Business Ethics – the boundaries are not always so clear


Business ethics; this is an oxymoron like jumbo shrimp or military intelligence? These days it is hard to say. With all the uproar in government these days for bankrupt states and trade unions need bail outs, people start to wonder where the ethics went into business.

man who had been a trusted advisor for hundreds of people for many years has been in prison for all his business was based on an elaborate Ponzi scheme that, in the end, these people defrauded of their money. That made the money; he is now in prison. It’s certainly not ethical. Does it seem unimportant in prison? Not much; He still talks about the gullibility of people he tricked

The Columbia Encyclopedia defines ethics as :. “. The investigation and assessment of decision-making companies, according to the moral concepts and judgments”

I suppose this subject is still taught at the Columbia School of Business so why not anyone seem to learn it? Is it because there is such a dearth of ethics in our business world today? Have greed destroyed our judgment? Is it so important to make a lot of money it does not matter who we come while we’re climbing the ladder to the top?

Ethical issues should be more complicated because we have a more global economy and international trade. Perhaps this is part of the problem. Maybe, say people, we would return to our world of morality if we did not try to think and act the Cross Cultural lines. This should not make any difference to us. Our values ​​should always be the same and ethics should always be at the top of the list our company.

Sometimes we find ourselves working with other cultures where certain races or religions are not well understood. We deal with companies in other countries that denigrate women. We should not allow our dealings with other countries to disrupt the values ​​of our country. Good business ethics should be at the top of our list. In wanting to make money for the company should not spoil the ethics of their employers. Even if a company can be fined for breaching ethics, sometimes it does not affect the company and employers to do what is right. Why is this? It is because the company can afford to pay whatever fine is proposed and then proceed to go on to make even more money until they are caught again

Business ethics has come to mean :. Do not break the law, do not attract a civil suit; do not mess up the company’s image. In theory these three rules would lead the company’s employees down the straight and narrow. It does not work because you can not teach a man of ethics. It’s like morality. It is instinctive; right or wrong. Because profitability comes into play in any discussion of company business ethics are often bent or completely broken.


The Critical Importance of Business Ethics For Effective Leadership


How important are ethics to be an effective leader? According to the American Management Association, is an important characteristic of successful leaders today. In a survey of 462 executives who asked: “What characteristics are required to be an effective leader today?” 56% ranked ethical behavior as an important feature, after a judgment (51%) and be adaptable / flexible (47%).

However, with due respect for the AMA survey, I believe strongly that there is much more than “important,” it is “vital, essential and non-negotiable” signs of effective leadership. Strong business ethics is a strategic pillar of my strategic thinking corporate training efforts on a daily basis. Customers are encouraged to develop a set of core values ​​and guiding principles and publish them for their customers and stakeholders to know that this is the way they do business. And furthermore, customers are constantly reminded to make sure that baseline out in everything they do.

Examples of unethical behavior abound in stories of companies worldwide. And people witness of any kind of unethical behavior in their workplace every day. Unethical behavior where people deliberately going to harm themselves or others, develops from and is reinforced by, destructive states of mind, including fear, greed, anger and jealousy. The agreement, ethical behavior increases the welfare of all because it evolved from IDS and supported by strong impulses and emotions, such as love, joy, generosity and compassion

We need to ask these questions :. “How morally vulnerable is our business or organization?” “What are the core values ​​and principles of our organization?” “We are committed to live and demonstrate our core values ​​in everything we do?” The answers to these questions will define the status of ethics in our business.

Leadership in business must set the standard and “walk the talk” when it comes time to ethical behavior. There can be no compromise on ethics. There can be no “waiver of ethics.” A leader must constantly keep his or her actions above reproach. If leaders are committed to a high standard, there will be no more Enron, WorldCom, Tyco, and ADELPHIA ethical meltdowns.

Knowing what is right is very important for personal and business ethics. Do what is right is absolutely critical to personal and business ethics. Strong unwavering commitment to your values ​​and mission of your company or organization will lead to the right ethical decisions and actions. In the absence of these measures, all one has is good intentions and simply is not enough for effective leadership.


Why Business Ethics are important?


Before we seek to find out some of the business ethics that business people should embrace, it is necessary to first understand what the word “ethics” means.

