionability of a mode of payment is highly subjective. In some markets, it is okay for the corporations to pay some stipend to the person in political authority for the smooth running of the company. Payment of the kickbacks could be tolerated or even extolled in the context (Jeurissen & Rijst 2007). How the society perceives, a questionable mode of payment should not be the influencing aspect of the organizational tolerance or adoption. The organization is controlled by the standards of the parent company. It should ensure that the standards are adhered to in all subsidiaries despite the traditions and perceptions of the local culture towards the practices. There should be conscious efforts to avoid any form of conforming behavior.

A bribe is the payment to a person or groups of people in the position of power in order to influence their decision in favor of the person making the payment. Bribes are explicitly known to be the payment from of favor. A gift is an appreciation of a certain service rendered. Gifts come after the performance of a task while bribes are the predicting factors to performance. The role of a gift is to extol performance (Jeurissen & Rijst 2007). However, some gifts could be bribes if the issuer of the gift requires the performance of a certain task in order for him or her to advance the gifts.


Gavai, A. (2010). Business ethics. Mumbai [India]: Himalaya Pub. House.
Jeurissen, R. and Rijst, M. (2007). Ethics & business. Assen: Koninklijke Van Gorcum.