My Position of The Omnivore's Dilemma
The problem to be investigated is the price of ethical behavior. Business Ethics is the backbone of well being of the corporate world, and thus extremely crucial. Without an established business ethical values, your company would not be able to attract people to work with it. Similarly, for the company to grow sustain and flourish with maximum profits and outcomes, there has to be a direct impact of business ethics in all these aspects. The ethical behavior in business practices is a slanted issue and many people conceive it as a virtual practice. According to statement in China Daily (2009), business ethics are a culture and must be cultivated strategically by the company’s head. However, there has been largely observed that short term outlooks are being more considered by most top level managers may be because their work period is limited. The limitations like shareholder’s concern and result orientation also hinder the fostering of business ethical practices in many organizations. Therefore, there can be many practices that business conduct and those practices can be termed as crossing the lines, commonly referred to as entering the gray areas. Gray areas are basically the boundaries and issues that do not synchronize with the standard ethical models (Dewhurst, M., 2009). Most of the matters also get caught in the confused state that whether there is an ethical issue involved or not. The major things are deceitful and forged depicted. With these points bearing in mind, it can be assumed that Goldman might have conducted both of these practices to make a successful organization.
Below are some issues that Goldman did that can be included in the gray area:
- Goldman founded an organization and bought its 90% shares from his own pocket. The public did not know about this and want to buy the shares of the company. That clarifies the idea that Goldman could make more money buying more shares from the secondary market which makes the shares to rise in the stock market. And from that money he generated, aimed to establish a new company.
- Goldman also got involved in laddering. There had been an agreement between Goldman and its loyal customers for the distribution of a specific part of IPO at a recreated cost. Those clients later agree to buy some shares under the agreement at a higher price than before.
- Goldman also involved himself in the auction price markets.
- In exchange of shares, Goldman offered loans to managerial members.
- ABACUS got his part of activity and engagements.
Actually, corporate follow a code of conduct which have to followed by every organization. As everything cannot be illegal but can definitely be out of ethical values. In the Goldman company cases, there was a lot of chaos and confusions our conflicting issues of interest and inside business among many other things. For example, he had a conflicting perspective in buying his shares and making people to buy stock without disclosing the actual reality of his ownership of the stocks.
We can observe that conflicts arises mainly due to an intention. And in corporate, it happens simply because the company’s do not want to risk their benefit and objectivity to harm just because of some ethical values. They believe that restraining some activities that might be unethical, can cause damage to their company’s interest and profit and prevent it from working productively.
Business ethics commonly depicts the adaptation of certain policies and issues of conduct in given circumstances. This enables an employee to work within certain standards or guidelines and can make sure not to cross those limitations in order to prevent from being unethical. On the other hand if we notice that laws and legal bindings cannot work as flexibly as these ethical codes of conducts do. Laws have to be strict and firm to be followed. That is why the laws cannot work in the way an ethics code can do as business ethics covers a large array of behaviors and actions of people in comparison to the laws.
Another important point, that behaviors and conducts that do not fit in the legal framework, ultimately get their solutions from the ethical codes of conduct. An example would clarify this concept better.Take Johnson and Johnson case, recorded in 1982 about the much hyped Tylenol. Seven people were killed in Chicago due to the consumption of Tylenol, which has been reported as the form of cyanide. This incident caused Johnson and Johnson to ponder over the matter about what steps must be taken. Although it was possible at that time that the cyanide death was a result of an incident, but also it was most probable that these seven deaths were just a beginning.
This example has been termed as the best of all to study the cases regarding the legal gray areas in business practices. If the business ethics were elaborated in terms of legalities, then the Johnson and Johnson would find it much easier to solve the issue. Also they would have charged a lot of money if it was according to the law. However, they did a recollection of the Tylenol issue as they considered it as a matter of business ethics rather than a law (Jennings, M., 2012).
Not many people got affected by the Goldman choice including some of his clients and managerial employees. On the other hand, the investors were in the impression that they were going to have profit on their buying. Goldman hid the truth from his clients that there was a betting going on in the market and all the profits will be in their pockets. They even didn’t inform the company about the core issue as the risk involved. The basic essence of any business is professional integrity with a fair game involving both the parties. There is no space for any employee to take unjust benefit from anyone and anything through clever exploitation, disguise, mistreatment of confidential information, distortion of objective facts or any other illegal business activity. Further, no employee can commit bids and betting, parting the markets and alike actions that cross the boundries of legal jurisdiction (Jennings, M., 2012).
There are some major factors that also contribute to the methods of employees, businessmen, consultants and executives took their choices about money and legal matters and their powers. There are names of some powerful personalities from the Goldman’s organization that ensure huge profits. Goldman is still gaining hugely from the company's higher officials (Protiviti, 2011). Even though there are many other alternatives to encourage employees beside reducing the financial incentive plans of companies. It is observed then when the employees are given an opportunity to head a project on their own that it is a great motivation for them to foster their leadership and managerial capabilities and that contribute most in the toughest time. These kinds of choices deliver strategical benefits to the company (U.S. Securities and Exchange Commission, 2012).
Goldman knew the art of bluffing. It is just another side of the same coin, lying. Strangely enough, most businesses do bluffing as the simple technique of strategy. There are no moral bindings in bluffing. It is unethical and sadly enough too that business ethics are just taken for granted as the trick of strategy (Protiviti, 2011).
Goldman surely owes much to the stakeholders and investors about his actions. As stated by the U.S. Securities and Exchange Commission (2012) that companies do need to disclose important financial and other matter in public. This is an opportunity for all investors to utilize the information for their buying and holding. Over the passage of time and detailed information they are able to make wise decisions for their flourished investments (Laws, 2011).
If the above considerations are not taken as true then there might be a chance to have a repetition of the same in future. Employees must know the required skills and ethical codes to work according to the highest standards of morality and set an example for the future to come. To achieve this state, the company needs to establish the system to evaluate the problems timely and to ensure that these kinds of issues do not arise again (Protiviti., 2011).
Conclusion
The importance of business ethics is as clear and evident like a religion to a follower. But there are times when it becomes a victim of unjust conflicts just to protect material gain. If you own a business, it's your decision to do it the right way or not.
Goldman trick was like the many investor’s who do not realize the common fact only until they lose a huge amount of dollars (Jennings, M., 2012).
