How ethics affect business and management: Systematic review
- Introduction
Business ethics is more than just a concept that is applied in enhancing the image of the corporation; ethics are the very key foundations of success. Business ethics should be applied from the very moments open its doors (Osman et al., 2016). Business ethics is made of the action of the individuals working within businesses. Managers do make a decision on a daily basis that do affects their entire business organizations and management as the whole (Trevino & Nelson 2016). Not only do these decisions impact on the jobs and livelihood, but they do also have consequences that are both positive and negative for businesses as a whole, including personal, customer, and the community in general (Ferrell & Fraedrich, 2015). Ethics of management are often critical components of safeguarding individuals and the groups from the potential negative consequences of poor managerial decisions making. Business ethics often relate to how an organization or corporation handles a situation that requires moral decisions.
According to Osman et al., (2016) building on the foundations of ethical behavior for any business organizations helps the organization in creating a long-lasting positive effect of the organization as such ethics has a more significant impact on the wellbeing and to general operations of the business success (Wang & Calvano, 2015). According to the literature, Ethics in business is critical in shaping the vital services of the company. The existing literature has focused on the essentials role of the ethics in business and management on the element of guiding the decision making process in an organization. Various studies carried out did give a valuable understanding through a synthesis of the role of ethics in the management process (Wang & Calvano, 2015). Consequently, the present-day systematically synthesized the ethical practices in any business in affording a compressive analysis of the collected studies. Even more specifically, this review poses several questions. The research question includes; Don't use plagiarised sources.Get your custom essay just from $11/page
RQ1. What are the significant effects of ethics in business and management?
RQ2. What are the main research methods and the outcomes addressed in the collected studies?
RQ3. What is the active database in the context of ethics in management?
- Literature review
During the 21st decade, various studies have been conducted on developing an understanding on the impact or effect of ethics in business and corporate management. This knowledge as fare much more key than any other asset in the organizational management. Business ethics have become a much more prevalent research trend in the business sector (Ferrell & Fraedrich, 2015). Business ethics is defined as; “is the accepted set of moral values and corporate standards of conduct in a business organization” (Ferrell & Fraedrich, 2015). The guiding principle or framework of business ethics does permeate all the veracious levels of organizations and standards of management. It is about having the wisdom of determining the differences between the right and the wrong decisions within an organization. Business ethics fundamentally epitomizes the organization’s codes of corporate governance (Akrivou & Bradbury-Huang, 2015). It works to stipulate the essential morality standards and behavioral patterns expected of the individual and the business at large (Mushtaq et al. (2016). The numerous moral benchmarks can be perceived in terms of the microenvironment and the macro environment of the company (Wang & Calvano, 2015).
According to the literature, different researchers have introduced the various impact of ethics on business and management. Huemann et al., (2016) did state that business ethics the study of the standards of business behaviors that works to promotes welfare and the good.” (Singh et al., 2015).Business ethics, according to the literature, manifests both as the written and unwritten codes of moral standards that are often crucial to the current activities and future inspirations of any business organization (Kolk, 2016). They can usually differ from one organization or company or management system to another (Spence et al., 2019). The differences are based on the elements of cultural perspectives, operations structures, strategic and operations. Regarding the effects of the ethics on business and management, depending on the specific organizational management culture, the organization can reap positively or negatively.
Concerning the effect of the literature review studies, Tsakoumis et al., (2015) did conduct a systematic review to analyze the studies that are related to the role that ethics plays within an organization with the attempt to construct a better understanding (Davies 2016). Demirtas & Akdogan (2015) also conducted a systematic review to analyze the impact of a negative impact of the organization’s ethics on the decision-making process. Huemann et al., (2016) conducted a systematic review of the knowledge revolving on the role of managerial ethics in the business management process. Green et al., (2016) conducted a systematic review on what are some of the positive effects of the ethics on the success of the business while relating some of the harmful practices on the organizational ethics application (Mushtaq et al. 2016). Singh et al., (2015) carried out a systematic review of the causes of the existence of poor ethics in business and how to manage them. Based on the above literature reviews, none of the studies considers the actual specific ethics practices, which can be classified as both positive and negative ethics in business and management (Wang & Calvano, 2015).
