The Importance Of Business Ethics In The Business Environment

1Introduction Ethics is the standards of how to deal with the relationship with each others. And the companies need business ethics to govern relationships with all aspects of stakeholders. The need for a company’s business activities followed the business ethics has positive impact to its stakeholders. 2What is ethics? The word “Ethics” originates from Greek terms “Ethos” and “Ethikos”.

So, it is important for the organization to understand, establish and demonstrate a business ethics framework relevant to the company. By enabling a sponsorship to the framework is an expression of social policy in the workplace by employers for purposes such as determining controlling entities. Morals are linked with personal behavior whereas ethics are related to organizational principles to normalize the behavior of all employees - including top executives and other management. Ethical behavior refers to conduct that meets moral and legal commitments to clients and coworkers. It 's clear that ethics is an important dimension for

Customer satisfaction, business profitability and continuous improvement are key factors in documenting business principles. Corporate responsibility to the environmentally friendly use of natural resources is another business principle that often is found in code of ethics. Management Support • Manager support of the values and principles may be documented in the code of ethics. Open door policies for reporting ethics violations can be included in the code, along with a process to anonymously report any code of ethics issues. To reflect how seriously management considers the code, some businesses display the code of ethics with management signatures in prominent areas, such as the break room, where employees will see it on a daily

) John Endris(2016) in his book Good business: An Ethics Workshop According to the author workplace is a complex network of people, decisions affect everything and every choice has an impact. Ethical practices at workplace are vital to establishing healthy and productive partnerships at work and also at home. Conduct of business and running workplace operations is an entwined web of relationships and so ethical practices and decisions are embedded into every decision that is taken and every choice that is made at the workplace. Ability to take ethical and just decisions allows managers and employees to articulate and evaluate opinions and other points of view, which is the key to healthy workplace and business relationships. Workplace ethics should constitute an important part of employment since they are essential to the company’s goal of achieving profitability directly related to high moral and increased performance.

It involves emphasize transparent, trust, responsible personal, and organizational marketing policies. Not having any ethic will damage consumers and other stakeholders. Therefore, it is equally important for both small to large companies but it does differ from one another. Just like how, generally speaking, the term “ethics” refers to the way people relate in a moral manner toward others in all of their various interactions, marketing ethics refers to the application of this morality in reference to the way companies conduct businesses with their consumers and other related parties. Marketing ethics may also refer to the manner in which a business presents its products to consumers generate more sales and make more profit.

Basically, ethics are at their essence which is it is the moral judgments about what is right and what is wrong. Business ethics is focusing on examine the policies and conduct within the context of commercial enterprise in an organizational as well as in an individual level. In business, the ethics in business is an applied ethics where professionals and researchers use principles and theories to solve any ethical problems that exist in business. At the quarter of the 20th century, as technologies like internet have made world business or international business all more viable, the business ethics domestically have grown in importance along with the power and significance of major businesses. So that, international business ethics take center stage as a major concern of the modern era.

When it comes to the concept of "business ethics", it is often assumed that there is an abstract element or unreal. These business people do not understand this concept and do not fully understand the role of ethical in business. Meanwhile, business ethics has a great role for the development of enterprises. In fact, economists have demonstrated that corporate profits associated with ethics, and increase the level of profits tied to increase level of ethics. So businesses do not understand the role of business ethics, no sense of building ethical business in the enterprise, the enterprise will be very difficult to go to the highest success.

Ethics is the branch of knowledge that deals with moral principles that govern a person or group’s behaviour. It is the general human characteristics that separate us from right or wrong conducts. While on the other hand, business ethics is the study of proper business policies and practices that could be practiced in business. “Business ethics is the application of general ethical ideas to business behaviour” (Lawrence & Weber, 2014, p. 70). It is very important for the business to measure what is proper conduct according to the society; each and every person throughout the world depends on these ethical dilemmas to take necessary steps and consider whether it is useful or not, whether it will be endorsed or rejected.

Ethics, culture, morals – are bind together, they are embedded. Every single person follow some system of values and ethics, in private life. But also in business life, in a workplace. Ethics are about what is and what should it be. It depends from your point of view, which is subjective.

Ethics in business are not just a passing fad. Ethics are foundation of any business. Ethics are the values that you invest in a business. When your organisation is ethical the employees in the organisation feel motivated to work in the organisation. I visited a company in which the main motto of their company in their mission statement was "To deliver value products and services to customers NOT under any cost."