The importance of business ethics
Business ethics
Business ethics is considered as unwritten and written codes of principles, morals and values. The business is setting standards for determining bad and ethical behaviour to make the right decision. It is a broad topic that helps to cover corporate social responsibility and corporate governance (Trapp, 2011). Business ethics is also considered as a subjective term that helps to examine unethical and corrupt practices of the organization, which include illegal use of copyrighted materials, employing child labour and taking bribes.
Importance of business ethics
Business ethics can meet basic human needs in which ethical fair and honest are the most basic needs of humans in the organization. It is also able to secure society and the environment by adopting green practices in the organization. Business reputation is the most significant asset of the organization. It is the most challenging task for the organization to build a reputation. The organization is required to start building a strong reputation with consistent ethical behaviour (Nastase, & Gligor-Cimpoieru, 2013). Most of the investors are believing those companies that can make moral promises and guidelines. It also helps the company to keep its market share high in the market. The organizations should be committed to ethically managing the operation to retain a positive image and reputation. It includes equal treatment of employees, respecting the environment and good market practices in terms of prices and customer treatment. Business ethics also helps employees to feel comfortable and stay in the organization for a long time.
Moreover, ethical behaviour can attract customers to the company’s products that also help to enhance profits and sales of the company (Costa, & Menichini, 2013). The primary purpose of business ethics is to improve relationships and lives both outside and inside the organization. It is observed that the ethical climate of the organization provides profitability, efficiency and productivity.
Principles of business ethics
Honesty: organizations are focusing on building reliability by communicating valid and actual information to the employees. The ethical executives of the organization are hones while dealing with work (Goodstein & Butterfield, 2010).
Integrity: ethical executives are focusing on getting the trust of others through personal integrity. The executives are required to demonstrate personal integrity and courage by doing what think is right in the organization. It is considered as the honourable and upright principles in which executives are required to fight for their beliefs (Belak, 2013).
Fairness: The business executives did not need to be fair in all dealings, but the executives are not required to exercise the wrong power. The executive is also not required to take any undue advantage of mistakes in the organization. Fair people are focusing on justice and also ensures that employees are treated in the organization equally
Leadership: the executives should act as leaders in the organization if they are ethical. The leaders are required to manage all responsibilities in the organization. The leader should be aware of various opportunities in the organization (Costa, & Menichini, 2013).