Business ethics is the system of beliefs and morals that guide the system in an organization. Business ethics govern the behavior and decisions of all the businesses and the individuals in that organization. These ethical requirements are confided into the law.
That is why in a company the importance of business ethics is so much. There are many examples of business ethics like minimum wage, environmental regulations, restricting insider trading, etc.
Ethics in Various Departments
The ethics in the organization vary from employees to the organization. The management team in a company decides the things that are required to run the task on day to day basis. While employees the suit of following the rules laid down by the management team.
Thus, the philosophy governing the management is decided by the ethical behavior and practices. The leaders in the organization can guide the employees. This will help the individual in the organization as well the entire organization as a whole.
Employees in the organization take less time when the business ethics are worked as a guiding principle. This increases the employee overall and the productivity of the organization. When an employee finishes the work with complete honesty and dignity then the entire organization is benefitted.
Importance of Business Ethics in Various Departments
Business ethics is different for a different industry. It has a lot of influence on operating the business. Take the example of an investment firm. The dilemma arises when the decision taken for their client is not in sync with the options they have given to the clients. Similarly, the media TV house that is promoting the shows for children is expected to show the good values and morals to its viewers.
One major example of industry related ethics is the energy industry. The companies that are responsible to produce the nonrenewable energy are constantly under the supervision. Authorities do this so that they do not cause any harm to the environment.
One minor mishap of coal spill can cause huge damage to the environment. Therefore, a very strict and stringent system of ethics is necessary for energy companies.
If the company wants to survive climate change and various environmental issues. Further, the companies that are into online business do not face such strict environmental laws. For these companies, the rules and laws are for saving the customer’s privacy.
Due to the advancements in data mining, the companies are easily able to track the movements of customers online. Further, they sell this data to various marketing companies that use this data for advertising promotions.
Thus, this data is invaluable to the advertising companies. So, the important question lies here is, to what extent can the companies spy on the customers to have the market advantage?
Benefits of Business Ethics
The importance of business ethics in any organizations is more than the values and rules of that organization. For many companies, these ethics drive the profitability of the company.
This helps the companies in the short run as well as long run. For a company that wants to grow on all fronts, there lies a social responsibility to be ethical. The investors in the companies also seek out for ethical values nowadays.
Questions on Importance of Business Ethics
Q. At which business level does the measures to improve ethical behavior are taken?
A. Societal level
B. Institutional level
C. Governmental level
D. All of the above
D. All of the above
Q. The application of business ethics is ______.
D. None of the above
Answer: B. Universal