Contemporary Management issue (Emaad) Essay Example | Topics and Well Written Essays - 2500 words

Contemporary Management issue (Emaad) - Essay Example These rules and principles are called ethical theories. Ethics and values differ in that ethics are acquired from philosophical theories while values are acquired informally through valuing process of socialization. For something to be considered to be a value it must have the three key components; freely chosen, the prize and acted upon. Nowadays the world is considered a global market hence the term Globalization which means that business around the world is reduced into borderless units where trade moves freely from border to border. However, globalization has influenced the erosion of business ethics. The global economy can be referred to as the removal of barriers to trade and investments and the unprecedented international mobility of capital. Sustainability is the ability of a business to meet its demand and supply in present and also in future, is an important aspect for business ethics. Businesses need to use resources meaningful so as not to affect future generation needs ( Crane & Matten, 2003). The case under consideration is the case against big tobacco companies i.e. Philip Morris, Reynolds, and Liggett on the safety of their products. These companies are being accused of knowingly selling harmful products such as cigarettes which cause lung cancer to consumers. They advertise their products to the general public especially targeting the youth and hiding the fact that the products are not healthy safe. They have also hindered various meaningful researches to determine the safety of their products and failed to produce freely safe products. Thus, the U.S. Department of Justice (DOJ) gathered evidence and filed a suit against these companies for violating the Racketeer-Influenced and Corrupt Organizations Act, hence they operated as outlaw companies since 1953. The DOJ also accused the companies of putting up advertisements that showed nicotine was not an addictive substance while they controlled the addictive nature of cigarettes to capture more and more customers. At the end of the assignment the following objectives will have been achieved. A good knowledge base and understanding on the various business ethics and moral issues. The duties of businesses to consumers and the theories involved. Also, discussion of other related theories to duties of organizations to consumers. To develop an international understanding of various business concepts by knowing the various norms and ethics of business involved. Be able to ethically reason when handling business related problems. Organization Duties to Consumers: It is worldwide accepted that businesses premises around the world cannot exist without the consumers. Thus organizations have an important role in ensuring it gives its consumers better and quality goods and services. They should avoid various malpractices like wrong labeling of products, untrue advertisements that are extremely exaggerated, adulteration (that is producing inferior products), and hoarding (hiding goods to create a shortage so as to raise the commodity prices). Consumers also have a right to demand better services and quality goods. The consumers need to be protected also from various businesses malpractices. Notably organizations which take consideration on the consumers usually prosper much than those who do not (Derry et al, 1989). The consumer has the right to choose whether to purchase or not to purchase a given product before examining it. Consumer interests usually