The importance of ethics in business


Ethics is important not only in business but in all aspects of life because it is an essential component and the foundation on which society is based. Company / community lacks principles is bound to fail sooner or later. According to the International Ethical Business Registry, “there has been a dramatic increase in the ethical expectations of companies and professionals in the past 10 years. Oh, clients, customers and employees are deliberately seeking out those who define the basic ground rules of their activities on this day. … “

Ethics refers to the protocol that routes person relationships. Business Ethics is a form of art of applied ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. It focuses on issues of moral and ethical rights, obligations and governance of the company and its shareholders, employees, customers, the media, government, suppliers and dealers. Henry Ford said, “Business that allows to realize the money is a poor kind of business.”

Ethics connected to all management disciplines such as accounting information, human resources, sales and marketing, manufacturing, intellectual property knowledge and skills, international trading and economic system. As said Joe Paterno once to evaluate the results is unseasoned dish. It will satisfy your hunger, but it will not taste good. In the business culture of the organization sets standards to determine the difference between good or bad, right or wrong, fair or unfair.

“It is perfectly possible to make a decent life without compromising the reliability of the company or individual, wrote business executive R. Holland,” Quite apart from the issues of validity and wrongness, the fact is that ethical behavior in business serving individuals and enterprise much better in the long term. “, he added.

Some management gurus focused on ethical business have an advantage over their competitors. Said Cohen and Greenfield,” Consumers are used to buy goods despite how they feel about the company that sells them. But valued company worked kind of loyal customers, most companies only dream of because it appeals to their customers more than the product. “

Ethical issues in business have become more complex due to the global and varied nature of many large companies and because of the complex economic , social, international, natural, political, legal and regulatory environment in which the company must decide whether to follow a solid ethical or to adjust to local standards and culture.

Managers need to remember the example of the first step in fostering a culture of ethical behavior in business as rightly said Robert Noyce, “If ethics are poor at the top, that behavior is copied down through the organization,” although other methods may be to create a common interest of favorable culture, setting high requirements, criteria, structure attitude for acceptable behavior, make a written protocol implacable at all levels from top to bottom, determine policies for recruiting, selecting, training, activation, promotions, monetary / non-monetary incentives, remuneration and retention of staff. “Price is what you pay Value is what you get.” – Warren Buffet

Thus, the manager should treat their employees, customers, shareholders, government, media and the community fairly and equitably by knowing the difference between right and wrong and choose what is right, this is the foundation ethical decision-making. REMEMBER: GOOD ETHICS is good business. “Non-business with evil is as much a duty as is cooperation with good.” – Mahatma Gandhi


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