T-Mobile, an Ethical Leader in the Wireless Industry essay

It is known that today business ethics plays a significant role in successful development of any business organization or industry. According to Linda Ferrell and John Fraedrich (2009), “the ability to recognize and deal with complex business issues has become a significant priority in twenty-first-century companies”(p. 4). There are a number of facts that describe scandals resulted in deception or fraud in business. That is why practically all business owners realize the importance of business ethics and the need for greater corporate responsibility. Due to the debates about ethical lapses of such well-known firms and corporations as Coca-Cola, Enron, WorldCom, etc., the majority of business organizations highlight the need to integrate ethics and corporate responsibility into business decisions at all levels. Today a number of new rules and regulations have already been designed and put in place “to encourage high ethical standards in business” (Ferrell & Fraedrich, 2009, p. 4). According to the recent National Business Ethics Survey conducted by the Ethics Resource Center, “observed misconduct is higher in larger organizations with more than 500 employees, that in smaller ones” (Ferrell & Fraedrich, 2009, p. 7). As a rule, reporting of misconduct or unethical behavior comes from upper level managers.

Business ethics addresses a number of ethical issues, including abusive behavior of employees, harassment, conflict of interest, accounting fraud, bribery and theft in the workplace, affirmative action in hiring, consumer privacy in e-commerce, outsourcing of labor to foreign countries, downsizing, etc. That is why it is very important to understand the significance of business ethics and recognize ethical issues. The world’s most ethical companies include Trader Joe’s, Xerox, Nike, T-Mobile, Intel Corporation, General Electric, PepsiCo, etc., according  to Linda Ferrel & John Fraedrich (2009, p. 40). Each of these companies has demonstrated its commitment to the stakeholders and employees.

T-Mobile is one of the well-known companies that have developed a good reputation in the competitive market due to the practices in business ethics. It has been found that “for the fourth year in a row, T-Mobile has been recognized as one of the 2012 World’s Most Ethical Companies” (T-Mobile Makes Ethisphere’s Most Ethical Companies List, 2012, para.1). In order to critically examine some specific ethical issues facing an organization or industry, it is necessary to define the term business ethics.

Definition of the term business ethics

It is known that the term business ethics is “derived from the concept of ethics” (Cross & Miller, 2011, p. 76). Ethics is a study of right and wrong behavior, a philosophical approach which is based on morality and moral principles. Ethic is associated with fairness, rightness or wrongness of an individual’s action/behavior. Business ethics is focused on right and wrong actions or behaviors of employees in business environment. According to Frank B. Cross and Roger LeRoy Miller (2011), business ethics “has to do with how businesses apply moral and ethical principles to situations that arise in the workplace”(p. 76). As a rule, in business, decision makers often address more serious ethical issues than they may experience in their personal lives. This fact means that business ethics is more complicated than personal ethics.

1. T-MOBILE AS AN ETHICAL LEADER IN THE WIRELESS INDUSTRY

Core values of the company

The company’s core values can be found in the code of ethics on the official website of the organization. There are a number of important statements which give explanation to the core values of the company, including “customer delight drives our actions”, “respect and integrity drive our behavior”, “team together – team apart”, “I am T-Mobile – count on me”, etc. According to these principles, T-Mobile’s employees always act ethically and honestly, obey the established laws and regulations, respect others, do everything possible to earn the trust of the customers.  In addition, the company’s employees are rewarded for high performance and are offered an opportunity for personal development. They are dedicated to achieve the best results in their work.

T-Mobile’s Work Environment

It is known that T-Mobile is “an equal opportunity employer”, and the major decisions concerning employment and employees are made without regard at such characteristics as age, race, ethnicity, national origin, color, sex, sexual orientation, marital status and the presence of any disability (mental or physical), protected by the Constitution. In addition, discrimination and harassment (or any other violation of human rights) are inconsistent with the organization’s values and morale (T-Mobile: Our Code of Conduct, 2012, p. 9). It has been found that T-Mobile is one of the companies that are committed to highest standards of ethical practices and honest business conduct.

Those employees who can be regarded as witnesses of acts of discrimination in the workplace, including harassment of supervisors, clients or co-employees should immediately inform HR manager or supervisor of the issue, and if it is determined the prohibited action has occurred, “it will take effective remedial action commensurate with the circumstances” (T-Mobile: Our Code of Conduct, 2012, p. 11).

