The Importance Of Business Ethics

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POOR BUSINESS ETHICS First of all according to Ferrell (2012) business ethics are the principles and the standards that determine acceptable conduct in business organisations. Similarly Pride, Hughes, Kapoor (2012) define business ethics as “the application of moral standards to business situations.” When a business has good business ethics, it has a good reputation because it considers its moral obligation to the world. In turn this helps it gain wide business opportunities. Benefits of having business ethics (Ferrell 2012); • Businesses that obey business ethics are known to make more profits, this is because they are respected and trusted so most customers approach them for goods or services. • When businesses make ethical decisions, it results in reduced stress for the managers and employees, enabling them to carry out their tasks efficiently. • Ethical behaviour enhances leadership • Business ethics of a firm is said to be one of the most valuable assets for competition that a business could have. It enables a business to compete both locally and globally. This is because the tangible assets for competing are being produced at a fast pace however they are all the same. So for a business to stand out as the best producer, business ethics will surely help it acquire and sustain the global competitive advantages. (Azmi 2006) More often than not, business ethics are always confused with Corporate Social Responsibility. However business ethics involve decision making
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