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Understanding Business Ethics

Business ethics is a specialized study of the moral right and wrong. This study concentrates on moral standards as applied in policies, institutions, and business conduct (Velasquez, 2005).

In creating business ethics, there are several things to consider, among others, are:

1. Self-control

2. The development of social responsibility (social responsibility)

3. Maintain identity and not easy to be swayed by the rapid development of information and technology

4. Create healthy competition

5. Applying the concept of "sustainable development"

6. Avoiding the nature 5K (Katabelece, collusion, connection, collusion, and the Commission)

7. Able to state that right is right

8. Foster mutual trust between groups and factions of the powerful businessman down

9. Consistent and consistent with the rules that have been agreed

10. Develop awareness and a sense of belonging to what has been agreed

11. Need for business ethics set forth in part in the form of a positive law legislation

There are 3 types of problems encountered in the Ethics

1. Systematic

Systematic problems in business ethics ethical questions that arise about the economic system, political, legal, and social systems in which the business operates.

2. Corporation

Problems in the company's corporate business questions in specific companies. These issues include the question of the morality of the activity, policy, practice and organizational structure of the company as a whole individual.

3. Individual

Individual issues in business ethics are questions concerning specific individuals within the company. Issues include questions about the morality of decisions, actions and individual character.



The key concept for understanding the moral development, Kohlberg's theory in particular, is to internalize the developmental changes of behavior to be controlled externally controlled behavior internally. Moral development theory in general psychology according to Kohlberg, there are 3 levels and 6 stages at each level there are 2 stages including the following:

Level One: Reasoning Prakonvensional. Prakonvensional reasoning is: the lowest level in Kohlberg's theory of moral development. At this level, the child showed no internalization of moral values-moral reasoning is controlled by a reward (reward) and external punishment. In other words, the rules are controlled by others (external) and good behavior will be rewarded and bad behavior punished.

Phase I. Punishment and obedience orientation Ie: the first phase of which at this stage of moral reasoning is based on punishment and obedient children because adults require them to obey.

Phase II. Individualism and objectives At this stage of moral reasoning is based on reward (reward) and their own interests. Obedient children when they want to obey and when is best for your best interests are obedient. What is true is what feels good and what is considered to produce a gift.

Level Two: Conventional Reasoning Conventional reasoning is an intermediate level of internalization whereby one individual is obeying standards (Internal) specific, but they do not abide by the standards of others (external) such as the elderly or the rules of society. Phase III. Interpersonal norms Ie: where a person appreciate the truth, concern and loyalty to others as the basis of moral considerations. A child expects appreciated by the parents as the best. Level IV. Social System Morality Ie: where the judgment was based on an understanding of social atuyran, law, justice, and duty.

Level Three: Reasoning Pascakonvensional Ie: A higher-order thinking where morality really internalized and not based on other people's standards. A person familiar with alternative moral actions, explore options, and then decide based on a code.

Phase V. Community rights versus individual rights Namely: the values ​​and rules are relative and that standards can vary from one person to another.

Phase VI. Universal Ethical Principles Ie: someone has developed a moral standard that is based on universal human rights. In the sense that when sseorang face conflicts between law and conscience, someone will follow conscience.

On moral development according to Kohlberg stressed and convinced that the provisions of the above occurs within a sequence of age-related. In the period before the age of 9 years children tend to prakonvensional. In early adolescence tend to conventional and early adulthood tend to pascakonvensional. Thus the results according to Kohlberg's theory of moral development in general psychology. When we specialize in looking at the theory of moral development of the education of students who developed the school environment then there are 3 levels and 6 stages, namely:

Level One: Morality Prakonvensional Ie: when people are in a developmental phase prayuwana ranging from 4-10 years of age who have not been considered as the unanimity of Tradition sosial.Yang moral man in these days children are still not considered moral tradition as a social agreement.

On the first level there are 2 stages: Phase 1. Obedience and punishment orientation. Moral reasoning is based on punishment and obedient children because adults require them to obey. In other words, very concerned about compliance and legal. In concept according to Kohlberg's moral ugliness of child behavior based on the level determining the punishment for such evil. While good behavior will be linked to the avoidance of punishment.

Phase 2. Satisfaction of needs attention. Both meaningful behavior associated with satisfying their own wants and needs without considering the needs of others.

Level Two: Conventional Morality That is when the man ahead and start entering the development phase Yuwana at the age of 10-13 years who are considered moral tradition as a social agreement.

At the second level there are 2 stages: Phase 3. Neither noticed the child image · The point: children and adolescents behave in accordance with the rules and moral standards in order to obtain approval of an adult, not to avoid punishment. · All the good and bad deeds judged on purpose, so there is the development of awareness of the need for rules. In this case there is the children's education. At stage 3 is referred to as Norms Interpernasional is: which one appreciates the truth, caring, and loyalty to others as the basis of moral considerations. Children often adopt the moral standards of his parents while awaiting appreciated by his parents as a good kid. Stage 4. Noting Laws and Regulations. · Children and adolescents have a definite attitude towards authority and rules. · The law must be obeyed by everyone.

