Relationship between business ethics

relationship between business ethics

The primary reason for a "business", in the capitalist world, is to derive a profit. To be more precise, it is to derive the biggest profit possible. While others may. Inter-relationship between Business Ethics and Corporate Governance among Indian companies. Every organization, as they grow has many stakeholders like. The purpose of this paper is to consider business ethics as a concept and behavior that is worthy of attracting more proponents, and to explore how the diffusion.

Often this pressure can result in unethical decisions being made in order to deliver positive results.

Understanding the relationship between business & ethics

When this occurs it usually results in a pattern that gets passed down through the organisation. As leaders show unethical behaviour, and perhaps even justify such behaviour while knowing it to be wrong, this eventually becomes a part of organisational culture. People follow by example, and the lack of moral judgment will spread. It's easy to blame "the system", yet many fail to realise "the system" is comprised of decision making individuals.

Ethical Relationships in Business |

The relationship between business and ethics is inherently linked, but there are some who fail to make this connection. To say "business is business" is not justified, as responsible ethical decision making is an important component of doing good business.

Today's society is an instant gratification one, and people expect immediate results. This is perhaps part of the reason why some companies exhibit bad business practices. Not the only reason, but perhaps a common one. Obviously one's individual moral compass impacts choices made in a business, and when the cultural environment nurtures sound moral philosophies and does not tolerate bad business practices, the immoral acts will decline.

Granted the unethical companies may initially make significant gains financially and deliver the profits, but at what cost?

relationship between business ethics

When companies make unethical decisions, it can result in defective or rushed products, unsubstantiated firing of employees, and false presentations of products to consumers.

Is this good for the company? The fact is the only thing it creates is an illusion. Yes, these factors will all cut costs and give the appearance of profit, but it's inevitable that poor choices will negatively impact the business and be more costly in the long run. While the immediate bottom lines show a healthy profit through immoral acts, the reputations of these companies ultimately suffer.

Ethical Relationships in Business

Over the course of time this can really hurt a business and its profits. All too often we hear about CEOs who have either stolen funds, or ruined a company's reputation, due to corrupt practices.

relationship between business ethics

In the long run, managers and leaders who promote an atmosphere with low ethical standards bring harm the business. While it may not necessarily shut the business down, it will impact the opportunity to increase revenues to its fullest potential.

Favoritism Gift giving is sometimes a common practice in the business world.

Understanding the relationship between business & ethics

Branded gifts, designed to promote your company, can be expected. A coffee mug or ink pen, for instance, won't be frowned upon, especially when used for the purpose of advertising. The ethical question comes into play when a company provides a potential client or powerful government figure with an all-expense paid trip to Las Vegas or wines and dines a client with the intention of stealing the client away from a competitor.

While the latter isn't illegal, and might well accomplish the objective, your company risks placing itself in a vulnerable position when dealing with others in the business world who have witnessed the unethical way in which your company gets its clients.

Ethical Employee Relationships Ethical employee relationships are essential to the smooth operation of a business. This means keeping unhealthy levels of competition and personal relationships between employees out of the work place, while providing an environment where employees feel they are treated equally and fairly. Promoting ethical work relationships in the business can be encouraged through staff meetings that discuss issues such as gossip among employees and the consequences involved.

relationship between business ethics

A section in the handbook that details company policy regarding personal and romantic relationships among employees and interaction of supervisors with employees can help to keep relationships on a professional level, particularly between management and employees. Nepotism Nepotism occurs when a family member is shown special favors.

While hiring a family member who is unqualified for a job is not illegal, it can open the door for perceived unethical behavior. Hiring a family member who is qualified for the job is also not a good idea and can open the door to resentment from other employees and a perception of favoritism, whether it exists, or not.