Ethics in Business Administration (Essay Sample)

Ethical Leadership
Student's Name
Institutional Affiliation
Ethical leadership
Introduction
The article analyzes a report prepared by the administrator of Paradigm Toys to the Board of Directors explaining the ethical climate in the organization, the corporate social responsibility, why it is important for the company to offer training for ethics and the ethical use of the company's information technology assets. Ethics is a discipline that deals with what is good or bad, right or wrong, or moral duty and obligation. As applied by management, ethics refers to the concept of interactive responsibility. Managerial ethics could apply to the relationships between the firm and the employees, employees and the firm and the firm and its environment.
Leadership Powers
The first section explains the most suitable power to be applied by the company to establish an ethical climate. There are four types of powers; firstly, the legitimate power also called positional power. The power derives from the person's formal position in an organization. Secondly is the coercive power, which tends to influence the employees with threats and punishment such as firing and charge fines to the employees if they do not attain their objectives. The Reward power motivates the employees to improve their performance (Cooper, Gustafson, & Salah 2014). Expert power refers to the ability of a manager to influence the team members using his knowledge skills and expertise in a particular field
The ability to influence other people using your skills, knowledge, and expertise in a particular field is referred to as the expert power. This kind of power depends on more your personal skills. Therefore, to use this power consistently, one should keep on enhancing his skills. One good thing about this type of power is that it is not dependent on your formal position. Finally, referent power is the power derived from the relationship between the employees and the management. It is the suitable power for Paradigm Toys to create an ethical environment. The management using the referent power is able to bring the best out of an employee because of the strong relationship between them.
Company Stakeholders
The primary stakeholders that are likely to influence the company include the shareholders and the employees. The secondary stakeholders include the government and the community. The company has an economic responsibility to the shareholders and the employees by ensuring that the company is profitable and rewards them in terms of dividends and benefits. It also owes an ethical responsibility to the shareholders and the employees by ensuring they do what is ethically and morally right to enhance the relationship between the firm and the primary stakeholders (Ciulla, Uhl-Bien, & Werhane 2013). In addition, the firm owes the government legal responsibility by ensuring it abides with the set laws. Finally, it owes a discretionary responsibility to the community, which involves donations to the philanthropies to facilitate better standards of living of the society.
Ethics Audit
The ethical Audit is a verifiable process that measures the culture and the behaviors of an organization and determines the extent to which its values are rooted in its people and processes. The audit of ethics in the Paradigm Toys would encourage such values as operating fairly and honestly. It will be able to avoid conflicts of interests, fight corruption and bribery, and comply with the applicable laws and regulations (Ciulla, Uhl-Bien, & Werhane 2013). In addition, the firm will act with integrity and provide a healthy, clean, and safe working environment. Through its social responsibility, the firm will be able to protect the environments and the communities that surround it. Finally, the company will be in a position to abide by the principle of confidentiality, maintain proper books of account, and ensure the provision of quality customer services.
Balanced Scorecard
The company may use the balanced scorecard to evaluate the performance of its executives. Drs. Kaplan Robert and David Norton designed the balanced scorecard. A performance measurement framework adds strategic and non-financial performance measures to traditional financial metrics with an objective of giving the managers and executives a more balanced view of the performance of the company (Tuominen, Malmberg, & Rampersad 2011). The paradigm may develop objectives that meet the four perspectives of the balanced scorecard. They include the financial perspective, which refers to the improvement, management, and measurement of the company's performance. The management may lay down the expected revenues, profit margins, the dividends, and the ways in which it may minimize its costs.
The second perspective refers to the operational priorities that will evaluate how well the company has been able to respond to the customer's needs and how well the business is operating. Besides, the company would consider factors that will enhance the public perception of the organization and how to increase customer satisfaction through provision of quality products and services. This perspective is known as the customer perspective. Finally, Paradigm Toys would set objectives that attempt to maximize the improvement of both the individual and the company through the learning and growth perspectives.
Corporate Social Responsibility
The corporate social responsibility for a company is the concept of social responsiveness. The ability of a company to relate its operations and policies to the social environment in a manner that is mutually beneficial to the economy and the society (Haerens, & Zott 2014). Companies that embrace Corporate Social Responsibility is able to engage their employees differentiate their products, encourage innovation, minimize their cost