purpose of business ethics

purpose of business ethics

Human feelings should be given importance. Many managerial decisions have ethical implications and these decisions give rise to Managerial Dilemmas. He should observe ethics inspired by his own interest in his business and society as a whole. Hence, prevention is better than cure. There is a fair treatment of an employee by him. For, goodwill, loyalty genuine pride, and above all, mental peace, cannot be calculated accurately in terms of money. Hence, it does not have universal acceptance, mainly because-. These two are extreme views, known as the Unitarian View and the Separatist View. They formulate ethical policies and develop ethical standards. – According to this principle, every businessmen should be able to fulfill their commitments and assurances as given to other persons. There are number of trade unions functioning in India. This view is of the opinion that business is only a subset or sub-structure of the moral structure of the society. There can be numerous factors that cause unethical behavior in the employees of an enterprise. Act and the like are some of the legislative measures. Since then, there has been a radical change of views and the fears expressed by philosophers and psychologists about business ethics have largely remained unfounded. Concept and Definitions 5. Fore mostly, in business as per their products and services, the customers should be satisfied at every stage. Whatever the profit or business of a company, CEO of the company has to act ethically. Businessmen are not ready to pay even minimum wages. Some of the basic and important principles of business ethics are as follows: Image: 30 Basic principles of business ethics. In case of the boatman, an ethical and effective solution lies in providing him with alternative employment on the bridge itself-as a security man, toll tax collector, etc. It includes relationship with its employees, consumers, competitors, Governments, and finally the society at large. He adopts the attitudes, beliefs and values of the group to which he belongs. Are expectations of society a level of morals in the society. Deciding high prices for the products and services, c. Creating false impression on the customers/consumers about the features of products. Accordingly, we should perform all the role and behaviour to another person’s for their esteemed interest. (c) Products those are innately deleterious like alcohol, tobacco, fast motor vehicles, warfare, chemical manufacturing etc. Whenever people make decisions or talk about what constitutes appropriate behaviour at work, we can easily see the impact of values or even conflicts between different values. – Every businessmen are required to create and develop their role and behaviour to establish pleasure and happiness with other persons and the society at large. An ethical dilemma is a situation where one is in conflict between moral imperatives. Ethics management committee – It will be charged with implementing and administrating an ethics management programme, including administrating and training about policies and procedures, and resolving ethical dilemmas. But this will first require it to come out from its narrow mentality and even narrower goals and motives. Employees, customers, shareholders and the general public have the right not to be intentionally deceived on matters about which they should be informed. – This principle is based on inner-feeling of persons to analyse the sense of right and wrong. Now-a-days, the enterprises are realizing the importance of spirituality, contemplation, meditation, and yoga practices, which are the essence of the Indian culture. e. To ensure that organisation is in compliance with governmental regulations. They should accept people as they are without judging them. Example: Generosity of a group. Understanding the importance of ethics in human resources is crucial for any business owner, whether in a local startup or a multinational powerhouse. Principle of ‘taxation’- The one who is taxed more is encouraged to stay fit for a longer period by proper appreciation. In fact, business itself is considered to constitute of ethics, as it does so much good to so many people and specially to the society it serves. Choice between equally undesirable alternatives, 3. 4. (i) Teleological theories are consistent with the ordinary moral reasoning. Principle of Publicity – According to this principle, all the activities and performance as conducting in business houses, should be well informed to every person or organisation who are directly or indirectly attached with business. For example, obedience to authority is a primary concept that affects the ethical mindset of an individual. Compliance means conforming to relevant laws, regulations, policies, standards, procedures, or contractual obligations. DeMars says companies are recognizing the connection between practicing ethical standards and becoming more competitive. Actions are right or wrong not because of their consequences but because of our duty or obligation. The purpose of business ethics is to guide the efforts of managers in discharging their duties to the satisfaction of various stakeholders e.g., employ­ees, owners, customers, suppliers, and the general public. Principle of ‘sacrifice’ – A person, who is able to sacrifice a part of his asset or effort, commands a superior place in the organisation. Business ethics means the behaviour of a businessman while conducting a business, by observing morality in his business activities. In all the 5 myths it may be seen that business ethics is seen in simplistic and unrealistic light. If Classical economists like Adam Smith and Milton Friedman were of the opinion that the only objective of business was profit maximisation and business had no right to ‘meddle’ with ethics, the Church, in pre-medieval times, was the spokesman and judge for all spheres of the society, including business. Businessmen get acknowledgement from the employees for a higher amount than the amount actually paid. The purpose of enforcing the acts is to protect the public interests including the business and the businessmen. 3. Most people deplore it and most businesses take care not to be so openly unethical. While MIS is good management productive tool and positive dimensions, there are dark usage areas. 30 Important principles of Business Ethics. This happens due to the conditioning of their mind to obey orders right from their childhood. In broader terms, goodness is human well-being. If business ethics are properly followed by a business, automatically that particular business unit earns a good name among the public. It is based on the social customs, traditions, standards, and attributes. It will create a conducive environment for the development of economic and social institutions. Content Filtrations 6. It is required that on the basis of capacity and available resource, the businessmen should make full cooperation to different other persons as per their good conduct and value based behaviour. Business ethics are important for a variety of reasons. Utilitarianism why telling the truth, keeping promise, and other acts which provide some benefit are morally relevant. Next, goods are invoiced at cheaper rate to lower taxes. Technological advancements have to come, have to be used; however, what to do with the people whose life and earnings are affected by the utilisation of advanced technology, is a question which is difficult to answer. b. The right or wrong thinking is based on religious belief of individuals. The implementation of commitments should be based on honesty and responsiveness. Moreover, their employees, executives and managers have felt proud to belong to such organisations. They also say that business and ethics are opposite terms and hence, combining them is not proper. Relationship between Business and Ethics 19. 7. Business ethics offers to establish the norms and directional approaches for making an appropriate code of conducts in business. Focusing on customer Impact rather than profits builds business confidence and drives Investments. An ombudsperson is responsible to help coordinate development of policies and procedures to institutionalize moral values in the workplace. But, even if they do increase costs, short term sacrifices must be made for long term good. 17. Here, the trade union has to suffer a break if business ethics is not properly followed. These two stimuli force individuals to lie, or draw a false consensus of others to cover their mistakes. Companies publish rules of conduct in their employee handbooks and often have staff sign off on having read and understood both the rules and the consequences for violating them. Ethics is in the thinking and eyes of the man who sees business. For example, if a purchased product is not up to the standards as specified, the consumer movement claims damages or takes steps to replace the product to the consumer and insists the business unit to maintain the quality as specified by it.

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