Business ethic is the study of standard of the business behavior which promote human welfare and the good. It is also the examination of moral and social responsibility in relation to business practice and decision-making in business. Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow In order to gain public acceptance. The law Is the key starting point for any business. Most leading businesses also have their own statement of business principles which set out their core values and standards.
Before we understand business ethic, we should first know what Is ethic. Ethic Is about how we behave, about the standards we hold to ourselves. It’s about how we treat each other even we don’t know them. Ethics concern an Individual’s moral Judgments about right and wrong. Decisions taken wealth an organization may be made by Individuals or groups, but whoever makes them will be Influenced by the culture of the company. The decision to behave ethically Is a moral one: employees must decide what they think is the right course of action. This may involve rejecting the route that would lead to the biggest short-term profit.
It is relatively easy to identify unethical business practices. For example, companies should not use child labor. They should not unlawfully use copyrighted materials and processes. They should not engage in bribery. However, it is not always easy to create similar hard- and-fast definitions of good ethical practice. A company must make a competitive return for its shareholders and treat its employees fairly. A company also has wider responsibilities. It should minimize any harm to the environment and work in ways that do not damage the communities in which it operates.
This is known as corporate social responsibility. Ethical behavior and corporate social responsibility can bring significant benefits to a business. For example, they may attract customers to the firm’s products, thereby boosting sales and profits; they may make employees want to stay with the business, reduce labor turnover and therefore increase productivity; they may attract more employees wanting to work for the business, educe recruitment costs and enable the company to get the most talented employees; they may attract investors and keep the company’s share price high, thereby protecting the business from takeover.
Unethical behavior or a lack of corporate social responsibility, by comparison, may damage a firm’s reputation and make It less appealing to stakeholders. Profits could fall as a result. A reputation for ethical decisions builds trust in your business among business associates and suppliers. Strong supplier relationships are critical to a successful business. Consider the problems you might have If you could not supply what the customer needs at the time that they need It.
The community expects your business to operate In an ethical manner that enhances the Image of the community as a whole. By ligaturing that businesses may choose to follow in order to gain public acceptance. The law is Before we understand business ethic, we should first know what is ethic. Ethic is treat each other even we don’t know them. Ethics concern an individual’s moral judgments about right and wrong. Decisions taken within an organization may be dad by individuals or groups, but whoever makes them will be influenced by the culture of the company.
The decision to behave ethically is a moral one; employees employees; they may attract investors and keep the company’s share price high, make it less appealing to stakeholders. Profits could fall as a result. A reputation for Consider the problems you might have if you could not supply what the customer needs at the time that they need it. The community expects your business to operate in an ethical manner that enhances the image of the community as a whole.