Business ethics and social responsibility plan c8. The importance of ethics in business

One of the distinguishing features of the evolution of entrepreneurship has become the highlighting of such attributes as ethics and social responsibility. Moreover, at the current historical stage, these attributes have turned into factors on which the commercial success of an entrepreneur largely depends. These properties are commonly referred to as business attributes. Considering, however, that there are no significant differences between business and entrepreneurship, then we link these signs with both terms.

Ethics of entrepreneurship - This is a type of business behavior that meets the set of rules and norms of management accepted in society. An entrepreneur's behavior will be ethical if it is in line with accepted norms and unethical if it does not. In the modern interpretation, such entrepreneurial conduct is recognized as ethical, which is based on openness, honesty, loyalty to one's word, respect for laws and the ability to conduct business (ensure the efficient use of resources).

One of the most important characteristics of entrepreneurial ethics, arising from the universal ethics, is that it is based on the totality of the individual's personal beliefs regarding the correctness of his own actions or behavior. This means, firstly, that entrepreneurial ethics is the result of ethical principles that have been formed under the influence of the national, religious, social and personal values \u200b\u200bof the individual, and, secondly, that adherence to accepted norms is voluntary. At the same time, according to M. Weber's interpretation, such entrepreneurial activity will be ethical if it is carried out not for the sake of maximizing personal consumption, but as a virtuous activity, and where wealth is viewed not as a source of luxury and power, but as evidence of a job well done.

At the same time, the development of the principles of entrepreneurial ethics is also under the influence of the social and moral attitude towards the business itself. Practice shows that ethical principles of entrepreneurship are formed in those societies where entrepreneurial activity is viewed as morally justified and socially useful. In this case, the decisive role is played by the presence of an optimal balance of obligations and individual rights. In the sense that if a sense of duty forces you to work honestly and hard, then rights protect against encroachment on the results of labor.

At the same time, the issue of entrepreneurial ethics should not be considered outside the context of the conditions for the implementation of entrepreneurship, the essence of which boils down to the possibility or impossibility of implementing the entrepreneurial function. This determinant of entrepreneurial ethics is fundamentally different in its role from those discussed above. The essence of the difference is as follows. The totality of personal ethical values \u200b\u200band the moral and ethical sanction of entrepreneurship determine the content side of entrepreneurship ethics. However, the potential for the implementation of the entrepreneurial function determines the degree to which the entrepreneur will follow the accepted norms of entrepreneurial ethics. And the entrepreneur will follow his ethical values \u200b\u200bonly to the extent that this does not interfere with the implementation of his entrepreneurial functions and, above all, those through which the extraction of benefits is ensured.

As business practice shows, the degree of ethical behavior of entrepreneurs is determined by two circumstances. The first is the nature of the conditions (environment) in which entrepreneurship is carried out. It defines the principles of remuneration for entrepreneurs. The second circumstance is the effectiveness of public (state) sanctions for violation of established rules and norms. Therefore, entrepreneurs behave ethically not where education is higher and education is better, but where the “ax” of social sanctions is working more intensively. In countries, for example, in Germany, where the use of phosphates (an extremely toxic substance that damages health and the environment) is prohibited, firms produce phosphate-free washing powders. However, the same firms and under the same trademarks produce and sell washing powders with phosphates in countries where it is not prohibited by law, for example, in Russia. The moral is simple: what is not prohibited is allowed. This means that entrepreneurs apply the type of ethics that suits them, i.e. does not interfere with making a profit.

A business that is focused on interacting with society is a model that has become quite popular in developed countries. On the territory of the CIS, this approach to their own business is only gaining momentum, but still moving in the direction of development.

Benefits of social entrepreneurship

Before considering in detail such a topic as the social responsibility of business, it is worth paying attention to both the advantages and disadvantages of this model of interaction between entrepreneurs and society.

It makes sense to start with positive edges. First of all, these are more long-term and more favorable prospects for this business format compared to the usual model of activity, which does not take into account the interests of society. If a particular company has a noticeable positive impact on the everyday life of the residents of the region in which it is located, then the loyalty from the representatives of the target audience grows significantly, and the brand becomes more recognizable and associated with a positive image. It is obvious that such processes are beneficial for any company.

Continuing the topic of perspective, it makes sense to pay attention to the fact that in a society that can be called prosperous, favorable conditions are created for the stable development of business. An obvious conclusion follows from this: even tangible short-term costs associated with social activity can stabilize profit growth in the future.

Public expectations

Another positive factor that the economic social responsibility of business implies is meeting the expectations of the general public. When businesses are involved in solving social problems, they are actually doing what the public already expects of them. In other words, the company is expected to be active, and when expectations are met, loyalty to the company again moves to a new level.

To explain this perception of business by the public is quite simple - people always expect help from those who are able to provide it. And who can help if not entrepreneurs who own significant funds.

The change in the moral character of the enterprise can be defined as a reinforcing positive facet of the social activity of business. It is both about the perception of the company by the society and about changing the philosophy of the employees themselves. The enterprise, in fact, is a part of society and, therefore, cannot ignore its problems.

Possible disadvantages

First of all, you need to pay attention to the fact that the principle of maximizing profit is violated. In other words, the income of the enterprise becomes less due to the constant allocation of a certain part of funds to social projects. In order to compensate for such losses, companies are raising prices, which is already a negative consequence for consumers.

The second disadvantage worth paying attention to is the insufficient level of knowledge and experience to effectively overcome social problems even with the fact of funding in the required amount. At the moment, various organizations have enough employees with high qualifications in the field of economics, technology and the market. But many of them are not trained to work effectively with society. As a result, the company spends finances, but does not achieve its goals in the field of assistance to society.

