Do ethics play an important role in business?
Business ethics is the actions that a business adheres to in its daily transactions with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their 1-1 dealings with a single customer. Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior.
Recent events in corporate America have verified the critical effects that occur when the management of a company does not behave ethically. One might wonder why highly educated, successful, and business savvy corporate professionals at Enron, Tyco, WorldCom, and Adelphia got themselves into such a big mess. The answer lies in a reflective lack of ethics.
Applying ethics in business makes good sense. A business that behaves ethically induces other business associates to behave ethically as well. If a company (or a manager) exercises particular care in meeting all responsibilities to employees, customers and suppliers it usually is awarded with a high degree of loyalty, honesty, quality and productivity.
For examples, employees who are treated ethically will more likely behave ethically themselves in dealing with customers and business associates. A supplier who refuses to exploit its advantage during a seller's market retains the loyalty and continued business of its customers when conditions change to those of a buyer's market.
According to Robert Moment, there are seven Principles of Admirable Business Ethics
1. Be Trustful: Customers want to do business with a company they can trust; when trust is at the core of a company. Trust means being able to predict what other people will do and what situations will occur. If we can surround ourselves with people we trust, then we can create a safe present and an even better future.
2. Keep an Open Mind: For hysterically development of a company, the manger of an organization must be open to new thoughts. Ask for opinions and feedback from both customers and team members.
3. Meet Obligations: Despite of the situation, manger should do everything in his power to gain the trust of past customer's and clients, particularly if something has gone off beam. Reclaim any lost business by adapting to all commitments and obligations.
4. Have Clear Documents: Reconsider all documents including small business advertising, brochures, and other business documents making sure they are clear, precise and proficient. Most important, make sure they do not misinterpret.
5. Become Community Involved: Stay involved in community-related issues and actions, thereby signifying that your business is a responsible community contributor
6. Maintain Accounting Control: Take a practical approach to accounting and record keeping, not only as a means of gaining a better sense for the progress of your company, but as a resource for any "questionable” activities.
7. Be Respectful: Treat others with the paramount of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional respect and politeness.
Some executives and some investors still may not be convinced about the value of ethical business. They may question the integrity of ethics. Perhaps this is unfair to ask. The benefits of ethical business include:
Protecting tangible and intangibles. A company's brands, intellectual property and goodwill may represent a significant amount of its present and future economic value. Attracting and retaining key employees. Talented personnel weigh a company's ethical policies among other factors when deciding where to work, and how long to stay there. "Greening" businesses may add to their bottom line. Reduced energy use, employee travel/commutation, supplier packaging, paper procurement policies and recycling, may reduce operating expenses in a readily measurable way, with a clear positive impact on the bottom line. Building market share. Companies are deriving revenue from "ethically sourced" and "fair trade" products.
Unethical business in India became a recognized phenomenon during the Second World War. Academic/legal concern with ethics has become visible only during the nineties. Corruption-of-the-poor and corruption-of-the-rich need to be distinguished – particularly in the context of globalization. The danger of attributing unethical practices to system failure is recognized. It is also important to bring to bear on intellectual property rights the more fundamental principle of natural property rights. Consciousness ethics will be more crucial than just rational ethics.
Business ethics is the actions that a business adheres to in its daily transactions with the world. The ethics of a particular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their 1-1 dealings with a single customer. Many businesses have gained a bad reputation just by being in business. To some people, businesses are interested in making money, and that is the bottom line. It could be called capitalism in its purest form. Making money is not wrong in itself. It is the manner in which some businesses conduct themselves that brings up the question of ethical behavior.
Recent events in corporate America have verified the critical effects that occur when the management of a company does not behave ethically. One might wonder why highly educated, successful, and business savvy corporate professionals at Enron, Tyco, WorldCom, and Adelphia got themselves into such a big mess. The answer lies in a reflective lack of ethics.
Applying ethics in business makes good sense. A business that behaves ethically induces other business associates to behave ethically as well. If a company (or a manager) exercises particular care in meeting all responsibilities to employees, customers and suppliers it usually is awarded with a high degree of loyalty, honesty, quality and productivity.
For examples, employees who are treated ethically will more likely behave ethically themselves in dealing with customers and business associates. A supplier who refuses to exploit its advantage during a seller's market retains the loyalty and continued business of its customers when conditions change to those of a buyer's market.
According to Robert Moment, there are seven Principles of Admirable Business Ethics
1. Be Trustful: Customers want to do business with a company they can trust; when trust is at the core of a company. Trust means being able to predict what other people will do and what situations will occur. If we can surround ourselves with people we trust, then we can create a safe present and an even better future.
2. Keep an Open Mind: For hysterically development of a company, the manger of an organization must be open to new thoughts. Ask for opinions and feedback from both customers and team members.
3. Meet Obligations: Despite of the situation, manger should do everything in his power to gain the trust of past customer's and clients, particularly if something has gone off beam. Reclaim any lost business by adapting to all commitments and obligations.
4. Have Clear Documents: Reconsider all documents including small business advertising, brochures, and other business documents making sure they are clear, precise and proficient. Most important, make sure they do not misinterpret.
5. Become Community Involved: Stay involved in community-related issues and actions, thereby signifying that your business is a responsible community contributor
6. Maintain Accounting Control: Take a practical approach to accounting and record keeping, not only as a means of gaining a better sense for the progress of your company, but as a resource for any "questionable” activities.
7. Be Respectful: Treat others with the paramount of respect. Regardless of differences, positions, titles, ages, or other types of distinctions, always treat others with professional respect and politeness.
Some executives and some investors still may not be convinced about the value of ethical business. They may question the integrity of ethics. Perhaps this is unfair to ask. The benefits of ethical business include:
Protecting tangible and intangibles. A company's brands, intellectual property and goodwill may represent a significant amount of its present and future economic value. Attracting and retaining key employees. Talented personnel weigh a company's ethical policies among other factors when deciding where to work, and how long to stay there. "Greening" businesses may add to their bottom line. Reduced energy use, employee travel/commutation, supplier packaging, paper procurement policies and recycling, may reduce operating expenses in a readily measurable way, with a clear positive impact on the bottom line. Building market share. Companies are deriving revenue from "ethically sourced" and "fair trade" products.
Unethical business in India became a recognized phenomenon during the Second World War. Academic/legal concern with ethics has become visible only during the nineties. Corruption-of-the-poor and corruption-of-the-rich need to be distinguished – particularly in the context of globalization. The danger of attributing unethical practices to system failure is recognized. It is also important to bring to bear on intellectual property rights the more fundamental principle of natural property rights. Consciousness ethics will be more crucial than just rational ethics.