Why is business ethics important?
Small business owners are realizing that the principles of moral ethics can be injected into business. Ethical businesses recognize the power of conducting business in socially responsible ways and they realize that doing so leads to increases in profit and customer satisfaction and decreases in employee turnover.
Moral Ethics We all, whether knowingly or subconsciously, approach life with a moral and ethical framework. For many of us, this framework is cultivated early in life.
We often tend to take on the beliefs and world view of our parents, our religious community, our friends at school and others who play an influential part in our upbringing. Nonetheless, as we grow and mature, our viewpoints change — sometimes becoming more liberal and sometimes more conservative.
The moral frameworks we carry with us do not simply disappear when we start working or when we manage employees. In fact, the ethical frameworks of small business owners are incredibly important factors that shape how the organization is run.
Business Ethics Business ethics is concerned with applying a moral framework to the way organizations do business. From dealing with human resources issues to sales and marketing policies, ethical viewpoints can shape and change the way businesses operate.
Business ethics has both normative and descriptive elements. The normative part of business ethics has to do with understanding how the behavior you and your employees exhibit is related to cultural issues or social upbringing.
If you tend to be conservative with money, for example, you may be able to attribute this to being raised with "savers" as parents. The key to normative ethics for small business owners is to understand how your personal beliefs affect the choices you make as a business owner.
You may do well then to incorporate these things into your policies, keeping ever cognizant of the varying beliefs and ethical viewpoints of all your customers and employees. The questions to ask yourself whenever you are thinking about incorporating an ethical principle into your business are: Will this principle help me better connect with my customers or employees?
Will this principle ultimately help me to make more money or to increase my bottom line? Will I lose anything if I do not incorporate this principle? If you answer "no" to any of these questions, you may have a good reason NOT to implement the ethical practice. The key here is respect: All of your employees and customers come from various social and economic backgrounds, therefore any attempt to institutionalize an ethical principle must be balanced with a sense of respect for those you serve.
Corporate Social Responsibility There are, nonetheless, several ethical principles that are important for businesses to implement. Failing to implement these principles may hurt your business. These ethical principles include a commitment to managing finances in a responsible way, to avoid fraud and misrepresentation in your operations, to treat employees and customers with respect and dignity, and to give back to the community in which you are located.
Understanding ethics and morality in business By: Bahaudin Mujtaba | pm EST April 22, am EST November 19, You probably have read much about the basics of ethics, leadership, stewardship, morality and social responsibility. Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed The law = minimum acceptable standards of behavior, but many morally contestable. To understand, virtue, ethics, and morality we must first understanding there meanings. According to Boatright, “”morality and ethics are interchangeable; however, they have some subtle differences.” (Ethics and Conduct of Business, Boatright) Webster’s Dictionary describes ethics as the.
This last point is extremely important for small businesses. Investing in local nonprofit organizations, school groups or community-service projects will increase your brand recognition in the community and will, if done right, bring in new customers to your business.
You build goodwill in the community and you simultaneously market your products and services. Business ethics can thus be a fruitful venture for small business owners who are willing to take the time to incorporate ethical principles with care and patience.Systematic moral analysis is a tool that helps us to think through ethically complex situations.
The process of systematic moral analysis as described in the video is predicated on moral rule violations, which result in harm to another person or persons. Understanding ethics and morality in business By: Bahaudin Mujtaba | pm EST April 22, am EST November 19, You probably have read much about the basics of ethics, leadership, stewardship, morality and social responsibility.
Feb 27, · Watch video · True Or False: There Is A Difference Between Ethics And Morality. I first asked respondents to say whether the statement, “There is a difference between ethics and morality,” is true or false.
The system of moral and ethical beliefs that guides the values, behaviors and decisions of a business organization and the individuals within that organization is known as business ethics.
Understanding ethics and morality in business By: Bahaudin Mujtaba | pm EDT April 22, am EDT November 19, You probably have read much about the basics of ethics, leadership, stewardship, morality and social responsibility.
Business Ethics and Virtue Ethics There are many things that make a company unique and successful. The liberty of working in an organization in society today is that, companies are filled with many different individuals from all ways of life.