In addition, T-Mobile complies with health and safety rules and regulations provided by the Constitution. The major goal of the company is to maintain safety workplace preventing health and safety hazards in the workplace and providing the appropriate training of employees (T-Mobile: Our Code of Conduct, 2012, p. 11).

Moreover, T-Mobile does not tolerate sexual harassment that includes different forms of offensive behavior. It is prohibited to demonstrate “unwanted sexual advances, visual and verbal conduct (leering, sexual gestures, sexually suggestive pictures, jokes, derogatory comments, etc.) and verbal abuse of sexual nature” (T-Mobile: Our Code of Conduct, 2012, p. 10).

Complying with laws and ethical conduct

T-Mobile complies with the laws established by the government at all levels. The employees of the company “do not engage in any activity which would in any way violate the Company’s policies, including non-discrimination, non-harassment and non-retaliation policies” (T-Mobile: Our Code of Conduct, 2012, p. 13). In addition, the employees of T-Mobile are expected to exercise integrity and common sense in any situation. Unacceptable conduct of the company’s employees includes the following acts: violation of the company’s Code, Employee handbook, laws and regulations or any policy, removal of property (computers, equipment, etc.) without permission;  acts of dishonesty, theft, or fraud; poor attitude towards co-employees or customers; sleeping during the working process; acts of criminal conduct; conflicts in the workplace, etc.

Besides the above mentioned facts, T-Mobile’s employees are required to notify Human Resources department within 24 hours of any criminal conviction during their employment. The company is interested in positive working environment and honest actions of the employees. T-Mobile is engaged in conducting business in the highest ethical and professional manner; that is why the employees should avoid any conflict situations, and conflicts of interests. The major task is to promote the company’s interests, and avoid violating any policies, hiring or supervising family members, etc. For example, it is a conflict of interest if a spouse of one of the company’s employees works for T-Mobile’s competitor (T-Mobile: Our Code of Conduct, 2012, p. 14).

Assessment of the strengths and weaknesses of the organization in terms of ethical standards

As one of the most effective ways to set a tone of ethical behavior within this or that business organization is creating ethical codes of conduct, T-Mobile has successfully developed its code of conduct. T-Mobile’s code of conduct is well-written and not only clearly states the company’s ethical priorities and principles, but also demonstrates T-Mobile’s commitment to ethical behavior and morality. The code of conduct developed by T-Mobile also indicates the “company’s commitment to legal compliance, as well as to the welfare of its customers and clients, its employees and its suppliers” (Cross & Miller, 2011, p. 81).

In addition, in such company as T-Mobile, special attention is paid to the employees’ ethics training. According to Frank B. Cross and Roger LeRoy Miller (2011), “for an ethical code to be effective, its provisions must be clearly communicated to employees”(p. 81). T-Mobile has implemented a number of ethics training programs for its employees. In these programs, managers of T-Mobile discuss the company’s policies included in the code of conduct and the significance of ethical behavior in business. In addition, they organize periodic ethics seminars and discuss contemporary ethical problems they may face in the process of work.

However, it is necessary to refer to the limitations of the company’s code of ethics. According to Peter W. F. Davies (1997), the codes of ethics are focused on “the misconduct of isolated individuals, and are not much concerned with how moral problems arise in the first place” (p. 103). This fact means that the codes of ethics cannot capture all the complexities that can occur in today’s business environment. T-Mobile’s code of ethics also has certain limitations, although this organization “has been recognized as one of the 2012 World’s Most Ethical Companies by the Ethisphere Institute, the leading international think tank devoted to sharing the best practices in business ethics” (T-Mobile makes Ethisphere’s Most Ethical Companies List, 2012, para.1). In fact, T-Mobile’s code of ethics is considered to be very effective as it is based on the major ethical standards of business and helps to avoid many ethical conflicts. In the interview with a corporate social responsibility manager of T-Mobile in Czech Republic, there is much information about the major strengths of the company in terms of corporate social responsibility. It has been reported that corporate social responsibility became “a vital part of the company’s culture” (T-Mobile CSR: An Interview, 2008, para.1). All employees know about corporate social responsibility that today can be viewed as an integral part of their social life. The same thing can be said about T-Mobile’s subsidiaries which operate in more than 11 countries of the world, including the USA, the UK, Austria, Germany, etc.