The third negative side hidden by the process of introducing an orientation to the problems of society in business is the lack of accountability to the general public of the managers themselves and persons performing the functions of managers in the company. As a result, with competent control of the economic indicators of the enterprise, the process of social involvement does not receive due attention.

Social responsibility of business in Russia

This issue has been one of the most pressing in Europe for several years now, and more and more attention is paid to it in Russia. At the same time, on the territory of the CIS, the process of origin and development of this phenomenon had some differences in comparison with the experience of Western companies. If in Europe and the USA the degree of responsibility of business representatives to society was influenced by the society itself, then in the territory of the post-Soviet space the situation looked somewhat different. The social responsibility of business in Russia was the result of an initiative taken by market leaders in various segments.

As for the first steps in this field, they were made in the mid-90s. It was then that the first codes were fixed, implying the presence of a certain ethics of companies. An example is the Code of Honor for members of the Russian Guild of Realtors or the Code of Honor for Bankers.

If you look at the fact of what the social responsibility of business looks like in Russia today, you will notice that in the overwhelming majority of areas of entrepreneurial activity, professional codes of ethics have been adopted. And many companies are already developing them. That is, the issue of the relationship between business and society is not deprived of the attention of Russian entrepreneurs.

In order to keep the bar high, various corporate ethics commissions are organized in the above direction.

What determines the ethics and social responsibility of business

If we talk about Russia, then it is worth paying attention to such factors as the expansion of the sales market for large domestic companies. It is about trading outside the country. The result of such activities is the need to take into account the requirements of foreign partners. Those, in turn, pay attention to the fact that business transparency should be maximized.

But there are other reasons why the social responsibility of business within the CIS is constantly moving in the direction of development.

First of all, it is necessary to touch upon the peculiarities of the mentality of the CIS population and the traditions of corporate governance. These are the following factors:

Rather high social expectations against the background of low activity of the population.

An assessment of a particular employee or group of employees is not so much on productivity as on loyalty to management.

The low degree of adequacy of the media in relation to the efforts of Russian business representatives aimed at supporting society.

Linking an employee to a specific company by providing the latter with access to social institutions that belong to the organization or cooperate with it (sanatoriums, hospitals, kindergartens, etc.). At the same time, wages remain low.

The social responsibility of Russian business is still moving towards formation for reasons related to both historical and geographical factors. First of all, this is a large territory of the country and, as a result, a significant distance from each other of many settlements. Do not forget also about the fact that the bulk of capital is concentrated in regions characterized by a low level of development and difficult climatic conditions. This is the northern part of the country, where aluminum, oil, gas and nickel are mined.

Political and social factors

This group of processes influencing the philosophy of business in Russia deserves special attention.

We are talking about the following features of Russian life:

a significant spread of many social problems in the regions;
pressure from the authorities on companies regarding the allocation of those resources for various projects that have nothing to do with the interests of the company;
tangible level of poverty in different regions;
corruption;
lack of the necessary state infrastructure and experience as such to overcome a number of pressing problems (an increase in the number of homeless people, drug addiction, AIDS, etc.).

If we analyze the research conducted, we can come to the conclusion that the development of social responsibility of business in Russia is not at a high level. We are talking about the opinion of the Russians themselves: 53% of the respondents in the research process believe that at the moment business cannot be called socially oriented. Of the top managers who participated in the polls, only 9% believe that the social responsibility of business in the CIS can stimulate an increase in competitiveness, and the corresponding reports will be a vivid demonstration of the open policy of organizations.

It is worth mentioning the fact that after analyzing more than 180 of the above reports, a rather vivid picture has formed: large and medium-sized businesses cannot boast of a dynamic development of social responsibility.

Public opinion

Many Russians pay attention to how the social responsibility of modern business is developing in the post-Soviet market. And if we analyze the ideas that citizens have managed to form about the responsibility of companies to society, then we can distinguish three key positions:

Corporate social responsibility is work aimed at overcoming various problems in society. In this case, the so-called moral consequence of wealth ownership is determined as a motive.
According to the second position, the social responsibility of business is nothing more than the production of products, paying taxes and making a profit.
The third position includes elements of the second, but at the same time considers the participation of companies in various social programs as a manifestation of responsibility to society.

In any case, it is obvious that the population expects representatives of Russian business to be active in their interaction with society. Such activity can be expressed in training and retraining of personnel, creating new jobs, supporting public organizations, various initiatives, etc.

What the ethics of organizations should look like

In order to clearly understand what is the ethics and social responsibility of business, you need to consider the essence of this phenomenon and the methods of its application in developed countries. This will help to more objectively assess the state of this process in Russia. Initially, the following should be noted: the focus of business representatives on interaction with society is one of the core problems in the globalization process. This confirms the fact that the representatives of the so-called Club of Rome are making a lot of efforts to provide a qualitative influence on the formation of the international concept of social responsibility of business. This organization includes both European scientists and entrepreneurs.

At the same time, the main emphasis is placed on the priorities set forth in the Global Compact: these are labor legislation, environmental safety and, of course, human rights.

The very same ethics and social responsibility of business are reduced to the following concept: a corporation / company should have planned development in three interrelated aspects. It is about social programs, ensuring the profitability of the organization and caring for the environment.

Inevitable difficulties

It is not difficult to come to the conclusion that the principles that contain the social responsibility of business, organizations and companies should be defined as obvious and followed by them. But not everything is as simple as it might seem at first glance.

Many companies are bogged down in various strategic and technical management issues. These include the solution of the following tasks:

periodic attempts to convince investors that new long-term investments are needed;
maintaining harmonious, as far as possible, relations with local authorities, while staying away from the constant solution of complex neglected problems;
maintaining competitiveness against the background of significantly increased social costs.