Level Three: Morality Pascakonvensional That is when the man has entered a phase of development and pascayuwana Yuwana ranging in age from 13 years and over who sees more than just moral social traditions agreement. In the sense here unconditionally abide by the rules and moral itself is value to be used in all situations.

On moral development at level 3 there are 2 stages: Stage 5. Noting Individual Rights. · That the world is a much better education adolescents and adults interpret the behavior of both the right to privacy in accordance with the rules of social ddan benchmark. · Changes to the rule of law is acceptable if it is determined to achieve the things that most good. · Violation of the rule of law can occur due to work reasons-reasons.

Stage 6. Noting Ethical Principles · The point: Decisions on pwerilaku social behavior based on moral principles, derived from the personal universal law that is consistent with the common good and the interests of others. · Confidence in the personal morals and values ​​remain attached even at times contrary to laws made for a set of social rules. Example: A husband who does not have the money should be going to steal the drug to save the life of his wife in the belief that preserving human life is a moral obligation that is higher than the theft itself.

























BUSINESS AND RELATED ISSUES
According to the dictionary, the term ethics has a variety of different meanings. One meaning is "principles that govern the behavior of individuals and groups". The second meaning according to the dictionary - more importantly - ethics is "the study of morality". But although the ethics related to morality, but is not identical with morality. Ethics is a kind of study, both the review and the review of the activity itself, whereas morality is the subject.

A. Morality
Morality is a guideline of the individual or group about what was right and wrong, or good and evil.
Moral guidelines include norms that we have the kinds of actions that we believe is right or morally wrong, and the values
​​that we apply to objects which we believe to be morally good or morally bad. Moral norms such as "always tell the truth", "killing innocent people is wrong". Moral values ​​are usually expressed as statements that describe objects or features of objects of value, such as "honesty is good" and "injustice is bad". Moral standards are absorbed first time when childhood from family, friends, social influence, such as churches, schools, television, magazines, music and clubs.

The nature of moral standards:

  1. Issues related to the moral standards that we consider to be seriously hurt or will actually benefit humans.
  2. Moral standards can not be set or changed by certain authoritative decision of the board.
  3. Moral standards must take precedence over other values, including (especially) self-interest.
  4. Moral standard based on an impartial consideration.
  5. Moral standards associated with specific emotions and specific vocabulary.
    Moral standards, as such, is a standard relating to the issues that we think have serious consequences, based on the reasoning that good is not authority, beyond self-interest, based on an impartial consideration, and that the offense is associated with feelings of guilt and shame and with emotion and specific vocabulary.


B. Ethics
Ethics is the science of studying individual moral standards and moral standards of society. He questioned how the standards are applied in our lives and whether it makes sense or standard unreasonable - standard, which is supported by good or bad reasoning.
Ethics is the study of moral standards, moral standards of the examination process or the community standards to determine whether or not it makes sense to be applied in concrete situations and problems. The final goal is to develop building moral standard moral standards we think it makes sense to adhere.
Ethics is the study of moral standards explicit goal is to determine the correct standard or supported by good reasoning, and thus the ethics of trying to reach conclusions about the true moral right and wrong, and moral good and evil.

C. Business Ethics
Business ethics is a specialized study of the moral right and wrong.
This study concentrates on moral standards as applied in policies, institutions, and business conduct.
Business ethics is the study of formal standards and how the standards are applied to the system and the organization of modern society that is used to produce and distribute goods and services and applied to people who are in the organization.

D. Application of Ethics in Corporate Organization
Get as moral sense of responsibility, wrongdoing and liability apply to groups such as the company, or the person (people) as a real moral behavior?
There are two views that emerged on this issue:

  • The first extreme, is the view which argues that, because the rules are binding, the organization allows us to say that the company is acting as an individual and have a deliberate purpose on what they're doing, we can say they are morally responsible for their actions and that their actions is moral or immoral in the same sense that humans do.
  • These two extremes, is the view of philosophers who held that unreasonable to think that the business organization is morally responsible because he failed to follow the moral standards or to say that the organization has a moral obligation. Business organization whose members are the same as the machine must blindly obey the formal rules that have nothing to do with morality. As a result, it is not unreasonable to assume the organization morally responsible because he failed to follow the moral standards rather than criticize organizations like the engine fails to act morally.

Because of this, the company's action comes from choices and actions of individual men, indivdu-are the ones who should be regarded as the main guardian of moral obligation and moral responsibility: individual human being is responsible for what the company because the company's overall actions flowing from their choices and behavior. If the company is acting wrongly, the error caused by the choice of the actions taken by individuals in the company, if the company is to act morally, it is caused by the selection of individuals within the company to act morally.
E. Globalization, Multinational Enterprise and Business Ethics
Globalization is a process that involves the entire world and cause economic and social system states to be linked together, including goods, services, capital, knowledge, and cultural heritage and to switch between them trafficked from one country to another. This process has several components, including the reduction of trade barriers and the emergence of open world markets, the creation of a global communications and transportation systems such as the Internet and global shipping, the development of the world trade organization (WTO), the World Bank, the IMF, and so forth.
Multinational companies are the core of the globalization process and is responsible for international transactions happening today. Multinational companies are companies engaged in the produce marketing, service or administrative operations in some countries. Multinational company is a company that operates a production, marketing, services and operates in many different countries.
Because of this multinational company operating in many countries with diverse cultures and different standards, many claim that the company violated several norms and standards that they should not do.

