BUSINESS ETHICS

Business Ethics

ABSTRACT

The paper is based on the role of business ethics in organizations. The paper discusses the impact of business ethics in an organization as well as on individual. The difficulties faced by several companies in implementing the contemporary form of business ethics is also a part of this paper.

Business Ethics

Introduction

Ethics is a concept from philosophy which tells about the morality of a subject, whether it is bad, good, wrong or right. So if, the ethics is practiced in business firms then it may be called Business ethics. So to make the deals or to run the business in a proper manner with professionalism as well as looking at profits, ethics is practiced in organizations. (Collins, 2000)

Discussion

Business ethics is the process of pursuing corporate interests, such as profit and growth, while staying in line with the rules and laws of society. Your company ethics determine how your employees interact with each other and how your company is perceived by society. (Goodpaster, 1997)

Business firms should practice Ethics in parallel to the profits of the company, even if they are losing a deal or getting loss also they should not lose their ethics. The ethics helps out an organization to solve it is ethical or moral problems that arise internally. It is not confined to one sector but any sector can go for it. In other words, it is called Professional Ethics or Corporate Ethics (Donaldson, Werhane, Cording, 2002). The ethics may include the following:

Deals between two companies or on the agreement of two or more companies

Between stake holders and Company

CSR is used as a weapon for the corporate ethics between the company and Society

Misuse of policies in Sales or marketing deals for the Profits

For the Leadership or Executive problems in Organization

To solve the HR (Human Resource) problems, between employees of the company and regarding use with Privacy, Safety, Culture and so on

Regarding Political Problems of Company

Regarding the violation in IPR terms such as Trademark, Copyrights, misuse of Patents

Relation between the company and Environment - such as pollution, Carbon emissions trading

Accounting and Financial terms - If anything wrong has been done such as Creative accounting, Misuse in Balance sheet and P&L account, Bribery, misleading financial Analysis and Compensations (Velasquez, 2006)

In order to carry all these things in an ethical manner, business firms practice ethics. For incorporating ethics in an organization, there should be some basic things that need to be done. (Richardson, 2005)

There should be a support from the top management. It should be done in written as well as in oral manner. There should be a proper inspection on the ethics of each company. It should be neutral, not favouring to anyone, and it should be practiced accordingly so as to make it a part of the company policy. (Fleming, 1987)

Difficulties in Implementing Business Ethics

By understanding the difficulties of implementing business ethics in an organization, you can develop a more effective ethics policy. (George, 2006)

Culture

As the business world continues to become more global, you will find a diverse set of ...