Finding effective solutions for this complex of problems is not so easy. For this reason, experience and knowledge within the framework of the topic “problems of social responsibility of business” are in great demand in the post-Soviet space.

Actual approaches

If you pay attention to the form of implementation of the responsibility of entrepreneurs to society, you will notice that it has changed significantly.

Previously, the preference was given to a strategy according to which the most priority was the correct management of the enterprise and compliance with legal regulations.

Now everything looks a little different. First of all, social responsibility is expressed in taking into account the interests of that group of society that affects the functioning of the organization and is in the zone of its influence. The consequence of this approach is to change the social contract and understand it as such. That is, in addition to employees and business owners, all interested parties are taken into account who in any way affect the work of the company.

Such a concept forms a vision of interaction with society that is different from that of shareholders. Even a cursory analysis reveals the practical value that such a social responsibility of business carries. Approaches that have a right to exist and are capable of producing the desired results should be designed to work with the maximum number of social groups, which implies taking into account their interests.

For example, the fact of closing an enterprise will be considered from the standpoint of benefits or losses not only of shareholders, but also of suppliers, local people, workers and consumers. This approach is truly responsible in relation to society.

Conclusion

The problem of social responsibility of business in Russia is definitely a place to be. But in order to get a really decent level of interaction between companies and society, it is necessary to summarize the experience of domestic companies in this segment and conduct relevant research on an ongoing basis. In addition, it will be extremely difficult to implement the strategy of entrepreneurs' responsibility to society if the level of corruption does not decrease, moreover, it is noticeable.

Introduction

The theme of my test work: "Social responsibility and business ethics: formation, development, practical application."

Business ethics as an applied field of knowledge emerged in the United States and Western Europe in the 1970s. However, the moral aspects of business have attracted researchers already in the 60s. The scientific community and the business world have come to the conclusion about the need to raise the "ethical consciousness" of professional businessmen in their business operations, as well as the "responsibility of corporations to society." Particular attention was paid to the increasing incidence of corruption, both among the government bureaucracy and among senior officials of various corporations. A certain role in the development of business ethics as a scientific discipline was played by the famous Watergate, in which the most prominent representatives of the administration of President R. Nixon were involved. By the early 1980s, most business schools in the United States, as well as some universities, had incorporated business ethics into their curricula. Currently, the course on business ethics is included in the curricula of some Russian universities.

There are two main points of view on the relationship between general human ethical principles and business ethics: 1) the rules of ordinary morality do not apply to business or to a lesser extent .; 2) business ethics is based on universal universal ethical standards (to be honest, do no harm, keep your word, etc.), which are concretized taking into account the specific social role of business in society. Theoretically, the second point of view is considered more correct.

The issues of the relationship between ethics and economics have recently begun to be actively discussed in our country.

The purpose of the test is to address issues of social responsibility and business ethics.

Tasks: 1) social responsibility formation, development,

practical use.

2) business ethics formation, development, practical

application.

Question number 1. Social responsibility and business ethics: formation, development, practical application

The role of business in society

Social policy is one of the most important directions of state regulation of the economy. It is an organic part of the internal policy of the state, aimed at ensuring the well-being and all-round development of its citizens and society as a whole. The significance of social policy is determined by its influence on the processes of reproduction of the labor force, increasing labor productivity, educational and qualification level of labor resources, on the level of scientific and technological development of productive forces, on the cultural and spiritual life of society. Social policy aimed at improving working and living conditions, developing physical education and sports, reduces the incidence of diseases and thereby has a tangible effect on reducing economic losses in production. As a result of the development of such systems in the social sphere as public catering, preschool education, it frees part of the population from the household sphere, and employment in social production increases. Science and scientific support, which determine the prospects for the country's economic development, are also part of the social sphere and their development, and efficiency is regulated within the framework of social policy. The social sphere not only regulates the processes of employment of the population, but is also a direct place of employment and provides jobs for millions of people in the country.

The main tasks of social policy are:

1. Harmonization of public relations, coordination of the interests and needs of individual groups of the population with the long-term interests of society, stabilization of the socio-political system.

2. Creation of conditions for ensuring the material well-being of citizens, the formation of economic incentives for participation in social production, ensuring equality of social opportunities to achieve a normal standard of living.

3. Ensuring social protection of all citizens and their basic social and economic rights guaranteed by the state, including support for low-income and poorly protected groups of the population.

4. Ensuring rational employment in society.

5. reducing the level of criminalization in society.

6. Development of sectors of the social complex, such as education, health care, science, culture, housing and communal services, etc.

7. Ensuring the environmental safety of the country.

The social responsibility of a business is doing business in accordance with the norms and laws adopted in the country where it is located. These are job creation. This is charity and the creation of various funds to help various social strata of society. This is to ensure the protection of the environment of their production, and many other things that support the social status in the country.

Business takes over the functions of the state and this is called social responsibility. This is primarily due to the lack of an appropriate state policy in the field of social responsibility of business. The state itself cannot determine the model of relationships with business.

There are two points of view on how organizations should behave in relation to their social environment in order to be considered socially responsible. According to one of them, an organization is socially responsible when it maximizes profits without violating laws and government regulations. From these positions, the organization should pursue only economic goals. According to another view, an organization, in addition to its economic responsibility, must take into account the human and social aspects of the impact of its business activities on workers, consumers and the local communities in which it operates, as well as make some positive contribution to solving social problems in general.

The concept of social responsibility is that an organization fulfills the economic function of producing products and services necessary for a society with a free market economy, while ensuring both work for citizens and maximum profits and rewards for shareholders. According to this perspective, organizations are accountable to the society in which they operate, in addition to and beyond ensuring efficiency, employment, profit and not breaking the law. Organizations should therefore channel some of their resources and efforts through social channels. Social responsibility, in contrast to legal, implies a certain level of voluntary response to social problems on the part of the organization.

