Discuss the importance of Ethics in Business
Ethics is nothing but the basic judgement of a person about right or wrong. The term “business ethics” to the system of moral principals atht are followed in a business and the rules athta re applied to abide by. As business is a social organ it must look to the interest of the society and the business both and not just itself. Every professional sectors posses some do’s and some do not’s for their members to follow. There is a standard in very corporate that the business employes are to follow. The decisions that are usually atken in an organization either consist of a group or an individaulbut who ever takes the decision is somewhat effected by the culture of the company. The decisions such as to behave properly and morally is a moral one, thus the employees must hve the ability to think which on eis the moral one nad act accordingly. This can also be rejecting a route that can bring some short time losses. Ethical behaviour along with social corporate responsibilities can be profitable and beneficaial for a business. There are numerous socaila nd economic situation staht can influence the standards of a business. Thus the codes of conducts rae ocassionally reviewedFor example-
It could attract customers to the products of the industry following the ethics thus boasting the sales and profit
This also makes the employees working for the company to stay, thus reducing turn overs and increasing productivity
It would also attract more employees to work in the organization as all people want to work in an industry atht is ethically moral, thus it would also reduce the recruitment cost.
Lastly to attract the investors and thus keeping the share price high which eventually prevents the business from taking over.
A company that practices unethical behaviour or lack of corporation towards its society is most likely to damage its reputation and turn offs the stakeholders. This would result in drop of profit.
Along with good governance, ethical behaviour of the organization is equally important. Moreover treating the stakeholders properly would only lead to the success of the company. In order to make sure that all the employees of the organization can understand the ethics of the company and what type of behaviour is expected from them are noted in a statement known as Our Business Principles. For example the good practices of the Cadbury company aws noticed by all when they were voted the most admired companies for environmental responsibilities and community by Today magazine.