- Methods
A critical review is a crucial stage before conducting any research study (Bowie, 2017). It forms the foundations of the accumulation of the necessary knowledge in which interns make it possible for the theories extensions and development of critical relationships to inform the various elements of the study (Spence et al., 2019). A literature review can be viewed as a systematic review, but this is only when the analysis is based on the specific research questions, determines and analyzes relevant research studies, and evaluate their critical qualities on a given criterion (Demirtas & Akdogan, 2015). In this review study, the study was conducted based on the effects of ethics on business and management. The analysis of each of the study from the all through were performed manually.
| Source | Management Ethics | Business ethics | Ethics in decision making | Ethics in business development |
| Akrivou & Bradbury-Huang, (2015). | x | |||
| Tsakumis et al, (2015). | x | |||
| Green et al, (2016). | x | |||
| Osman et al, (2016). | x | |||
| Bowie, (2017). | x | |||
| İnanir et al. (2015). | x | |||
| Spence et al. (2019). | x | |||
| Davies (2016). | x | |||
| Demirtas & Akdogan, (2015). | x | |||
| Ferrell & Fraedrich, (2015). | x | |||
| Freeman, (2016). | x | |||
| Shani et al. (2015). | x | |||
| Varela et al. (2015). | x | |||
| Kolk. (2016). | x | |||
| Singh et al., (2015). | x | |||
| Huemann et al., (2016). | x | |||
| Mushtaq et al. (2016). | x | |||
| Pearson (2017). | x | |||
| Ng & Feldman (2015). | x | |||
| Leuschner et al., (2016). | x | |||
| Sadgrove. (2016). | x | |||
| Schaltegger & Burritt, (2018). | x | x | ||
| Schermerhorn & Bachrach, (2017). | x | |||
| Schwepker & Schultz, (2015). | x | |||
| Shafer, (2015). | x | x | ||
| Chang et al. (2015). | x | |||
| Kim et al. (2015). | x | |||
| Trevino & Nelson (2016). | x | |||
| Wallace & Sheldon (2015). | x | |||
| Wang & Calvano (2015). | x |
- Results
Concerning the published 30 research studies on the effects of the ethics on business and management from 2015 to 2020, the findings of the systematic review are reported based on the three research questions;
RQ1. What are the significant effects of ethics in business and management?
RQ2. What are the main research methods and the outcomes addressed in the collected studies?
RQ3. What is the active database in the context of ethics in management?
From the three research questions, the general understanding of the effects of the ethics on the management and business is understood. Several research studies were conducted on the impact of the ethics on management according to the RQ1. The result indicated a variety of effects, both positive and negative depending on the characteristics of the ethics itself and its application. Besides, the principal method used in the systematic review, according to the RQ2 is the e-business implementation and the aspect of social media use. Moreover, the ERP system was also applied in the process.
- Discussion
Based on the aspect of management ethics found from the literate review of the sources, most organizations have the benefits or the effects of the ethics for their business being positive (Spence et al., 2019). It is established that ethics guide and direct all the business operations, an element that is crucial in the overall success of any business (Osman et al., 2016). Besides, ethics also guide the process of decisions making a vital tool in any overall business wellbeing. An organization or business which focuses on the operation based on the good ethics have all the employees aligned towards achieving the same level of ethical behavior, the positive element of this is the smooth flow of business activities as a result of improved business operations (Akrivou & Bradbury-Huang, 2015). Ethically running a business from top to bottom often build a stronger bond between individual on the management team and further create stability within the company. Whenever a manager is leading an organization based on the set ethics, employees are often obligated to follow the footsteps (Ferrell & Fraedrich, 2015). Employees as well make better decisions in less time within the business ethics as a guiding principle; this element, according to (Mushtaq et al. 2016), does increase the productivity of employees as well as boosting the employee’s morale. The business where employees work with high demand for business ethics in all facets of their operation do perform their responsibilities at a higher level and are also more inclined to stay loyal to the organization or management (Spence et al., 2019).
