Ethics is important not only in business but in all aspects of life because it is the vital part and the foundation on which society is built. A company/society that lacks ethical principles is doomed to failure sooner or later. According to the International Register of Ethical Businesses, “there has been a dramatic increase in the ethical expectations of companies and professionals in the last 10 years. Increasingly, customers, clients and employees deliberately seek out those who define the ground rules of their operations. on a day of today….”
Ethics refers to a code of conduct that guides an individual in dealing with others. Business ethics is an art form of applied ethics that examines ethical principles and moral or ethical issues that may arise in the business environment. These are issues relating to moral and ethical rights, duties and corporate governance between a company and its shareholders, employees, customers, media, government, suppliers and distributors. Henry Ford said, “Businesses that get noticed but money is a poor kind of business.”
Ethics is related to all disciplines of management, such as accounting information, human resource management, sales and marketing, production, intellectual property knowledge and skill, international business and the economic system. As Joe Paterno once said, success without honor is a dish without seasoning. It will satisfy your hunger, but it won’t taste good. In the business world, organizational culture sets standards to determine the difference between good or bad, right or wrong, fair or unfair.
“It is perfectly possible to make a decent living without compromising the integrity of the company or the individual,” wrote business executive R. Holland, “Issues of right and wrong aside, the fact is that ethical behavior in business it serves the individual and the company much better in the long run,” he added.
Some management guru stressed that ethical companies have an advantage over their competitors. Cohen and Greenfield said, “Consumers are used to buying products despite how they feel about the company selling them. But a valuable company has earned a kind of customer loyalty that most corporations only dream of.” because it attracts its customers more than a product”.
Ethical issues in business have become more complicated due to the global and diversified nature of many large corporations and due to the complexity of regulations and the economic, social, global, natural, political, legal and governmental environment, so the company must decide whether to adhere to consistent ethical principles or conform to national norms and culture.
Managers must remember that leading by example is the first step in fostering a culture of ethical behavior in companies, as Robert Noyce rightly said: “If ethics is deficient at the top, that behavior is copied throughout the organization” However, the other methods may be to create a common interest through a supportive corporate culture, set high standards, norms, frame attitudes for acceptable behavior, make the written code of ethics enforceable at all levels from top to bottom, decide the policies for recruiting, selecting, training, inducing, promoting, monetary/non-monetary motivation, remuneration and retention of employees. “Price is what you pay. Value is what you get” – Warren Buffet
Therefore, a manager must treat his employees, customers, shareholders, government, media and society honestly and fairly knowing the difference between right or wrong and choosing the right thing, this is the basis of making of ethical decisions. REMEMBER: GOOD ETHICS IS GOOD BUSINESS. “Noncorporation with evil is a duty as much as cooperation with good” – Mahatma Gandhi.
