Ethics and ethical standards as it relates to businesses maybe be defined in many forms. Ethics is synonymous with principles, professional competence, truthfulness and honesty. According to IFAC Code of Ethics 2006 business ethics is defined as “A distinguishing mark of the accountancy profession is its acceptance of the responsibility to act in the public interest.” Ethics is about more than simple conformance with the law or about choosing right or wrong, good or bad, hence, the question that should be asked is, how this can apply to the business world one may ask. It is believe that the discussion of business ethics is a subjective one, for different individuals brings different notions of ethical behavior to the table. Some professions such as medicine and law undoubtedly have distinct codes of professional ethics.
What are business ethics? - Business ethics and corporate social responsibility - Anglo American | Anglo American case studies, videos, social media and information | Business Case Studies. [online] Available at: http://businesscasestudies.co.uk/anglo-american/business-ethics-and-corporate-social-responsibility/what-are-business-ethics.html#axzz3K88S081H [Accessed 27 Nov. 2014]. B.V., ï¿½. (2014).
As the practices of the company and a career specialization, the field is primarily normative. The scope and quantity of business ethics reflects the degree to which its business is considered contrary to the social values of non-economic. , For example, today most major corporate sites put pressure on the commitment to promote social values of non-economic under various posts (eg code of ethics, social responsibility). In some cases, companies have to reformulate their core values in the light of considerations of business ethics.
Therefore, in order to be fair for all for those who gained from businesses and those who are affected by businesses, it is required that all businesses should perform professionally and ethically through their own internal codes of ethic. Therefore, what are those codes of ethics? And what are they used for? And why does it exist? In order to clarify these following questions, we will look at what has been shared by professional companies about their own codes of ethic from different sectors of businesses that they have successfully practiced: The first case here is about the Information Technology sector.
For example, most major corporations today promote their commitment to non-economic values under headings such as ethics codes and social conscientiousness charters. Pollan, M. (2006). Why is ethics important to business? Ethics concern an individual's moral judgements about right and wrong. Decisions taken within an association may be made by persons or groups, but whoever makes them will be subjective by the culture of the company.The decision to act ethically is a moral one; employees must come to a decision what they think is the right course of action.
Nevertheless, ethics is seen as the subjective matter and varies with the region, accepted norms and local settings. At the same time, in driving the business well, ethics’ implementation also depends upon the business interests, stakeholder’s pressure, and mainly on other financial factors (Zinn, 1996). Hence, in these circumstances, the company’s own acknowledged culture and ethics following framework decide the path of immorality or morality in specific functions for the business. Hence, as stated in the above paragraph, it is clear that the said company engrosses in particular unfair engagements, however, the company seems to cling to reach its financial goals, when the case study discusses management’s corporate sermon procedures and the management’s discussion about getting the financial rewards also reflects the same
To dive deeper into it from a business perspective ethics are how a company conduct its business affair. Ethics have become prominent in the business world because customers want the company performing services for them to go above and beyond. Also, as wells having a good ethical reputation gives you advantage over your competitors. This demand from customers is not random as Lieberman, 2012, p. 48 states “There are many professional ethics codes, primarily because people realize that law prescribes only a minimum of morality and does not provide purpose or goals that can mean excellent service to customers, clients, or patients.” As the quote shows ethics in business does not just have to do with doing what’s legal because that’s the minimum; it’s going above and beyond.
Important principles of business ethics: There are some important principles of business ethics which is given below: Honesty: We all know that Honesty is the best policy. When you have honesty, then everyone wants to do business with you and everyone believes you whatever you are doing. Integrity: Being ethical in business means a lot of personal integrity. Integrity means having a stable character that determine your thoughts whatever thing you are thinking and so on. Keeping your promises: you should keep your promises.
Business ethics in itself is a part of applied ethics; the latter takes care of ethical questions in technical, social, legal and business ethics. Some of the ethical issues for business include relation of employees and employers, interaction between organisation and customers, interaction between organisation and shareholders, work environment, environmental issues, bribes, employees’ rights protection and product safety. Given below is a list of some of the significant ethical principles to be followed for a successful business: • Protect the basic rights of the employees/workers. • Follow health, safety and environmental standards. • Continuously improvise the