Professional_Knowledge_and_Abilities

Professional Knowledge and Abilities Ethics Issues Business ethics is the moral regulations governing the business world. It is the set of behavior that companies adhere to in its daily dealings. It applies to all aspect of business conduct and is relevant to the conduct of individuals and business organization. The ethics of most business organization varies, but most apply not only on how a business interacts with the world, but also on their one-on-one dealing with a single customer. Several issues that affect today’s business environment and organizations include conflict of interest, customer confidence and use of company resources. Conflict of interest arises when judgment is compromised because of external influences. Conflict of interest occurs when a situation that has the potential to undermine the impartiality of a person because of the possibility of a clash between a person’s self-interest and professional-interest is present. An example is the case of Richard Parsons who is an advisor for Providence Equity Partners and chairman of the board of directors of Citigroup. Parson serves as a senior advisor for Providence Equity Partners, a large private equity firm and the chairman of the board of Citigroup, which is a huge lender for the firm. As a senior advisor, Parson could receive a bonus depending on how much money Providence Equity makes. As chairman of the board for Citigroup, Parson does not take part in any decision-making concerning Providence Equity; however he can influence subordinates to approve any financial deals filed by the firm. The next issue is customer confidence, which includes a range of topics such as confidentiality, product safety and effectiveness, truth in advertising, and special fiduciary responsibility (Trevino & Nelson, 2007). The reputation and ultimate success of a business is dependent largely in part on the integrity and quality of its services and products. For a company to gain customer trust and loyalty, it will need to place customer’s welfare and safety as top priority. An example is the recent accelerator pedal recall. Toyota learned their accelerator pedals malfunctioned in certain vehicles. The gas pedals were wearing prematurely and failing to return to their normal position. The occurrence and rate of malfunction remained unknown, but reports pointed to an increasing problem. The company had to assess its value and determine how to best respond to the situation. Toyota gave the order to recall over 2.3 million cars and trucks as well as stop assembly on current productions (USA Today, 2010). Toyota could have concealed the situation from the public and continue selling unsafe vehicles. Instead, it chose to act ethically for the safety of their customers despite the significant financial loss to the company. The last issue is the use of company resources. The ethical use of company resources is critical to the business profitability. However, access to these resources without accountability can lead to abuse or fraud. An example of unethical use of company resources is the case of Frank Winconek, former CEO and CFO of Eye Center Group in Delaware. Court documents related to the five counts of theft filed against Winconek indicate he allegedly used Eye Center-issued credit cards to steal tens of thousands of dollars. He is accused of overpaying himself $64,186, awarding himself two Christmas bonuses of $6,731 each, paying himself a management fee of $45,000 and spending $7,862 on ballroom dance lessons and tickets to the Indiana Roof ballroom (The Star Press, 2010). He used company funds for his own benefit and because of what he did the Eye Center suffered a major financial loss and laid-off employees. In conclusion, business ethics not only revolves around the set of rules and guidelines within an organization but also depends on the individual’s moral attitude. How people identify between what is right and wrong depends on the choices made as individuals. References USA Today. (2010). Toyota gas pedal recall could affect 2 million European-market vehicles. Retrieved from http://content.usatoday.com/communities/driveon/post/2010/01/toyota- pedal-recall-spreads-to-europe/1 Trevino, L. K. & Nelson, K. A. (2007). Managing Business Ethics (4th ed.). Hoboken, NJ: John Wiley & Sons, Inc., 77 The Star Press. (2010). Police seek former Eye Center officer. Retrieved from http://www.thestarpress.com/apps/pbcs.dll/article'AID=2010100204041