Question On Business Management:-
Evaluation of business conduct in the mining industry using three ethical principles of the global business management standards codex
Codes of conduct are one of the important features of corporate life. In the current business scenario, the codes of conduct are considered as more than important features. They are legal necessities for some private organisations (Carstensen, Golden and Morgenthal, 2012). At this age of corruption and deception, many organisations worldwide have proposed guidelines or codes in order to govern corporate behaviour. The codes of a company serve many other purposes in Business Management. Codes of conduct are sometimes referred as codes of ethics which helps a company to exhibit the standards that govern its conduct to the internal and external involved parties in Business Management.
In present situation due to dishonesty, corruption is increasing in several organisations. Therefore the regulatory body has make code of conduct to control and increase the morality among organisational staff in Business Management. There are several rules based on the code of conducts followed in mining organisation. Moreover several authors have argued against those rules several time.
B. Argument 1 Transparency (Paine et al. 2005; Stanwick & Stanwick 2014)
Promote good conduct Business Management by corporations
The purpose of the ode of business conduct and ethics is to provide the directors and employees with guidance. As there have been many initiatives to promote good conduct Business Management by corporations, many guidelines are available. So, it is not easy to get an overview of whether a firm’s codes of conduct are world-class.
The 8 governing principles which are collectively called the global business standards codex are created (Zdziarski, 2008). It provides a useful overview of all things which need to be considered in any corporate code of conduct. The global business standards codex is not only a model which companies should adopt. It works as a benchmark for the companies that want to create their own world-class code.
The GBS codex provides companies that want to evaluate their existing codes of conduct or create a new set of codes with guidelines (Sethi, 2011). The eight ethical principles according to the GBS codex are fiduciary principle, property principle, reliability principle, transparency principle, dignity principle, fairness principle, citizenship principle and responsiveness principle.
The mining industry uses three of the ethical principles of GBS codex- dignity principle, reliability principle and fairness principle in Business Management. With these ethical principles the mining industry tries to ensure honest and ethical conduct, fair dealings with others and health and safety matters.
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C.Argument 2 Fairness (Paine et al. 2005; Stanwick & Stanwick 2014)
Follow the dignity principle
The first ethical principle that the mining industry follows is dignity principle. This principle respects the dignity of individuals. For the employees who work in mines, health related issues need to be given foremost importance (Campbell 2012;). They work in the mines ignoring the health related threats which are likely to happen in mines.
This principle not only protects health and safety but also helps to adopt work practices that respect the dignity and human rights of the employees (Cragg & Greeanbaum 2010). With the adoption of this principle the mining industry prevents harassment of the employees, support and protects human rights within the sphere of the company; protect employees from injury and illness at the time of work in Business Management. Like every industry, the mining industry has obligations to protect the interests of the company, but this is not expected if that does not respect people- employees, customers, supply chain workers, and general public (Northcott 2012).
Respect to people is considered as the starting point of all ethical thoughts. This also implies positive efforts to develop human potential.
A quality environmental, health and safety performance contributes to the company’s competitive strength which in turn benefits the stake holders. Employees in mining industry are to work on behalf of the company with the highest regard for the quality of the environment.
Reliability principle and fairness principle
The second and third ethical principles adopted by the mining industry are– reliability principle and fairness principle. In the current business scenario, only change is constant (Zdziarski, 2008). So, most of the industries tend to adopt reliability principle. This principle honours commitment which refers to being faithful to own words and following through promises, agreements or legal contracts in Business Management.
Complex co operational schemes would fail without these ways of forming binding commitments. The mining industry allows different parties to co ordinate their activities into an unknown future.
With the help of promise the industry tries to transform a choice that was morally neutral into one that is morally compelled. The fairness principle deals with four types of fairness. Throughout the ages, the concept of fairness has been central to ethical thoughts (Logsdon and Wood, 2005).
The importance of fairness rests on the role of facilitating co operation, securing legitimacy and ensuring the survival of the group. Fairness in exchange, distributive fairness, fairness in competition which concerns conduct among rivals is also important.
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E. The counter argument Paine et al. 2005
Ineffective the code of conducts in many situations
These codes of conducts are not sufficient to run a company without any deception and corruption. The codes contain provisions for traditional corporate stake holders. They are customers, employees, investors, competitors, suppliers/partners, and the public. In the mining industry as well the stakeholders are those six traditional stakeholders. The purpose of codes of conduct is to ensure fair dealings and to protect the interest of every stakeholder(Cragg & Greeanbaum 2010).
The stakeholders are not to be deceived by the activities of the organisation in any way. But the ethical principles adopted by the mining industry focuses mainly on the wellbeing of its employees (Kolk and Van Tulder, 2002).
Though it is true that workers in a mine work ignoring the threats to life, the interests of the other stakeholders also need to be protected and promoted. And appropriate codes do not provide with the guarantee of world-class conduct. A code of conduct cannot ensure appropriate conducts as a code of law can ensure legal conducts (Northcott 2012).
The codes just work as a tool which can be used both effectively and poorly or cannot be used at all. The chance of fulfilment of purposes depends on the effective use of the tool. The greater is the usage, the higher is the possibility of fulfilling the intended purposes.
F. Concluding Statement:-
The assignment can be concluded by saying in the current era of corruption and deception everybody supports a company which generates world-class code of conducts. These codes of conducts vary to organisation to organisation. The different organisations generate different codes of conduct. In order to assess that the existing codes of conduct of a business organisation, the global business standards codex is very useful which concentrates on eight ethical principles which required to be taken care of.