Importance Of Ethics In Corporations

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Ethics is about moral choices. It is about what is right and wrong. The word ethics originated from the Greek word ‘ethos’, meaning – character or manners. Ethics is a discipline which tell about what is right or wrong, moral or immoral, good or bad. Its focus is on standards, rules and code of conduct that tells the individuals and corporations how to behave. Ethics in Corporations A "corporation" is a separate entity distinct from the owners. The corporation is a distinct legal entity made up of an association of people and is created by legal statute. One of the most significant advantages of a corporation is that its owners and employees are normally protected from the personal liability associated with the other business structures.…show more content…
There are several companies that work ethically because their top brass, starting with the boards to directors and CEOs want them to be so. They know that running an organization ethically and as per the norms of corporate governance, will cost them money which cannot be retrieved in a short period. Investments on ethical practices bear fruit, but slowly, though surely. High-profile scandals in both the public and private sectors over the past few years have raised a fundamental concern for organizations: how to ensure employees act ethically and with integrity. Although public, corporate, and not-for-profit organizations have developed and implemented ethics and integrity programs, the focus now is to move beyond strict compliance programs towards ensuring that ethics and integrity become values lived by everyone within an organization. The challenge facing organizations is how to most effectively make the transition from programs to lived values. Key issues for organizations seeking to make this change include the following: To what extent should they relinquish their focus on compliance and the letter of the law? Should they focus primarily on principles and “soft” approaches to ethics? And what is…show more content…
10. Consumer satisfaction : Today, the consumer is the king of the market. Any business simply cannot survive without the consumers. Therefore, the main aim or objective of business is consumer satisfaction. If the consumer is not satisfied, then there will be no sales and thus no profits too. Consumer will be satisfied only if the business follows all the business ethics, and hence are highly needed. 11. Importance of labour : Labour, i.e. employees or workers play a very crucial role in the success of a business. Therefore, business must use business ethics while dealing with the employees. The business must give them proper wages and salaries and provide them with better working conditions. There must be good relations between employer and employees. The employees must also be given proper welfare facilities. 12. Healthy competition : The business must use business ethics while dealing with the competitors. They must have healthy competition with the competitors. They must not do cut-throat competition. Similarly, they must give equal opportunities to small-scale business. They must avoid monopoly. This is because a monopoly is harmful to the
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