Businesses and management face several emerging issues, including ethical practices, technological advancements, and environmental sustainability. Ethical practices in technology ensure an honest relationship between technology and users (Watters, 2021). Businesses that use ethical technology have a firm moral sense of employee rights and customer protection (Watters, 2021). Creating a culture of responsibility within technology is essential. Critical decisions must be made to ensure personal freedoms are protected and data is used appropriately.
Sustainability science has a complicated relationship with ethics. The ethical dimension of sustainability received broad attention in the early development of sustainability thought. Sustainability science emphasizes how technology is conceptually secondary to exploitation, determining only our ability to, and efficiency at, exploitation. Ethics can be applied within the three pillars of sustainability – social, environmental, and economic – to ensure no view is overlooked. The need for ethics in sustainability is vital to consider during collaborative decision-making processes and when analyzing all possible stakeholders in an issue.
The three pillars of corporate sustainability are the environmental, the socially responsible, and the economic. Corporate sustainability has become a buzzword in companies big and small (Taticchi et al., 2013). Sustainability strategies have been borrowed from other successful business movements, such as Kaizen, community engagement, and the BHAG (big, hairy, audacious goal). The notion that the environment should be treated as a person is relatively new (Openstax, n.d.). It is a good business practice for executives to know that their enterprise’s long-term sustainability and profitability depend greatly on safeguarding the natural environment.
Businesses are starting to respond to these growing concerns in various ways. In this paper, I will discuss the good and bad outcomes that have resulted from firms’ responses to these challenges. A company may develop a solid reputation, attract more consumers who appreciate transparency and accountability, and help create a more sustainable and responsible global economy if it places a premium on environmental sustainability, ethical practices, and technical breakthroughs.
Ethical Practices
Ethical practices are an emerging issue in business and management. Business ethics refers to the principles, values, and norms that govern the actions and behaviour of individuals and organizations in a business environment (Ammanath, 2021). In this case, individuals and organizations can be involved in ethical issues since their actions can be questioned from a moral viewpoint. Complex ethical issues include empathetic decision-making, governance, compliance and diversity that align with the organization’s core values.
Ethics conflicts may be detrimental to a firm since they signal to breach of the law. Ethical issues may not have legal consequences in certain situations but elicit an adverse reaction from others. Managing ethical quandaries may be challenging in the dearth of norms (Tamunomiebi et al., 2020). Policies may be designed with your guidance as a management or human resources professional to assist employees in making the right decision when faced with moral quandaries.
Some ethical issues in business and management include environmental responsibility, nepotism, technology and privacy policies, corporate espionage and nondisclosure, ethics in accounting practices, whistleblowing, workplace health and safety and discrimination and harassment.
Discrimination and harassment are the two most significant ethical issues H.R. professionals face. The reputation and finances of an organization can be significantly affected by the consequences of discrimination and harassment. Many countries have developed anti-discrimination laws to protect employees (Werhane & Freeman, 1999). Age, race, religion, sex and gender, pregnancy does not allow managers to discriminate against any employee. Adding on this, equal pay is one of the laws incorporated in the anti-discrimination laws. It focuses on ensuring all employees receive equal compensation for similar work.
Since more people use social media, how they act online is a big part of whether or not they keep their job. A bad social media post could affect how an employee is treated, but it is still unclear how fair it is to punish workers for harmful posts (Diez-Canamero et al., 2020). You might decide to fire an employee whose use of social media hurts the company financially or gives the public a wrong impression of it.
This is why it is helpful for business rules to include examples of bad social media behaviour so workers know what to avoid. As a human resources worker or a manager, you cannot punish employees who tell regulators or authorities about wrongdoing. This also applies to workers who discuss working problems online unless it hurts the company’s business.
Establishing an ethical workplace culture starts with company leadership and involves ongoing emphasis that ethical standards are respected (Peek, 2023). Companies can encourage ethical behaviour by establishing a companywide code of ethics, providing ethics training to employees, and rewarding ethical behaviour. Business ethics is not only a matter of concern for managers but is everyone’s responsibility.
Several business and management theories address ethical practices. One such theory is stakeholder theory, which suggests that businesses have a responsibility to consider the interests of all stakeholders, including employees, customers, suppliers, and the community, in addition to shareholders (Stark, 1993). Another theory is the social contract theory, which suggests that businesses are responsible for acting in the best interests of society (Wistow, 2020). According to the social contract hypothesis, people willingly give up part of their inherent rights to a government or authority in return for protection and the expected benefit. This agreement provides a social contract between people and their government, outlining the laws and duties of both sides (Wistow, 2020). According to the argument, the legitimacy of the government stems from the consent of the governed. If the government fails to maintain half of the bargain, citizens can withdraw their consent and change the government.
