The writing gives a detail of the concept of business ethics, what it is, how it is implemented, and what kind of benefits a business can reap by proper implementation of business ethics.
Every responsible business understands and values the need of business ethics. A company is a legal person; therefore it needs to work in a socially responsible manner. Therefore, every responsible and quality business believes in following business ethics.
The concept of business ethics entails the principles and values that govern the behavior of a businessperson in the work surroundings, regardless of the fact whether the person is an employee of the business, or the owner itself.
When employees or leadership of the business is able to distinguish between the wrong or right ways of conducting the business, then the business is said to be run on ethical grounds, and is considered a follower of business ethics.
The business ethics play a crucial role in developing the culture of an organization. If the leader of the organization exhibits ethical behavior, and rewards the employees who conduct their business work in an ethical manner, then the organization will start to build ethical grounds on which they conduct business, ultimately resulting in an ethical culture of the business.
A company that believes in business management in an ethical manner, base their decisions not on the motive of earning or making money, rather every decision such company takes, is taken by keeping in mind the benefits of the stakeholders. These way stake holders feel a part of company and the business develops a socially acceptable repute.
Besides the apparent benefits of business ethics in the form of a well developed culture, more dignified corporate values, and a satisfied customer, business ethics expands way farther. A company that believes in proper conduction and following of business ethics survives on a long run. A company that does not follow any such business ethics, and believes on solely earning money can earn money for a short time.
However, when it comes to long term benefits, a business should properly believe in business ethics, with ethics a business can develop a relationship with customers, the customers become loyal, and the employees work in the most motivated manner to facilitate the customers.
In short, the above lines give a brief insight into the concept of business ethics. It should be implemented and observed by the management, followed by the employees, and with proper consideration of the customers, a business can achieve long term success with business ethics. The more inclined a business is towards ethics, the more trust of the customer, and more longevity of the business.
Unfortunately today, too many companies show no ethics at all. They are strictly in business for money and have no problem being totally unethical. Sometimes these companies are so unethical, that a government agency will fine them. Even being fined, some of these unethical companies continue their unethical ways. Unethical behavior is an action that falls outside of what is considered morally right or proper for a person, a profession or an industry.
Why is that? The answer is because there usually are no real consequences for a company’s unethical practices and actions. They get a small fine and a slap on the wrist. Even if a company is actually sued for their unethical actions, they usually settle out of court, pay some money, and never admit wrong doing.
Sometimes it is the individual employee(s) that are unethical and not so much the entire company. This happens when some bad apple employees decide to break the company rules of ethical practices, because they want to get ahead, they want more and more money.
Greed is a big factor in unethical actions as is the practice of cutting corners. When a company cuts corners, the damage can be bad. The nuclear power plant at Fukushima in Japan is a good example of the terrible damage that cutting corners can have.
Some companies are so big, that even when the public becomes aware of their unethical practices, they survive, their public relations put out a quick I am sorry message and then drop it.
Other companies do not survive unethical actions, and lose the public’s trust and might not even be able to stay in business. With today’s social media, a company’s unethical behavior can become widely known quickly.
As one economics writer wrote, “A company without ethics, is a company at risk.”