If anyone failed to work towardsaccomplishing the idea or the goal ethically, it perhaps could be one of themost significant causes of several unexpected losses to businesses. However, itis also the responsibility of the management and the CEO’s to make sure thatall employees, consumers, and others are getting an equal respect.
According toChron “Your financial management responsibilities affect all aspects of yourbusiness. “This will assure that the company can take all its responsibilitiesin discussion with all employees or shareholders because it is the ethicalelement of every business that is in progress and be able to offer a better wayof representing the company through respecting one another. However, most corporations don’t provide thatkind of respect even when the workers are doing a great job by paying them lowsalaries to increase their profits. Therefore, it is unfair for a company to pay low wages as that is notthe correct way in the business industry. But nowadays many companies still payless than the minimum payments, because they know that those employees willneed the money for living. That makes it ethically not the right way for themto do so, but people have to have support for a living and that those companiesmake a lot of earning by paying low wages and saving more money on the otherside. But according to Money, Power and Wall Street video, companies changed theirvalues so they can shift to sell more products and can make more and moremoney. Therefore, managers need to make sure how they handle themselves in thebusiness environment so they can value essential things when making their rightdecisions.
Another critical element with businessfinance loss is the increased cost of the product which this has led to manyfirms producing cheap products that are low in quality without the customerknows. So, it is not fair for customers to buy inferior products and thinkingthat they are getting the best quality and service. Therefore, once thecustomers become knowledgeable about it, then it will lose many consumers andeven suppliers because they will be losing their respect and their goodreputation at the same time.
According to CIT Direct Capital, “The limitingfactor to the price point for any products or services from a small business isalmost always in the mind of the business owner.”. Therefore, this isunethically right, and responsibility is placed on the top management of thecompanies because it is immoral and dishonesty to issue low-quality products tothe market. Also, all unethical concerns are as a decision of inefficientmanaging. However, many organizations still provide a poor quality of products,but managers need to start to think about the customers first before making anydecisions. But most of those ethicaldilemmas are connected by not meeting the business’s social responsibilitiessuch as low salaries to employees and making of inferior quality products toincrease their profits.
These issues have led to a difficulty between theorganizations and stakeholders ending in mass actions that have made companieslose a lot of money.On the other hand, people assume that thecompanies which they do business with are ethically determined and assure thattheir works and choices meet the requirements for the consumers, businesspartners, and suppliers too. Also, every company has to have the clarity of whothey are and who they want to be, and their purposes should be understood aswell.
Also, another ethical responsibility in managing the business is to is tohave the honesty, trust or, fairness, and the respect as I mentioned above aswell. Particularly when it comes to managing the corporate finance because theresponsibility in investment is involved in building the confidence between thecompany, its shareholders, and its customers. As well, businesses need tomanage their financial decisions based on some areas, and they are the fundingdecisions, that includes the money structure of the firm, and dividenddecisions.
Therefore, it is essential to evaluate the available internal andexternal sources, and the impact that they might have on the money structure ofthe business, which means that the dividend payments and earnings that are madewhen selling a product are useful indications of stockholder assets. However,assets need be maintained well so that when the company makes revenue andprofits so that the funds they saved must also be available to pay bankers orcreditors and so that the business can take up more chances for investment. Butaccording to Money, Power and Wall Street video John Fullerton a former bankerwho says it all began when banks started trading for their gain and not fortheir customers, and it was of the trading that shifted the culture. So thatcompany began to think about gaining more profits instead of thinking what toprovide for the customers only.
They thought of increasing earnings, but on theother hands, more businesses were started to change their strategy and makedecisions so that they create an ethical way of making more money as well asgaining more consumers. Therefore, as mentioned in the video that based on thecompany’s performance, for example, a Star Trader can make up to $5 to $10million after ten years of working as a star performance. But what a politething that in the video indicates that when the business managers asked abouttheir salaries or wages per year, and they mentioned that’s to respect for theprivacy of the employee and that this information should not be available tothe public. Therefore, this makes me go back to my point and compare howwell-known companies pay for its employees and how today’s local corporationspay the minimum salary for their employees so they can make more earnings. Therefore, we can go back to my first pointby saying that managing the business ethical can create a huge positivedifference and can make the company gain lots of earnings each year byrespecting the workers and to have the trust in others as well. For instance,paying the right amount of salaries is one of the leading ethical ways to gainthe employees trust so the employee will be able to give more to the company tohelp it grow stronger and to achieve more capital. And companies must take theresponsibilities of managing the business in a fair way and to provide eachemployee and stakeholder their right when operating the market correctly.
However, for a company to make a massive shift to grow and keep on growingfaster and stronger, they need to make an also ethical finance decisions toinvest more and to become a global market business.