Ethics are a set of moral principles that are recognized with respect to a particular class of human actions or a particular group, such as medical ethics, corporate ethics, teaching ethics that brings together people of the same profession.

These principles deal with the effect on human behavior with regard to concepts as being good or bad, noble or ignoble, right or wrong, etc. These values ​​guide the group members to act in a way that is consistent with the values ​​and standards set. Business ethics are the virtues that business people apply to business decisions. Those standards are expected within the business, even if they are not written down and that business people should adopt. For example, business people are expected to weather the least suffering to their customers, to be fair in their dealings and foster sustained virtuous corporate character in general.

Business ethics are important because they keep the business people to operate within ethical and legal platform that not only leaves them satisfied internally but also increases sales because most such deal or transaction with honest businessmen. Also, if the public or potential customers perceive you to be involved in inappropriate on business, they will avoid you.

Good business ethics should be taken by all businessmen to participate in unethical practices that may involve violations of the law can lead to heavy fines or a lack of confidence with the public. Some of the business ethics are the following:

1. Being trustful by recognizing that the customer is king. Customers want to do business with companies they trust and who they perceive to be to show them respect. When the entity is a trust, it creates a loyal clientele.

2. Business people should be ready to meet the obligations of their customers and business partners regardless of anything else. Business people should offer their end of the agreement at all costs because this is the only way to cement customer loyalty and business partner is.

3. Participate in fair trade as ensure a safe workplace for employees, fair prices for products that will at least cover the cost of production and handling you customers well among others will ensure high trade turnover.

4. Every businessman wakes up every day in order to make profits. When a company operates within ethical realms, there will always be a clear sign of economic growth. Equally, companies need to make profit so as to meet ethical obligations to the company or its employees, government and customers.

5. In fact, being an ethical business person who builds the image of reliability and sets reputation with your customers, two things that are very important to the company.

Most companies are not eager to implement a business ethics. Most of them believe that making a profit is important but as they realize later, no matter how hard they try, they do not reach their goals.


Psychology Ethics


about the role of ethics in personal development and the need to develop a comprehensive psychological ethics

Ethics is a very appropriate area in the study of psychology as ethical values ​​of what is wrong and what is right directly related to the moral status of the individual in community. Our morality may well connect with morality if our morality is individual and moral standards could be between cultures, societies and religions. Ethics, however, are more generally as they rely on basic human nature and human values ​​and ethical values ​​are more human and therefore more about the psychological dynamics of the moral values. However, ethics is considered a branch of ethics

In a study of the psychology of honor it is important to distinguish between ethics and morality and psychology of Ethics was about the value of being human but Moral psychology specifically addresses questions morality. Moral psychology or psychology of morality is thus seen as part of a broader psychological ethics. Ethics deals with morality and questions of right and wrong, moral and immoral, virtue and vice, good and evil, and the responsibility of being human.

Ethical philosophy also shows how moral judgments and ethical statements or attitudes formed. Ethics was studied in philosophy from the days of Socrates and Aristotle and was self-implementation of the needs of the human condition. Doing the right thing at the right time and the right way for the right reasons is considered virtuous and ethical. Yet the psychology of ethics would take more than just understand the moral values ​​and strengthening human condition. Psychology ethics is the key to our faith and beliefs and the formation of these beliefs also how value system shaped in childhood through moral development. Psychoanalysis and social and developmental psychology could use a range of theories to explain the moral development in children and adults.

Freud has used the concepts of Id, Ego and Superego suggest that Superego serves as a moral filter and helps individuals to decide what is right and what is wrong. The id, ego and Superego is described as three parts Psychic devices with ID’s basic instincts and desires, ego is a practical component that balances the desires and Superego is what monitors and controls, and the part that has strict moral dimension. The Superego is part of the psyche that addresses moral and calls us to a moral argument. This means that we seek moral explanation of behavior or tend to consciously or unconsciously behave in a certain way because the underlying moral needs.

Apart from psychoanalysis that would explain ethics mainly as an instrument controlled and directed Superego that all dark unethical desires are somehow filtered, moral development is also explained by social and moral psychology.

