Efficient resource utilization is one aspect of corporate social responsibility.
Ethical business conflicts are unavoidable to some extent for business leaders in the 21st century. Thanks to various scandals and increased societal expectations, managers have to maintain proactive ethical standards to avoid unacceptable behaviors and to protect against illegal and unethical business activities. The expectations are so high that some companies have hired corporate social responsibility (CSR) employees and consultants to ensure compliance with ethical guidelines.
Meeting Needs
Though not necessarily an ethical dilemma related to doing something inherently wrong, Carter McNamara, MBA, PhD, of Authenticity Consulting, LLC, points out in his "Complete Guide to Ethics Management" that sales reps often face a dilemma when they do not have a solution that best meets a customer's needs. Historically, salespeople would try to sell anyway to profit. In 21st century relationship-oriented business, you have to view your job as best meeting the customer's needs. This may sometimes include recommending a different provider.
Conflicts of Interest
Conflicts of interest are a common ethical area that business leaders must consider. A conflict of interest exists when you have multiple relationships with other entities that could serve as a conflict for independent business operations. Lea Strickland (CMA, CFM, CBM), president of F.O.C.U.S. Resources, explains that the Arthur Anderson connection to the infamous Enron scandal in the early 2000s is a prime example. She says, "by having multiple roles as consultant, tax advisor/preparer, and auditor, the accounting firm could not be objective in its actions -- too much of its livelihood depended on keeping the business."
Diversity
McNamara highlights another common ethical business dilemma of equality in hiring. Organizations are widely expected in 2010 to offer fair hiring practices and to promote diversity. The challenge, notes McNamara, is maintaining fair and open hiring practices while also meeting the needs and expectations of consumers. For instance, a highly qualified job candidate who struggles with speaking English clearly. This could pose a challenge in communication with customers, and it forces the company to take a stance on hiring for diversity.
Corporate Social Responsibility
Corporate social responsibility, including environmental ethics, is a prominent 21st century ethical business conflict. Companies must decide whether to optimize cost efficiency, often forsaking societal expectations and the environment. Fewer companies are making that choice, instead falling in line with growing expectations of social responsibility and environmental sustainability. Companies sometimes spend more or save less by helping the environment, but that is becoming the norm. Even a technology provider like Cisco promotes the concept of power efficiency and environmental friendliness.
