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Tim Smith is purchasing a business named Underground Shoes and Accessories near Lutz, Florida. The business has had several brushes with the law during the past few years, dealing with claims of false advertising and wrongful termination of employees. As a result, Smith is concerned about the ethical culture of the firm.
In this assignment, you will review the concept of ethics discussed in this module to critically evaluate the existing or potential ethical problems in Smith’s business and help him propose solutions to eliminate the problems.
Respond to the following points:
What specific techniques could Smith use to increase the emphasis on business ethics when he takes control of the firm? Explain.
Business ethics is very important when it comes to working in today’s business climate because as being more successful than the competition becomes the primary focus, more people feel the pressure to act unethically to get the wanted results. It is extremely important in Smith’s case to set clear expectations and lead by example. Employees must continuously be reminded of the importance of using ethics in the workplace by incorporating an ethics section into the employee handbook and also into training modules. This helps to keep them focused on doing what is right because they are aware of the consequences when it comes to making ethical decisions. Smith must walk the walk and lead by example because employees will watch their leaders in an effort to model their behavior. If they see the leader acting in ways that are unethical, they will think the behavior is acceptable.
What, in your opinion, can be done to improve the human resource management (HRM) of the firm, to avoid future legal problems?
I think it is very important for the firm to establish policies for ethical conduct in the workplace. These rules should be consistent at all levels in the organization, and there should be disciplinary actions in place for employees who violate any of the rules. Managers should be trained so they have a firm understanding of the policies because this will increase their ability to lead by example as well as train employees. This will ensure that everyone within the firm are acting consistently and in compliance with the policies in place.
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