The controversy over the role of business in society has generated arguments for and against social responsibility.

Arguments for social responsibility

Long-term business-friendly prospects. Enterprise social action that improves local community life or eliminates the need for government regulation can be in the self-interest of enterprises because of the benefits of community participation. In a society that is more prosperous from a social point of view, conditions are more favorable for business activities. In addition, even if the short-term costs of social action are high, they can drive profits in the long term as a more attractive business image is formed for consumers, suppliers and the local community.

Changing needs and expectations of the general public. Business-related social expectations have changed radically since the 1960s. To narrow the gap between new expectations and the real response of enterprises, their involvement in solving social problems becomes both expected and necessary.

Availability of resources to assist in solving social problems. Since business has significant human and financial resources, it should transfer part of them to social needs.

A moral obligation to behave in a socially responsible manner. An enterprise is a member of society, therefore moral norms should also govern its behavior. The enterprise, like the individual members of society, must act in a socially responsible manner and contribute to strengthening the moral foundations of the society. Moreover, since laws cannot cover all situations in life, businesses must act responsibly in order to maintain a society based on order and rule of law.

Arguments against social responsibility

Violation of the principle of maximizing profit. The direction of part of the resources for social needs reduces the impact of the principle of maximizing profit. The company behaves in the most socially responsible way, focusing only on economic interests and leaving social problems to state institutions and services, charitable institutions and educational organizations.

Social Inclusion Spending. Funds allocated for social needs are costs for the enterprise. Ultimately, these costs are passed on to consumers in the form of price increases. In addition, firms that compete in international markets with firms in other countries that do not incur social costs find themselves at a competitive disadvantage. As a result, their sales in international markets are reduced, which leads to a deterioration in the US balance of payments in foreign trade.

Insufficient level of reporting to the general public. Since managers are not elected, they are not accountable to the general public. The market system controls the economic performance of enterprises well and badly controls their social involvement. Until the society develops a procedure for direct reporting of enterprises to it, the latter will not participate in social actions for which they do not consider themselves responsible.

Lack of ability to solve social problems. The staff of any enterprise is best prepared for activities in the fields of economy, market and technology. He lacks the experience to make meaningful contributions to solving social problems. The improvement of society should be promoted by specialists working in the relevant government agencies and charitable organizations.

Social responsibility in practice

Research on the attitude of executives towards corporate social responsibility shows a clear shift towards greater corporate social responsibility. The executives surveyed believe that the pressure to increase corporate social responsibility is real, important, and will continue. Other studies have shown that senior management in firms has begun to volunteer in local communities.

The biggest obstacle to social responsibility program development, executives cite the demands of frontline workers and managers to increase earnings per share on a quarterly basis. The desire to increase profits and revenues as soon as possible is forcing managers to refuse to transfer some of their resources to programs driven by social responsibility. Organizations are taking numerous steps towards voluntary participation in society.

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Introduction

The topic of my test work: "Social responsibility and business ethics: formation, development, practical application."

Business ethics as an applied field of knowledge emerged in the United States and Western Europe in the 1970s. However, the moral aspects of business have attracted researchers already in the 60s. The scientific community and the business world have come to the conclusion that it is necessary to raise the "ethical consciousness" of professional businessmen in their business operations, as well as the "responsibility of corporations to society." Particular attention was paid to the increasing incidence of corruption, both among the government bureaucracy and among senior officials of various corporations. A certain role in the formation of business ethics as a scientific discipline was played by the famous Watergate, in which the most prominent representatives of the administration of President R. Nixon were involved. By the early 1980s, most business schools in the United States, as well as some universities, had incorporated business ethics into their curricula. Currently, the course on business ethics is included in the curricula of some Russian universities.

There are two main points of view on the relationship between general human ethical principles and business ethics: 1) the rules of ordinary morality do not apply to business or to a lesser extent .; 2) business ethics is based on universal universal ethical standards (be honest, do no harm, keep your word, etc.), which are concretized taking into account the specific social role of business in society. Theoretically, the second point of view is considered more correct.

The issues of the relationship between ethics and economics have recently begun to be actively discussed in our country.

The purpose of the test is to address social responsibility and business ethics.

Tasks: 1) social responsibility formation, development,

practical use.

2) business ethics formation, development, practical

application.

Question number 1. Social responsibility and business ethics: formation, development, practical application

Social policy is one of the most important directions of state regulation of the economy. It is an organic part of the internal policy of the state, aimed at ensuring the well-being and comprehensive development of its citizens and society as a whole. The significance of social policy is determined by its influence on the processes of reproduction of the labor force, increasing labor productivity, educational and qualification level of labor resources, on the level of scientific and technological development of productive forces, on the cultural and spiritual life of society. Social policy aimed at improving working and living conditions, developing physical education and sports, reduces the incidence of diseases and thus has a tangible effect on reducing economic losses in production. As a result of the development of such systems in the social sphere as public catering, preschool education, it frees part of the population from the household sphere, and employment in social production increases. Science and scientific support, which determine the prospects for the country's economic development, are also part of the social sphere and their development, and efficiency is regulated within the framework of social policy. The social sphere not only regulates the processes of employment of the population, but is also a direct place of employment and provides jobs for millions of people in the country.

The main tasks of social policy are:

3. Ensuring social protection of all citizens and their basic social and economic rights guaranteed by the state, including support for low-income and poorly protected groups of the population.

4. Ensuring rational employment in society.

5. reducing the level of criminalization in society.

6. Development of branches of the social complex, such as education, health care, science, culture, housing and communal services, etc.

7. Ensuring the country's environmental safety.

Social responsibility of a business is doing business according to the norms and laws adopted in the country where it is located. These are job creation. This is charity and the creation of various funds to help various social strata of society. This is to ensure the protection of the environment of its production, and much more to maintain the social status in the country.

