Definition And Concept Of Business Ethics

Published Date: 02 Nov 2017

Abstract: Ethics in business contex involves the behaviour in a business transaction. Ethics is about the right and wrong. It is the principle that applicable in conducting the business application. The acceptability of business ethics can be determined by customer, government regulators, competitors, interest group and many more. This paper has specifically focused on the the concept of business ethics

Introduction

In today’s environment, ethics is about the behaviour in humans which is good or bad. Ethics deals with moral principles and values. With ethics, it can e avoid ad things and do the good things. It is also the rules of what is right and what is wrong. There are many ethical issues arising in many aspect of life such as in business, in workplace, in health care and also in our daily life. Ethics also the moral principles that can be classified in certain groups such as legal ethics, medical ethics, teaching ethics and others. Business is a company or organization or individual that provide services or goods to a customers. I am focusing on ethics in business. Ethics in business context involves the behaviour in business transaction. It also known as corporate ethics which means the ethical practices and policies that used in business. Corporate ethics will give a guidelines to a company to measure what is the right and what is the wrong. Ethics in business can be defined as behaviour, moral principles or value that applied in the world of commerce. The acceptability of business ethics can be determined by customer, government regulators, competitors, interest group and many more.business ethics are implementd in order to get trust between customer with the business organization. Ethical will build the trust among individuals and business relationships. Business ethics are applies in all aspects in business transaction event that transaction from individual or organization. There are many ethical issues in business such as fundamental issues, diversity issues, decision-making issues, compliance and governance issues, and many more. For example is fundamental issues in business is facing with integrity and trust. Integrity means the way we conduct the business matters with honest and full commitment in treating the customers. So the company or business will success and get support from the customers when have ethics in doing business. It is very important in applying ethics in business because the business can be succesfull when get the trust from the customers, vendors, suppliers, shareholders and many more. Business ethics are essential as they keep business persons to operate in a moral pedestal and laws that not only give their the internal satisfaction yet increase sales because many people like to deal with an honest business. So good business ethics should be practice by all businessman because can leading successful in business and people will trust to business trade that provide by business indvidual, company or organization.

Methodology

The methodology that used in completing this term paper is by using primary and secondary literature to enable get depth understanding on business ethics. The primary sources is from my understanding on the business ethics. From my understanding, i wrote my opinion in accomplshing this assignment.

Definition and concept of business ethics

According to HubPages Inc (2013), "Ethics" is a set of principles used to determine what is "right" when it comes to the conduct or behavior of an individual. This includes individuals who are acting on behalf of a business entity. Business ethics involves the application of moral standards to the systems and organizations through which provide good services to customer and organizations.

According to http://www.saylor.org in the article that entitled business ethics and social, business ethics is the application of ethical behavior in a business context. Acting ethically in business means more than simply obeying applicable laws and regulations: It also means being honest, doing no harm to others, competing fairly, and declining to put your own interests above those of your company, its owners, and its workers

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According to Patil (2012), business ethics is a behavior that all businesses stick to. Also known as corporate ethics. Business ethics concepts are concerned with three different kinds of moral issues. Some concepts are related to issues involving the conduct of business within the systems where business operates, including economic, political, legal and other social systems. Other concepts are concerned with corporate issues which is involving questions related to the conduct of a particular company. Other concepts are concerned with examination of individual issues which is where questions are related to the behavior and conduct of one or more individuals within a company. The concepts of business ethics is businesses as "corporate" citizens, "good" business ethics, immoral" business practices, what constitutes a moral "right?" and ideas about justice.

"Good" business ethics involves having and adhering to a code of moral conduct that places the rights and expectations of people over and above the "profit motive" of business. Even though it is the goal of business to make money, the manner in which profit is sought can come under intense scrutiny if it is believed that the rights of human beings are being compromised in the process of making money. For this reason, it can result in good business for companies to practice good business ethics, because moral business practices, in the final analysis, can be seen as "profitable."

According to Grublein (2012), business ethics is a set of corporate values and codes of principles, which may be written or unwritten, by which a company evaluates its actions and business-related decisions. As the definition goes, business ethics can be written or unwritten. This is because most of the time, ethics business and the criteria for what is good and what is bad is shaped by a company’s best practices and long-standing culture.

The term of ethics has many differences. It has been defined as inquiry into the nature and grounds of morality where the term morality is taken to mean moral judgement, standards and rules of conduct. Ethics also has been called the study and philosophy of human conduct emphasis on determining right and wrong. Building on this definition, it can begin to develop a concept of business of ethics. Most people would agree that high ethical standards require both business and individuals to conform to sound moral principles. Most definition of business ethics is reference rules, standards and moral principles regarding what is right and what is wrong in special situations. Business ethics comprises the principles, values and standards that guide behaviour in the world of business.