F. Business Ethics and Cultural Differences
Ethical relativism is the theory that, because different people have different ethical beliefs. Whether the action is morally right or wrong, depending on the view of the public. In other words, moral relativism is the view that there is no absolute ethical standard which is true and which is applied or to be applied against the company or the people of all communities.
In moral reasoning a person, he must always follow the moral standards that apply in any community where it is located.
Another view of ethical relativism critics who say that there are certain moral standards that must be accepted by any member of the public if the public is going to continue, and if members want to interact effectively.
Ethical relativism reminds us that different people have different moral beliefs, and we should not simply ignore the moral beliefs of other cultures when they are not in accordance with our moral standards.

G. Technology and Business Ethics
Technology developed in the late decades of the 20th century to transform society and business, and create the potential for new ethical problems. The most striking is the revolution in biotechnology and information technology. Technology led to some radical changes, such as fast growing globalization and the loss of distance, ability to discover new forms of life that benefits and risks are not predictable. With this rapid change, business organizations faced with a stack of exciting new ethical issues.
















Business ethics violation against the law

A company X because of the condition of the bankrupt company finally decided to Doing layoffs to their employees. But in doing the layoffs, the company did not provide pesongan as stipulated in Law no. 13/2003 on Manpower. In this case the company x can be said to violate the principle of obedience to the law.

  Violation of business ethics to transparency X Foundation organizes a high school education. In the new school year charge of Rp 500,000, - to every new student. This school levy did not inform them when to sign up, so after they received would not want to pay. Besides, there was no official information or explanation about the use of the money to parents.
After urged by many parties, the new Foundation provides information that the money was used to purchase seragama teacher. In this case, the Foundation and the school can be considered to violate the principle of transparency

  Violation of business ethics to accountability A private hospital by the Board announced to all employees who will sign the civil servants resigning otomotais stated. A as one of the employees in the private hospital was ignoring announcements from the board because he thought she was appointed by the directors in this business, so that all rights and obligations related to the business he is not the Board. Do not give your own party an official circular on the policy.
Because of that attitude, A declared finally resigned. Private hospital of this case it can be said to violate the principle of accountability because there is no clear function, implementation and accountability between business and the Hospital Board

  Business ethics violation of the principle of accountability A recruitment company in Jogja for personnel recruitment baby sitter. And agreements stated in the announcement that the company promised to send prospective workers after 2 months following the training promised to be delivered to the destination countries. The company even promises that any costs incurred will be refunded if the applicant so they do not leave your home country. B terarik with the offer directly register and pay as much as Rp 7 million for administrative costs and obtaining a visa and passport. However, after 2 months of training, B never dispatched, even up to one year is not clear. When confirmed, the recruitment company has always argued there was a delay, and so on. From these cases it can be concluded that the Company had violated the principle of recruitment agency accountability by ignoring the rights of B as prospective workers should diberangnka to destination country for work.

















MORAL RESPONSIBILITY

Moral responsibility can refer to two different but related things padaberbagai thing. First, someone has 'moral responsibility' for a situation if the person has an obligation to make sure that something has happened. Assuming that John promised to be a baby-sitter for a neighbor when the neighbor had to go to a job interview. However, he decided to go to a concert instead. Arguably, Jhon have a moral responsibility to find a suitable babysitter in addition to his neighbor. Into two, one has a moral responsibility for a situation when it is morally right to praise or blame the guy for that situation. But if John fails to find something that fits, then it may be said to have a moral responsibility to make the mistake neighbors for a job interview.

People who have a moral responsibility for an action is generally called a moral agent. Agent is able to reflect their situation, forming intentions about how they will act, and then completing the action.

 MORAL, AND CAUSES OF LIABILITY

Moral responsibilities are both related to and distinct from causal responsibility and legal responsibility. People are responsible for the event when the event is directly enhanced by their actions. Often when people have a moral responsibility for a situation, they also have lead responsibility for the situation. Someone who praised commendable to act as a responsible way to generally cause some good conditions to occur. To see that someone can have moral responsibility without causal responsibility, however, consider that John might concede that no failure to keep its promise that caused neighbors to fail to make the job interview. (He could take his son with him, or find another babysitter, for example.) Nevertheless, he may remain liable on the error to attend the interview. A person is responsible for his actions at law someone convicted in court for an event that has occurred. Although, perhaps often the case when a person is responsible for some actions, they are also responsible for some actions, there are clearly exceptions to this rule. Certainty about ethics laws and regulations do not always overlap.





NAME             : AYU KARTIKA RATRI

NPM                : 11611324

CLASS            : 2SA04



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