Establishing a robust system of ethics from the top down can assist a business in managing and upholding business ethics. Setting explicit ethical standards and objectives, providing ethics training to employees, and promoting ethical behaviour through rewards and measures of responsibility are all methods for achieving this objective (Joplin et al., 2021). Organizations may also implement ethical decision-making systems, such as norms of conduct or ethical decision-making models, to aid employees in making ethical decisions. In addition, it is essential to review and modify ethical policies and practices regularly to ensure that they remain relevant and help solve new ethical issues. Lastly, providing employees with a method to voice ethical concerns and encouraging a “speak up” attitude can aid in identifying ethical violations and resolving them before they become more serious.
Positive Impacts of Ethical Practices on Business
A company’s reputation and growth depend on the kind of ethics they hold. For instance, exemplary ethical standards in business management promote productivity. Most of the time, employees are more effective when their managers are honest. They might try to act like their bosses regarding morals, encouraging them to work harder and spread the company’s ideals. Ethical management can also help workers get along with each other and boost happiness as a whole. Aside from productivity promotion, exemplary ethical standards create a positive reputation for the company (Jones et al., 2007). Customers and suppliers make purchasing decisions based on a company’s reputation. Ethical organizations often get favourable coverage, which helps develop critical relationships with the public and other industry groups.
Any company may improve its sales and maintain mutually beneficial partnerships with suppliers by preserving its reputation. Finally, sound ethical standards in an organization can facilitate community well-being. While revenues are crucial, it is as necessary for a corporation to support community well-being. This social responsibility enables it to establish a good reputation and leave a lasting legacy. Ethical businesses support issues that are important to their customers, whether directly or indirectly. For instance, even if a company does not donate to environmental organizations, it might partner with an eco-friendly supplier to reduce waste.
Organizations benefit from ethical standards in various ways, including building trust with stakeholders, avoiding disputes and legal issues, attracting and retaining employees, positively affecting society and the environment, and enhancing financial performance. (Falcone & Falcone, 2022). Businesses that encourage ethical behaviour may foster a culture of trust and responsibility, aiding long-term success.
Negative Impacts of ethical practices
As more businesses implement ethical standards, they might encounter problems they did not expect. One of the unanticipated effects is the inconsistency between firms’ stated beliefs and their actual practices (Cornacchione & Klaus, 2017). Although some companies may list ethics as a corporate value on their website and in a list of corporate values, their actions may indicate that they do not respect ethics. This inconsistency may cause the company’s reputation, customers, and other stakeholders to lose faith.
The limited ability to maximize profit is one of the drawbacks of ethical practices implementation in businesses. Having factories in developing nations, for example, may cut prices. Businesses may exploit methods such as child labour and cheap pay to increase profits (Adams et al., 2001). However, although these methods are legal in some nations, they are also very immoral and would never be permitted by a corporation that follows ethical procedures.
Implementing the practices is time-consuming. If a company has previously been following unethical practices, developing, implementing and maintaining business ethics can be time-consuming. For consistency and thriving in the ever-developing world, ethical practices must be updated continuously regarding changes in laws and regulations, significantly if a company is growing.
How Businesses are Coping with Ethical Practices
Businesses must now contend with both positive and negative social behaviours. Some companies manage these issues effectively, whereas others need help maintaining their outstanding reputation. Sexual assault is one of the business’s most prevalent moral concerns (Shabat, 2020). In addition, there are problems with discrimination, workplace safety, whistleblowing, and marketing ethics.
Companies with a strong sense of ethics perform well in addressing these issues. They have a code of conduct that informs employees of the values and expectations of the organization. In addition, they have a system for reporting ethical violations and a system for investigating and resolving them.
Patagonia is an excellent example of a company that has positively addressed social issues. The company has a strong sense of morality and strives to be sustainable and equitable for its employees (Western Governors University, 2019). They have rules that inform employees and vendors of their values and proper conduct. In addition, they have a system for reporting ethical violations and investigating and rectifying them.
Conversely, businesses with poor ethical perspectives need help to deal with ethical issues. They may have a code of conduct that may not be adhered to or lack a reporting mechanism for ethical issues (Fraedrich & Ferrell, 2011). Uber is one company that has encountered ethical issues. Several incidents involving sexual assault, misogyny, and unethical business practices have occurred at the company.