The concept of social responsibility is that an organization fulfills the economic function of producing products and services necessary for a society with a free market economy, while ensuring both work for citizens and maximum profits and rewards for shareholders. According to this perspective, organizations are accountable to the society in which they operate, in addition to and beyond ensuring efficiency, employment, profit and not breaking the law. Organizations should therefore channel some of their resources and efforts towards social channels. Social responsibility, in contrast to legal, implies a certain level of voluntary response to social problems on the part of the organization.

The controversy over the role of business in society has generated arguments for and against social responsibility.

Availability of resources to assist in solving social problems. Since business has significant human and financial resources, it should transfer part of them to social needs.

Research on the attitude of executives towards corporate social responsibility shows a clear shift towards greater corporate social responsibility. The executives surveyed believe that pressure to increase corporate social responsibility is real, important, and will continue. Other studies have shown that senior management in firms has begun to volunteer in local communities.

The biggest obstacle to social responsibility program development, executives cite the demands of line workers and managers to increase earnings per share on a quarterly basis. The drive to increase profits and revenues as soon as possible is forcing managers to refuse to transfer some of their resources to programs driven by social responsibility. Organizations are taking numerous steps towards voluntary participation in society.

Business ethics

Business ethics as an applied field of knowledge emerged in the United States and Western Europe in the 1970s. However, the moral aspects of business have attracted researchers already in the 60s. The scientific community and the business world have come to the conclusion about the need to raise the "ethical consciousness" of professional businessmen in their business operations, as well as the "responsibility of corporations to society." Particular attention was paid to the increased incidence of corruption both among the government bureaucracy and among senior officials of various corporations. A certain role in the formation of business ethics as a scientific discipline was played by the famous Watergate, in which the most prominent representatives of the administration of President R. Nixon were involved. By the early 1980s, most business schools in the United States, as well as some universities, had incorporated business ethics into their curricula. Currently, the course on business ethics is included in the curricula of some Russian universities.

Business ethics has developed three main approaches to moral problems of business, based on three ethical directions: utilitarianism, deontic ethics (ethics of duty) and "ethics of justice". Presented in the works of American scientists M. Valazquez, J. Rawls, L. Nash, they can be summarized as follows.

The word "ethics" (Greek ethika, from ethos - custom, disposition, character) is usually used in two senses. On the one hand, ethics is a field of knowledge, a scientific discipline that studies morality, ethics, their emergence, dynamics, factors and changes. On the other hand, ethics is understood as the totality of moral rules in a particular area of \u200b\u200bhuman or organization behavior. Aristotle was the first to use this term as a designation for a special area of \u200b\u200bknowledge. The concept of "ethos" denotes the agreed rules and patterns of everyday behavior, way, lifestyle of any community of people (class, professional group, social stratum, generation, etc.), as well as the orientation of any culture, the hierarchy adopted in it values.

The direct connection of ethics with life practice is well traced in the sphere of so-called professional ethics, which is a system of moral requirements for a person's professional activity. One of the types of professional ethics is business ethics. It arose relatively late on the basis of a common labor morality. In turn, the main place in the ethics of business relations is occupied by the ethics of business (entrepreneurship). It includes management ethics (managerial ethics), business communication ethics, conduct ethics, etc.

Business - proactive economic activities carried out both at the expense of their own and borrowed funds at their own risk and responsibility, the purpose of which is the formation and development of their own business for making a profit and solving social problems of the entrepreneur, labor collective, society as a whole.

Business ethics - business ethics based on honesty, openness, loyalty to the given word, the ability to function effectively in the market in accordance with the current legislation, established rules and traditions.

Two main points of view of business ethics principles:

the rules of ordinary morality do not apply to business, or to a lesser extent. This point of view corresponds to the concept of the so-called ethical relativism, according to which each reference group (that is, a group of people, on whose opinion a given subject is guided about his behavior) has its own special ethical norms;

Business ethics is based on universal universal ethical norms (to be honest, do no harm, keep your word, etc.), which are concretized taking into account the specific social role of business in society.

The problems of business ethics are as old as entrepreneurship. However, they have acquired special acuteness in our time, when the market has changed dramatically, from fierce competition has become fierce. Now all over the world, issues of business ethics are widely studied, serve as the subject of scientific discussions and forums, are studied in many higher and secondary educational institutions that provide training for the labor market.

The importance of ethics in business

Experts believe that the concept of "business ethics" has come into widespread use relatively recently - as a result of the globalization of the economy, an increase in the number of firms and an increase in their level of responsibility to society. However, the basic principles of ethics that can now be applied in business were formulated thousands of years ago. Even the ancient Roman philosopher Cicero limited himself to the assertion that big profits are made by big deception. However, today this axiom sounds more and more controversial. A civilized economy that has emerged in developed countries requires a civilized approach to business from entrepreneurs. In fact, the purpose of their activities remained the same, but a weighty reservation appeared: big profits, but not by any means.

In the language of economists, moral values \u200b\u200bare an informal institution. This is a kind of intangible asset, the handling of which is not spelled out by the letter of the law. However, this feature does not diminish their business value. For example, it is moral factors that significantly affect the size of transaction costs.

The International Institute of Business Ethics has formulated four areas in which companies must act in order to strengthen their reputation. First, it is fair dealing with investors and consumers. Secondly, improving the situation within the team - increasing the responsibility and motivation of employees, reducing staff turnover, increasing productivity, etc. Thirdly, professional work on reputation, since a deterioration in reputation inevitably affects the results of the company. Fourthly, competent work with regulations and finances - only strict adherence to the "spirit" and "letter" of the law makes it possible to create a long-term future for the company in international business.

