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relationship between business and ethics

Is this good for the company? The relationship between business ethics and values refers to the manner in which good ethics can be applied toward the attainment of the values of a company. Even though the primary goal of an organization may be to maximize profit, it must always have the intention to produce some sort of social benefit or reach a goal that is not necessarily only to make money – it … Economic rules dictate that the larger a network, the more value is added to that network. When this occurs it usually results in a pattern that gets passed down through the organisation.As leaders show unethical behaviour, and perhaps even justify such behaviour while knowing it to be wrong, this eventually becomes a part of organisational culture. Although similar, Friedman's ideas seem to separate ethics from business even more than Smith did. Ethics and business go hand in hand, and cannot effectively be separated. The reason for this intersection can be attributed to the fact that most times ethical considerations are … In the long run, managers and leaders who promote an atmosphere with low ethical standards bring harm the business. Esther Ejim. Granted the unethical companies may initially make significant gains financially and deliver the profits, but at what cost? Good business practices starts with management setting standards of what's expected, and they should lead by example. Zouheyr Gheraia, Sawssan Saadaoui, Hanane Abed Abdelli. A company should treat an employee with respect and loyalty, provide a fair wage, and offer good working conditions. It should go along with the initial profit motive and can even contribute to that same motive. Cheating and/or lying do not bring value to a business, and it also affects employee morale. Employees and reputation are two very valuable assets, and by promoting a morally sound environment for both employees and customers; this can only enhance those assets. In general, they have few compunctions about Western businesses offshoring their manufacturing operations as long as it ultimately benefits them as consumers. This is perhaps part of the reason why some companies exhibit bad business practices. Many companies routinely evaluate their ethical codes and run diagnostics to determine how they can make more ethical choices. The employer-employee relationship cannot be thought of as an economic relationship only. The employer has a moral obligation with the employee. All too often we hear about CEOs who have either stolen funds, or ruined a company's reputation, due to corrupt practices. It will start with the principle concept of ethics, business ethics, and corporate social responsibility; the important of ethics in …show more content… In other words, in search for profit during normal business activities, there would likely be an ethical outcome. From whichever angle it is looked at, a business cannot exist without taking social needs into account. Today's society is an instant gratification one, and people expect immediate results. "A corporate ethics program is made up of values, policies and activities which impact the … If customers can accurately rely on the fair treatment, expertise and knowledge of a company, this will further expand their reputation as honest and as a result attract more customers. It displays strong values have been set for a commitment to company philosophy and mission. Smith felt that the main economic intent was to consider one's private interest and that society as a whole would benefit (Smith, 2008). Relationship between Business Ethics and Corporate Social Responsibility. There is no good reason why a company cannot make ethically sound decisions, and still turn a profit. According to DuPlessis, et al. The relationship between business and ethics are linked. It is the moral and ethical code that operates in the business world (Institute of Business Ethics , 2013). These organizations have a well-established culture. To say "business is business" is not justified, as responsible (ethical) decision making is an important component of doing good business. This idea is different from Adam Smith's early articulations of the theory of wealth. The establishment of higher levels of ethical behaviour within a business benefits the company in many ways. Another example of this moral relationship in a business can be seen in something as simple as contracts. 391-399). Yes, these factors will all cut costs and give the appearance of profit, but it's inevitable that poor choices will negatively impact the business and be more costly in the long run. There is an important correlation between the principles of a positive managerial organization and essential ethical principles. Businesses that exhibit and promote strong corporate codes of ethics are more prosperous in the long run because they show a commitment to an expectation of sound moral behavior. Of course, it does not mean that a business embracing ethics as part of its character will or should give up the importance of making profits. Business ethics and the law are two interrelated terms that can exist independently of each other when it comes to business, yet intersect in various vital aspects. The fact is the only thing it creates is an illusion. And when taking social needs into account, a business requires the involvement of ethics in order to make sense of what it means to start or operate a business. Businesses that exhibit and promote strong corporate codes of ethics are more prosperous in the long run because they show a commitment to an expectation of sound moral behavior. The relationship between business and ethics is inherently linked, but there are some who fail to make this connection. A positive reputation leads to higher profits and provides better service for the public. This ultimately economically benefits the company as well, and their network will grow. People follow by example, and the lack of moral judgment will spread. Even though the primary goal of an organization may be to maximize profit, it must always have the intention to produce some sort of social benefit or reach a goal that is not necessarily only to make money – it must fulfill a need or a want. It also enhances a company's reputation if they become commonly known as an ethical company, and this brings more value to the organisation. It could even be said that ethics are at the core of the rules of how to manage a business effectively. Ultimately implementing a strong ethical policy is a win-win situation for all. Ethics is necessary in the day-to-day operations of a business from within as well. You cannot have one without the other. Ethics should become involved in the business from the very beginning when the goals and intentions are being put together. Relationship between Business Ethics and Corporate Social Responsibility Due to the significant benefits of business, growing research in all areas of its ethics … However, questions remain about the relationship between business and government. Last Modified Date: October 25, 2020. Ethics and business go hand in hand. The relationship between business and ethics is intrinsically entwined. This demonstrates a dedication to society, customers, employees and the business itself. Due to the significant benefits of business, growing research in all areas of its ethics and corporate social responsibility has recently emerged. Over the course of time this can really hurt a business and its profits. Many companies routinely evaluate their ethical codes and run diagnostics to determine how they can make more ethical choices. Ethics in a business is especially important in the relationship between its employers and employees, between the business and whatever partners it may have, and its customers. Unethical business practices, can only lead to bad business. While Smith thought that an expected outcome from routine business activity could be an ethical one, Friedman talks more about possible unethical outcomes from business activities needing to be redressed by government doings rather than by business pursuit alone (Friedman, 1970).

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