Importance of business ethics
| Importance of business ethics |
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Ethics is closely related to trust. It can be said that if the goal is to develop trust, then behavior must be ethical. Without ethical behavior, gaining trust is a rather impossible task. In business, trust can be divided into three types: The first is trust in relationships with suppliers, the second is trust in relationships with employees, and the third is trust in relationships with customers. In a situation where the company manages to develop trust in all three groups, it can be concluded that the company most likely adheres to the principles of ethics (A. Fernando 2010, s. 1.5).
Ethics consists of building trust and maintaining it regularly, thanks to which the company develops profitably and has a good reputation on the market. Earlier, a well-known saying was "business of business is business". Now, however, entrepreneurs have understood how important business ethics are and this saying has changed into "business of business is an ethical business". A business that does not follow the rules of ethics will probably collapse after some time (A. Fernando 2010, s. 1.5).
Philosophy of ethics
Ethics is a philosophical phenomenon that has been studied in the world for thousands of years. Ethics as part of philosophy mainly concerns morality and it should be associated with it. Behind the concept of ethics, there are main issues regarding good and bad behavior in society. Ethics are most often divided into three types because they exist:
- applied ethics,
- normative ethics,
- metaethics.
Metaethics deals strictly with the theoretical approach to morality, normative ethics deals with practical issues, aimed at creating moral standards in various societies. The last type of ethics, i.e. applied ethics, includes controversial situations and the moral way of acting while in such situations. This part of ethics is a science that gives moral hints on proper behavior in difficult situations in society as well as in the business world. Business ethics can be classified as applied ethics (A. Mika 2011, s.13).
Components of Business Ethics
The most important types of business ethics cannot be listed because they depend on the type of enterprise. The most popular components of business ethics include:
- Trustworthiness.
- Solidarity.
- Corporate responsibilities.
- Legal responsibility.
- Morality.
- Trust.
- Fairness.
- Respect.
- Equality.
Benefits of using ethics in the workplace
Business ethics are very important and getting it into the company can get many benefits. Among them we distinguish:
- Improving society - Ethics makes discrimination and the exploitation of employees significantly less frequent, and the fight for equality and integrity in the workplace has resulted in the establishment of provisions that are beneficial to society.
- Higher efficiency and strong teamwork - Companies in which employees have different moral standards will not function well. Adherence to professional ethics will lead to better teamwork and better efficiency.
- Adapting employees to difficult situations - Ethical training is helpful in difficult situations. Such ethical training helps managers make the right decisions.
- Strong public image - Organizations with strong ethical practices will have a strong public image. Thanks to the positive image, the company can count on the loyalty of employees, consumers and the general public (A. Fernando 2010, s. 1.13).
References
- Fernando A. (2010), Business Ethics and Corporate Governance, Dorling Kindersley (India) Pvt. Ltd
- Homann K., Koslowski P., Luetge C. (2013), Globalisation and Business Ethics, Routledge
- Jung C. (2011), The Importance of Business Ethics and Sustainability within Supply Chains: An analysis with particular reference to the fur business, GRIN Verlag
- Mika A. (2011), The Importance of Codes of Ethics: Examination of the Need of Business Ethics and the Efficient Usage of Codes of Ethics for Good Corporate Governance, Diplomarbeiten Agentur
Author: Agnieszka Damian