Ethics in the modern sense is becoming a kind of additional enterprise resource. For example, in such an issue as personnel management, in conditions of global competition, it is no longer enough to use economic and financial incentives alone. To keep the company at the level of modern information and communication technologies, the company needs to learn how to influence personnel through cultural and moral values. These values \u200b\u200balso play an increasingly important role in relationships with partners, customers, intermediaries, and finally, with society itself.

Attempts to link moral and ethical criteria and business practice in the field of international business are ongoing. Despite the shortcomings of today's ethical prescriptions for business representatives, every year more and more organizations are trying, sometimes of their own free will and sometimes as a result of external pressure, to create their own rules for doing business.

The principles of international business are the global ethical standard according to which one can build and evaluate behavior in the field of international business.

Honesty, decency and reliability are the most valued principles of business ethics around the world and in Russia, since adherence to these principles creates the basis for effective business relations - mutual trust.

Mutual trust is the most important moral and psychological factor of business, which ensures predictability of business relations, confidence in the obligation of a business partner and the stability of a joint business.

Features of introducing ethics into business

In practice, when building the ethical space of a company, as a rule, an alliance of the company's specialists in the field of ethics, consultants and theorists is formed. Together they strive to understand the values \u200b\u200bthat underlie the company's activities, describe the concept of its ethical management, and then develop and implement ethical programs.

Criteria and concept of ethics of the company are "prescribed" in ethical documents - provisions on mission, values, codes, standards of conduct, business conduct. Once accepted and discussed, documents acquire legitimacy and become an instrument of ethical management.

Ethical documents are usually introduced as uniform for all employees of the organization - regardless of position, length of service, and the like. Arrogance in relation to ethical standards devalues \u200b\u200bthe idea. Often the codes explicitly state that it applies to all employees of the organization without exception. One of the important principles of adherence to the code is its implementation by the company's leaders. The norms are broadcast from top to bottom. If management violates the provisions of the code, it is only logical that employees will not comply with it either.

Ethical management is carried out at three levels: strategic, regular and risk management. In order for the documents not to remain only on paper, but to turn into a real tool for organizing corporate life, understanding its ethical and moral aspects, companies develop business ethics programs, the nature of which depends on the strategic objectives and vision of top managers and owners.

Integration of business ethics programs in an organization, development of policies that help their implementation, involvement of stakeholders in the process of discussion and implementation of the provisions and requirements of the code of ethics, distribution of responsibility for resolving ethical issues and problems between employees, managers and organizational units are the most difficult for Russian companies areas of engagement with corporate ethics. But, the biggest difficulties lie in wait for domestic firms when they try to introduce the infrastructure of corporate ethics and establish its work. This is where the cross-cultural differences between Russia and Western countries come into play. American and European multinational corporations have business ethics departments, ethics commissioners, ombudsmen; special secure communication networks, telephone hotlines, hot e-mail, a special portal on the Internet, appropriate software, electronic databases on acute problems. Many companies outsource (the performance of these functions by a third-party company) maintenance of hot lines, training of personnel on ethical issues.

Ethics and modern governance

Improving indicators of ethical behavior.

Personal values \u200b\u200b(shared beliefs about good and evil) are at the heart of the problem of business social responsibility to society. Ethics deals with the principles governing right and wrong behavior.

Business ethics is not only about socially responsible behavior. It focuses on a wide range of managerial and managerial behaviors. Moreover, in the focus of her attention are both the goals and the means used by both.

The reasons for the expansion of unethical business practices, business leaders include:

1. competition that margins ethical considerations;

2. an increasing desire to indicate the level of profitability in quarterly reports;

3. failure to ensure that managers are adequately rewarded for ethical behavior;

4. a general decline in the importance of ethics in society, which subtly excuses behavior in the workplace;

5. pressure from the organization on ordinary workers in order to find a compromise between their own personal values \u200b\u200band the values \u200b\u200bof managers.

Organizations are taking various measures to improve the ethical behavior of managers and employees.

These measures include:

1. Development of ethical standards;

2. Creation of ethics committees;

3. Providing social audits;

4. Teaching ethical behavior.

Ethical standards describe a system of shared values \u200b\u200band ethical rules that the organization believes its employees should adhere to. Ethical standards are developed with the aim of describing the goals of the organization, creating a normal ethical atmosphere and defining ethical guidelines in decision-making processes.

Ethics committees. Some organizations set up standing committees to evaluate daily practices from an ethical point of view. Almost all of the members of such committees are senior managers. Some organizations do not create such committees, but they employ a business ethicist called

ethics lawyer. The role of such a lawyer is to provide judgment on ethical issues related to the actions of the organization, as well as to fulfill the function of the “social conscience” of the organization.

Social revisions suggested for assessing and reporting on the social impact of the organization's actions and programs. Proponents of social auditing believe that reports of this type can indicate the level of social responsibility of the organization.

Although some companies have tried to use the principles of social audit, the problems of measuring the direct costs and benefits of implementing social programs have not yet been resolved.

Ethical behavior training. Another approach that organizations use to improve ethical behavior is to educate managers and employees on ethical behavior.

Employees are introduced to business ethics and are made more susceptible to ethical issues they may face.

Embedding ethics as a subject in university-level business curricula is another form of ethical behavior education that helps students gain a better understanding of ethical business conduct.

Conclusion

Summing up, the following must be said. Ethics is becoming an integral part of business practice. corporations should periodically conduct "ethics impact audits". Ethical considerations must necessarily become an essential element of the planning process. Problems created by the behavior of multinational corporations in the absence of such analysis become subject to regulation by the host government. Therefore, it is in the interests of each organization to establish uniform ethical principles for operations in all regions, and at the highest possible level, and to strictly and consciously follow them.