| Source | Study purpose | Country | Method | finding |
| Akrivou & Bradbury-Huang, (2015). | Effect of ethics on business skills development | Spain | Surveys | The result indicated that ethics are critical in specific skills development |
| Tsakumis et al., (2015). | Effect of ethics and the business growth | japan | Not indicated | The result indicated that business growth is directly affected by the ethical aspect of the business operations |
| Green et al., (2016). | Ethic on organizational management | UK | The result indicated that the organization could reap positively or negatively depending on the ethics | |
| Osman et al., (2016). | Impact of ethics on management | Canada | Surveys | The result indicated that employees work with a high demand for business ethics in all facets of their operation do perform their responsibilities at more elevated levels |
| Bowie (2017). | Business development on | USA | questionnaires | The result indicated that ethically running a business from top to bottom often build a stronger bond between individual on the management team |
| İnanir et al. (2015). | To analyze impact ethics on management generally | UAE | Surveys | Findings indicated that guides the management decisions. |
| Spence et al. (2019). | Relationship between ethics and employee conducts | USA | Not specified | The result indicated that that business ethics the study of the standards of business behaviors that works to promotes welfare and the good.” |
| Davies (2016). | Ethics on employees attitude and behavior | USA | The result indicated that is the guiding factor to the employee’s attitudes and character | |
| Demirtas & Akdogan (2015). | Role of managers in impacting ethics behavior | Malaysia | questionnaires | The outcome indicated that managers change the employee’s ethics |
| Ferrell & Fraedrich (2015). | Organizational ethics | UK | Not specified | The result indicated that Business ethics fundamentally epitomizes the organization’s codes of corporate governances |
| Freeman (2016). | Business ethics importance | France | Survey | The outcome indicated that managers who are using the best ethics in their business do find employees easy to manage as they follow such footsteps |
| Shani et al. (2015). | Role of management ethics in an organization | China | Interviews and survey | The findings indicate that management ethics is dynamics and is ever-changing hence needs and an ever integrating approach |
| Varela et al, (2015). | Relationship between ethics and employee conducts | USA | Not specified | Most business, especially in the USA, do have stronger business ethical operations and hence are very successful |
| Kolk. (2016). | Effect of ethics on business skills development | Indonesia | Interviews | The result indicated that Business ethics primarily epitomizes the organization’s codes of corporate governances |
| Singh et al. (2015). | Role and responsibility of managers in fostering ethics | Not specified | questionnaires | The result indicated that most businesses have put in place the best ethical application which focuses on the employees and not managers |
| Huemann et al. (2016). | Business ethics importance | USA | Survey | The result indicated that business which is failing in ethical consideration are doing so in all aspects of their operations as well |
| Mushtaq et al. (2016). | Role of managers in impacting ethics behavior | USA | Surveys | The result indicated that organizations which have succeeded have the best ethical application |
| Pearson (2017). | To analyze impact ethics on management | UK | Not specified | The result indicated that ethics is entirely in any element of operation in business |
| Ng & Feldman (2015). | Role of ethics on management | France | Interviews | The result indicated that any business operation relies on the nature of the business skills impacted by the manager |
| Leuschner et al. (2016). | Effect of ethics on business skills development | UK | Interviews | The result indicated that effects business skills incubation and growth |
| Sadgrove. (2016). | Ethical considerations in management | Japan | Not specified | The result indicated that ethics consideration do not have any procure of application |
| Schaltegger & Burritt (2018). | Role of ethics on management | Not specified | The result indicated that the managers at all levels foster ethics. | |
| Schermerhorn & Bachrach (2017). | Ethical implication of any management practice | UK | Surveys | The result indicated that ethical practice is either written or unwritten code of operations |
| Schwepker & Schultz (2015). | To determine the role of managers in fostering the wrong ethics | Norway | Not specified | The result indicated that managers do play a crucial role in impacting on employees ethical understanding |
| Shafer (2015). | Relationship between ethics and employee conducts | USA | questionnaires | Findings reveal that harmful ethical practice harms the business operations |
| Chang et al. (2015). | Role and responsibility of managers in fostering ethics | Canada | Interviews | The result indicated that managers are the custodian of an organization’s ethical practice |
| Kim et al. (2015). | To analyze impact ethics on management | USA | surveys | The result indicated that impact on business in various ways depending on how it’s applied |
| Trevino & Nelson (2016). | Effect of ethics on business skills development | Canada | Surveys | The result indicated that it is the primary tool for skills development |
| Wallace & Sheldon (2015). | Relationship between ethics and employee conducts | UK | Surveys | The result indicated that Is the toll used by employees to operate borrowed from the management |
| Wang & Calvano (2015). | Role of ethics on management | Canada | Surveys | The result indicated that Business ethics often relate to how an organization or corporation handles a situation that requires moral decisions |
Database table
| Journal database | duration | Frequency | total |
| Goggle scholar “ethics” AND business AND “management.” | 2015-2020 | 11 | |
| ProQuest “ethics” AND business AND “management.” | 2015-2020 | 4 | |
| Emerald “ethics” AND business AND “management.” | 2015-2020 | 4 | |
| Sage Journals “ethics” AND affect business AND “management.” | 2015-2020 | 5 | 30 |
| Journal Citation Reports “ethics” AND change business AND “management.” | 2015-2020 | 3 | |
| JSTOR “ethics” AND affect business AND “management.” | 2015-2020 | 3 |
Keyword table
| Keywords |
| Systematic review |
| ethics |
| codes of moral |
| management |
Conclusions
From the systematic review, ethics impact on the management and business operations directly. Doing business often calls for numerous decisions daily- decisions regarding everything from which vendor to use for the various secure, among others (Freeman, 2016). Some of the ethical requirements for the business are often confined to last, environmental regulation, and the minimum wage and restrictions against insider trading and collation. According to İnanir et al. (2015), various management teams and businesses do set the tone for how the entire company runs daily (Ferrell & Fraedrich, 2015). When the prevailing management philosophy is based on the ethical practices and behaviors, business leaders and managers with the organization can direct employees by examples and guide them towards making the right decisions that are not only beneficial to them as individuals but also to the organizations as a whole.
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