Analyze three of the punishments that corporations undergo when they have acted

Question

Analyze three of the punishments that corporations undergo when they have acted unethically (i.e., name them, define them, explain what they are). In addition, explain three threats to running an ethical corporation. Finally, from your own perspective, explain whether or not a corporation should have to function by the same codes of morality that individual people in society have to abide by or if they should be allowed to get away with certain actions that people in society cannot get away with.

Explanation / Answer

Ans:- Three corporate punishments:-

1. Fines

Fines are the most common form of punishment to corporations that have acted in amanner that is either illegal or unethical.Fines are “a payment of money imposed as a penaltyfor an offense.” Fines are imposed on corporations in hopesthat once they have to pay a substantial amount of money, that they will be apprehensive incommitting a repetitive wrongful action.

2.Corporate Shaming:- There are many occasions to where a company must take accountability for their actions.This punishment will include making a public acknowledgement of their wrongful actions andproviding a formal apology, corporate shaming.“Corporate shaming is where the governmentrequires a guilty company to make a public announcement that threatens its reputation and socialstanding.” This will inform people that are not fully aware ofwhat the company had done, will now realize what the organization had done and what they plan on doing to prevent it from occurring again.The embarrassment can affect a company more thanany financial “payoff”

.3. Community-Service Order:- There are many companies that would not be able to survive from large fines or frompublic embarrassment.The punishment that a smaller company can be given is a community-service order.A “community-service orderis similar to community-service punishments forindividuals, a company must participate in some project that benefits the community in someway.” This is helpful to the community that has been wrongedfrom the company as they will now receive a compensation from the company.Thecompensation can be free products or services to the local community.This will also provide thecompany a further understanding of their surrounding community and possible consumers towhere they will have a higher ability to meet consumer’s demands.

Three Threats to Running an Ethical Corporation:-

1. Employee Behavior

From large corporations to small businesses, individuals involved in all types of business often face ethical issues stemming from employee behavior. For example, whether an employee can spend work time checking personal email accounts, how a manager deals with claims of harassment and to what extent a manager can "groom" a certain employee for a promotion are all examples of ethical issues regarding employee behavior. There are legal consequences for some unethical employee behavior.

2. Employee Working Conditions

In addition to employee behavior, there are a number of ethical issues business people must consider about employee working conditions. For example, employers must be aware of the safety of their work environment and if they have compensated employees for all the time they have worked. The must also consider if they have required an employee to work an unreasonably long period of time or if they have him doing an unusually difficult task. Just like there are legal consequences for some unethical issues regarding employee behavior, there are also legal consequences for unethical working conditions.

3. Supplier/Customer Relations

In addition employees and business owners must consider the ethical issues involved with their relationships between suppliers and customers. Business owners in particular must consider whether it is ethical to do business with suppliers who have unethical practices. When dealing with customers or clients, business people must ensure that they use their information correctly, do not falsely advertise a product or service, and do not intentionally do sub-standard work.

Strategic misrepresentation is intentionally misstating facts in order to acquire a financialadvantage.Organizational schizophrenia is tension between competing goals or values.Groupthink is the decisions of a group that discourages individual creativity and responsibility.

From your own perspective, explain whether or not a corporation should have to function by thesame codes of morality that individual people in society have to abide by or if they should beallowed to get away with certain actions that people in society cannot get away with.It is a hard question to answer, everyone has different morals. For me I think that corporationsshould not be allowed to get away with doing anything morally wrong. They have to be heldliable for their action just like anyone else would be. If corporations don’t have the same codesof morality that people on society have then the people would feel like the corporations are betterthan they are and they would not want to do business with them. The customers are what makescorporations stay in business.

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