Shareholder supremacy is a concept that emerged in the 1970s as businesses sought to maximize gains for their investors. However, the notion of driving businesses toward making revenue without considering its implications on other sectors and society has met scrutiny due to increased organizations’ inclination toward their corporate social responsibilities. Business institutions are made of several other players including community members, staff, administrators, laborers, and managers. On that account, focusing on maximizing profits to please investors can result in neglecting other stakeholders, thus creating barriers to success and sustainability.
The environment is a major stakeholder in business organizations because it provides the resources required to ensure continuous production and civic improvements. Nevertheless, some organizations take advantage of their economic success or powers over national governments, enabling them to harm environmental resources. Destroying the environment is a violation with adverse implications, especially for future generations since it may render the earth inhabitable. As a result, environmental sustainability should be at the top of all business initiatives to protect natural resources, enhance bio-diversity, and ensure that everyone thrives in their environment.
Completing chapter four of the course has exposed me to valuable information about why most governments fail to address rising concerns of pollution and human rights issues by global organizations despite making promise to citizens. Some developing nations significantly depend on these organizations economically while others have several gaps in their systems due to corruption. As a result, they can hardly deliver and allow these organizations to prosper at the cost of their counties future. Instead of neglecting people, governments should take charge of protecting their resources by setting up strict regulations against human and environmental vices and taking action on organizations that do not adhere to stipulations.
Business managers and administrators face difficult decision-making obligations because of the complexities associated with running a business. As a result, business ethics is critical to ensure positive outcomes as morality and integrity are central to successful management. However, culture plays a major role in institutional practices as it dictates how people relate. For example, an organization whose culture encourages open communication and sharing information allows employees to participate in making critical decisions and improving organizational prospects. Thus, a culture that prioritizes ethical conduct can ensure a supportive environment for development.
It is crucial to note that culture and ethics are attributes that change over time due to increased individual awareness, changing preferences, and interpersonal interactions. For example, smoking was a social norm in the early 19th century as people were allowed to smoke in public places and private institutions. However, smoking significantly decreased in the mid-19th century after people were informed of its health risks as most governments banned the habit in official buildings and enclosed areas. Similarly, the human race has evolved through several changes, thus allowing them to alter their perceptions about what constitutes acceptable habits and vices.
This chapter informed me that all individuals share diverse experiences, have varying preferences, and associate with factors that shape their beliefs and culture. In particular, religion contributes to people’s values and their levels of morality because it offers guidance on what is wrong and right. Therefore, business organizations can take advantage of such constructs to promote ethical behaviors in their institutions and assure positive developments for all stakeholders. In addition, managers should learn how to shape organizational cultures by accepting others’ beliefs and guiding them toward meeting the organization’s short and long-term objectives.