2. What is Business Ethics
Business ethics is the moral principles, policies, and values that govern the
way companies and individuals engage in business activity.
Business ethics refers to the standards for morally right and wrong conduct
in business.
3. Principles of Business Ethics
ACCOUNTABILITY :
Taking responsibility for one's actions and decisions, being open to feedback and criticism.
INTEGRITY :
Adhering to strong moral principles and doing what is right, even when faced with pressure or
temptation.
4. HONESTY:
Truth in all matters is key to fostering an ethical climate.
Partial truths, omissions or overstating don't help a business improve its performance. Businesses should
be truthful in all of their dealings with customers, employees, and investors. This includes avoiding false
advertising, misleading marketing, and fraudulent accounting practices.
RESPONSIBILITY:
Business should take responsibility for the impact of their operations on society and the environment.
This include protecting the environment, protecting social good and being accountable for their actions.
This means taking responsibility for the actions of the business and its employees and also being
transparent about decision-making and being willing to answer for mistakes.
5. TRANSPARENCY:
Businesses should be transparent in their operations, disclosing information to stakeholders in a timely
and accurate manner. This includes disclosing financial information, environmental impact, and any
other information that could be of interest to stakeholders.
TRUSTWORTHINESS:
A business cultivates trustworthiness with its clients, customers and employees through honesty,
transparency and reliability. Team members should feel they can trust their companies to keep to the
terms of their employment.
Clients and customers should be able to trust the business with their money, data, contractual
obligations and confidential information.
6. Being trustworthy encourages people to conduct business with you and helps you maintain a positive
reputation.
WHISTLEBLOWER PROTECTION:
As a business grows, it becomes harder to verify that employees are adhering to the ethical standards set
by the company.
Sometimes, the business relies on whistleblowers, or a person who informs authority figures about
illicit activity, to garner attention regarding unethical practices within the company.
To encourage employees to come forward to report unethical practices, businesses often put in place
protections against negative consequences.
With these protections, employees don't need to fear losing their jobs or encountering disciplinary
action for notifying the company about unethical behavior.
7. Why Business Ethics is important?
Building trust and reputation: Ethical practices foster trust with customers, employees, and
investors, leading to enhanced brand reputation and loyalty.
Reducing risk and compliance: Implementing ethical policies can help avoid legal and
financial consequences of unethical behavior.
Boosting employee morale and productivity: Employees who feel their company operates
ethically are more engaged and productive.
Contributing to a better world: Businesses can use their resources and influence to address
social and environmental challenges, making a positive impact on the world.
Customer Retention and Customer satisfaction.
8. Common Ethical Challenges Faced in Business
Workplace issues: Discrimination, harassment, unfair labor practices, and employee safety concerns.
Environmental issues: Pollution, resource depletion, and unsustainable practices.
Marketing and advertising: Misleading claims, deceptive pricing, and exploiting vulnerable consumers.
Corporate governance: Conflicts of interest, insider trading, and lack of transparency.
Global business practices: Bribery, corruption, and human rights abuses in supply chains.
9. Implementing Business Ethics in Business
Develop a clear code of ethics outlining the company's values and expected behaviors.
Provide ethics training for employees at all levels.
Establish mechanisms for reporting unethical conduct and addressing concerns.
Conduct regular audits to assess the effectiveness of ethics programs.
Engage with stakeholders in open and transparent communication.
