The Importance Of Business Ethics In International Business

Without ethics, we would not be able to choose the most appropriate one from a large number of goals. Ethics answers the question “ how should I live?” What is business ethics? Business Ethics is concerned about morality in the business process. In the business activities, business ethics is a set of moral principles and standards which conduct the business activities.

A reward for ethical behavior The ethical behavior must be recognized and appreciated and at the time it must be awarded. So it can promote ethics in other employees. Conclusion Ethics in business and in corporate culture has become a critical issue for many companies.

In recent years CSR has become a fundamental business practice and has gained much consideration from chief executives, chairmen, boards of directors and management teams of larger international and national companies. They understand that a strong CSR program is an essential aspect in achieving good business practices and successful leadership. Companies have determined that their impact on the economic, social and environmental backdrop directly affects their relationships with stakeholders, in particular investors, employees, customers, business partners, governments and communities. CSR encourages a vision of business accountability to a wide range of stakeholders, as well shareholders and investors. The key areas of apprehension in CSR are environmental protection and the well-being of employees, community and civil society in general, both now and in the future.

A firm’s assignment of CSR begins with economic responsibility and narrows up with legal, ethical and other responsibilities, such as sound judgment. What was found as ethical pursuance and sound judgment in Carroll’s model, it is now indispensible because of the fact that ethical responsibilities are required as much as the economic and legal responsibilities in today’s environment and prerequisite for success. CSR can be seen as a rationale on moral and economic grounds, often companies adopt CSR as a defensive strategy though it can be a part of corporate environment and could be used as an aggressive strategy. (Werther and Chandler, 2006) CSR has a range of participants for sustainability and a positive role in the society (Blowfield &

This ethical behavior is reflected in the code of conduct in diverse accountancy professional organizations. Hence, ethical behaviour is likely of accountancy students consistent with that of a practicing accountant.

Managers tend to be unethical doing things to their own self-interest instead of providing the best interest of shareholders. For the business to be less likely to fail the corporate governance must be effective in the business and thus protect the interest of shareholders of the business. Corporate

Corporate Social Responsibility (CSR), by definition, refers to the responsibilities of business that go beyond that of its obligatory economic, legal and technical requirements and more towards philanthropic actions for sustainability. It is rooted from the belief that a business owes certain responsibilities towards the society and stakeholders beyond that of making profits. Corporate ethics, which are the morals of right and wrong regulating the conduct of businesses, works side by side with CSR. In today’s increasingly globalized and corporate world, plagued by exploitation, inequalities and corruption of corporate irresponsibility, ethical behavior and CSR has grown in importance and has turned into an evident priority for business leaders.

This statement is supported by Bennett (2014) wherein ethics clearly defines what is the right and wrong things and shapes what kind of behavior the business should act on. For the sense of business according to Joseph (2013), ethics are constructed and decided by each business and underpins decision that an employee makes. When it comes to the business’ environment, a well-constructed ethics is a key for a considerate and responsible decision making in a business (Bennett, 2014). Business Ethics is very important inside the company, it will show the moral standards that a company or business have whether it is right or wrong and good or bad.

Business ethics also referred to as corporate ethics can be considered as either a form of applied ethics or professional ethics. Its purpose is to analyse ethical principles and also moral as well as the ethical problems that might arise in a business environment. Business ethic is applicable to all parts of business conduct and also takes into consideration the conduct of individuals and the business organizations as a whole. Business ethics can be divided into normative and descriptive discipline. For the purpose of this assignment, the Nestle Company has been chosen.

As mentioned by Hicks (2002), global leadership efficiency has turned out to be one main issue within the literature of social issues, human resource development and management and world business etc. To efficiently perform the role of global leadership in progressively complex global market it important to workforce management and international business. Leadership is considered to be main element of all firms however its capacity and function are getting difficulty with increased engagement in technology and globalisation development. Technological advances extend the probability of global economy that has changed the approach people communicate and do business (Kochan & Thomas, 2003). Managing diversity is related to acknowledging each employee’s differences and understanding theses diversity as valuable factor, this lead to motivate and improve effective managerial practice by stimulating extensiveness and preventing

However, these organizations should be mindful of how much of their time and resources are consumed by business as to not lose perspective on their ultimate social goal. These are the fears and risks that every nonprofit grapples with, the need to provide while still working towards the organization’s mission. In the past fear was the driving factor deterring nonprofits to distance themselves from business methods. Many nonprofits fear that their engagement in business tactics may lead them astray from their intended missions or may cause others in the nonprofit sector negatively view