In social psychology in group would mean following the principles of compliance and consistency determines the extent to which social behavior would be in accordance with what society accepts or believes that standard. Standard behavior would actually be closely related to ethical behavior, so in the context of social psychology, ethics is consistent and do what is right according to social standards or values. If we consider developmental, individual needs are met through social comply with the following ethical standards and engage in ethical behavior was consistently rewarding individuals and would encourage or reinforce ethical standards. Ethics meets social and recognition of our needs and our moral needs to control our desires. So psychoanalysis would consider ethics as the moral side of our psychic structure and according to social psychology theories of ethics is necessary to group behavior and compliance of ethics under the social teachings of the important social orientation of our relations. Some of the questions that were central to the psychology of ethics at levels related to the development of ethics. This would be similar to moral development, however, ethical values ​​and attitudes were a distinct and unlike public morality shaped even in old age.

The slightest distinction between ethics and morality Apart from the fact that ethics is part of a broader moral psychology is ethical may vary or related attitudes can change over time. For example, euthanasia is a moral decision and doctors or nurses who have these conditions in their work depends on their ethical stance and this could have an impact on what they have learned in their work, their years of experience and personal upbringing or value systems.

In some cases, conditions may determine ethical decisions also social systems and individuals and their thoughts are influenced by others in moral development providing social teaching of ethics. However specific theories as cognitive dissonance theory could explain ethics that change the behavior or attitudes through the discomfort to a particular view of things. If certain features are fundamentally incongruent with attitudes held persons must either change their actions or beliefs and that personal ethics would also change. Evolutionary psychology also explains the moral and ethical development of our and when we are constantly reward the community for a certain behavior, we would naturally consider this as a positive and this would then be socially acceptable and ethical. Behavior rewarded over time are finally considered ethical and ideal.

Psychology ethics must include the theory of psychoanalysis, developmental psychology, social and developmental psychology to provide a comprehensive understanding of moral development and changes in the development of ethics. Ethics would be affected by the unchangeable element core values ​​that we have and dynamic element of experience that ethics is the rule of law and even changed by the experience.

Stages of moral development will have a general structure of social and moral development of individuals going through guilt in childhood (of damage, etc.) with a group of consistent and learn what is right and what is wrong. This is further elaborated in adolescence is marked with the identity crisis (as suggested by psychologists including Erikson) and ethics formed in adolescence as part of this group identity. When 20-year-old man says to himself: “I believe cheating is wrong”, he is suggesting that his sense of ethics is connected to his sense of identity. Finally, in the middle and late adulthood practical changes can lead to changes in ethics and the final stage of consideration and evaluation as there is food and the need to protect their own moral beliefs and attitudes of people. Stages of moral development could therefore guilty group conformity identity crisis- identity consolidated experience change-food defense.

Psychoanalysis and the role of the superego may indicate why ethics formed in humans and general interaction of psychic structure and the formation of ethics. Evolutionary psychology shows the interaction of biological structure or the human body systems and moral formation and suggest how ethics formed over years of development and social psychology shows general interaction of social structures and the formation of ethics or value system and is focused on the basis of ethics in society to tell us what ethics formed in accordance with the requirements of society. History Michel Foucault’s sexuality with a focus on social systems could also provide insight into the study of the formation of attitudes, values ​​and ethics.

Along with the social, developmental, psychoanalytic and development size of ethics, it is important to define the types of ethical decisions such as ethics from a legal perspective, ethics, ethical, ethics of educational context, ethics from the medical point of view and so on . Business ethics, legal ethics, medical ethics and all branches of ethics must consider the psychological stages of moral development with social, psychoanalytic, evolutionary theory

from Reflections in psychology -. II – Saberi Roy (2010)


Business Ethics is a moral responsibility


ethical business conduct standards are related to moral judgments apply to people engaged in commerce related sites (Gitman, 2012). Shareholders and interested parties are two different groups of investors who have a vested interest in the success of the company. Shareholders are investors who are not employed by the company, have bought shares (stock) in company with the hope of increasing their investment. Stakeholders include customers, employees, owners, creditors, vendors, who actually do the job of the company, or have a direct economic impact on the company’s success (Gitman, 2012).

