2. Ethics in the Business Environment
• Ethics regard an individual's moral judgments
about right and wrong.
• Decisions taken within an organization may
be made by individuals or groups, but
whoever makes the decisions will be affected
by the culture of the company.
• Business ethics is the applied ethics discipline
that focuses on the moral aspects concerning
3. • Business ethics are carried out to ensure that
a specific required level of trust exists
between consumers and various forms of
market participants with businesses.
• There are several factors that play a part in
the success of a company that extend
beyond the range of financial statement.
Organizational culture, management
philosophy and ethics in business each have
an impact on how well a business performs
in the long term.
4. Ethics in Leadership
• The management sets the manner by which
the company operates on a daily basis.
• Building on a foundation of ethical behavior
aids in creating long lasting positive effects
for a company, including the capability to
invite and keep highly talented individuals
and building and maintaining a positive
reputation within the community.
5. Employee Ethics
• Employees make better decisions
efficiently with business ethics as a
governing standard and this increases
productivity and overall employee morale.
• Employees who work for an organization
that requires a high standard of business
ethics in all aspects of operations tend to
complete their job duties at a higher level
and tend to stay loyal to that organization.
6. Business Ethics Benefits
• If a company's reputation is tainted based
on the idea that it does not run ethically,
investors are less inclined to buy stock or
otherwise support its operations.
7. Business Ethics as Decision-making
• Working for an organization often
necessitates following an ethical framework
when making these decisions.
• Decision-making in business ethics often
compels organizations to recognize specific
ethical standards, which usually means
different things to different people.
• As companies continue to develop and
expand, new people are hired who may not
have the same ethical standards as
employees currently working in the company.
8. • Organizations usually use the company’s mission
statement to establish a model for helping
employees make ethical business decisions.
• There are five types of ethical standards:
utilitarian, rights, fairness or justice, common
good, and virtue.
• Business ethics is an instrument organizations use
to guarantee managers, directors, or executive
officers act responsibly in different business
situations.
• Individuals who constantly make decisions based
on their personal profit may initiate legal
liabilities for an organization that may lead to
bankruptcy.
