Ethics are principles and moral, it is a way of governing the person behaviors and decision. Ethics help the person to decide whether actions and behaviors are good or bad right or wrong. Ethics is related to everything even business. Business ethics is set of principles related to the business environment. Recently, these principles considered to be one of the significant things that help in deciding how the business should deal with different situation. However, leaders are the controllable for having ethically business environment since they have greater influence on the employee behaviors, achievements and actions. Setting a clear set of business ethics which are moral, principles and rules should give the leaders a clear path on how they
Leaders considering ethical values in their decisions should keep in their minds the safety for their employee and not harming the environment. For the employees that their duties are associated with risk leaders should provide them with the tool and equipment necessary to reduce that risk. However, leaders should focus on minimizing each type of risk related to their business.
Nowadays, since business ethics give the organization extra benefit among competitor, it become from the priority that CEOs of many organization keeps it in their minds when creating the strategies. A Corporate Social Responsibility (CSR) can be used as a tool to support ethics thus organizations use it in order to increase trust, value and care among the stakeholders.
Petroleum industry in general is having several types of risk. This industry affects the environment negatively because of the harm it causes to the environment due to the different type pollutants it produces to the whole environment. Also, another risk that these industries can harm the humans since there is dangers on the peoples' life. A bad reputation is linked to these businesses since they have risks associated with them; a way to reduce this bad reputation is using CSR which is considered to be a helping
This wrong decision lead the firm to lose huge amount of money that can be avoided if he did not remove some risks from safety management. The Deep Horizon Explosion in the Gulf of Mexico that lead to the death of 11 workers in addition to the demolition of the environment. The loss that the firm paid as compensation to claimants for the explosion was near fifteen billion dollar. Later it was shown that the explosion was a consequence of the weak culture they have and the lack of ethical leadership since the CEO was ignoring the experts' advice, hiding facts, and neglecting warnings. As a result, they lose some properties and their image was destroyed because safety is one of the most ethical values for BP and they could not maintain
Today, Business Ethics is the conduct that businesses carry in its daily dealings with the business partners, consumers and employees. However, the concept of ethics in businesses can be different for companies.
leaders have the ability to offer for employee’s rewards, upgrades, and a good work environment, Otherwise, employees are mostly expected to pay attention to their leader. Also, leaders communicate, and inform employees about the important of preserve ethics, and consider doing the right things when they face ethical dilemmas. (Berscheid, Graziano, Monson, & Dermer, 1979 )5
We have seen the collapse of the big corporations like Enron, Lehman brothers and WorldCom. They were billionaire companies but they faced bankruptcy due to the corruption and mismanagement. There are some important concepts that those companies were lacking, like CSR, corporate governance and Business ethics, (Taysir & Pazarcik, 2013). By this example, we can see the importance of CSR and Business ethics. As these two dimensions are very important in the business that is why we will try to explore these variables and will find the relationship in-between them.
By definition, ethics refers to "a set of principles of right conduct." It is also defined as "the rules or standards governing the conduct of a person or the members of a profession," (www.thefreedictionary.com) and in business may be considered the standards governing the conduct of people in the business environment. Business ethics is the behavior that a business adheres to in its daily dealings with the world. It relies on values as a way of guiding behaviour in business.
As per the Webster’s dictionary Ethics is defined as a set of principles of right conduct, or a system of moral principles. Business ethics can be defined as a set of standards, norms and principles that essentially guide an organization’s conduct of its activities, internal relations and interactions with its external stakeholders. Business ethics fundamentally mirror the values of business, one of whose aim is to determine the primary purposes of an organization.
“The term ‘ethics’ can commonly refer to the rules and principles that define right and wrong conduct of individuals” (Robbins, Bergman, Stagg and Coulter, 2003, p.150). Ethical Behavior is accepted as “right” or “good” in the context of a governing moral code. Virtually all societies have developed rules and regulations about how business should be transacted and how business organizations should be managed. In concept, business ethics is the applied ethics discipline that addresses the moral features of commercial activity. In other words, it is a moral code that people conducting any sort of business should feel honorably obligated to follow. People are definitely morally responsible to follow a code of ethics and should never cheat each other. Parts of this code of ethics should be honesty, integrity, fidelity, charity, responsibility, and self-discipline. Those ethics should apply
Commercial law, also known as business law, is the body of law that applies to the rights, relations, and conduct of persons and businesses engaged in commerce, merchandising, trade, and sales. It is often considered to be a branch of civil law and deals with issues of both private law and public law.
