Abu Salem Hussain :
There is no unanimity of opinion as to what constitutes business ethics. There are no separate ethics of business but every individual and organ in society should abide by certain moral orders.
The term ‘Business Ethics’ refers to the system of moral principles and rules of the conduct applied to business. Business being a social organ shall not be conducted in a way detrimental to the interests of the society and the business sector itself. The system of moral and ethical beliefs that guides the values, behaviours and decisions of a business organisation and the individuals within that organisation is known as business ethics. Business ethics is a subjective term. It is easy to identify unethical business practices in an organisation. So, reputation is one of a company’s most important assets, and one of the most difficult to rebuild should it be lost. Maintaining the promises it has made is crucial to maintaining that reputation. Businesses not following any kind of ethical code or carrying out their social responsibility leads to wider consequences. Unethical behaviour may damage a firm’s reputation and make it less appealing to stakeholders. This means that profits could fall as a result.
Ethical practices can go beyond just making sure your business does not have a negative impact on people and the environment. It can also mean dedicating a portion of your company’s time and resources to actively improving these areas – for example: Investing in building in developing countries, investing in community programmes, lobbying for political change, encouraging employees to donate their time and expertise to other projects and so on. This level of Business Ethics is the most commendable and should be something all companies strive for in this day and age, so that higher standards can be achieved for all in the future. Business ethics is more than just a concept used to enhance the image of a corporation; ethics are the very foundation of success. Business ethics should be applied from the very moment a firm opens its doors. Business ethics actually consists of the actions of individuals working within businesses. It is not uncommon to read about unethical behaviour by organisations every other day. There are business scandals, accounting scandals and other unethical business operations being conducted worldwide every single day. But why is this? Isn’t every employee guided about how to be ethical and conduct business ethically? Apparently not – and the number of ethical people and businesses is dwindling and this is the reason why business ethics is such a hot topic these days.
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Ethics concern an individual’s moral judgements about right and wrong. Decisions taken within an organisation 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.
Business ethics involves a wide range of disciplines, including law, public policy, management, and to some degree, the study of philosophy and psychology. Instead of concrete rules, business ethics incorporate principles, concepts, and goals in various business settings. Unfortunately, there is a large difference between expected ethical behaviours and judgements. The concept is more than knowing the difference between good and bad, or right from wrong, and has as much to do with character, attitude, and motivation as anything else. The study of business ethics is not to tell people how to behave, but to engage students, employees, and employers in a process that involves thought and questions based on customary values and morals. Every student of business ethics must be able to think for him or herself. Because of this, there always will be a large number of differences in what people perceive as ethical or unethical behaviour.
Business ethics is something other than an idea used to upgrade the reputation of a company. Business ethics are the simple establishment of success and ethics ought to be applied from the specific minute a firm opens itself. Business ethics really comprises of the activities of people working inside organisations. Business ethics is important because it delivers a social and measurable impact, it helps do some good in the world and in the community and it sets the example for everyone.
It is also important for the firm itself, since nowadays those companies who show interest and commitment in social activities gain a better reputation and customer loyalty. Ethical principles and moral or ethical problems can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organisations. These ethics originate from individuals, organisational statements or from the legal system. These norms, values, ethical, and unethical practices are the principles that guide a business. They help those businesses maintain a better connection with their stakeholders.
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Ethics and values can be described as very important to business sustainability. There are ethics which are individual moral principles that govern or influence a person’s behaviour and there are business ethics which are written or unwritten codes of principles or values that govern decisions and actions within an organisation. Ethics is about the principles we define for ourselves, in terms of how the company operates as well as how people behave within the organisation. Ethical executives acknowledge and accept personal accountability for the ethical quality of their decisions and omissions to themselves, their colleagues, their companies, and their communities.
Ethical executives demonstrate respect for the human dignity, autonomy, privacy, rights, and interests of all those who have a stake in their decisions; they are courteous and treat all people with equal respect and dignity regardless of sex, race or national origin. Ethics articulates around four ethical principles: Integrity, Respect, Courage and Transparency. These principles are expressed in the daily operations of our teams around the world. Acting with integrity for instance is vital to building and maintaining trust. Respect because what we do has an impact on many people’s lives. Courage because ethical questions are difficult ones but they must be addressed. Transparency is something we envisioned as a key trend a while ago, it affects all our activities, our communication and our engagement with stakeholders. Transparency is critical to be truthful, sincere and to be able to justify our decisions. The purpose of business ethics is to enable you to make responsible decisions. Maintaining highly ethical behavior when running a business can provide benefits to all your stakeholders.
In general, business ethical values are a set of guiding principles that encourage individuals in an organisation to make decisions based on the company’s stated beliefs and attitudes toward business practices within its industry. Ethics is based on a set of moral and ethical values. These values must be absolute – that is, you must take them seriously enough to override any human rationalisation, weakness, ego, or personal faults. When all else fails, you will always look back to these core values to guide you. Unfortunately, life is not that easy and there’s always disagreement about what values should reign supreme.
Ethics is important to businesses for many reasons. Businesses can increase sales or increase their reputation.
(Abu Salem Hussain, Lecturer, University of Barishal; email: abusalem 213306 ziahall @ gmail.com)
