Importance Of Business Ethics In Business

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Introduction Trade is essential for the growth of economies and civilization. Businesses allow people and companies to produce the goods and services for people and organizations that do not have the resources or capacity to do so on their own. As industries expand so does the degree of impact businesses have on both their internal and external stakeholders. Big or small, businesses are considered entities on their own. Like people, their actions and decisions have a significant impact on society and on their competitors. However, many businesses are mostly concerned with profit-maximization and only operate for the purpose of serving their own interests, oftentimes disregarding the interests of some stakeholders, especially those not directly…show more content…
In the simplest words, ethics is a “system of moral principles” (BBC, n.d.). It defines what is good and what is bad, what is morally right and wrong. It is a set of moral standards that govern the behavior of people and how activities are conducted. This means that business ethics is basically ethics applied in the business or professional environment. Hence, it could also be otherwise termed as corporate ethics or professional ethics. Business ethics generally does not have a single, universal standard. The ethical behavior which companies are required to observe are usually the same moral standards that most people live by. For the common individual, it is mostly based on perception that is developed from personal philosophy or simply acquired as an influence from external factors. To know and understand what ethics is and how much or how less of it should be applied, someone or something has to define it for us. We cannot define it by ourselves because as humans, we have the tendency to be subjective in our perception of things. If the definition of right and wrong, of good and bad will come from ourselves, we can easily defend the Robin Hood principle of doing bad for a “good cause” and accept it as a right. From a religious perspective, morality is defined by God Himself (or the founder, in the case of other religions). Islamic standards of morality are largely based on what God says in the Holy Scripture. The same is for Jewish and Christian standards…show more content…
They advocate the free market system and encourage the protection and respect of individual human rights, “the rule of law,” and “the environment” (Aldonas, Abramov, & Johnson, 2004). Unethical behavior comes in many different forms. It could be something as trivial as an employee using company computer for personal benefit or something as serious as accounting or auditing fraud and corruption by an authority or government official. With the absence of ethics in the organization, unethical behavior will surely prevail. When the business world becomes corrupt, companies lose their credibility and become forever loathsome in the eyes of the public. Business ethics and corporate social responsibility matter because not only do they make a company appealing to “socially conscious consumers and employees,” but also makes “a real difference in the world” (Cooney,
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