Skip to main content

Comparison between two retail companies picked are Walmart and Costco

The two retail companies picked are Walmart and Costco whose 2017 Financial statement links are provided below: WALMART https://www.nasdaq.com/symbol/ wmt/financials?query=income- statement COSTCO https://www.nasdaq.com/symbol/ cost/financials?query=income- statement Both organizations are well known brands and position themselves well with their customer base. Walmart’s value proposition is “We save people money so they can live better”. On the other hand, Costco’s value proposition is “All-in-one convenience and everyday affordability”. Both retailers focus on cost saving for their customers. Looking at their financial statements and by analyzing them a few key areas are evident when comparing the two organization. Looking at the current ratio and quick ratio we can determine the short-term solvency of each organization. The current ratio can be determined by dividing the assets by the liabilities. Walmart’s current ratio sits at 0.86 while Costco’s sits at 0.99. The quick ratio is c...

The role of ethics in management



Ethics refer to standards of behaviour that tell us how human beings ought to act in the many situations in which they find themselves (Markkula Centre for Applied Ethics. Santa Clara University, 2015). The business dictionary describes ethics as the basic and fundamental principles of decent human behaviour. In my own words, ethics are acceptable standards of behaviours among a group of people.

The role of ethics in management

A set of acceptable behaviours have a role in curtailing management behaviours in order for members of the management team to behave as expected of them in an organization. Ethics helps managers to treat other employees fairly and subsequently create a more conducive work environment for all employees.

 In my opinion, ethics are both personal and organizational issues. The ethical climate of an organization depends largely on management. Professor Emeritus Steve Mintz enumerated some ways that management can use to create a more ethical organizational culture. They are as follows;

i.                    Be a role model

ii.                  Communicate ethical expectations

iii.                Offer ethics training

iv.                Visibly reward ethical behaviours and punish unethical ones

(Mintz, 2017)

Management is expected to lead by example. In that, managers are supposed to live by the ethical principles of the organization. Once the ethical standards have been set, it is only ideal for management to effectively communicate all expectations to all employees so everyone will be well-informed of what is expected of them. Communication to a group of people may not necessarily guarantee understanding for all. It is laudable however that management will go a step further like organizing workshops and seminars to sink ethical ideas down in the minds of employees. Such steps by management will send a message to employees about how seriously management considers ethical behaviours. To add to the above, management should ensure that ethical and unethical behaviours do not go unrewarded and unpunished respectively.

An employee’s ethical or unethical behaviour is largely a by-product of an organizational ethical climate. Some ethical climates are so dense that, one can hardly penetrate with unethical behaviours. The same applies for unethical climates in some organizations. Most people who are inclined to behave ethically tend to be corrupted or frustrated in such environments. Unarguably, there are exceptions to the rules.

A manager’s role in creating and maintaining organizational integrity.

Organizational integrity refers to the ethical integrity of the individual actors, the ethical quality of their interaction as well as that of the dominating norms, activities, decision-making, procedures and results within a given organization (Palazzo, 2017). As mentioned earlier, ethics is both a personal and an institutional issue. The ethical behaviours of the individual players of an organization is what comes together to create the integrity impression customers will have about a company. Managers however should dedicate their managing responsibilities to ensuring that individuals of the organization will go by ethical standards set for them. The aggregate of ethical behaviour is what will lead to an organization having integrity.

A manager who demonstrated unethical behaviour and how it affected the organization.

I work with a savings and loans company. It is against company policy for an officer to administer credit to family and friends. Ideally, another (unrelated) officer has to deal with the said customer. The related officer must in no way influence the loan or overdraft facility process. We got a new credit manager who spent seven months with us and then resigned. During his time with us, he appointed certain credit officers to work on loans for a large group of friends of his from his previous company (from several branches). According to these officers, most of them were not credit-worthy. Woe betides any officer who delayed the credit process. They were virtually forced to do loans against their will. These loans were completely influenced by the credit manager. At the approval stage, he exercised veto on some with conditions that he would ensure the people paid back their loans. As expected, these loans have gone bad and are currently sitting in our books. He did not recover the loans as promised and resigned when things went worse. This has rendered the company losing lots of money as we have had to pay sums of money to the central bank on provision for bad loans. We are now in the process of suing these customers and these suits are only going to increase our legal expenses for the year.


 

Bibliography

Markkula Centre for Applied Ethics. Santa Clara University. (2015, August 1). Retrieved June 21, 2018, from A framework for Ethical Decision Making: http://www.scu.edu/ethics/ethics-resources/ethical-decision-making

Mintz, S. (2017, June 27). The role of management in establishing ethical culture. Retrieved June 25, 2018, from Workplace Ethics Advice: www.workplaceethicsadvice.com

Palazzo, G. (2017). Organizational Integrity-Understanding the Dimensions of Ethical and Unethical Behaviour in Corporations. Retrieved June 25, 2018, from Springer Link: link.springer.com

www.businessdictionary.com

Comments

Popular posts from this blog

A trip to TAKI, West Bengal , India

                                   As Bangldesh looks on the bank of Ichamoti, from TAKI, West Bengal. Take a closed look, a cattle corpse i s floating on the river bed, near the Bangladeshi bank. Victim of transborder cattle smuggling. I am not sure how young generation would react to the name of yester year’s one of the most popular writer portraying the essence of rural Bengal, its pains and joys, prosperity and poverty and off course the thread of society; Bibhuti Bhusan Bandopadhyay. His simplicity was eminent in is writing; that was best projected by famous film director Satyojit Roy in his internationally acclaimed films like ‘Pother Panchali’, ‘Aparajito’ et el.  At the age of 9, I read ‘Pother Panchali’. Though I was not matured, enough to comprehend its intrinsic message of the content but the very story left a pugmark in my mind. I became more interested about the author later. ...

A Joke "Why I usually avoid 5* Hotels"

Question : "What would you like to have ..Fruit juice, Soda, Tea, Chocolate, Milo, or Coffee?" Answer: "tea please" Question : " Ceylon tea, Herbal tea, Bush tea, Honey bush tea, Ice tea or green tea ?" Answer : "Ceylon tea " Question : "How would you like it ? black or white ?" Answer: "white" Question: "Milk, Whitener, or Condensed milk ?" Answer: "With milk " Question: "Goat milk, Camel milk or cow milk" Answer: "With cow milk please. Question: " Milk from Freeze land cow or Afrikaner cow?" Answer: " Um, I'll take it black. " Question: " Would you like it with sweetener, sugar or honey?" Answer: "With sugar" Question: " Beet sugar or cane sugar ?" Answer: "Cane sugar " Question:" White , brown or yellow sugar ?" Answer: "Forget about tea just give me a glass of water instead." Question: "Mineral water ...

five stages of radical change

The five stages of radical change are Planning, Enabling, Launching, Catalyzing and Maintaining. While each stage needs a leader with varying leadership styles, I will focus on the most important leadership styles for each.  Planning   stage requires an inspirational leader above all else (Reardon et al, 1998). The planning stage requires a leader that can get people excited about changes that might otherwise be uncomfortable or scary. A leader has to be able to convince people that change is good and will have extraordinary results, and that the status quo is worth changing.  Enabling   stage requires a leader that is mostly logical. Enabling involves examining and analyzing next steps in a way that is easy to explain to team members/employees (Reardon et al, 1998). A leader in the Enabling stage of radical organizational change will need to be accessible and able to assist employees in the next steps in a practical way. Launching   stage requires a leader who ...