INTRODUCTION

This assignment seeks to look at “how ethical expectations

and public values shape business and society; therefore it

is important to state that values can be defined as those

things that are important to or valued by someone. That

someone can be an individual or, collectively, an

organization. Values are the embodiment of what a business

stands for, and should be the basis for the behavior of its

members. The same thing works at the level of the society.

The principles by which the society functions do not

necessarily conform to the principles stated. Those in power

may covertly allow the use of force to suppress debate in

order to remain in power. ("death squads" are an example.) In

some organizations, dissent may be rewarded by termination-

the organizational equivalent of "death squad" action. In

others, a group member may be ostracized or expelled.

Values and ethics are central to any organization; those

operating in the national security arena are no exception.

What exactly do we mean by values and ethics? Both are

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extremely broad terms, and we need to focus in on the

aspects most relevant for strategic leaders and decision

makers. What we will first discuss is the distinctive nature of

ethics for public officials; second, the forces which influence

the ethical behavior of individuals in organizations; and third,

explore the actions strategic leaders can take to build ethical

climates in their organizations.

ETHICS OF BUSINESS

Business ethics is the study of appropriate business policies

and practices regarding potentially controversial

subjects including corporate governance, insider trading,

bribery, discrimination, corporate social responsibility, and

fiduciary responsibilities. The law often guides business

ethics, but at other times business ethics provide a basic

guideline that businesses can choose to follow to gain public

approval.

Business ethics ensure that a certain basic level of trust

exists between consumers and various forms of market

participants with businesses. For example, a portfolio

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manager must give the same consideration to the portfolios of

family members and small individual investors. These kinds

of practices ensure the public receives fair treatment.

The concept of business ethics began in the 1960s as

corporations became more aware of a rising consumer-based

society that showed concerns regarding the environment,

social causes, and corporate responsibility. The increased

focus on so-called social issues was a hallmark of the decade.

Since that time period, the concept of business ethics has

evolved. Business ethics goes beyond just a moral code of

right and wrong; it attempts to reconcile what companies

must do legally versus maintaining a competitive advantage

over other businesses. Firms display business ethics in

several ways.

HOW ETHICAL EXPECTATIONS AND PUBLIC VALUES

SHAPE BUSINESS AND SOCIETY

It is true that society absolutely needs what the business

produces as they are what they eat, what they wear, what

they do, business gives not only product and services, it gives
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job and taxes without which no society would flourish, but

the business is in no way doing favor to the society. The

business operates in the society and use their resources. This

interdependence between the society and the business gives

rise to interactive social system where both need and

influence each other.

Business ethics are moral principles that guide the way a

business behaves. The same principles that determine an

individual”s actions also apply to business.

One of the theory that explains this relation between the

business and the society is the general system theory which

states that all organism is open to interact with the external

environment. It is this interaction that explains the

relationship between the variables and the organism.

In order for any organism to survive, it needs to be the part of

the system. Here, the organism refers to the company

whereas the external environment is everything beyond the

organization including the society. In order to survive, the

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business must interact with the environment, but that too is

not enough, more important that interacting is the ability to

adapt to the environments. If the people don’t find the

product feasible, they should change it; if people believe that

the new production line that the company set up is emitting

too much sound, they should relocate; a business is nothing

without its society and as such, the most logical thing to do

would be to adapt to the society.

Acting in an ethical way involves distinguishing between

“right” and “wrong” and then making the “right” choice. It is

relatively easy to identify unethical business practices. For

example, companies should not use child labour. They

should not unlawfully use copyrighted materials and

processes. They should not engage in bribery.

However, it is not always easy to create similar hard-and-fast

definitions of good ethical practice. A company must make a

competitive return for its shareholders and treat its

employees fairly. A company also has wider responsibilities.

It should minimise any harm to the environment and work in

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ways that do not damage the communities in which it

operates. This is known as corporate social responsibility.

Codes Of Behaviour

The law is the key starting point for any business. Most

leading businesses also have their own statement of Business

Principles which set out their core values and standards. In

Anglo American”s case, this is called “Good Citizenship”.

A business should also follow relevant codes of practice that

cover its sector. Many companies have created voluntary

codes of practice that regulate practices in their industrial

sector. These are often drawn up in consultation with

governments, employees, local communities and other

stakeholders. Anglo American has played an active part in

initiatives such as the Extractive Industries Transparency

Initiative, the United Nations Global Compact and the Global

Reporting Initiative.

Anglo American has also contributed to the Voluntary

Principles on Security and Human Rights. This code sets out

principles and practices for ensuring that a company”s need

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to ensure the security of its employees and operations in

volatile countries does not adversely impact upon the local

population. Thus the Principles provide guidance on how

both private and public security forces assigned to protect a

mining operation or an oil and gas facility should be vetted,

trained in human rights, monitored and controlled.

Anglo American also aims to ensure that it plays a role in

protecting the human rights of its employees and local people

in countries in which it operates. The company supports the

principles set forth in the Universal Declaration of Human

Rights.

All companies need to make a profit. However, Anglo

American recognises that this objective must take account of

ethics as shown in its statement on corporate responsibility:

“Though providing strong returns for our shareholders remains

our prime objective, we do not believe that these can or should

be achieved at the expense of social, environmental and moral

considerations. Indeed a long-term business such as ours will

only thrive if it also takes into account the needs of other

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stakeholders such as governments, employees, suppliers,

communities and customers.”

Stakeholders

An important process used is that of stakeholder

engagement. This enables it better to understand the

perspectives and priorities of external groups that are affected

by its activities and to factor them into its decision-making

processes.

This “toolbox” helps managers to measure the impact of

activities on the company and communities. It also helps to

improve a mine”s contribution to development through, for

example, using its supply chain needs to generate new

businesses or to improve the water or electricity

infrastructure. They use this toolbox to engage with

stakeholders including community representatives.

Sometimes communities have to be resettled, with

government sanction, in order for important mineral deposits

to be accessed. This can cause controversy and divisions in

the communities concerned. International best practice sets

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out a number of key stages in such a process including the

need for structured consultation, fair compensation and the

importance of restoring and enhancing the livelihoods of

people in their new locations.

CONCLUSION

Business ethics have developed into standards of moral and

ethical responsibility, not only in the United States but also

around the world. The demand for moral and ethical behavior

in all aspects of domestic and international business

communications and partnerships has encouraged the

development and evolution of business ethics.

The field of business ethics is not simple to define. The wide

range of industries and areas of social behavior that exist

between any business and the consumer or general public

complicate the field of business ethics. Business ethics can

be practiced in corporate offices, as well as local mom-and-

pop grocery stores.

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