Businesses with a strong culture of ethics and a way to report and fix ethical violations can deal with ethically sound and unethical behaviours as they arise. Uber is a company that has had trouble dealing with social issues, while Patagonia is a company that has done well in this area.
Technological advancements
Technological advancements have revolutionized various industries, including health care, communication, transportation, and energy. Developing COVID-19 mRNA vaccines using genomic vaccination technology is a cutting-edge field highlighting the importance of technological advancements in health care. Similarly, digitalization is expected to make the world’s energy systems more sustainable, efficient, and reliable. However, the growth of digital technology has left out a significant part of the population and impacted the environment negatively.
Successful businesses rely heavily on open lines of communication and the free flow of information. Accessible technology has made today’s world quicker, simpler, and more efficient than ever before, and the world is full of new opportunities. There are benefits and drawbacks to using applications like Slack, Zoom, Microsoft Teams, social media platforms, chatbots, and others on a regular basis (Broberg, 2021). Sales enablement paves the way for tracking user activity and keeping tabs on buyer-seller interactions. With the help of improved intelligence, gathering customer data and putting it to good use has always been more complex.
Technology enables efficient communication when it analyzes customer data to provide personalized messages. Automating interactions across several media may boost marketing efficiency and consumer engagement (Broberg, 2021). If we push this too far, we risk alienating our customers and taking humanity out of our companies.
Mobile-first strategies will undoubtedly prevail. You can manage your business from afar with the proper apps and a modern mobile device. Everything from the front- and back-end operations like shipping and invoicing can be accessed with a single click, including sales enablement, content marketing, and customer relations. Customers can benefit from mobile technology just as much as you can. Generation Y’s rise to prominence has resulted in a rise in the usage of mobile devices by customers for everything from research and purchasing to social networking and word of mouth.
The rules of prospect marketing are now fundamentally different as a result of this shift. In addition, technological advancements have made maintaining contact much less of a hassle. The rise of mobile technology has almost seamlessly integrated with communication software to create a hyper-real web of real-time information, allowing coworkers and employees to be instantly accessible via text/video chat at the drop of a hat and allowing businesses to send targeted promotional email blasts to prequalified customers while they shop at nearby establishments.
Technology has also had a positive effect on marketing strategies. Technology allows businesses to improve the quality of their products and services and their ability to sell them (Wardynski, 2020). For example, businesses can use social media sites to spread the word about their company and reach a wider community (Neddersen, 2021). Technology has also made it easier for companies to collect data, which they can use to improve their products and services.
Negative Impacts
New technology has brought about significant changes in the business world, but it has also brought about new problems that hurt businesses. One of the most surprising things about new technology for businesses is its cost (Papiewski, 2019). Hardware, software, and training for many technologies cost much money, which can put financial pressure on smaller businesses
Technology makes it less necessary for business organizations to interact with people in person. Even though technological advances have made communication faster and more effective, they have also made it less personal (Mori, 2022). This could make the consumer less likely to trust and enjoy the product.
Also, as technology has improved, there has been a rise in automation and data-driven decision-making. These things may make it harder for companies to be creative and develop new ideas (Chrisos, 2019). This may lead to a loss of individuality, which can reduce competitiveness.
The pace of change these days is much quicker than in the past. The fundamental changes brought about by an organization’s operations, internal resource optimization, and the delivery of customer value as a consequence of digital transformation. Cloud computing lays the groundwork for more flexibility, cooperation, and a focus on the requirements of individual clients (Rashid & Chaturvedi, 2019). Cloud computing enables organizations to offload part of their activities to distant computers that can be accessed through the Internet, freeing up internal resources for other purposes(Chrisos, 2019). As a result, it is possible to expand rapidly and migrate without fear of crashing, downtime, or permanently losing data. Businesses that use the cloud have a higher chance of growing swiftly, extending their operations successfully, and offering unique features to the market more quickly. When competing against large corporations with access to resources previously out of reach for small to medium-sized firms owing to their expensive cost, the playing field has been levelled.
The impact of technology on enterprises has been mixed. Plus, it has lowered overhead and boosted productivity for smaller businesses, making them more competitive with their bigger counterparts. However, it also has the potential to mislead customers into thinking they know more than they do. Businesses have been irrevocably changed by the COVID-19 epidemic, which has driven them to the technological brink (Neddersen, 2021). Amazon, for example, has used technology to enhance its supply chain, reduce costs, and enhance the customer experience. At the same time, Facebook has been blamed for spreading false news and making it more difficult to maintain privacy. Companies need to consider the positive and negative consequences of new technology.
