Ethics Are Important In Business



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Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Employees tell us in one way or another that the single most important characteristic of their job is a boss whose fair who hires, promotes, and recognizes the right people. All bosses think they're fair, a much larger proportion than is perceived by their employees.

In a free market the self interest of producers and consumers will produce an outcome desirable to all concerned

But the market can also lead to inequality of income, wealth and market power:

Monopoly suppliers can exploit consumers

Monopsony buyers can exploit supply firms

Worldwide inequality of income can result in unethical practices such as the child labour

Ethical issues and society - examples

Involvement in the community

Honesty, truthfulness and fairness in marketing

Use of animals in product testing

Agricultural practices e.g. intensive faming

The degree of safety built into product design

Donation to good causes

The extent to which a business accepts its alleged responsibilities for mishaps, spillages and leaks

The selling of addictive products

Involvement in the arms trade

Trading with repressive regimes

The Institute recommends that organisations issue statements of ethical practice in respect of:

Relations with customers

Relations with shareholders and other investors

Relations with employees

Relations with suppliers

Relations with the government and the local community

The environment

Relations with competitors

Issues relating to international business

Behaviour in relations to mergers and takeovers

Ethical issues concerning directors and managers

Compliance and verification

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