1. CONTEMPORARY ETHICAL ISSUES THAT MAY BE RELATED TO T-MOBILE AS WELL AS TO ANY OTHER ORGANIZATION

It has been found that the companies’ codes of ethics are effectively used to address a number of significant moral issues in business. However, there are “many problems for which they will be entirely inapplicable”, according to Peter W. F. Davies (1997, p. 102). In other words, the companies’ codes of ethics can be very effective in setting agenda for the companies’ policies, but may not include particular ethical issue. It is known that “the very nature of moral dilemmas is that they arise from the existing norms of behavior” (Davies, 1997, p. 102). The following contemporary ethical issues are considered to be the most widely spread in today’s business environment: ethical aspects of HRM, affirmative action in hiring and consumer privacy in e-commerce.

Ethical aspects of human resource management

As a matter of fact, ethical issues have always been of marginal importance in human resource management. Human resource management is associated not only with organizational well-being, but also with the promotion of the individuals and social well-being. According to Diana Winstanley and Jean Woodall (2000), “the ethical treatment of workers and the concerns for their welfare have been addressed in the area of job design and motivation” (p. 6). As a rule, human resource specialists can be viewed as the guardians of business ethics whose function is “to take on the role of ethical stewardship” (Winstanley & Woodall, 2000, p. 6).

Today the major ethical role of human resource specialists is not only to clearly communicate ethical codes of conduct, but also to provide training in ethics, managing the employees’ compliance and monitoring the basic arrangements, such as disciplinary procedures and grievance procedures. Ethical sensitivity is focused on the ability to have impact on the human resource managers who should be able to identify the major ethical or moral issues. It is clear that different situations require ethical insight and flexibility “to encapsulate the grounds on which competing ethical claims are made” (Winstanley & Woodall, 2000, p. 8).

In fact, the major ethical issues in human resource management include issues of power, confidentiality, equal access to learning and training, and many other moral issues. In today’s competitive environment, special attention is paid to the role of human resource development which is based on the implementation of certain activities “specially designed to produce behavioral change”, according to Tim Hatcher (2006, p. 93). As a rule, human resource development practices include training, education and development procedures which can help to improve job performance and provide personal growth and motivate employees to act ethically. There are a number of examples of unethical behavior of employees, including acts of theft, falsification of timecards in order to hide early departures from the workplace, acts of sexual harassment in the workplace, etc. It is the major task of human resource managers “to develop the appropriate human resource management policies, practices and procedures” that will help employees to behave ethically (Schumann, 2006, p. 112).

Affirmative action in hiring

It is known that affirmative action in hiring is one of the ethical issues faced by employees not only in the USA, but also in other countries of the world. According to Bron Raymond Taylor (1995), there are “four main moral approaches to affirmative action” (p.69). Affirmative action is disapproved by libertarians and conservatives because they highlight their principle of freedom over any principle of justice, and “they tend to see affirmative action as violation of freedom” (Taylor, 1995, p. 69). However, liberals support affirmative action because they insist on the fact that “disadvantaged individuals should take precedence over those individuals who already have free access and free choice in market society” (Taylor, 1995, p. 69). Today the affirmative action programs help to overcome acts of discrimination in employment experienced by the representatives of ethnic minorities and people with disabilities. Affirmative action means that an organization should develop and implement the appropriate strategies to increase the participation of minorities, women, and people with disabilities, protected by anti-discrimination laws, in the workforce.

T-Mobile has developed effective code of conduct which includes such sections as Equal Employment Opportunities, Discrimination and Harassment Free Environment and Complain Procedure: Discrimination, Harassment and Retaliation. T-Mobile employees follow the established rules and regulations. This fact means that T-Mobile is an affirmative action and equal opportunity employer and the company is committed to hiring a diverse workforce.

According to Myers (2007), affirmative action program can be very effective as it “provides a long term cure for discrimination by allowing victims to demonstrate their skills and worth and change prejudicial attitudes” (p. 379). However, the opponents of this program state that affirmative action cannot address the major sources of inequalities in our society as it can lead to labor market inefficiency and even result in reverse discrimination against the white.