Teams collaborate more closely as they strive to reach or beat growth objectives. Business operations adapt and adopt simplified business processes to fill organizational gaps by aligning service, sales, marketing, and I.T. (Ivypanda, 2023). As was already established, a company’s productivity has increased significantly due to digital transformation(Neddersen, 2021). Adding new technology to the stack helps organizations optimize to provide value to the company and earn revenue by reducing costs via time savings, speed to market, inventory management, and lower manufacturing costs.
Environmental Sustainability
Sustainability in the natural world is quickly becoming an additional focus for many companies. Businesses that place a premium on environmental sustainability are more likely to see their products and operations positively impact crucial environmental goals. Companies’ bottom lines could benefit from adopting sustainable business practices since doing so can save operating costs, boost brand recognition, and provide competitive benefits.
Companies now recognize the need to monitor and address environmental problems that might compromise their operations and growth. For instance, in the same 2020 poll, the percentage of major national and worldwide firms commenting on the issue of global climate change as a financial risk increased considerably, from 43% to 53% (Horan, 2022). There is now an expected level of environmental consciousness among companies.
Addressing sustainability issues is difficult since it involves looking at several elements and weighing information that is only sometimes in agreement. Establishing a socially and economically sustainable firm that prioritizes environmental protection is challenging (Jayanti & Gowd, 2014). Analyzing this “triple bottom line” is a crucial ability for every company leader in the 21st century.
Leaders in the corporate world who want to strike a healthy middle ground between profit, people, and the planet will need to adopt a new way of thinking about how to run their companies (Lubin & Esty, 2010). One company that exemplifies this ingenuity is New Belgium Brewing. The firm is partially owned by its employees, so they invest in renewable energy sources like solar power, recycle waste heat from brewing, and take other steps to lessen their dependency on fossil fuels (Horan, 2022). Fat Tire beer, produced by the company, was the first carbon-neutral beer in the United States. Nespresso has created a worldwide supply-chain monitoring system to guarantee that its coffee is produced using the most cutting-edge sustainable methods.
Environmental sustainability has both positive and negative repercussions. It allows organizations to demonstrate social responsibility, save money, and open up new development options, but it also brings significant challenges (Blowfield, 2013). Strict laws, higher public expectations for environmental performance, and market-wide environmental concerns are all business hurdles. Climate change, water and soil pollution, and air pollution are all negative repercussions of environmental sustainability. These issues make it more difficult for practically every aspect of society to reach normative sustainability objectives. Businesses must utilize sustainable methods, be socially responsible, and minimize expenses to mitigate these negative consequences.
Effective management strategies may include ethical concerns in their company plan, establish clear ethical standards and rules, collaborate with stakeholders, and use good management practices. Patagonia and Ben & Jerry’s are two firms that have devised innovative approaches to ethical challenges.
In conclusion, business and management face several significant issues with both positive and negative consequences. Ethical practices, technological advancements, and environmental sustainability are three of these issues.
Ethical business practices are essential for companies because they can significantly impact their reputation, consumer loyalty, and employee satisfaction. However, businesses must also consider unethical behaviour’s legal and financial ramifications. Integrating ethical considerations into the overall business strategy, establishing explicit ethical standards and policies, and collaborating with stakeholders to promote ethical practices throughout the supply chain are all effective strategies for dealing with ethical practices.
Technological advancements are an additional crucial issue confronting businesses today. While technological advances can have many positive effects, such as increased productivity and efficiency, they can also have adverse effects, such as job displacement and cybersecurity risks. Businesses can mitigate these effects by investing in employee upskilling and reskilling, employing effective cybersecurity measures, and using technology to create new business opportunities.
In order to reduce their environmental footprint and conform to regulations, businesses must ensure that their operations and supply chains are environmentally sustainable. Implementing sustainable procurement programs, reducing waste and carbon emissions, and collaborating with stakeholders to promote sustainable practices are strategies for addressing environmental sustainability.
Reference List
Adams, J.S., Tashchian, A. and Shore, T.H., 2001. Codes of ethics as signals for ethical behaviour. Journal of Business ethics, 29, pp.199-211.
