Ethics and Governance “Kickback” : Organisational Behaviour

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Introduction

Organisational Behaviour Ethics is the popular mindset of a society, which it sets to determine differentiating factors of good and bad. Like every activity, professionals also follow some norms, which are treating as professional ethics. Its value way of following is different in every country (David, and Hillman, 2011). However, following of these ethics is sometimes an obstacle for running Organisational Behaviour. For the purpose of profit, making business does not want to follow all these ethics. Thus, conflicts arise due to several reasons. Some professional and legal norms are set to resolve the problems. The norms are different and followed differently in different countries. Therefore, situation arises in multinational companies where one activity is ethical in one country but may be illegal in another country (David and Hillman, 2011). Government and organisation should take necessary actions to maintain the proper legal and ethical environment.

Organisational Behaviour

Theory 1: Identification of five fundamental principles of Code of Ethics

To promote ethical practices in a business environment some norms and rules are set, are treat as the codes of ethics (Arasand and Crowther, 2010). Main purpose of these is to increase responsibility in the environment and resolve conflicts. These can be set for private organizations as well as for public or social Organisational Behaviour. Like other developed countries, assignment help Australia possesses several Organisational Behaviour like Institute of Chartered Accountants in Australia (ICAA), Institute of Chartered Accountants that operate globally (Campbell, 2009). These are the codes, which an Organisational Behaviour follows for different purposes:

Integration: Honesty and well behaviour make the Organisational Behaviour more integrated. No, issues should be dealing from the personal perspective. Companies should bring issues of conflict for consideration of the higher management. In ICAA there is a well-researched integration policy followed to develop integration (Bacher, 2009).

Objective: Any Organisational Behaviour must treat every individual according to his or her merit and performance. No, personal biasness should be encouraged. They should resolve any conflict.  They need to motivate the employees. Organizations like those that ICAA will aim to retain every skilled personal in the organization (assets.coca-colacompany.com 2014).

Competence: To increase competencies among companies & within a company, skill and performance should be encouraged. Proper motivational activities increase this by

Confidentiality: Organisational Behaviour like ICAA always try to keep the confidentiality of its customer’s intact (Campbell, 2009). It is not only an ethical issue but also trade policy. They also advice employees not to disclose the trade secrets. It will not only be a legal issue but the Organisational Behaviour also loses its customer base (Bacher, 2009).

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Behaviour: Behaviour of the employees should be guided by moral followed by law. To protect the purpose of both the company and the client, companies like ICAA usually make a guideline for its employees (assets.coca-colacompany.com 2014).

Theory 2: Identification of five fundamental principles of Threats to the Code of Ethics

A large company like ICAA always tries to do ethical business. However, in practical field some employees may have conflicts regarding some issue. However, all the employees are working for a same Company. They try to help in the progress of the company, but they also can have some conflicts among them. Therefore, there are some threats, which may get into the way the successful run of the company (Campbell, 2009). We can classify the threats as under:

Self-interest threat: It may arise due to financial profit, other interests. It may be a long term or may be a short term (Berkhout, 2009).

Familiarity threat: Everyone do something wrong or inaccurate. However, sometimes we see that if any employee has any relative in higher position or one who can influence the management then he enjoys some extra facilities (Banerjee, 2011).

Advocacy threat: Sometimes some higher positioned person tries to indulge his theories irrespective of what others say. This kind of person has such kind of influencing personality. Sometimes skills or intelligence is ignoring due to advocacy. This should be discouraged (Acutt, and O’Riordan, 2009).

Intimation threat: Several actions are the influence of perceptions or anticipated threats. Everyone has his own perception. Their perception also varies and conflict does arise (Kapelus, 2009).

Self-review threat: All the ethical norms are revising time to time. If we do not take in time, consequences may arise (Berkhout, 2009).

Theory 3: Safeguards and their application

Some safeguards are required to reduce the threats to a minimum level. Broadly, they are of two types, the formal ones and the other one is informal. Professionals, regulators set the formal ethical codes (David, and Hillman, 2011). Any Organisational Behaviour may set its own norms also. Before making the norms the companies give proper guidance and training to their employees. Everyone should have a minimum professional ethics and should follow that every step of the businesses activities (Campbell, 2009). Every company requires good corporate governance. There are international predetermined standards for safeguarding the ethical values (Banerjee, 2011). They take disciplinary actions for professional ethics maintenance. Sometimes, third party reports are necessary to evaluate the ethical situation. It also increases the brand value of the company. To imply the safeguard process companies make effective compliant lodging system. It helps not only its employees but also its customer to make interest into it (Kapelus, 2009). Companies issue detailed and structured rules to maintain ethical environment in the company (assets.coca-colacompany.com 2014).

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Assignment A: Stakeholders of the situation

In this case, Coca Cola is a multinational company. It follows different ethical norms in different countries. If any situation arises in any country, it requires following that country’s ethical norms. All the country possess different social and ethical environment. Taking bribe may be a usual thing in one country, and may be strictly prohibited in other country (Czinkota, 2009). In this case, Coca-Cola denies that its employees were involved in giving bribe to the government officials, but it agreed that their employees extracted kickbacks from their suppliers. In any case, these back door opportunities cannot be encouraged (Campbell, 2009). Therefore, the company named Shanghai Shenmei Beverage and Food Co. whose employees are involved in this case, would have taken measures before its occurrence. We cannot say that the Coca-Cola company or its sister company Shanghai Shenmei Beverage and Food Co. is involved in it. They are saying that both the employees left the company early this year (Banerjee, 2011). If this information is true then the society cannot blame Coca-Cola Company or its sister company Shanghai Shenmei Beverage and Food Co. the bottler is helping in investigation. This is an ethical move by the bottler. The companies would have taken measures that might help it to curb any situation (Arasand and Crowther, 2010).

