Received: Nov 21, 2022, Manuscript No. JHRM-23-87805; Editor assigned: Nov 23, 2022, Pre QC No. JHRM-23-87805 (PQ); Reviewed: Dec 06, 2022, QC No. JHRM-23-87805; Revised: Dec 15, 2022, Manuscript No. JHRM-23-87805 (R); Published: Dec 23, 2022, DOI: 10.30876/2454-53188.8.131.52
Business ethics is the study of appropriate business behaviour when it comes to potentially contentious problems including corporate governance, insider trading, bribery, discrimination, corporate social responsibility, fiduciary duties, and much more. Business ethics occasionally provide a fundamental standard that businesses can abide by to obtain the public’s acceptance, even if the law frequently directs business ethics.
Customers and other sorts of market participants should have some level of fundamental trust in enterprises, which is ensured by business ethics. For instance, a portfolio manager must handle the portfolios of modest individual investors and family members with the same regard as their wealthier clients. These procedures ensure that everyone is treated fairly. In the 1960s, when the concept of business ethics first appeared, business started to become more aware of an emerging consumer-based culture and expressed worries about the environment, social issues, and corporate responsibility. Throughout the decade, “social issues” received more attention.
Nowadays, almost all businesses run corporate ethics programmes. That’s partly because digital communication and technology have made it simpler to recognise and publicise ethical blunders. To avoid the repercussions, businesses are spending more on corporate ethics. For instance, 55% of respondents to a survey of accountants stated they thought the importance of corporate ethics will increase during the following three years. Companies are implementing formal programmes as well as promoting moral workplaces by selecting the best candidates. A recent survey found that “great integrity and honesty” is the second-most important quality for corporate CEOs. Modern business executives need to understand how corporate ethics and success are related.
The development of an ethics programme is the first step in establishing this kind of ethical culture. The U.S. Department of Commerce asserts that a comprehensive ethics policy ought to cover every aspect of business operations. This includes operations, human resources, and marketing, among other things. Gartner, a leading provider of market research, recommends businesses to align their ethical programme with daily operations.
By integrating ethical practises into employee’s daily work, this helps optimise the program’s impact. According to Gartner, an ethical programme should do the following:
1. Reduce and keep an eye on risk
2. Create regulations and procedures
3. Monitor accusations of wrongdoing
4. Offer instruction and communications
5. Remind people of the appropriate behaviour
6. Control the behaviour ethics function
Good business ethics examples
Treat staff members well: Talented, motivated, ethical employees are easier to recruit and keep for businesses that hold their staff to high but fair standards. For instance, promotions and pay raises ought to be provided based on performance rather than personal preference. Employees should receive their wages on schedule and as agreed. This fosters trust between workers and the company, improving the working environment as a whole.
Additionally, it’s critical for business owners to treat staff members with respect and decency and to foster an environment where harassment of any type is not permitted. Employee devotion to the company is increased when they feel appreciated.
Implement ethical business practises: Organizations should be fair to their partners and clients. They shouldn’t overpay for goods or services or exaggerate how valuable their offerings are. They should make every attempt to uphold their promises to clients regarding pricing, delivery, and service levels. They must refrain from making irrational promises and accept accountability for their errors. A reputation might suffer even from the perception of being unreliable or having a falsehood exposed.
Practice corporate social responsibility: The general public is becoming more and more aware of firms’ corporate social responsibility (CSR) initiatives. These actions can involve conserving energy, acting responsibly toward the environment, or making a commitment to diversity in the workplace. Leaders should think about challenges that are pertinent to their industry, look for potential solutions, set measurable goals, and share their plans with the public when they start to plan and conduct CSR projects.