Ethical Consideration and Standards

EthicalConsideration and Standards

Successin any business organization is determined by the human resources inthat particular organization. Managing human resource has proven avery difficult task to undertake and, hence, researchers continue todetermine the best practices to be applied to optimize the output ofhuman resources. Relationship between the different stakeholderswithin or without the organization, need to be regulated in order toattain maximum productivity. Ethical standards and considerations aredeveloped to help forge a common vision and path that theorganization needs to take in order to achieve its objectives withminimal alterations. Ethics is structures and processes put in placeby the society to help in modeling a body of principles thatdetermine what is morally right and wrong (pg. 13).

Organizationsthat adhere to very strict and high ethical standards are faced withthe problem owing to its implementation. The very many considerationsof the human subsystem in the organizations and the differentcultural believes and practices makes it difficult for people in theorganization to exercise freedom. As a result, resistance is expectedfrom the people and, for this reason, many questions arise on to thebest practices to include in the ethics code of conduct. In the sameline, organizations make decisions depending on a number of factors.First, it will depend on the kind of problem and the ability of thedecision makers. The decision-making process is done after a criticalreview of the issues. Any decision made must consider the effects onethical standards in the organization (pg. 9).

Oneof the most notable difficult decisions in the near past is exhibitedby the action of coca cola Company buying the products of its closecompetitor Pepsi in order to create an artificial shortage. By doingthis the company aimed at influencing demand and in the eventcapitalizing on the shortage to extend their market share. This ismorally and legally wrong because it shows the lack of considerationfor others and also as the lack of consideration on the preference ofconsumers. The move by the company significantly reduced the marketshare of the soft drink giant, hence, enabling them to dominate themarket and the industry, therefore, able to control the forces forprofitability purposes.

Themost affected stakeholders were the consumers since they were forcedto consume other products that are not their preference as theproduct of the company was the closest substitute. Withholding theinventory of Pepsi by Coca-Cola ensured that a shortage or totalabsence of the product in the major outlets and stores. The consumersare likely to read the inconsistency in the supply of the productmaking them victims of shifting to the more consistent product.

Coca-Colawould not have done what it had done and the best thing could be todraw some competing strategies to win the market over. First, itcould significantly reduce the price to make the competitor leave themarket. Other strategies would include increasing the quality and mixof products offered by the company. This are called non-pricecompetition and they are the most prevalent in today’s market.Consumers put into perspective the value and health standards of aproduct rather than the price. Core competencies and promotion of theproducts is another better and ethical method of winning the marketto your side. Ethical consideration is important to any decision madeby the organization for its success.


Francis,Ronald, and Mukti Mishra. BusinessEthics: An Indian Perspective., 2009. Print.

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