Assignment B: Ethical issues involved

Here Coca-Cola Company and its sister company Shanghai Shenmei Beverage and Food Co.’s two employees are involved in bribing government officials or extracting kickbacks from suppliers (Maignan, 2008). They have embezzled from their bottler also. Whatever the cases may be, they should discourage it. Bottler Company also alleged them in embezzling from them. In that case, Coca-Cola Company or its sister company Shanghai Shenmei Beverage and Food Co. would have help in investigation. In spite of that, they have denied by saying that the employees have left the company few months before (Flamholtz, 2011). Coca Cola has a commitment to helping its society with the help of local organizations. This is absolutely a strategy not to get involved to not to get into legal matters. However, it is unethical to do not support the investigation process (Campbell, 2009). Coca Cola has a commitment to helping its society with the help of local organizations. It seems that there is an interest involved in favors of Shanghai Shenmei Beverage and Food Co. This case involves a loss of 10 million Yuan or 1.69 million $. If the government official’s bribe taking issue is true then it is also very bad. These things should be resolved in a proper manner. Society requires strict provisions to protect government officials from taking bribes (Bacher, 2009).

Assignment C: Bribing foreign county’s government officials

Every country treats bribe taking as unethical practice. However, there are countries, where it is going on for years (Acutt and O’Riordan, 2009). The bare laws are different and punishments are of different degrees (David and Hillman, 2011).  In case of Coca-Cola Company or its sister, company Shanghai Shenmei Beverage and Food Co. the employees are involved in bribing government officials. As Coca-Cola Company or its sister company Shanghai Shenmei Beverage and Food Co. is operating in several countries, they should follow the international trade norms. Bribing the government for own interest is very mean in nature (Fowler and Hope, 2010). One eligible and efficient company may lose the assignment for the government official’s unfair practices. Coca-Cola Company or its sister company Shanghai Shenmei Beverage and Food Co. will recover the bribe amount from its nationals only (David and Hillman, 2011). Therefore, it will result in price rise. Therefore, the government officials are harming the common fellow citizens. These practices results in reduction of country’s brand value (Fowler and Hope, 2010). International standards give some rating according to the ethical environment. Every other country comes to know about the rates (David and Hillman, 2011). Then they also try to capitalize on that (Czinkota, 2009). It weakens the economical health of the country (Flamholtz, 2011). Foreign direct investment also will not come to the country (David and Hillman, 2011). Therefore, it harms the company from several ways. Therefore, any multinational organization should not follow any unfair mean practice of business not only in its own country, but also in foreign country (assets.coca-colacompany.com 2014). Coca-Cola Company or its sister, company Shanghai Shenmei Beverage and Food Co. is the most valuable brands of its sector.

Assignment D: Imposition of values to foreign countries

There is several multination operating around the globe. Every country depends on others for its several needs (Acutt and O’Riordan, 2009). All countries do follow different laws. They cannot keep symmetry over their trade policies, because all of them run their business in different business environment (Graafland and Ven, 2011). Coca-Cola Company or its sister, company Shanghai Shenmei Beverage and Food Co. also operate in that kind of environment. Coca-Cola Company is a multinational company (Aras and Crowth, 2010). It has given 22 million dollars in forms of grants or in form of scholarship, only. It takes different strategies to operate in different countries. Giving bribe to government officials may be one such strategy. However, the disadvantage is, as Coca-Cola Company is a multinational company. Media hikes these certain practices. It also affects the business operation globally. Every country tries to make policies to curb the misuse of trade laws (Graafland and Ven, 2011). However, sometimes it involves itself in foreign country’s business operation. Usually a country’s Organisational Behaviour structure and cultural environment affects the ethical and unethical situation. Therefore, if one country’s company practices its own Organisational Behaviour to other country, it results in legal issues of that company (Czinkota, 2009).

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Conclusion

Every country follows different ethical norms and applies differently in different countries for several purposes.  Several countries follow several norms by the guidance of its laws. Therefore, the codes of ethics do vary of country-to-country. Coca-Cola Company or its sister, company Shanghai Shenmei Beverage and Food Co. are also of this. It has given 22 million dollars in forms of grants or in form of scholarship, only. Coca Cola has a commitment to helping its society with the help of local Organisational Behaviour. According to its social and cultural environment, it also changes. Several threats arise like personal interest, personal review, intimation threat, advocacy threat, and familiarity threats do arise. Several safeguards protect an organization’s purpose or a country’s purpose to save from ethical issues. It does it through making professional standards, corporate governance norms. Third party reports also help in resolving that. If companies like Coca-Cola Company or its sister, company Shanghai Shenmei Beverage and Food Co. start to follow unfair means, it is very important to stop them. For this government should take proper actions. Coca Cola prevents itself from environmental issues. Government should hold its officials from taking bribe and council them.