Identify the major stakeholders in your organization (or one with which you are familiar). Analyze the top-management structure, investigate and enumerate the code of ethics (written or not written), and explain the ethical stance of all stakeholders involved in the organization. Identify the relationship among any reward systems and organizational goals and what positive or negative effect there is on employee productivity. Cite concepts and ideas from the unit readings to compliment your work.
Business Ethics and Motivation
Whatever the nature of the organization one operates, the management has various obligations beyond making money and earning profits. Business ethics or moral trading behaviors are as important as the pursuit of gains in a business. Coca-Cola is one of the leading multinationals in the soft drink retail market. The key stakeholder of the company include investors, customers, suppliers, and employees. The company’s top management structure consists of a corporate (Head Office) segment, which provides the strategic direction. Besides, the company has executive committees that make strategic decisions in the strategic units that operate globally. The company has a CEO, who is the figurehead and the chair of board meetings. Cantrell et al. (2015) suggest companies need a corporate social responsibility plan that guides business ethics. Following similar principles, Coca-Cola has a codified code of ethics that directs its relationship with the key stakeholders and the environment.
Coca-Cola has a corporate social responsibility plan, including the commitment to reduce the level of sugar and calories in its products due to its implication with diabetes and obesity. The company also seeks to follow the social entrepreneur and stewardship model proposed by Hayek et al. (2015). The management considers it ethical to ensure that its operations are not harmful to the environment and society, but could be concerned about the impact of the decision on its revenue. Investors are likely to take a similar stand as the management since they want to focus on decisions that are more likely to generate returns on investment. Employees support the ethical code since it focuses on their wellbeing and providing a conducive work environment as part of the CSR. Customers are the most affected by the company’s unethical actions over the years due to the high rates of obesity and diabetes in society. Thus, support any attempt by the company’s top management to implement steps to protect their health. While suppliers support ethical businesses, they are concerned about having profitable firms to purchase their suppliers. For example, suppliers of raw materials that are high in sugars and calories are negatively affected if they reduce their use. Therefore, different stakeholder groups consider the impact of the code of ethics on their interests before those in general.
Motivation is one of the critical factors in the success of any organization. Traditionally, employees are motivated by material rewards, such as rewards and pay rise, to improve their performance levels. Victor and Hoole (2017) suggest a relationship between reward systems and workplace goals, and work engagement. Companies that use positive rewards, such as monetary compensation for achieving performance objectives, are better placed to achieve their goals than those that do not recognize such achievements. However, the reward system should be meaningful, based on the needs of employees in the workplace. For example, while some employees are likely to be motivated by a medical cover, others want money to recognize their performance. Positive motivation in organizations has a positive relationship with employee productivity since it increases job commitment and organizational ownership, essential for improved performance. Thus, research evidence challenges human resource managers to understand their employees’ needs and use relevant reward systems to improve their performance and productivity. They should also have a formal rewards system that is understandable and acceptable to all employees to have the intended effect.
Cantrell, J. E., Kyriazis, E., & Noble, G. (2015). Developing CSR giving as a dynamic capability for salient stakeholder management. Journal of Business Ethics, 130(2), 403-421.
Hayek, M., Williams, W, A., Taneja, S., & Salem, R. (2015). Effective succession of social entrepreneurs: A stewardship-based model. Journal of Applied Management and Entrepreneurship, 20(2), 93-109.
Victor, J., & Hoole, C. (2017). The influence of organisational rewards on workplace trust and work engagement. SA Journal of Human Resource Management, 15