Business ethics theories

Here are several theorie in Business ethics.

Business ethics theories

Description

The utilitarian approach

Business can utilize utilatarian approach to ensuring outcome of various situations to help the maximum amount of stakeholders in the company. This approach focuses on using ethical actions or morally right action that will promote the good value among a society. It is also limiting the amount of harm to as few people as possible.

A rights ethical approach

This approach is based on the belief that all individuals have rights in life and should be treated with respect and dignity. Morality plays important role in this because individuals must personally use ethical behavior in order to achieve the goal Business ethics theories often use this approach by not imposing their missions, products, or systems on consumers.

Justice as an ethical approach

This approach is where all people are treated fairly through society, regardless of race,position,rank, class or others. Also known as the fairness approach. For example, the employee who get awards must the good performance and e the est among the employess in the companies. It must fit the criterion in getting awards.

The common good approach

This approach is to promote the moral or ethical principles that found in a society. Todays, the ethical principles are different based on the country. It is based on their beliefs and culture. So, Business owners and managers must implement these principles based on their country culture because it easily accept and understand by society itself.

The virtue approach

The virtue approach is it difficult for businesses to implement because it is normative. These principles or virtues seek to replace the current values if they do not bring about the most good or best development of humanity.

Importance of Business ethics

Business ethics is very importance in business trade. There are some importance of business ethics which is:

Stop business malpractices

When business ethics is put in the practice, it will stop the business practices. Not all businessmen involve with business practices but there are some immoral businessman doing business malpractices. Business malpractices is involve with unfair trade such as black marketing, selling clone product, selling harmful product and many more that can be harmful to customers.

Improve customers' confidence

Business ethics are very important in increasing customer confidence about the quality of product , quantity of products, price of products, and other products that offered by company or organization. The customers will have confidence and have a trust in doing business that follows ethics rules. The will safe when doing business or buy the product with those companies that follows business ethics.

Survival of business

For business survival, business ethics is compulsory. Dealers who do not follow business ethics usually will have a short term success only. For example they have cheated the customer at once, but the customer can remember and they will not buy the goods again from that businessman besides tell to their friends about that cheating. So the image of that businessman will be negative and leading to failure in the business or in the market. From that, it is important to follow the business ethics in appropriate ways.

Safeguarding consumers' rights

Businessman must protect or respects to the consumers right. Example of consumer right is right to choose, right to complain, right to be informed, and others. By applying good business ethics among businessman, it will safeguard the consumers’ right.

Protecting employees and shareholders

In business ethics, it is required to protect the interest of employees, shareholders, dealers, suppliers and many more from exploitation through unfair trade practices.

Develops good relations

In developing good relationship between business and society, business ethics is essential. This will cause a regular supply of good quality items and services at lower prices to the community. It will also lead to profit for the business thereby causing economic growth.

Creates good image

If a businessman follows all regulations of ethics, then the user acceptance is good. People can accept the goods from business and will not criticized it besides support the business that conducted by those businessman. It will create good images to society when implementing good business ethics.

Consumer satisfaction

The consumer gives a lot contribution in the market. Without consumer, the business cannot survive in the market. In business transaction, user or consumer satisfaction must take seriously. When follows the business ethics, the consumer will satisfied to the services then the business can gain lots of profit.

Healthy competition

Healthy competition will exist in business when the businessman implements business ethics while dealing with competitor. For example, the businessman will avoid monopoly in business when practice the business ethics.

Challenges of Business ethics

Recommendation to address the challenges of Business ethics

Akrani, G. (2011). What are business ethics? meaning definition features.

Retrieved April 25, 2013 from http://kalyan-city.blogspot.com/2011/09/what-are business-ethics-meaning.html

Akrani, G. (2011). Need or Importance of Business Ethics. Retrieved April 25, 2013 from http://kalyan-city.blogspot.com/2011/09/need-or-importance-of-business-ethics.html

wiseGEEK.(n.d). What are basic business ethics theories?. Retrieved April 25, 2013 from http://www.wisegeek.com/what-are-basic-business-ethics-theories.htm

Mayhew, R. (2013). What challenges does a business face involving ethics?.

Retrieved April 25, 2013 from, http://smallbusiness.chron.com/challenges-business face-involving-ethics-20160.html

Meanings of Basic Business Ethics Concepts. Retrieved April 25, 2013 from http://drmiddlebrook.hubpages.com/hub/Meanings-of-Basic-Business-Ethics-Concepts

Patil, S. B. (2012). Ethical issues in business. Retrieved April 26, 2013 from http://www.buzzle.com/articles/ethical-issues-in-business.html

Gruble, C. (2011). Defining business ethics. Retrieved April 25, 2013 from http://businessethicsreview.wordpress.com/2011/06/21/defining-business-ethics/.