The system of moral and ethical beliefs that guides the values, behaviors, and decisions of a corporate organization and the people within that organization is called business ethics. Certain ethical requirements for companies are codified by law; Environmental regulation, minimum wages, and restrictions on insider trading and collusion are examples of how the government sets minimum standards for business ethics. What counts as business ethics in history has changed over time and the different areas of ethics are important to any business. Consistent ethical behavior comes with an increasingly positive public image, and there are few other considerations that are as important to potential investors and current shareholders. In order to maintain a positive image, companies must commit to working ethically in terms of employee treatment, respect for the environment and fair market practices in terms of pricing and treatment of consumers. After discovering bad business ethics, it will cost a lot to remove bad publicity from the company name. Network relationships will begin to dissolve and excess funds will have to be spent on a stronger advertising campaign to eliminate a possible PR crisis. The importance of business ethics goes far beyond employee loyalty and morale or the strength of loyalty to the management team. As with all business initiatives, a company`s ethical way of working is directly linked to profitability, both in the short and long term. With business practices increasingly scrutinized, it`s more important than ever for companies to do the right job. Ethics programs are an extraordinary tool for promoting moral behavior.
Organizations also need employees who are dedicated to ethical choices. According to the 2018 Global Business Ethics Survey, employees are more likely to apply ethical considerations when their organization clearly shows why business ethics is important. Ninety-nine percent of U.S. employees with a strong ethical culture said they were willing to address ethical issues. Companies that are committed to business ethics motivate their employees to fulfill their roles with integrity. When a company has a positive reputation, it encourages other companies to negotiate with it. No one wants to negotiate a deal with a company that may not keep its word. If both companies understand the rules of the ethical game, they can negotiate better, harder because they know they are getting what the deal promised them.
For this reason, it is imperative to make the study of business ethics an integral part of every student`s curriculum. An important role of business ethics education is that the process involves the study of various reading materials and practices. Since students are encouraged to read these business essays and related articles, they would learn to excel properly in this aspect because of their improved reasoning skills. They need to be more analytical when it comes to making ethical decisions in all the industries to which they belong, much more so than people who don`t have the knowledge. When a company enjoys a good reputation in the market, attracts and retains a strong customer base, and retains talented employees, it often brings in stable or higher revenues. Most people want to do business with a company that works fairly with others. Just as negative press can scare away customers, positive press can attract new customers. When corporate greed prevails, certain legal regulations are imposed on each individual. If they are violated, then charges, trials and long prison sentences may be the only options for businessmen who act unethically.
Recent studies have shown that the public no longer accepts the idea that corporations are amoral and that people now commit companies to a certain standard of social responsibility. If you want to develop your business acumen while improving your business ethics, contact Limestone University today. We offer a variety of business degrees in fields such as finance, marketing and economics that can set you on the path to a rewarding career. Each program offers you the opportunity to study ethics as well as law, management and more. Click the button to request more information. Second, being an ethical person means that you are true to your work. Many companies need people who are loyal to their jobs by working hard and, of course, they will pay for their efforts. It`s easy to have a profession, but it`s hard to believe it. Not to mention that being a legal entity would prove your credibility with others. This means that because of your ethics, you will be asked for your opinion on various topics. A significant practical effect of studying business ethics and applying it to your business is an improvement in your company`s reputation. These things take time, but word of mouth is a powerful force in society, and talking to friends and neighbors about how you`ve treated them properly is the best publicity a business can have.
Provides a range of terminology and conceptual framework to help you think and talk about ethical issues.