Ethics plays a big role in the success or failure of the company. For example, if a company files will profit or loss in the financial statements to show a more favorable picture to its shareholders rather than actual financial data, shareholders lose confidence in the company and sell their shares. Also, if stakeholders are treated unfavorably or not paid on time, the turnover and the inability to secure credit will also affect the company’s bottom line. Some argue that managers have required only to please their owners, because the group provides much of the money needed for the activity (Gitman, 2012). However, if stakeholders are unhappy with the operation of an important cog in the wheel is missing and will eventually cause the company to fail.

Examples of misrepresentation to investors, banking failures and the housing market crash of 2008. Mortgage securities are real mortgages that are sold by mortgage brokers, packaged as securities, offered by financial institutions for investment (Brigham & Ehrhardt, 2011). Mortgage securities contributed to the global economic crisis by being presented as a lower risk than the mortgage is security really were. (Brigham & Ehrhardt, 2011). Buy this letter expect a healthy return on their investment, but instead was to buy mortgages that were at risk of default. These mortgages were risky because mortgagees not be able to provide loans for floating rate, or fraudulent lending practices engaged in by the mortgage banks misrepresented information to clients. Also, when the demand for housing began to fall due to the number of defaults on mortgage loans and unemployment, home prices fell and the number of short sales and foreclosures forced the closure of several banks. Lending slowed dramatically and this could affect US companies, individuals and other countries around the world.

management has primary responsibility for both its shareholders and stakeholders in order to ensure maximum profit and growth within the company. It is the duty of managers, directors and officers of the company to maintain a high standard of ethics so that both shareholders and stakeholders have confidence in the company and want to remain investors and committed to their goals. Both of these groups have a huge impact on earnings per share of stock of the company, and both are important in the growth and maximum profitability.


Brigham, E., Ehrhardt, M. (2011). Financial Management: Theory and Practice

(13 ed.) Ohio: Cengage Learning. ISBN-13: 978-1-133-66500-7

Gitman, Lawrence J. & Zutter, Chad J. (2012). Principles of Managerial Finance. 13.


Prentice Hall.

How To Build A Business Ethics Program


Recent financial scandals have highlighted the importance of business ethics and compliance. Yet a recent National Association of Corporate Directors (NACD) survey of 280 corporate CEOs and directors found that “only one of three directors felt that they were highly effective in ensuring compliance with the law.”

Ethics in Business

Most companies realize that they need to develop and implement a business ethics and compliance program

An effective program is :.

o Bring protocol that reduces the risk of criminal behavior

o Identify injustice, foster quick investigations, minimize the consequences of

o demonstrate ethical / legal philosophy of the company during the investigation

o Reduce fines if company is found guilty of wrongdoing

o Increase business reputation and stature

Looking at Options

But how to build an effective system? Companies find themselves with three options to build applications

o Develop in-house from scratch

o Hire external consultants

o Use pre-written manual

And most of these companies learn a few lessons -. sometimes the hard way

Making Strong Company Policy

Development program from scratch can be very time consuming and expensive. Also, the company might not have the knowledge or understanding of the complexities involved. But hiring an outside consultant is not always a cost effective option either. So what’s left?

develop business Ethics Program

By using pre-written template or manual, many companies have found it easier to develop business ethics program. And to do this, they look for what a strong program needs

A very effective tool to create, plan and execute sound business ethics and compliance program should provide :.

o Sample policies and procedures

o Step-by-step guide for the development of a program

o A business ethics training program outline with classroom materials and follow a detailed session leader is

o Business Ethics and Compliance Officer position description

o Templates for the involvement of employees

or Sample Code of Conduct

Implementation of Business Ethics Program

If the Board is committed to a strong ethics and compliance program, the next step is to put the manual in the hands of corporate executives responsible for implementation. Used properly under advice of counsel, this efficient tool will yield a solid program that the board understands, assign, and monitor effectiveness.

with step-by-step instructions and follow the examples of policies, procedures, training program, and poll worker, an effective tool provides an excellent road map for the implementation of the ethics and compliance initiatives.

Maintaining a Culture of Ethics

Companies should ensure that their ethics compliance manual provides fully editable MS Word files with sample policies, surveys, forms and training session outlines. Also, companies should ensure ethics compliance system manual is to be fully supported by the National Association of corporate executives (NACD) as a tool to maintain a culture of integrity.


