Business ethics is a form of applied ethics or professional ethics that examines

Question

Business ethics is a form of applied ethics or professional ethics that examines ethical principles and morals or ethical problems that can arise in business organizations. The principles ethics that determine an individual’s actions apply to businesses as well. Companies should not use child labor, unlawfully use copyrighted materials and processes. They should not engage in bribery. Companies also have wider responsibilities. They should minimize any harm to the environment and work in ways that do not damage the communities in which it operates. This is known as corporate social responsibility. Business establishments should follow relevant codes of practice that cover their sector. Many organizations have created voluntary codes of practice that regulate practices in their industrial sector. These are often drawn up in consultation with governments, employees, local communities and other stakeholders. Organizations can manage ethics in their workplaces by establishing an ethics management program. Brian Schrag, Executive Secretary of the Association for Practical and Professional Ethics, clarifies. "Typically, ethics programs convey corporate values, often using codes and policies to guide decisions and behavior, and can include extensive training and evaluating, depending on the organization. They provide guidance in ethical dilemmas." The ethics program is essentially useless unless all staff members are trained about what it is, how it works and their roles in it. The nature of the system may invite suspicion if not handled openly and honestly. In addition, no matter how fair and up-to-date is a set of policies, the legal system will often interpret employee behavior as de facto policy. Therefore, all staff must be aware of and act in full accordance with policies and procedures. This full accordance requires training about policies and procedures.

Question 01: Examine the ethical implications of business practices in any organization / company of your choice from a stakeholder perspective and discuss corporate responsibility in the context of the organization / company.

Question 02: How would you formulate a practical framework for decision making and assess the influence of leadership on ethical cultures?

Explanation / Answer

Answer:

Ethical Business is an area of corporate responsibility where organizations are legally and socially obligated to conduct business in an ethical manner. Businesses that prioritize ethics over profits will see the benefits. Businesses need to display good ethics if they are to be accepted by the society, yet sometimes that means persuading their internal society that the organization is under moral obligation to do what is right. Being an ethical corporation is a serious business. It entails maintaining their morals in all their activities. But being ethical is not equivalent to losses when it comes to profit. On the contrary, ethical business can bring great bottom line results. A company that operates by the laws of honesty and consideration will be preferred over a competitor who lacks such admirable qualities. If you can earn the trust of customers and make them believe they can rely on your integrity, you won’t need to rely on discounts to encourage them to do business with you.

We live in a world that recognizes the importance of sustainability and social responsibility and moist of the organizations are making efforts in that direction, trying to achieve better transparency and accountability on these matters. As more companies take a more ethical approach to business and see the impact on the bottom line, their competitors will follow.

Business ethics includes five key elements: honesty, integrity, trust, confidentiality and openness. Within the business world, ethical decisions are made each day that have an impact across all organizations.

Ethical Advertising Decisions

Most businesses, at one time or another, will need to advertise their products or services so they can increase their customer base. It is important they do this in an ethical manner.

Ethical Sales Practices

Ethical sales involves honesty and integrity. For example, a company that honestly discloses both the advantages and disadvantages of their products or services, and stands behind them 100 percent, is considered to have ethical practices.

Ethical Pricing Strategies

While all businesses generally have the final say in what they choose to charge consumers for products and services, ethical limitations do exist. For example, it would be considered ethical for a business to raise its prices as a result of increased costs associated with manufacturing.

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