The World’s Most Ethical Companies
Introduction
“Ethical” is a term used to refer to a good and helpful state of a person, group or an organization. Ethical practice ensures that people have integrity, transparency and good relationships. Ethisphere is an institute that has rated different companies across the world to reward the most ethical among them. The institute attains its goals with the help of information available online and field survey from different countries. The second includes examining customer relations, employee’s morale, and innovative plans, which help improve the environment (Smyth, 2014). The institute ranks names of organizations and entities to nominate for the ultimate position of the number one ethical company. Firms understand that a good ethical culture will attract more customers and qualified workers committed to their work.
Companies found to be leading in having ethical characteristics include AECOM of the USA, Accenture of Ireland, All Good Organics of New Zealand, and the Ford Motor Company of the USA among many others. This paper evaluates and discusses the latter in regard with its ethical practices and activities (Ethisphere Institute, 2013).
The Ford Motor Company
In 2010, the Ford Motor Company was named the best in the globe with good business ethics. The reason for the award did not come from good performance in business and high revenues collected. Ethisphere Institute considered different aspects and trends before naming the company an ethical-oriented organization. The Ford Company has been ethical in different areas, including its customers, workers and the environment surrounding market options (Smyth, 2014).
The Ethical Attitude to Customers
The Ford Motor Company believes in transparency in dealing with customers and clients from local and international destinations. It designs products to cater for all people despite their location and requirements. It has earned the firm credit from consumers. Many of the latter like innovation capabilities of timely delivery at considerable costs and benefits by the company. Customers can access services online on the Ford website. It reduces costs of traveling to the company’s headquarters to look at products. It is possible for a client to order, pay and receive Ford products just by means of email communication and online money transfer services. It is a commitment that has enabled the company to earn credit and praise for its continued support provided to customers.
Good and effective managers across the world say that the customer is right. The Ford Company understands the phrase, and that has increased its commitment towards meeting customers’ needs. Each and every client has a different requirement in relation to the expected product (Ethisphere Institute, 2013). Ford is always committed to fulfilling needs and specifications a client gives through being innovative in the production line. It has enabled the firm to retain important clients across the globe since they are satisfied with the services and products provided by the Ford Motor Company. There is a considerable trade discount, credit facilities, and after-sales services offered by the company to the client in relation to the sales ratio. The discount and sharing of transportation costs attracts many customers since it reduces high expenditures of the customer and ensures good profits for the firm in the future. The company is also focused on providing good assistance to clients to achieve desirable results at all costs.
Ethical Practices in Relation to the Environment
The Ford Motor Company is concerned about improving the quality of life in the surrounding environment. It has been achieved through funding programs aimed to research and reduce global warming and other environment-friendly activities. The company is involved in tree-planting programs and activities of other world environmental bodies against the destruction of nature. The leaders of the Ford Motor Company are aware of the impacts of motor vehicles on the environment and aquatic life. Being ethical in business prospects, operations and activities is justified based on the manner one treats the environment (Cavanagh, Hazen, Simmons, & Berdish, 2010).
Ford is concerned about upholding the status of the environment, including trees, vegetation, and water-living creatures. The management ensures good disposal of its factory wastes and controlled emission of smokes from manufacturing plants. It realizes hazardous impacts, which smoke has on the environment and effects of polluted water on rivers and seas. The company is also committed to manufacturing cars, trucks and other machinery, which produce or emit little smoke to reduce the effects of global warming (Cavanagh et al., 2010). These ethical practices together with the funding of environmental research, control of global warming, deforestation, and the protection of aquatic life have earned the company environmental ethical credit.
Morally Responsible Behavior towards Employees
For many years, the Ford Company has been identified as one of the world’s ethical companies because of its business prospects and good services. The latter include a good moral attitude to employees and the management staff by ensuring that they work in a comfortable environment. The company pays its workers good wages and salaries, and it contributes to good living standards and improved lifestyles. This reason leads to good working morale and determination of all employees to meet the goals and objectives set by the top management. It is not easy to treat workers of such a big company in a fair and just way without experiencing strikes and go-slows for a long time. It can be achieved through ethical practices provided in the company’s management plans and policy (Cavanagh et al., 2010).
The Ford Motor Company has managed to appear in the Ethisphere Institute nomination list thanks to its ethical practices to employees. The management understands that education is vital for the growth and development of workers and set it as the company’s long-term goal. This reason makes the firm sponsor its employees to further their studies and become world professionals. The process has seen the rise of perfect and competitive workers determined to work hard for the company. There are sessions, seminars, and meetings aimed to facilitate the importance of ethics in the organization. It has helped the management to relate well to workers and create a peaceful environment in the company. Morale acts as a catalyst to boost workers’ activities and helps to achieve the expected goals.
The Effects of Morally Conscious Decisions on the Bottom Line
The ethical practices adopted by the company will bring good results in the future to all market players and the environment. By focusing on the customer relations, the Ford Company will be able to attract more clients. It is possible because the past ones always return with other potential customers in need of witnessing good business options available. It will lead to increased sales, turnovers, and profits. It is the primary objective of any company. Good customer treatment and concern will help to market the name of the Ford Motor Company. In return, clients will vote for the company as the world’s most ethical one.
Employing ethical employees will lead to morale and responsibility among them in their field of specialization. Ethical workers are determined to achieve goals and objectives, and it will result into increased outcomes in the future. A healthy working environment created by the management will help workers upraise the standards of products starting from the manufacturing level to assembling. Good and motivated workers will help to create a good name in the outside world and act as an example to other industries and companies.
Corporate social responsibility helps to give back what the company has earned and received from the community. The involvement of the Ford Company in supporting environmental programs will help to create a good vision in the outside community. People will be willing to be associated with the company. It will be possible through buying from its products and will result into an increase in the customers’ network across the globe.
The Company’s Policies and Necessary Improvements
The Ford Company is an objective-oriented firm in dealing with the requirements of customers. The management follows ethical practices in dealings, all areas of operations, and clients handling. The company’s CEO believes that the communication of objectives to workers will help in working hard and delivering good results. Managers are aware of the importance of ethical standards at all levels of activities. The CEO states that the Company is committed to transparency, innovation, risk-taking, good workers relations, customer satisfaction, and protecting the environment.
The management has achieved great results in creating an ethical platform for operations and services offered to customers. It does not mean that the latter are totally satisfied with what they buy from Ford. The firm should do a follow-up and assign technicians to help the user in case of difficulties. There is also a need to provide operating manuals written in different local languages of various countries to facilitate understanding. The company should help employees upgrade their skills and knowledge to cope with world new technologies. It will benefit customers since they will receive quality technological products. The Ford Company requires introducing an innovative platform to match new technology advancements and developments. More efforts should be put to end the manufacturing of motors that emit smoke to reduce global warming. The need to care for the environment should extend to other countries, including the Sahara region.
Conclusion
Ethical practices help to reduce losses in production and increase confidence among employees. Customers are always attracted to firms with ethical workers since they believe that they will receive credible products and services. It is a duty of each company to establish a good ethical environment and foundation to be able to achieve sound and positive business objectives.