A free market is a market where prices of goods and services are arranged completely by the mutual non coerced consent of sellers and buyers which is determined by law on supply and demand without any government interference (Daleka 2009). Given that consumers are increasingly becoming sensitive with current issues, as such, social responsibility has aggressively pressured to be promoted in and out of the companies, and that include of management and workers relationship. Accordingly, business strategies and business environment have intertwined relationship. One should not action not in accordance with the other because there might be some technical changes that would make them to out form. Taking risks to initiate business strategies has now become more interesting due to attachment of social responsibility of firms. That is, it highlights the focus of interest of firms as to their initiative to take action in social and environmental concerns within and out of firm’s premises. Edersheim and Drucker agreed upon effective business strategies “embraces external realties and opportunities and provides the context to help ensure that every decision, priority, and allocation of resources is geared to value creation (2007).” Thus far, corporate practices which affect the well-being of societies in turn must also be reversed; as such, the society’s concerns which affect corporate activities must also be the source of company practices towards social responsibility. The free market approach is affected by the consumer needs and also the demands in the market. Without interference from the government, the buyers and sellers can mutually consent on a price of the product within the market.
Business ethics can be interpreted in various ways. Therefore, it comes as no surprise that there are many different definitions of business ethics. The most generally acknowledged definition states that business ethics “is a set of corporate values and codes of principles, which may be written or unwritten, by which a company evaluates its actions and business-related decisions.” It should be mentioned here that business ethics is not only relevant to the conduct of the company as a whole, but also to the conduct of individuals within that company. Besides, it applies to all aspects of business conduct.
Ethical leadership organizational ethics and socially responsibility are inseparable (Johnson). Leadership is not a inherited gift or family heritage; it is not a degree from an ivy league graduate school. Becoming a leader is an intentional process of growth that must be lived out experientially (Mullane). Ethical leaders demonstrate three distinctive characteristics, knowledge, action and character. Leaders have to have the ability to say “yes” or even “no” to a never ending series of challenges. A leader needs to be able to define their values, character and leadership style. When accepting the role of leadership you become encumbered by ethical issues and concerns. .
Business ethics are a set of moral rules that govern how a business operates, how people should be treated within an organization, and how business decisions are made. They are a crucial part of employment and in managing a sustainable business, mainly because of the serious consequences that can result from decisions made with a lack of regard to ethics. Even if you don’t believe that good ethics don’t contribute to profit levels, you should realize those poor ethics have a negative effect on your bottom line in the long-run. Every business in every industry has certain guidelines to which its employees must stick to, and regularly outline such aspects in employee handbooks.
“Ethics can be defined as moral principles that govern or influence a person’s behaviour and values are the context in which an organisation or society’s norms are established and justified” (buzz text book).Ethics are the guidelines helping us tell the difference between the is wrong and right. Most people are encouraged by ethics to normally do the right things. Ethics and values are based on individual beliefs and standards in society that one if from, they vary from person to person. Leadership is the authority and capability for one to lead people in an organization in order to achieve goals. They are the main role players in all the organizations and are crucial to their success. Ethics in a business means taking the precise way’
Now-a-days it is considered that CSR is one of the major concerns of organization’s business ethics. Companies increasingly increase their corporate social responsibility (CSR) and ethical management accepting the positive impact on the bottom line. The vast bulk of Standard & Poor’s 500 companies publish sustainability reports unfolding their program challenges and achievements. These pre-emptive efforts can pr...
Ethics is simply doing the right thing. In the business situation ethics are the moral concept of a firm getting through it organizational duties ethically.
Ethics is the study of right or wrong and the morality of the choices that individuals make. That basicly means the set of morals or responsibility that a person, group, or field have. Ethics can also be classified as code of morals. In business there are ethics that portray to business. These are called business ethics, business ethics just happen to be the application of ethics, morals, into the business field. Some examples of business ethics are obeying all rules and regulations even when nobody 's looking, which is pretty self explanatory, you shouldn’t be breaking rules. Even if it is as simple as washing your hands after you use the restroom or straight up lying to your customers, they are the ones making you money so if they find out