Why businesses should act ethically

By Melissa Horton Updated March 30, — 8: In a business sense, these ethics are decided upon and formed by each company and underpin the decisions that anyone in the business makes.

When working for a company with strong business ethics, employees are comfortable in the knowledge that they are not by their own action allowing unethical practices to continue.

Public Relations When your company, or the employees within your company, engage in behavior that is either ethical or unethical, the members of the public who interact with your company take notice.

December 10, by Laran Joseph Ethics are, at their essence, moral judgements about what is right and what is wrong. For example, a business which does not show care for where it disposes its waste products, or fails to take a long-term view when buying up land for development, is damaging the world in which every human being lives, and damaging the future prospects of all companies.

A particular area in which technology companies must make tough ethical decisions is marketing. When an unethical company finds itself with no customers, no investors and no suppliers, it will be forced to change its ways or go out of business; constant striving for better and more ethical dealings Why businesses should act ethically this way produces a cycle of continuous improvement.

Why is ethics important to business?

The increasing number of investors seeking out ethically operating companies to invest in is driving more firms to take this issue more seriously. When employees complete work in a way that is based on honesty and integrity, the whole organization benefits. For example, a coffee company which states all their raw beans are picked from sustainable plants where no deforestation has occurred, by people paid a good living wage, in an area where investments have been made to ensure that producing the coffee for a foreign market has not damaged the local way of life, will find that all these elements of their buying strategy become themselves a selling point for their final product.

Why is business ethics important?

Businesses not following any kind of ethical code or carrying out their social responsibility leads to wider consequences. Large companies neglecting to set a good example of Corporate Social Responsibility actively hinder the progression of all business in developing countries.

For more information about Ethics at work, there are further courses and workshops available: Employees who act ethically also do not take excessive breaks or spend company time and resources engaging in personal activities, lowering their productivity and the profitability of the business.

Business Ethics and Corporate Social Responsibility are all about bearing in mind the full weight of any corporate decision.

A striking example of industry-specific business ethics is in the energy field. The whole company can be fined, the directors can be fined, and individual employees can be fined if the responsibility for an infraction falls on their shoulders.

The Importance of Business Ethics to a Company: Customers are at ease buying products or services from a company they know to source their materials and labour in an ethical and responsible way.

One misstep — whether it is a minor coal spill at a power plant or a major disaster such as the BP oil spill — forces a company to answer to numerous regulatory bodies and society at large regarding whether it skirted its duty to protect the environment in an aggressive pursuit of higher profits.

Business Ethics Benefits The importance of business ethics reaches far beyond employee loyalty and morale or the strength of a management team bond.

Ethical behaviour and corporate social responsibility can bring significant benefits to a business. This means that profits could fall as a result. For example, accountants from different backgrounds may all prescribe to the same system of accounting standards such as GAAP, or General Accepted Accounting Principles.

Since business transactions in our increasingly global economy involve businesses with employees and owners who come from different backgrounds interacting with each other on a regular basis, business ethics provide a common ground everyone can agree upon.Why should we act ethically in business?

Why be good? What are the consequences of failures of ethical cultures in business? Search. 84 terms. KidneySocks.

Importance of Business Ethics and Corporate Social Responsibility

Business Ethics Unit 1. Why should we act ethically in business? Why be good? What are the consequences of failures of ethical cultures in business? STUDY. PLAY. Ethics. Page 3: Why should a business act ethically?

Businesses have great potential to transform people's lives and to alleviate poverty through generating economic growth. They produce goods and services that customers want and they create jobs.

Dec 10,  · The decision to behave ethically as one individual to another is easy for any decent moral human being, but it is easy to forget the impact a large, faceless business can have on the world. Business Ethics and Corporate Social Responsibility are all about bearing in mind the full weight of any corporate ultimedescente.com: Laran Joseph.

why should businesses act ethically? An organization has to be ethical in its behaviour because it has to exist in the competitive world. We can find a number of reasons for being ethical in behaviour, few of them are cited below: Most people want to be ethical in their business dealings.

Conducting yourself ethically as a small-business owner and encouraging your employees to engage in ethical business conduct brings about several benefits for your company. Similarly, unethical conduct can hurt your business financially and tarnish its image, leading to diminished future opportunities for your company.

Business Ethics Benefits. The importance of business ethics reaches far beyond employee loyalty and morale or the strength of a management team bond.

As with all business initiatives, the ethical operation of a company is directly related to profitability in both the short and long term. The reputation of a business in the surrounding .

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Why businesses should act ethically
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