Business Ethics – 6 Principles of Business Etiquette


One of the most important, if not the most important factor in determining the likelihood of success in any business or commercial activity is the ability to behave properly with people. Even in the early 1930s Dale Carnegie noted that the success of a man in their finances, even in technical or engineering are fifteen percent dependent on professional knowledge and eighty-five percent of his ability to communicate with people. In this context, it is easy to explain the efforts of many scientists to formulate and justify principles of ethical business relations, or, as they are often called, commands personal public relation or “business etiquette”. Business etiquette or process to live and deal in the business world could be explained in the following six principles:

  1. Punctuality (do all the time). Delays affecting the work and there are signs that one can not rely on. The principle of making all the time applies to all service project. Experts investigating the organization and distribution of working time recommend adding an extra 25 percent for the period necessary to perform assigned tasks.

  2. Privacy (not show too much). In the institutions, companies or specific deals are secrets to be as good as those of a personal nature. There is also no need to recall someone heard from a colleague, supervisor or subordinate performance or his personal life.

  3. Courtesy, friendliness and affability. In all situations, it is necessary to behave politely, good and benevolent with customers, clients, customers and colleagues. This is not, however, need to be friends with everyone you interact in a work environment.

  4. Attention to people (think of others, and not only by you). The attention of people around you to cover colleagues, superiors and subordinates. Respect the opinions of others; try to understand why they have formed a certain point of view. Always listen to criticism and advice colleagues, superiors and subordinates. When someone questions the quality of work, show that you value the opinions and experiences of others. Trust does not prevent you being modest.

  5. Appearance (dress as expected). The main method is to fit in your environment at work and within the environment – the level of contingent workers. You should look at the best way, is to dress with taste, choose matching colors. Carefully choose the accessories is important.

  6. Literacy (speak and write good language). Internal documents or letters to outside parties shall consist of paying attention to the correct language is used, and all proper names transferred without error. Do not use offensive words. Even if you only quote the words of another person around, they will be considered part of their vocabulary.


The benefits of a good Business ethics


Business Ethics reflect on the principles that form a particular company. This includes all fields in the business environment which includes finance, on the environment, human resources and sales and marketing, among others. The company is obliged by law to follow established rules and procedures in their quest to realize the goals and objectives.

Good business ethics is characteristic of quality that can be unmeasured successful commercial organization. When good behavior and morality are applied in all phases of the reconstruction agency, that is, from junior staff to management, the company is likely to be a success.

Any forward thinking advertising company that is determined to be in the market for a long time will have to hire a good ethical methods of communication with customers. This will include putting in mind the rights of consumers, workers and the interests of society as a whole. Consumers nowadays are familiar with their rights and the law applicable to the company in connection with their protection; Therefore, a good relationship with customers will keep them coming back.

Good emerge goodwill from customers and the public in general. Goodwill earned over time can mean profits for the company. People will tend to do business with a company that values ​​and cares for them. Return on investment means the sustainability of the respective investment market.

Some of the principles admirable practice in a commercial environment: trust, respect, open-mindedness, community involvement and maintain accounting control. Customers will always want to make communication with companies they trust for both quality of services and products they offer. Trust organization will be reflected in its ability to deliver and how it delivers.

Participation in community based issues will give the company a good view from the community. It is considered as a way to give back to the community and customers will definitely see that they are perceived as valuable people of the company. Advertising, brochures, magazines and communications sent to the public should be crafted in a professional and accurate manner in order to avoid problems with other competitors in the market.

Maintaining better ethical practices in the company prevents a company from too many lawsuits. Customers and employees are nowadays clearly educated about their rights and most of them can choose to go to court when they realize their rights are violated. Realizing the importance of ethics as a tool to achieve the objectives and goals of the company is the beginning of success for any business. All transactions and branch agency must follow ethical practices in order to have a successful trade balance!


