Question

In today’s business environment ethics is of utmost importance. Discuss why it is so important to be ethical. If you give an example, to be fair, do not mention a name of a person or company

Answer 1

Solution. When an organization decides to do business in competitive economic market, it sets a general objective of attaining set profit target along with social impact in society. To sustain in business, an organization needs to plan its activities and reporting to publish its fair activities and transactions to stockholders, customers and society. Ethics play an important role in building trust and goodwill for the organization.

Importance of ethics in today's business environment are as follows:

a)The society and consumer's have direct relation to the working of an organization. Society resources are limited and thereby, organization needs to develop its technology and held accountable for providing quality goods/services using such limited resources. Organization needs to align its activities to consumer's basic rights. For instance, organization can prepare and publish social reporting of activities.

b)Attaining stockholders and employees efficiency in workplace and management by following set regulations of business ethics, by imbibing trust and respect towards organization. To expand in global market, only goodwill and practices of organization can fetch organization loyal customers.

c)Ethics set obligations for organization in instances of rival organization competitiveness. For instance, in advertising practice of goods/service, organization can not or should not lower the brand image of rival organization and should maintain healthy competition.