At the same time, there is no single “template” of a moral standard: each person has his own understanding of ethical norms, and companies “construct” concepts of their own ethics, which must be coordinated with both external and internal interest groups.

Ethical standards vary from country to country. Behavior is often determined by the means of enforcing the law, rather than the very existence of the law. Ethical behavior has no "upper" boundaries. Multinational organizations are characterized by a high level of ethical responsibility and accountability. The country's attention to ethics increases with the growth of the level of economic well-being.

Introduction

Among the complex of management problems, a special role is played by the problem of improving the management of the company's personnel. The task of this area of \u200b\u200bmanagement is to increase production efficiency through motivations, incentives and compensations through the comprehensive development and rational use of human creative forces, increasing the level of his qualifications, competence, responsibility, initiative.

At the present time, the attitude towards the main productive force of society, the man of labor, is changing. The role of man in the process of economic development is constantly growing. This fully applies to our country. Russia has been going through a period of social change for more than a decade. Such changes affect not only the political, economic and social structures of society, but also inevitably affect the consciousness of people. Transformations are taking place in the value and motivational structures, that is, in people's understanding of what they should live and act for, what ideals to rely on. With the transition of Russia to a market economy, it became obvious that the laws of a market economy imply completely different motives and values \u200b\u200bfor people than the economy of a socialist society. In this regard, the question arises about the importance of Russian leaders studying the foreign experience in the field of personnel management, theories of motivation, specific methods and principles for stimulating employees, enhancing their activities and increasing labor efficiency, accumulated over a long period of existence in the market.

The revolution in property and the accompanying transformations of the economic institutions of society led to the fact that millions of people who were previously engaged in organized, systematic professional

Question # 2 Motivation and compensation: similarities, differences, features of Michael Porter's model

With the transition of Russia to a market economy, it became obvious that the laws of a market economy imply completely different motives and values \u200b\u200bfor people than the economy of a socialist society. In this regard, the question arises about the importance of Russian leaders studying the foreign experience in the field of personnel management, theories of motivation, specific methods and principles for stimulating employees, enhancing their activities and increasing labor efficiency, accumulated over a long period of existence in the market. It is necessary to transform the value, motivational and compensatory structures, that is, in people's understanding of what they should live and act for, what ideals to rely on.

The economic reforms carried out in Russia have significantly changed the status of the enterprise as the main link in the national economy. The market puts the enterprise in a fundamentally new relationship with government agencies, with partners, with employees. New economic and legal regulations are being established. In this regard, the relations between the leaders of organizations, between managers and subordinates, between all employees within the organization are improving.

The way to effective personnel management, to enhancing its activity and increasing its efficiency lies through understanding the motivation and compensation of people. If you understand well what motivates a person, prompts him to action, what he strives for. Performing a certain work, it is possible, in contrast to coercion, which requires constant control, in such a way to build the management of the firm's personnel so that people themselves will actively strive to do their work in the best possible way and most effectively in terms of achieving the organization's goals.

The similarity of motivation and compensation lies in the fact that a combination of internal and external factors, which, continuously influencing him, induce him to perform certain actions. Moreover, the connection between these forces and the specific actions of a person is determined by a very complex system of interactions, individual for each person.

Motivation and compensation stimulate a person to act, therefore, there will be a reward for efforts. For example, a firm may reward its employees with money (wages) that can satisfy a range of needs. However, wages are a stimulating factor only if people attach great importance to them and their value depends on the results of labor.

An increase in wages then must necessarily lead to an increase in labor productivity. In order to establish the relationship between wages and the results achieved as a result of labor activity, the following system of remuneration is proposed. The meaning of such a system is that by motivating the growth of wages increases the efficiency, for which will be followed by compensation for the employee's wages.

But you should remember about the fickle nature of motivation through money. When a certain level of well-being is reached or in certain situations, the monetary factor of motivation decreases its influence on the employee's behavior. In this case, in order to meet the needs, it is necessary to use non-material rewards and benefits.

The difference between motivation lies in the fact that Motives are stimuli, causes, forces, passions that cause or stimulate a person's activity, prompting him to behave in a certain way. The behavior model depends on the response to these incentives, and compensation is the reward of its employees:

Money (salary) that can satisfy a range of needs. However, salary is a stimulating factor only if people attach great importance to it and its value depends on the results of labor;

Reward is something that can satisfy a person's needs. The leader deals with two types of remuneration: internal and external;

Compensation - cash payments established in order to reimburse employees for the costs associated with the performance of their labor or other duties stipulated by federal law (Article 164 of the Labor Code of the Russian Federation). The types of compensation payments under labor law are as follows: travel, relocation to work in another area and for wear and tear your tool or other personal property.

No one knows exactly how the mechanism of labor motivation works, what strength the motivating factor can be and when it works, not to mention why it works. All that is known is that each employee works for monetary rewards and a set of compensation and incentives. Monetary remuneration and other components of compensation provide the necessary conditions for the survival, development of the employee and his leisure time, as well as give confidence and a high quality of life in the future.

Research over the past 30 years has shown that the true motives that drive work to give maximum effort are difficult to pinpoint and extremely complex. But having mastered modern theories and models of labor motivation, the manager will be able to significantly expand his capabilities in attracting an educated and wealthy employee of today to perform tasks aimed at achieving the company's goals.

michael Porter model feature

Harvard professor Michael Porter presented three of his strategies to strengthen the company's competitiveness back in 1980 in his book Competitive Strategy. They have a fairly general form, practical subtleties are a personal matter for every entrepreneur.

