The paper "Organizations Losing Their Reputation" is a brilliant example of a term paper on business. Recently, there is an increased focus on the conduct of businesses globally with society more concerned about business practices than ever before. Many people, inclusive of the developing world, have realized the potential that big corporations and businesses have in many aspects of life. In this regard, many cases of unethical behavior have increased over the last few decades especially with accelerated globalization. In addition, the conduct of business determines its corporate image, which subsequently affects the success of and firm.
When engaged in unethical conduct, businesses lose the trust of stakeholders, which could lead to reduced performance. Background Ethics have become increasingly important in business for several reasons. One of them is attracting investors to the company, attracting customers for the firm’ s products, attracting highly talented employees, retaining, and establishing loyalty of existing staff. In addition, it ensures that organizations act within moral values that benefit people instead of hurting. Such reasons and the ability of people within the society to coordinate actions against unethical business practices using the internet and other sources of information have made it possible for businesses to lose their reputations globally (Kibert 2012). Summary of Article The article gave examples of organizations losing their reputation such as ANZ Westpac, National Australia Bank, and the Commonwealth Bank, which recently have had to defend themselves over allegations of unethical practices in overseas markets, such as Cambodia.
Some of these practices as reported in the news article, Banks Accused with Unethical Overseas Practices by Abby Dinham, include land grabbing, exploitation of child labor, and unapproved logging.
In their practices to develop the area, the banks have hurt so many people who have been forced to vacate their land, while some of the children are risking educations. In addition, by logging the forests to clear land for agriculture, they are damaging the environment, which is a major global issue (Dinham 2014). These practices have seen activist groups engage in a battle to stop the four biggest Australian financial institutions from ruining people’ s lives in other countries. Although the four banks have engaged in other corporate social responsibilities including funding development projects in other countries, they have remained under tight scrutiny from activists and the general population.
Currently, the main problem is arising from funding the projects that have contributed to unethical practices in the developing areas in Asia. According to Dinham, “ An Oxfam Australia report claims that ANZ, Westpac, National Australia Bank, and the Commonwealth Bank are affiliated with organizations reportedly involved in illegal logging, forced evictions, inadequate compensation, and child labor, ” (Dinham 2014). This report will examine the four banks that are under scrutiny in the overseas market as reported in the news article using ethical theories and steps in solving the problem facing the management.
The ethical theories involved are relative ethics theory, universal ethics, utilitarianism, and care ethics. In addition, it will address several steps that the management of the four banks could use in solving the problem. The theories act as a qualitative research methodology for examining the current situation.
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