The Importance of Principles of Business Ethics
Principles of Business Ethics are set of ethical rules for doing business. These rules guide the actions and thinking of businessmen. Generally, it is not easy to separate business actions into ethical and unethical ones. Ethical behavior fosters good business relationships and employee productivity. Unethical practices create problems for the businessman. So, businessmen should follow ethical principles to prevent such problems. But not all ethical rules are strictly followed.
Apart from enhancing the productivity of the company, business ethics also help improve society by eliminating social evils. In addition to this, it can cultivate teamwork, honesty, and oneness among the employees. Aligning employees with organisational values creates a sense of unity and motivation. Employees grow and are satisfied when they are working with an organisation that upholds the same ethical principles. Furthermore, business ethics support employee development and ensure that legal policies are consistent in the organisation. Finally, it can help minimise fines for the company.
Moreover, principles of business ethics emphasize on optimum use of resources and avoiding waste and exploitation. Moreover, businessmen should avoid any unsavory practice in order to benefit consumers. This includes avoiding monopolies and black-marketing. They should also observe basic consumer rights and social responsibilities. The principles of business ethics are based on an ideal of service, and they are essential for the success of a business. In the world of business, it is important to be ethical and have a conscience when doing business.
The early days of Business Ethics have been a time of conflict. The term Business Ethics was not even coined until the 1970s when unethical behaviour was more prevalent. The two main opposing views have been merged. The Unitarian and Separatist views were criticized for being too rigid and extreme. Eventually, an integration view was developed, which stated that business cannot be separated from social practices and morality. This theory also has the advantage of allowing business to function in an ethical manner while keeping competitiveness.
The main aim of Business Ethics is to provide basic guidelines for conducting business. It offers guidelines and constructs limits that are socially, legally, and economically. Although business ethics should not be enforceable by law, businessmen should be educated on their obligations. Trade associations and chambers of commerce should be involved in the matter. If they are not involved in these organizations, they should consider becoming involved. This will help them avoid any unnecessary problems.
Apart from social responsibility, businesses also owe a duty to the environment. They should be concerned about environmental protection, empowerment of the local community, and investments into the community. Corporate social responsibility has geared companies towards these goals, focusing on public enlightenment and damage control. Moreover, business ethics refer to business morality and fairness. Businesses should avoid any practices that may bring disrepute to the industry. So, they should adopt ethical principles and standards as a matter of course.