Business Ethics

Relevance of Business Ethics in a Globalized World


“If you build that foundation, the moral and the ethical as well as the business and the experience foundation, then the building won’t crumble.” - Henry Kravis, co-founder of Kohlberg Kravis Roberts & Co.
       
       Business relations ethics is a process theoretically important and of a great social importance, which, starting from the analysis of “what this is”, points out the moral experience in a controversial sphere of the human action, “what should this be”, as for the businesses to be recognized as a vocation, and for the business trainings to subordinate the same moral necessity as in the public administration, law, medicine, education, etc. To begin with, a first argument that justifies the privileged position of business ethics in the mass of applied ethics is that today businesses themselves are – and this didn’t always happen - a vital and respectable activity, in a society that is dominated by the open economy and the creative virtues of enterprisers’ free competition. Therefore, business ethics has evolved from the constant attack over capitalism and profit reaching to more productive and positive examination of the basic rules of business practicing.
Unethical behavior doesn’t always have to do with finances; those are just the cases we hear about. Companies engage in behavior that is not socially responsible all the time. This includes piracy, fabricating, and more commonly, damaging the environment. As consumer’s are becoming more aware of these activities, it is imperative that companies begin to act more ethically or they are at risk lose customers and profits.
   When speaking of the importance of ethics in business, most people deduce that the term ethics refers to the business as a whole. On the contrary, business ethics apply to the individuals working within their particular businesses. Each individual's action within the company affects the entire company, not just the individual. When an employee acts ethically and responsibly, it helps the organization as a whole. Business ethics are more than just words used to enhance the image of a corporation; they are the very foundation of success. Business ethics should be practiced at the very moment a firm opens its doors.
 
Business Ethics in a Modern Society
Ethics Defined
Business ethics are not as complex or abstract as it is expected. A simple way to evaluate whether or not a practice is ethical is to determine the ultimate effect of that practice. For example, if the manager of a general store paid his cleaning employee less than the going rate to clean his store, knowing exactly what the going rate is, several things could happen to jeopardize the business. The employee could suffer serious financial implications or the employee could leave and find another position where he/she does not feel demoralized. The subject of ethics is often considered abstract or relative by those who believe that guidelines do not always apply to them. Rules and laws apply to everyone. It is unfortunate that some employees in the upper stratums of the corporate ladder decide to act unethically, but it is a fact of business and life. For this reason, it is best for a business to be careful of who they promote within their company.
Business Ethics and Corporate Responsibility
Corporate/Trade responsibility is a watchword heavily used in the corporate. Often mentioned to boost the public image of an organization, corporate responsibility does have a true meaning. Businesses that use energy proficient lighting and offer their employees a fair pay rate are practicing corporate responsibility. Corporate responsibility is an essential part of business ethics and should be practiced by all units, whether large or small. Corporate responsibility merely means that each individual within a company is practicing personal and professional responsibility in a way that will benefit him and others.

Explaining the Importance of Ethics in Business
Ethics Affect Everyone
To understand the importance of ethics in business, it is crucial to understand how business ethics affect those involved. The ethics of a business jointly and of those involved, have the power to make or break people. Business ethics are imperative because if an entity lacks ethics, the employees, the customers, and everyone else involved with the company can be harmed.
The Effects of Unethical Business Practices
When the CEO of a company accepts a raise or does not take a pay-cut when several people are being laid off, this is reflected unethical. The CEO has a responsibility to do what's best for the company. It is almost never best to lay off loyal and hard-working employees. Employees are the root of every organization and without them; the beauty of this industry would not exist. The ultimate effects of such a practice are possibly distressing. The company could suffer major profit losses due to under-staffing. Former employees could end up homeless and the general public, if and when they find out, will have a negative impression of such a company damaging its reputation
The Effects of Ethical Practices
On the brighter side, an establishment that gives its excess to a charity donation each year is practicing ethical behavior. While this practice benefits the company by allowing them to dodge additional taxes, it also sends out a positive message to the mass. This can bring in more customers, increase or enhance positive business relationships, and even allow the firm to add new employees.
Business Ethics are Ultimately Personal Ethics
Business ethics and personal ethics go hand in hand. The ethics learned at a young age are usually the ones maintained through adulthood and put into practice in daily lives. The employees must share the same ethics as the company or at least practice them while employed. Some businesses give their prospective employees informational materials that contain a mission statement, policies, and other ethical responsibilities that all employees must abide by. While these efforts are striking, it does nothing if the employee refuses to respect the organization by following the guidelines laid out for them.      
   Understanding the importance of ethics in business is the key to success. Customers, management, and employees all appreciate honest and ethical practices. Business ethics are important because they help maintain a clean reputation and they ultimately benefit everyone involved.

Rachaita Vyas