Organizations use ethical methods to build and maintain their brand equity. The moral principle of ethics is founded on solid principles and determines the morality in human actions. The moral standards that define ethically good or poor company behavior are business ethics. The topics of business ethics cover fiduciary duties as well as corporate governance, corporate responsibility and data security. What is permissible in each culture will be determined by the law. This may differ across societies. However, organisations must comply with the moral and legal requirements of their society. Laws are designed to stop people and companies from illegal activity. Ethics, on the other hand, aims to encourage responsible behavior. Kubasek, et. al. (2018). While laws emphasize regulations and enforce punishments, enhanced monitoring and enforcement to attain the intended results, ethics is embedded within company culture, leadership, and business practices.
To increase awareness of the effects that company actions have on society, corporate social responsibility (CSR), was established. CSR is a voluntary contribution by businesses towards the development of sustainable societies. CSR follows corporate ethics. It encourages companies and individuals to be mindful of the needs of society while increasing their profit margins. CSR encourages companies to improve their economic value while supporting social processes. Ethical standards are the most important factor in determining a company’s social responsibility. Corporations must be open, honest, and responsible when engaging in CSR. Stakeholders must participate in CSR’s evaluation to ensure transparency.
Case Study Evaluation
Mountain Top View’s Information Technology team chose to conceal the database breach. This presents an ethical dilemma. Steve, the information leader of the company, did not notify the management of the data breach that led to the theft and misuse of private customer information. The security breach allowed unauthorized employees to gain access to consumer names, addresses and telephone numbers. Steve modified the exploitable code to be able secure the database. Carlos, who was a decision maker, asked why Steve hadn’t reported the violation to management.
Steve, even though he was able to resolve the security problem, was still legally and morally obligated report it to his management. When there is a risk of theft of information or the imminent loss of funds, companies must report it to management. According to the Securities and Exchange Commission, enterprises should alert shareholders and investors about any cybersecurity threats and events. If a company is in serious danger due to an attempted intrusion or loss of money, or both, it should quickly inform shareholders and investors about this threat.
Organizations should immediately report any security breaches to prevent the impression of improper conduct. Steve failed to report the security breach even though he corrected the problem. This shows a lack in responsibility and transparency. The fundamental workplace ethics standards emphasize honesty, integrity, and law-abiding behaviour.