Business Ethics – Why are they important in the Small Business



Rarely is an individual who does not encounter ethical or moral problem at some point in the life of his or her company. Whether that person is the owner of a multinational corporation, a small business entrepreneur, or new or established employee, everyone is likely to have to face such examples end. As personal moral dilemmas, individual faces make a decision based on how it will affect not only himself, but how it will affect the organization as a whole. One of the main problems when dealing with ethical problems in business is that people are often swayed by corporate profits and legality of the decision.

The Institute of Business Ethics, which slogan is “doing business ethically makes for Better Business”, describes the term business ethics as such.

Business ethics is the application of ethical business behavior. It is applicable to all aspects of business, from government strategies and how companies with their suppliers to sales techniques and methods. Ethics goes beyond the legal requirements for companies and therefore discretionary. Business ethics applicable to the conduct of individuals and the implementation of the Agency as a whole. That’s how business is their business, how it behaves in nature.

as clear as this definition, it is certainly open to interpretation. Therefore, it must be understood that the application of ethics to all situations is entirely subjective.

can also understand the ethics and morality of any kind, applying a sense of fairness in the circumstances. Even with a sense of clarity applied to the use of business ethics, reaching just and moral decision can be a complex process for most individuals. The subject of business ethics has been a source of much debate in recent years as heads of major (and minor) companies are seen as less than ethical characters both in the way they do business and conduct them. However, one can say that any individual who does not practice ethics not personally be ethical if the opposite may not also be true. Ethics in general has a long history of applications. Centuries moral man define who he was as a person. However, as populations grew, the need for incorporating best business practices in the company was somehow less important because there was always another client around the corner and the owner of the company was rarely the focus of the community how he or she may have been in the past. Administration of the company took place in the background and hired a representative to deal with the fallout. Ethics depend on several factors, one of the most important is their culture. Again, as a business person of the past, culture ethics practices will largely depend on the value placed on them. Business ethics have unappealing conflict often be contrary to what is legal. Often it is the “right” is not necessarily what is legal, and the company must consider this conflict as moral judgments. While there are many in the business community who believe that the company has no capacity for morality if there is effective competition, the number of corporate whistleblowers suggest that there is still room for ethics in business.

Western societies place a high value on success. However, in business, there are often conflicts between ethical behavior and business success. This discrepancy is often multiplied for the small business owner. To compete with larger companies, it may be tempting to leave ethics just to make an adequate profit. In addition, the small business person is relatively independent in his decisions or its preparation; he or she does not have to answer to a large base of employees or company Board. It is also interesting to note that the small business leader has often his or her decisions affect a greater number of persons than the employee small business. For example, a small business owner may have his or her decision affect his or her customer base as well as the employee of his or her. The employee will likely find that the decision of his or her will only directly affect his or her immediate circle of colleagues. However, the pressure to succeed is both internal and external pressure and often leads individuals to make moral decisions that are based more on the pressure and their own moral judgment. As consumers grow wary of those they do business with, you must understand that it is just such wariness. Cynical American consumers have learned, often the hard way, that there is little room for business ethics. In a society where the customer used to be the king, the consumer has more often than not experience some unpleasant experience with companies both large and small.

Some experts argue that any focus on profitability is bound to test the limits ethically. They claim to assume the primary role of business is to serve its customer base in an ethical way is idealistic and the nature of the free economy dictates that ethics must take a back seat to increase profits. Although it is rarely aware of the intention of the company to harm the public interest, reality dictates that the company the ability to increase profits will determine success. Public companies experience increasing pressure in this field. It is difficult to draw investors business based on ethics. Investors are looking to their profitability and ethical performance does not equal dollars. There are economists who think that in any economy, competition, ethics impossible to sustain; the company can legally pass ethics with the excuse that unethical practices are the only way to make money.

Unlike large corporations, small business leader is in a unique position to shape the moral of his or her business. Small businesses have less employee police station when applying ethical policies than larger companies. It is important to understand that, similar ethical issues of large companies, although individual certainly knows the difference between right and wrong moral decision road, the choice to throw ethics to the wind is often done because unethical choice is profitable. This can, however, happen much less frequently in smaller organizations because the person or persons who are harmed by unethical decision and someone is always harmed, visible small business. Big business and their decision-making machines are often far away from individuals immoral and / or unethical decisions affect them. This can make the wrong decision much easier to make.

special for a small business owner in the formation of the ethics policy provides a great responsibility. A proactive business leader formulates a statement the organization values ​​the company’s employees are expected to embrace – at least while jobs in the service business. An organizational change ethics policy is a notice to employees, customers and society as a whole, the company is willing to conduct himself and her practice on moral ground. Such statements offer the respect of all parties in transactions with such parties. However, it is important that the small business owner does not make the same mistake that larger organizations often do; ethical policy to business development can not be contrary to the organization goals. It is unethical in itself to develop an ethical policy that an employee can not possibly follow and maintain their jobs. When faced with the decision between a moral decision and his and her job, the employee will almost always choose the job.

The policy must be in reasonable line with organizational objectives. It is equally important, and perhaps more so, the small business leader lead by example. Employees, especially in my organization, are less likely to behave ethically if they get indirect license no. The end result of such a practice is a small business owner can be sure that he or she is doing business in a way that inspires confidence in customers and employees of his or her. And since consumers have become very wary of doing business with the person they think they can not be trusted, small businesses can enjoy profits loyal customers. The small business owner has an advantage over larger companies in that it can elicit consumer confidence by applying ethical practices that give customers the feel of a normal business relationship rather than one where the consumer purchases based on need alone. There are many who believe that such activity is able to draw business away from large corporate party again in a customer-focused company format.


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