Consumer privacy in e-commerce

It is known that in today’s digital economy, consumer information is of great importance. Many companies use consumer information in innovative ways in order “to provide consumers with new and better products and services” (Protecting Consumer Privacy in an Era of Rapid Change, 2010, p.1). As a rule, many companies try to manage consumer information responsibly, but, in some cases, they create certain ethical problems because treat this information in an irresponsible manner. According to the Federal Trade Commission (2010), “many companies – both online and offline – do not adequately address consumer privacy interests” (Protecting Consumer Privacy in an Era of Rapid Change, 2010, p.1).

It has been found that T-Mobile’s products and business environment may create certain ethical issues. As the company’s products are designed both for children and adults, the company should be sensitive to the concerns about human rights. In addition, it is known that “international business environment often complicates business transactions” (Ferrell & Fraedrich, 2009, p. 356). Ethical conflicts can be created by various cultural expectation and differences in legal systems. Finally, ethical dilemmas may be created by the use of technology, including consumer privacy. T-Mobile has developed the appropriate policies to strengthen its commitment to business ethics. In addition, the company pays special attention to the role of social responsibility in business. The official website of T-Mobile contains a privacy policy which includes the following statement: “T-Mobile is committed to protecting the privacy and security of your personal information” (T-Mobile: The Privacy Policy, 2012). The company’s Privacy Policy not only describes the personal information collected about customers, but also how it may be used, when the company may disclose it, how the company safeguard it and control its use in connection with the marketing communications.

In addition, T-Mobile web site is specially designed to attract children under the age of 13 to buy products and the company collects personal information and encourages parents to be involved in the online activities of their children because no information is collected from a child without the permission of his/her parents (T-Mobile: The Privacy Policy, 2012).

Some recommendations for changes within organization to provide more ethical and socially responsible approaches to the ethical issues

It is known that any organization should understand the significance of business ethics and social responsibility, as well as to develop successful corporate governance. In order to achieve success, it is very important to develop the appropriate strategies. The most effective approaches in managing business ethics include the following steps: “assessing the corporate culture of the organization, identifying stakeholder groups, assessing organizational commitment to social responsibility, identifying resources and determining urgency and gaining stakeholder feedback” (Ferrel & Fraedrich, 2009, p. 47). First of all, it is very important to improve social responsibility and change those components of corporate culture which have implications (organizational mission statement, values, norms, etc.). Secondly, it is necessary to recognize stakeholders’ needs, desires and requirements. Thirdly, it is necessary to understand the major concerns of stakeholders in terms of the industry. Forth, understanding of social responsibility will help to develop and implement the appropriate strategies to address stakeholders’ concerns. Fifthly, it is very important to identify financial investments, urgency to address challenges and obtain stakeholders’ feedback through different surveys.

In addition, in order to provide more ethical and socially responsible approaches to the ethical issues, it is necessary to improve consumer privacy protection. According to the Federal Trade Commission report, it is very important to “adopt privacy by design approach, by building privacy protections into the everyday business practices” (Protecting Consumer Privacy in an Era of Rapid Change, 2010, p. 5). These protections should include providing security for consumer data, collecting the data needed only for specific purposes of the company, promoting consumer date accuracy. Moreover, the companies should develop and implement regular “procedurally sound privacy practices”, including, assigning the employees to overseeing privacy issues, education and training of employees on various privacy issues, conducting legal privacy reviews when developing new product lines. Although these practices are not new, the companies should implement them systematically.

• CONCLUSION

In conclusion, it is necessary to say that business ethics plays a significant role in any business organization as it helps to achieve success in today’s competitive environment. T-Mobile is really an ethical leader because this company is conducting business in the highest ethical and professional manner. It has been found that T-Mobile not only demonstrates effective business ethics, but also the company guaranteed their customers’ satisfaction providing them with affordable cell phone plans. Today each company should pay special attention to such business ethics issues as ethical aspects of human resource management, affirmative action in hiring and consumer privacy in e-commerce. It is clear that if a company has developed good reputation, corporate responsibility, effective code of ethics and provides education and training of its employees to act ethically, this company will achieve success in today’s competitive market.