Ammanath, B. (2021). Thinking Through the Ethics of New Tech…Before There Is a Problem. [online] Harvard Business Review. Available at: https://hbr.org/2021/11/thinking-through-the-ethics-of-new-techbefore-theres-a-problem
Blowfield, M., 2013. Business and sustainability. Oxford University Press.
Chrisos, M. (2019). What Is the Negative Impact of Technology on Business Communication? [online] Techfunnel. Available at: https://www.techfunnel.com/information-technology/what-is-the-negative-impact-of-mobile-tech-on-business-communications/
Cornacchione, E. and Klaus, L. (2017). Ethical Business Culture in Brazil: Advantages and Obstacles of National Jeitinho. [online] Cambridge University Press. Available at: https://www.cambridge.org/core/books/ethical-business-cultures-in-emerging-markets/ethical-business-culture-in-brazil/
Diez-Cañamero, B., Bishara, T., Otegi-Olaso, J.R., Minguez, R. and Fernández, J.M., 2020. Measurement of corporate social responsibility: A review of corporate sustainability indexes, rankings and ratings. Sustainability, 12(5), p.2153.
Falcone, P. and Falcone, P. (2022). The Real-World Impact of Workplace Ethics. [online] SHRM. Available at: https://www.shrm.org/resourcesandtools/hr-topics/employee-relations/pages/the-real-world-impact-of-workplace-ethics.aspx.
Ivypanda (2023). Impact of technology on business – 1100 Words | Essay Example. [online] Free Essays. Available at: https://ivypanda.com/essays/impact-of-technology-on-business/.
Jayanti, R.K. and Gowda, M.R., 2014. Sustainability dilemmas in emerging economies. IIMB Management Review, 26(2), pp.130-142.
Jones, T.M., Felps, W. and Bigley, G.A., 2007. Ethical theory and stakeholder-related decisions: The role of stakeholder culture. Academy of management review, 32(1), pp.137-155.
Joplin, T., Greenbaum, R.L., Wallace, J.C. and Edwards, B.D., 2021. Employee entitlement, engagement, and performance: The moderating effect of ethical leadership. Journal of Business Ethics, 168, pp.813-826.
Lubin, D.A. and Esty, D.C., 2010. The sustainability imperative. Harvard business review, 88(5), pp.42-50.
Mori, Y. (2022). What Are The Positive & Negative Impacts of Technology On Modern Businesses? [online] www.linkedin.com. Available at: https://www.linkedin.com/pulse/what-positive-negative-impacts-technology-modern-mori-
Neddersen, J. (2021a). Impact of Technology on Business. [online] Herzing University. Available at: https://www.herzing.edu/blog/impact-technology-business.
- C., F., Fraedrich, J. and Ferrell, L. (2011). BUSINESS ETHICS Ethical Decision Making and Cases. United States of America, pp.1–541.
OpenStack (n.d.). Business Ethics – Business Law I Essentials – OpenStax. [online] openstax.org. Available at: https://openstax.org/books/business-law-i-essentials/pages/3-1-business-ethics.
Papiewski, J. (2019). Technology’s Negative Impact on Business. [online] Chron.com. Available at: https://smallbusiness.chron.com/technologys-negative-impact-business-19118.html
Peek, S. (2023). A culture of ethical behaviour is essential to business success. [online] Business News Daily. Available at: https://www.businessnewsdaily.com/9424-business-ethical-behavior.html.
Rashid, A. and Chaturvedi, A., 2019. Cloud computing characteristics and services: a brief review. International Journal of Computer Sciences and Engineering, 7(2), pp.421-426.
Shabat, B. (2020). 8 Common Ethical Issues Facing Businesses in 2020. [online] Become. Available at: https://www.become.co/blog/ethical-issues-businesses/.
Tamunomiebi, M.D. and Elechi, B.C., 2020. Ethical managerial orientations: Emerging issues. European Journal of Human Resource Management Studies.
Wardynski, D.J. (2020). Positive Effects of Technology – Making Everyday Life Better. [online] www.brainspire.com. Available at: https://www.brainspire.com/blog/positive-effects-of-technology-making-everyday-life-better.
Werhane, P.H. and Freeman, R.E., 1999. Business ethics: the state of the art. International Journal of Management Reviews, 1(1), pp.1-16.
Western Governors University (2019). Ethical Dilemmas: How Scandals Damage Companies. [online] Western Governors University. Available at: https://www.wgu.edu/blog/ethical-dilemmas-how-scandals-damage-companies1909.html.
Wistow, J., 2022. Social policy, political economy and the social contract. Policy Press.
write