Relevance and pertinence of ethics to business. Business Ethics 2022-12-29
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Ethics is a set of moral principles that guide the behavior of an individual or group. It is concerned with the rightness or wrongness of actions and decisions, and with the character and behavior of the person making them. In the business world, ethics is relevant and pertinent for a number of reasons.
First and foremost, ethical behavior is essential for building trust with customers, employees, and other stakeholders. When a business operates in an ethical manner, it shows that it is committed to acting with integrity and honesty, and that it values the well-being of those it interacts with. This can lead to stronger relationships and a positive reputation, which can in turn lead to increased customer loyalty and profitability.
In addition, ethical behavior is critical for compliance with laws and regulations. Many businesses operate within a complex regulatory environment, and failing to adhere to these rules can result in serious consequences, including fines, legal action, and damage to the company's reputation. By acting ethically, businesses can ensure that they are operating within the bounds of the law and avoiding potential legal problems.
Ethics is also important for ensuring social responsibility and sustainability. Many businesses have a social and environmental impact, and it is crucial that they consider the long-term consequences of their actions. This means taking into account the needs and interests of all stakeholders, including employees, customers, and the wider community. By acting ethically, businesses can help to create a more just and sustainable world.
In summary, ethics is highly relevant and pertinent to business for a number of reasons. It is essential for building trust, compliance with laws and regulations, and ensuring social responsibility and sustainability. By acting ethically, businesses can protect their reputation, foster strong relationships, and contribute to a more just and sustainable world.
The Importance of Business Ethics
Then, he wants to enjoy social status continuously and avoid unjust or immoral business activities. Businesses can volunteer with local organizations, donate funds to a chosen cause, sponsor a neighborhood group or sports team, and much more. These two stimuli force individuals to lie, or draw a false consensus of others to cover their mistakes. Proper — that which is appropriate and acceptable; e. Business ethics is concerned with the behaviour of businessman in doing a business. They tend to be broad views of life and are influenced by parents, teachers, peer groups and associates. Principle of Transparency — Ethics denotes the concept of purity and truth.
Every person working within the business is required to respect these ethics, violation of which would lead to the penalty. This includes everything from the way you interact with employees to the rules and regulations that you put in place. A positive ethical culture within a business promotes employee commitment and trust, investor loyalty and trust, and customer satisfaction and trust which in turn raise profits for the business. This was mainly because of the distorted view of business that society had during that time. But what does ethics mean, and why do ethics matter for business? Prompt collection of taxes. A business should not perform any activity that creates a problem for the society in which business exists. Thus, business needs, in its own interest, to remain ethical and socially responsible.
The Importance Of Business Ethics Essay Example (400 Words)
One is bound to affect the other. According to Drucker, every individual and organisation in society should abide by certain moral codes and that there is no separate ethics of business. They should properly adhere to all the ethical standards provided by competent bodies. If a business does not consider the interests of its society, then it will harm its survival. The company has many donation funds and programs to help girls and underprivileged minorities study in these fields. Blowing whistle an activity where an employee can raise voice against any wrong practice of anyone in an enterprise iii. The utilitarian approach, thus, puts focus on behaviours and their results, not on the motives for such actions.
What Is Business Ethics? In Practice: The Ford Motor Company decided to produce the first lowest-priced car in the USA. It usually specifies methods for reporting violations, disciplinary action for violation and a structure of the due process to be followed. Almost every company now has a business ethics program. The Legal Test Justice Approach : Is the proposed action or decision legal? However, at most times, profit maximisation and discharging of social responsibilities at the maximum limit, cannot be carried on simultaneously. According to John Hooker of A person who studies ethics can look at his own life from a broader perspective and evaluate his actions and choices. We can think of ethics as the principles that guide our behavior toward making the best choices that contribute to the common good of all. Moreover, he says that the business manager does not know, and does not need to know, where public interest lies.
A trade union may be a registered or unregistered one. If so, certainly, the following benefits are available to the concerned groups. Moreover, it has no business to force its employees into economic insecurity, which is highly unethical. Better utilisation of resources. They must give and perform some excellence examples as per the expectations of others. Our lives are made up of moral values that we must have in order to live them. Business custom differs from one business to another.
Ethics adopted by the business should be followed strictly by each and every person working with the business. Employees should be paid as promised and on time. Reclaim any lost business by honoring all commitments and obligations. ADVERTISEMENTS: Everything you need to know about business ethics. These values help us make wise decisions and live in ways that are moral in nature.
Ethical behaviour may differ from society to society. Individuals and communities must respond thoughtfully and principledally to these issues. Many managerial decisions have ethical implications and these decisions give rise to Managerial Dilemmas. For the long run existence and sustained profitability of the firm, business is required to conduct itself ethically and to run its activities on ethical lines. Hence, many managerial choices represent Managerial Dilemmas, between the profit consideration commercial concern and the social consideration welfare concern of the organisation. Maintain Accounting Control: Take a hands-on approach to accounting and record keeping, not only as a means of gaining a better feel for the progress of company, but as a resource for any "questionable " activities. The main stakeholders of a business are shareholders, management, employees, customers, suppliers, banks and other financing institutions, and the government.
Business Ethics .What relevance does ethics have to business?
This is, in part, because business ethics evolve over time as the surrounding cultures and expectations change. While corporate ethics programs have become common, the quality varies. Today, business have found out that they are, in fact, responsible for social welfare, since they live and operate within a social structure. A good ethical company is one that follows a set of principles such as honesty, integrity, fairness, trustworthiness, accountability, and respect for others. Altogether, employee commitment and trust, investor loyalty and trust, and customer satisfaction and trust contributes to profits.
