Daniel Josef M. Aloroy                                                                                                2.26.08

ITETHIC                                                                                                                       O0B

Book Review on “Current Issues in Business Ethics”

(Edited by Peter W. F. Davies)

CHAPTER 3: CORPORATE GOVERNANCE AND ETHICS

            In summary, boards are seen as key mechanisms for controlling the conduct and performance of organisations in order to protect the interests of shareholders. Involvement in strategy and ensuring effective monitoring of the firm inevitably raise ethical issues over the choice of strategy, how it is implemented, the nature of the goals set for employees, and how their performance is monitored and evaluated. In short, the board, as the apex of the company, should set the ethical framework within which it operates. But the effectiveness of boards as instruments for ensuring managerial accountability to stakeholders has been called into question. Demands for shareholders to become more involved in monitoring companies and improving standards of corporate behaviour have received a variable reception.

            Whatever is practiced within the organization, it would always reflect on its image to the society. That’s what is being talked about in this chapter. When the board of directors implement a system and a set of goals, the employees tries all the best that they can to satisfy them. On the other hand, the boards judge their work for what they did. There is also another major component within the organization, they are the stakeholders. These stakeholders are the people who are greatly affected by the actions of the company. They either gain or lose benefit from it.

CHAPTER 4: BUSINESS AND ITS SOCIAL RESPONSIBILITY

            In essence, the purpose of the social audit is to put some measure to those things that the business does which delivers value to the different stakeholder groups. This might include figures on training, promoting equal opportunities, the composition and salary scales of employees, local economic development, community involvement, allowing staff for volunteering, reducing the environmental impact of business, or investing in long-term partnership with suppliers.

            More and more businesses adopt the concept of social responsibility and take on the actions of improving the lives not only of their employees, but also to the people who benefit from their company. The needs of the society fall under the scope of companies trying to be part of the circle of companies who are socially responsible organizations. While, they deliver this kind of service, they also help the stakeholders to a better life and which gives them an advantage over their competitors. It does not only make society realize of their existence as a company, they also add impact to developing an ethical community of society builders and socially responsible human beings.

CHAPTER 13: TRADE UNIONS AND ETHICS

            If trade unions were to raise wages above competitive levels then the associated higher costs of production incurred by the firms involved would in fact lead to employment reductions and the erosion of the trade union itself. The organisations of the entire industry by the relevant union, while likely to reduce output and employment levels of that sector, would safeguard the survival of the unionised firms in that sector. Further, there are industry sectors where firms possess different cost structures associated with barriers to entry and economies of scale and scope.

            Trade unions play a big part within the organizations. They serve as the channel between the employees and the management. Without them, probably there will be more layoffs, salary decrease, and lesser projects.