Importance of ethics in business
Ethics is important not only in business but in all aspects of life because it is the vital part and the foundation on which society is built. A company/society that lacks ethical principles is doomed to fail sooner or later. According to the International Register of Ethical Businesses, “There has been a dramatic increase in the ethical expectation of businesses and professionals over the past 10 years. Increasingly, customers, customers and employees are deliberately seeking out those who define the basic rules of its operations. on a day of today…”
Ethics refers to a code of conduct that guides an individual in dealing with others. Business ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical issues that may arise in the business environment. It deals with issues relating to moral and ethical rights, duties and corporate governance between a company and its shareholders, employees, customers, media, government, suppliers and distributors. Henry Ford said, “Business that gets noticed but money is a poor kind of business.”
Ethics is related to all disciplines of management, such as accounting information, human resource management, sales and marketing, production, intellectual property knowledge and skill, international business, and the economic system. As Joe Paterno once said, success without honor is a dish without seasoning. It will satisfy your hunger, but it won’t taste good. In the business world, the organization’s culture sets standards to determine the difference between good or bad, right or wrong, fair or unfair.
“It is perfectly possible to earn a decent living without compromising the integrity of the company or the individual,” wrote business executive R. Holland, “Aside from the issues of right and wrong, the fact is that ethical behavior in business serves the individual and the company much better in the long run,” he added.
Some management guru pointed out that ethical companies have an advantage over their competitors. Cohen and Greenfield said: “Consumers are used to buying products regardless of how they feel about the company that sells them. But a valuable company earned the kind of customer loyalty most corporations only dream of.” because it attracts its customers more than a product”.
Ethical issues in business have become more complicated due to the global and diversified nature of many large corporations and due to the complexity of regulations and the economic, social, global, natural, political, legal and governmental environment, thus the company must decide whether to adhere to consistent ethical principles or conform to national norms and culture.
Managers must remember that leading by example is the first step to fostering a culture of ethical behavior in companies, as Robert Noyce rightly said: “If ethics is poor at the top, that behavior is copied throughout the organization” However, the other methods may be to create common interest through a favorable corporate culture, set high standards, norms, frame attitudes for acceptable behavior, make the written code of ethics enforceable at all levels from top to bottom, decide the policies to recruit, select, train, induce, promote, monetary/non-monetary motivation, remuneration and retention of employees. “Price is what you pay. Value is what you get” – Warren Buffett
Therefore, a manager must treat his employees, customers, shareholders, government, media and society honestly and fairly knowing the difference between right or wrong and choosing the right, this is the basis of decision making. of ethical decisions. REMEMBER: GOOD ETHICS IS GOOD BUSINESS. “Non-corporation with evil is a duty as much as cooperation with good” – Mahatma Gandhi.