Business Ethics

WHAT IS BUSINESS ETHICS?

Business ethics are the written and unwritten code of principles that dictates the decisions in a company or an organization. It refers to the rule of conduct applied to business and moral principles. In simpler words, it’s a guideline that lays the manners in which a business should conduct itself. It tells the companies and organizations about good practices and corrupt practices. It ensures the company is following the right practices without any exploitation.

Business ethics makes sure the employees of an organization are treated well. It ensures the rights of the employees are not exploited. It protects the employees from the unethical intentions of the company.

MANAGING ETHICS IN THE WORKPLACE:

It is essential to follow ethics religiously in workplaces to ensure stability and balance. Still, a majority of employees consider business ethics as the first or second attribute when it comes to workplaces. Every company or organization should follow business ethics without any breaches. Some of the common practices are

  • Employees are not engaged in insider trading, bribery, frauds, non-compliances of rules and regulations through regular training, disclosures, and mentorship
  • The management and the senior members of the company should appropriately treat the employees and colleagues.
  • The leaders should create a code of ethics. While hiring, they should stress on ethics and behavior.
  • Also, to promote ethical behavior, ethics should be a parameter in promotions. Moreover, ethical behavior should be rewarded.
  • A company should not discriminate in the workplace based on race, caste or gender.
  • The ethical behavior of employees towards the company, compliances, law, etc., should be appreciated.

SOURCES OF BUSINESS ETHICS:

Though many factors influence business ethics but most essential factors are religion, culture and law, every company considers this during recruitment. Every religion has its code of conduct. They believe in maintaining the social order and stress on social responsibility. Every religion has its version of right and wrong for businesses and all the other walks of life. Religions are the oldest source of business ethics.

Culture is another source of business ethics. Culture is nothing else but a set of ideas, preferences and morals. Culture, in general, is essential whether it’s society or a workplace. Culture shapes the working environment of a company. It also develops the personality and attitudes of individuals.

Law is also a source of business ethics. Every country, every state has to obey to the legal system. There are some laws that companies and organizations have to follow being a part of the country. The law protects all the rights of the employees. Also, it ensures that the company is not committing any breach like adulteration, tax evasion, poor quality, pollution and high pricing.