Question

What is business ethics? Do ethics really matter to a business organization? How do we recognize an ethical business? Make sure to include examples in your discussion. ( I will give thumbs up thanks)

Answer 1

Business ethics:

This is the study of appropriate business policies & practices regarding controversial subjects like corporate governance, insider trading, bribery, discrimination, CSR & fiduciary responsibilities.

Ethical behaviour & CSR can add enormous benefits to the business. They are important for the following reasons:

• They help in attracting the customers to buy the products of the firm which helps in boosting the sales & profits.
• They help in making the employees to stay with the organization, reduce the labour turnover & also increase the productivity.
• They can attract more people to work for the business, reduce the costs of recruitment & also help the company to get talented people to work for them.
• They also help in retaining the investors & keep the share price of the company high which also protects the business from takeovers & acquisitions.

Businesses that are not following any kind of ethics can lead to wider consequences. Unethical behaviour can damage a firm’s reputation & make it less appealing to the stakeholders. Hence it would always be wise to have a business ethics.

Ethical businesses can be recognized with the following characteristics:

• A good ethical business is said to have a strong ethical leadership. A business can be ethical only if its leaders are demonstrating an ethical practice in whatever they do.
• An ethical business will also have a core statement which describes its mission. Every company can have a core statement but an ethical business lives by it.
• An ethical business would always adhere to the laws & regulations of the respective place where it is doing its business. They demonstrate fairness with everyone who can be employees, customers etc.
• Ethics and respect go hand in hand. An ethical business demonstrates respect for its employees by valuing opinions and treating each employee as an equal. The business shows respect for its customers by listening to feedback and assessing needs.
• They also maintain loyal relationships with everyone with whom they deal. These are mutually beneficial to both the parties. Employees also exhibit more loyalty & dedication to loyal employers.
• Ethical business also concern for everyone starting from its employees, customers, vendors, public. Hence any decision taken by them would always be around the benefit of these people.

Example of ethical practice:

For example, assume Company A works with a contact at Company B, an individual through which they negotiate all the prices for supplies they buy from Company B. Company A naturally wants to get the best prices on the supplies. When the individual from Company B comes to their home office to negotiate a new contract, they put him up in a top-tier hotel, in the very best suite, and make sure that all his wants and needs are met while he’s there.

please do let me know if anything else is required & dont give a thumbs down. Thanks