Business Ethics Task 1:
Organizational ethics and Corporate Social Responsibility
MILKMAN / Student ID #: XXXXX
A. Corporate Policies
To restrain from any misuse of TechFite funding, the human resources department will implement the following policies.
· Requirements of full-time employees: All employees with a full-time status are required to work a minimum of 36 hours per week; this is not to exceed more than 40 hour per week. If an employee works more than 40 hours per week, he/she is eligible to receive overtime compensation at indicated in the employee handbook. All full-time employees are eligible to receive company employee benefits. Any employee working less than 36 hours per week will be classified as a part-time employee and will be required to sign a change of status form acknowledging change of benefit.
· Bonus Distribution to Employees: TechFite will prohibit the distribution of bonuses to executive and leadership of the company. The company will use revenue assets to compensate all employees at the same percentage increase regardless of job titles and status. This will assist of equal opportunities within the company.
· Sponsorship and Company Participation of Community Events: The company will mandate the sponsorship of all community organizations. This policy will assure all executive attendance and sponsorship is present for organizations that would benefit from TechFite.
· The policy, Requirements of Full-Time Employees, will serve as a protection of all employee status. This policy will outline that full-time employees will no longer have a decrease of hours which could potentially harm the security of their employee benefits. This policy will also outline the proper communication and documentation required for any status changes. This will assure employee awareness of any benefit changes due to their status.
· The Bonus Distribution to Employees policy will grant equal opportunities and equal compensations to all employees. This policy will fully detail no preference will be given to higher executives for bonus compensations.
· The policy, Sponsorship and Company Participation of Community Events, will assure all executive attendance and sponsorship is present for organizations that would benefit from TechFit, which in return will increase the moral of the company within the community. This policy will indicate that sponsorship is not optional, yet mandatory.
A2. Ethical Versus Legal issues
· Not all ethical issues are illegal, as some do not cause a violation of governing law. The issues discussed were only unethical for employees and the community, but not criminal acts upon anyone. Unethical issues only become illegal actions when a legal law has been broken. In the case of TechFit only ethical beliefs were broken that affected employees and the community.
A3. Ethical Issues in the Scenario
· TechFite is currently experiencing the ethical issues concerning the organization’s core values, morality, and integrity. The company is not following by it’s standards and values towards their employees and the community. The core values of the company are being challenged by not assuring that all employees are one of the company’s top priority. Not providing them the appropriate compensation and decreasing the opportunity to receive all of the employee benefits challenged the loyalty of the company to their employees. The company’s morality towards employees and the community was not appropriate and did not look towards the best overall. The company itself only looked towards benefit the executives with higher positions. Each unethical decision made by TechFite will unfortunately play a role on the company. Many employees will assume that the company will not provide them t he best opportunities. The employees will be insecure about the company’s loyalty and whether it is capable of following the standards and core values it stands for.
A4. Purpose of the Ethics Officer
· The ethics officer serves as the leaders of an organization capable of identifying ethical and unethical issues within an organization. The duties and responsibilities of an ethics officer is to provide leadership for ethical concerns, to assure compliance is being followed by all members of the organization, as well as serving as a liaison between the organization, affiliates, and employees. The ethics officer contributes to assure that the company’s mission and vision are being met and no illegal acts are taking place. The ethics officer can ensure that a safe and professional environment is being provided to all of its employees. The ethics officer can assure compliance within an organization policies and standards by providing training to all of its employees including executives and leadership. The ethics officer can also implement deadlines for policy implementations as well as reviewing of existing policies. All policies can be written in terms for all employees to easily understand and follow.
B. Corporate Social Responsibility
· Corporate Social Responsibility (CSR) is a business practice which is incorporate into the business model of a company that can give a positive impact to the company itself, community, and environment. This is important as it provides the company an improved image and brand building. TechFite would benefit from being socially responsible, as it will give employees a sense of compliance of its core values and engagement within the community. The City of Dellberg and the TechFite employees benefit from the practice of CSR by being allowed the opportunity of growth and improvement of the environment and society. CSR will provide more work opportunities and better engagement and salary to their employees.
B1. Community Reputation
· TechFite did not provide all full-time employees their full-time scheduled hours, which in return placed at risk all employee benefits and compensations, and violations of company HR compliance.
· The company allowed for budget earnings to be used as bonuses to higher executives, which limited resources to its employees and the community.
· Techfite also failed to provide the assistance with monetary funding during and for community organizations and sponsorships.
B2. Course of Action
· In order to prevent from any violation of human resources compliance, the company will adopt a policy that clearly elaborates the requirements of all full-time employees, minimum hours, and employee compensations. This will assist with employee retention and recruitment.
· TechFite will have to implement a policy that fully executes no bonus pay for any higher executives from company earnings, which could lead to community growth as well as advancement for its employees.
· TechFite will be mandated to attend and sponsor all community events and youth programs that would benefit from its support. A policy will be created to assure that this is in compliance and that community involvement and engagement is present.
B3. Course of Action: Explanation
· TechFite can provide an ethical responsibility assuring that human resources compliance is met by securing the status of all full-time status employees and their benefits, based on their policy. This will aid in the ethical commitment of the company towards its employees.
· A social responsibility TechFite can provide is utilizing earnings to develop better resources for its current employees and the community rather than using the money as bonuses for higher executives.
· By committing its community involvement and engagement through sponsorship, TechFite will be environmentally responsible, as it will support influential growth. This will add acceptance of the company as a benefit to its community.