Essay: Business ethics

What do you mean by ethics?
According to the textbook, ethics is the study of right and wrong behavior; whether an action is fair, right or just. Ethics is tied to the well-being of a society (the rights, wrongs, and rules to follow) because without it, everything will be chaotic. Ethical people always try to make the right decision. They view life from the perspective of others because they do not ration¬alize centering their actions on selfishness. Their decision-making process follows a well-established social rule system. Kant believed that one should not do something unless one is okay with everyone doing it all the time.
2. Is there such a thing as business ethics, and what do you mean by business ethics?
Yes, there is. Business ethics is the branch of ethics that examines ethical principles and moral issues (right and wrong behavior) that arise in the business world. Business ethics are usually guided by the law which provides a framework that businesses may use to their advantage. It allows companies to create a certain level of trust among employees and between the company and its customers. By implementing a code of ethics, companies create a better working environment. This code of ethics and how well is implemented will determine the culture of the company.
3. Explain if ethics really matter to business organizations, including why or why not.
Business ethics are applied to achieve a greater harmony within the company, the society, and the environment. When there’s harmony in an organization, employees tend to stay longer, thus increasing productivity and reducing labor turnover. Ethical behavior and corporate social responsibility (CSR) can bring significant benefits to a business. Enforcing CSR not only does something good for the environment but also allows the community to know more about the company’s values and standards, thus attracting more customers and investors which will lead to higher profits.
4. What makes someone an ethical leader?
Ethical leaders are hard-working, honest, responsible, respectful, just, loyal, caring, supportive, positive, good communicators, good listeners…etc.
Regular employees are usually influenced by the company’s culture but ethical leaders will influence the culture of the company by making decisions based on the code of ethics set by the organization. They lead by example and inspire employees to do the right thing, creating a positive and productive environment. They listen attentively and value others’ contributions. Ethical leaders also encourage team work and feedback from their employees because they know the importance of communication.
5. Explain how you recognize an ethical business.
An ethical business is concerned by the impact it might have on the community and the environment. Business ethics is a set of norms, values, and principles reflected in the culture of the company. Therefore, by looking at the business culture we can see if they are an ethical company or not. An ethical business culture places a high value on fairness and respect. They demonstrate respect for its employees, customers, shareholders, the community and the environment. An ethical business will have a code of ethics and will discourage corruption, discrimination, dishonesty, disloyalty, and illegal actions that will get you fired.
6. How does a business organization make employees behave ethically?
A business organization usually has a code of ethics or code of conduct. It is important to provide a regular training on this code and the expected behavior from employees. This will allow to create an ethical business culture that will be beneficial to everyone in the company and outside of it. The business should also encourage ethical leadership by offering special training to management. If there’s no ethical leadership, it will be hard to establish an ethical culture. Executives and managers will motivate employees by leading by example. These ethical leaders will have a big influence on employees’ ethical behavior.