Ethics and Character in Business


This is a new era in the world. There was a time, back in the 1950s, where ethics and the nature of the transactions were not unusual, but the norm. The United States was largely Christian population and moral society was “salted” with the “salt” of Christians. Prayer and Bible reading were allowed in schools and the Ten Commandments were placed. 1960 began the revolution take God out of the schools and the community, and look at where we are today.

net effect of the cultural revolution is that many companies, businesses, banks and governments, or at least some individuals within them, have cut the cord ethics. We find more and more ethical offense, especially when we look at the news coming out of Washington, DC We see it happening that would have been unthinkable 30 or 40 years ago.

That, in turn, often puts people, the workers, in a difficult position. Here is an example. Recent debates and court rulings on abortion have been doctors and nurses in the state either work against individual beliefs in this area, or sent to a common policy to work. The end result is that some risk.

In other cases, the company fights for the freedom to live according to their own conscience. Hobby Lobby is an example of this. They took their right to live their own religious conscience of their convictions to the Supreme Court. We now see recent incident involving Meriam Ibrahim, Christian doctor who was in prison for their Christian faith. Much prayer and international legal work involved in setting her free.

in many ways, we are in a similar position when the pre-WWII. Many, probably many more than World War II, are aware of the problem today. We see the lies and corruption clear, but the pre-WWII era. This creates a situation where they come out as whistleblowers are often threatened with their jobs, and sometimes their lives. They can lose the promotion, advancement and retirements will not “go along to get along”. Remember, at the beginning of this debate was the moral changes in society and in business since 1950 and since the Bible had authority over inspections great majority of the population.

Because of this, it is worth considering to own your own business. By being a successful business owner, you avoid the pitfalls corporation to tell you that operate outside the ethics of your conscience and character. Not only that, in today’s economy, where workers are expendable, since companies would rather get rid of long-term employees and give them any retirement, owning your own business will be a way to preserve your economic future. Owning your own business is one way to handle the current difficulties involving ethics and character in business.


Business Ethics and Customer Service


Although the increase in small business entrepreneurs is no doubt great for the US economy, the unfortunate aspect is that many companies now regularly participate in unethical or ethically questionable practices under the guise of “customer service.” If you are starting your own business, or already running a small business, this kind of questionable behavior is no doubt going to hurt you in the long run.

Successful companies almost always adopt strict protocol and implement it in all areas of their business, including customer service. The best customer service policy is always to adopt high ethical standards, and practice them exactly.

Customers who consider themselves treated fairly, honestly and properly will return. Customers who believe they have been cheated, lied or abused will never come back. Worse, they will tell others to avoid business because you’re a crook!

Ethical Support

best customer service policy is to be honest with your customers. Never make a promise to the customer that you will not be able to deliver on. If you can not do something for a client, there is a good chance you’re going to lose some business. Unfortunately, many small business owners think they can not afford to lose customers, and consequently they are, telling customers that they will do what they know they simply can not. In the short term, companies can make some more money, but long term it is devastating.

When it comes down to it, good morals in customer service may be painful in the short term, but you will avoid problems down the road. If you want to be in business for a while, and thrive, the best mantra phone may not be the “customer is always right.” Instead, make sure you do not over promise and under deliver.

Instead of telling your customers what they want to hear, to be honest. Tell them what you can do for them. If a customer asks for something you can not do, tell them, and explain why.

If a customer asks you to do something you know is wrong, tell them that their request is wrong and why it is wrong. In many cases, customers are not aware that some of their requests could be wrong or illegal.

If the customer keeps asking you to do what you know is wrong, but to you, it really is the customer you want or need? Fortunately, so customers are a tiny minority that successful business can do without.

Honest Customer Service

Hand-in-hand with ethical customer service is honest customer service. Indeed, the best customer service strategy is the simplest and easiest to implement: integrity. Be honest with your customers and you will win their respect, their trust, and more importantly their business.

Ask yourself, would you do business with anyone who lied to you or trying to deceive you? If the answer is no, then you know why honesty is the cornerstone of every customer. The way to win customers is to win their trust.

This means that you should check out the customer support strategy and eliminate anything that encourages you to lie to or deceive customers, such as the aforementioned “the customer is always right” policy. Unfortunately, many analysts customer service and books actually recommend policies that lead to to lie and deceive

One last piece of advice :. You will never be able to please all customers. Just do what you can not and do not promise impossible.