Divya discussion 1 replies 2 days ago VINAY VUSHAGONI RE: Business Ethics Simulation Checkpoint #3 COLLAPSE Government based firms or agencies that set the rules and regulations and issues advisory circulars to ensure the businesses or organizations run in an acceptable manner and standards are called as regulatory agencies. These agencies identify and evaluate the underlying business and examine for their alignment with the state or federal regulations, and if a business is found guilty for incompliance the board has authorities to take strict legal actions. This possession by an agency over an industry or a sector is called as regulatory oversight. Whereas business ethics is a factor that must be within the culture of the organization developed from the top-level managements to the bottom of the hierarchy to deliver ethically acceptable services. There are no external agencies involved to closely monitor or regulate the ethical compliance of an organization. If the company is practicing poor business ethics, it could lead to developments of new restrictions and regulations from the regulatory bodies which will curb the practices. Either way, the companies out of the regulations and business ethics lode their business and stakeholders. For example: The Federal Aviation Administration (FAA) and the Transportation Security Administration (TSA) are the federal regulatory bodies of aviation that oversees the safety and security of the industry, respectively. The agencies regulate the industry from unsafe and unsecure practices with a set of regulations and policies. If the company is not complaint with the regulations, legal actions will be taken against it whereas if an unethical practice (e.g.: commuting unaccounted loads on planes) is involved in an incident compromising the safety and security of the industry, these federal agencies bring new regulations to restrict such activities. As mentioned, unaccounted load in the aircraft bins is the most seen practice in airline industry which will compromise the weigh & balance of the aircraft, creating center of gravity issues. The FAA has identified this practice and brought a new regelation on mandating accurate accounting of commodities loaded on plane. 1 day ago Kaushik YEMUL RE: Business Ethics Simulation Checkpoint #3 COLLAPSE Business ethics is a form of professional ethics or business policies and standards adopted by companies to refer to when arguably contentious issues arise in a business environment. Business ethics is also a set of business policies exercised by the companies to ensure fair trade policies and professional morals. Regulatory oversight is essentially govt. appointed or govt. backed regulatory agencies that monitor firms to ensure that businesses are being conducted within the established state guidelines and regulations. In a utopian world, there would be no need for regulatory agencies to monitor businesses. But, ethics based contentious issues arise all the time in the corporate circles, and so the regulatory agencies monitor, supervise, guide firms to conduct business within the established guidelines and take regulatory punitive action should the companies cross their bounds of ethical business practices. There are several regulatory agencies based on respective industries. I would like to cite the example of Food and Drug Administration (FDA). FDA is a federal agency of the United States Department of Health and Human Services. The FDA is responsible for protecting human health. The companies that come under FDA's supervision are food safety products, tobacco products, pharmaceuticals, dietary supplements, medical devices etc. All these companies are bound by FDA's established guidelines in terms of manufacturing processes, labor policies, product claims and the scope of their product features. The primary focus of FDA is to ensure compliance through Federal, Food, Drug and Cosmetic Act but there are several other responsibilities. as well. Discussion 2 replies 2 days ago Qiqiang GUAN RE: Resolving Ethical Business Challenge: Ethics Audit COLLAPSE A successful ethics auditing process contains the following components: First, ensuring the commitment of top management and the board of directors. The company needs to establish a committee to oversee the ethical audit. Second, defining the scope of the audit process, including the subject areas important for ethical audits. It also includes reviewing the organization's mission, policies, goals and objectives, and determining its ethical priorities. Third, collecting and analyzing relevant information in each designated subject area. The results are verified by independent agents. Finally, after the ethics review is over, the results are reported to the audit committee. If approved, reporting to the manager and stakeholders. It can be seen from Charles's example. Butterfly CEO Douglas actually does not support the board’s ethical audit requirements. He believes that implementing ethical audits will only "increase company costs." So he sent Charles who is with only two years work experience to deal with it. Therefore, when Charles planned to form an ethics review committee, Douglas was very dissatisfied with this Charles plan. He hoped that Charles would make a casual decision, resolve this matter as soon as possible, and just satisfy the board. I think that Charles should solve the problem through the following steps. First, Charles should make Douglas understand that ethical auditing is very important to the company. Auditing can be a prerequisite for establishing an ethics plan because it can determine the company’s ethical standards as well as its existing policies and risk areas. If the company is subject to legal sanctions without a good ethical audit, it will worsen the already badly operating Butterfly company. Therefore, Douglas should do its utmost to support the construction of an ethics review committee. Secondly, because the company is losing money, Charles can consider some ways to save costs. For example, establishing an efficient but relatively small ethics review committee. And absorbing employees who have experience in ethical audits to join the team. This saves time and costs. In general, for the long-term benefit of the company. Charles should convince Douglas to take this matter seriously because it is a long-term benefit to the company. 1 day ago Hima_Dilip KOTHARI RE: Resolving Ethical Business Challenge: Ethics Audit COLLAPSE A successful ethics audit process is divided into seven steps where each step holds its significant importance. Audits are conducted for an overall assessment of the company. The auditing process aids organizations and provides an opportunity to evaluate their policies, programs, identify any risks and improve law abidance. An Audit is conducted by first acquiring permission and commitment from the board member of the organization, designing a committee to carry out the process, founding the scope, detailed analysis of the organization’s policies and missions, evaluation tools required to document progress and taking additional notes, hiring a third party (audit consultant) to authenticate the analysis and finally to present the audit findings to the top management and/or external stakeholders. Ethics audits should be conducted frequently. Being the CEO, Douglas assigned Charles to lead the audit process at the Butterfly organization. The company has suffered loss and the all the managers, and the employees are working to speed-up the production to keep the company together. Charles has done a through research about how to lead the process and what other resources will be required. I believe that if he received additional help from his fellow co-workers, together they would be able to successfully accomplish the task. He also needs a supervising team to follow through with the process. If there are any glitches found in the ethics audit, the company would suffer consequences in the long run.
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