The main essence of Michael Porter's strategies is that for the successful operation of the company, it needs to somehow stand out from the competitors, so as not to appear in the eyes of consumers as everything for everyone, which, as you know, means nothing to anyone. To cope with this task, the company must choose the right strategy, which it will subsequently adhere to. Professor Porter identifies three types of strategy: cost leadership, differentiation and focus. At the same time, the latter is divided into two more: focusing on differentiation and focusing on costs.

M. Porter's approach to generating alternative strategies is based on the following statement. The stability of an enterprise's position in the market is determined by: the costs with which the products are manufactured and sold; irreplaceable product; the scope of competition (i.e. the volume of the market's processing).

An enterprise can achieve competitive advantages and strengthen its position by: ensuring lower costs for the production and sale of goods. Low cost means the ability of an enterprise to develop, produce and sell a product with comparable characteristics, but at a lower cost than competitors. Selling its goods on the market at the prevailing (or even less) price, the company receives additional profit; ensuring product indispensability through differentiation. Differentiation refers to the ability of an enterprise to provide a buyer with a product of greater value, i.e. greater use value. Differentiation allows you to set higher prices, which gives you more profit.

In addition, the enterprise has a choice in which "front-to-back" market to compete: in the entire market or in any part of it (segment). This choice can be made using the relationship between market share and profitability of the enterprise, proposed by M. Porter.

Enterprises that do not have the ability to gain market leadership should focus their efforts on a specific segment and strive to increase their advantages over competitors there.

The success is achieved by large enterprises with a large market share, as well as relatively small highly specialized enterprises. The desire of small enterprises to duplicate the behavior of large enterprises, regardless of their real capabilities, will lead to the loss of competitive positions in a critical area.

For such businesses to succeed, the rule should be: “Segment the market. Narrow down the production program. Achieve and maintain the maximum share in the minimum market. "

Proceeding from this, M. Porter recommends using one of three strategies to strengthen the position of the enterprise.

1. Leadership through cost savings: Enterprises that decide to use this strategy, all their actions are directed to the utmost cost reduction. An example is the British Ukraine Shipbuilders (Bi-Yu-ES) company for the construction of dry cargo ships. Low-paid workers of Ukrainian shipyards will be engaged in the manufacture of ship hulls. Cheap Ukrainian steel will be used in the production of ships. The ships will be filled mainly by British companies. Therefore, it is expected that the cost of new vessels will be significantly lower than the price of similar products of European and Asian shipbuilders. Thus, a dry cargo ship of the PANAMAX class with a displacement of 70 thousand tons is estimated at $ 25-26 million, while a similar Japanese-built vessel costs $ 36 million.

Prerequisites: a large market share, the presence of competitive advantages (access to cheap raw materials, low costs for the delivery and sale of goods, etc.), strict cost control, the possibility of saving costs on research, advertising, service.

Advantages of the strategy: enterprises are profitable even in conditions of strong competition, when other competitors suffer losses; low costs create high barriers to entry; when substitute products appear, the cost-saving leader has more leeway than competitors; low costs reduce the influence of suppliers. Strategy risks: competitors may adopt cost-cutting methods; serious technological innovations can eliminate existing competitive advantages and make the accumulated experience of little use; focusing on costs will make it difficult to detect changes in market demands in a timely manner.

Conclusion

In the conditions of the formation of new economic mechanisms oriented towards the market economy, industrial enterprises face the need to work in a new way, reckoning with the laws and requirements of the market, mastering a new type of economic behavior, adapting all aspects of production activity to the changing situation. In this regard, the contribution of each employee to the final results of the enterprise's activity increases. One of the main tasks for enterprises of various forms of ownership is the search for effective methods of labor management, ensuring the activation of the human factor.

The decisive causal factor in the performance of people is their motivation.

Managers put their decisions into practice with the help of available human resources, the firm's personnel, applying to people the basic principles of motivation, which act as a lever for encouraging themselves and others to work in order to achieve both personal goals and organizational goals.

If you understand well what motivates employees, what prompts them to labor actions, what they strive for, performing a certain job, it is possible to correctly, that is, individually, with a focus on the personal characteristics of subordinates, form a strategy for activating the personnel of a given company.

This strategy will help the manager to build the management of the firm's personnel in such a way that people themselves will actively strive to do their work in the best possible way and most effectively in terms of the organization's achievement of its goals.

List of references

1. Mescon, M., Albert M., Hedouri F. Fundamentals of management [Text]: textbook / Per. from English - M .: Delo, 1998.

2. Radugin, A.A. Fundamentals of Management [Text]: textbook for universities / Scientific. ed. A.A. Radugin. - M .: "Center", 1997.

3. Ouchi, W. Methods of organizing production. Japanese and American approaches [Text]: textbook / U Ouchi - M., 1984.

4. Popov, S.A. Strategic management [Text]: Textbook. allowance. - 2nd ed. / S.A. Popov - M .: UNITY-DANA, 2004.

5. Smirnov, E.A. Management decisions [Text]: textbook / E.A. Smirnov - M .: INFRA-M, 2001.

6. Rumyantseva, Z. P. General management of the organization [Text]: Theory and practice / З.П. Rumyantseva - M .: INFRA-M, 2004.

7. Travin, V.V., Dyatlov, V.A. Fundamentals of management [Text]: textbook / V.V. Travin, V.A. Dyatlov - M .: Delo, 1995.

8. Organization management [Text]: Textbook / Ed. Dan. A.G. Porshneva, Z.P. Rumyantseva, N.A. Salomatina. - 2nd ed. - M .: INFRA-M, 2003.

Business ethics and social responsibility plan c8. The importance of ethics in business

Benefits of social entrepreneurship

Public expectations

Possible disadvantages

Social responsibility of business in Russia

What determines the ethics and social responsibility of business

Political and social factors

Public opinion

What the ethics of organizations should look like

Inevitable difficulties

Actual approaches

Conclusion

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