For example, corporate governance standards are closely related to ethics, but the weight of the latter in the spectrum of this field which also involves financial, legal and other issues is not always clear, especially when ethical standards collide with other customs. Thus, it is better to define business ethics through the types of responsibilities it does and does not deal with.
Finally, ethics differ from law by the sense that not everything that is legal is also moral. For instance, although it is legal for a company to pollute to environment to some extent, many would argue that pollution is inherently immoral and hence unethical. As mentioned earlier, issues of business ethics have a long history, and are thoroughly referred to in civilian and religious writings. Throughout the various forms of commerce, matters such as competition, accurate reporting and pricing to name a few are part of all major transcripts, including Aristotle, the Old Testament, the Koran and even appear in Buddhist writings.
However, this interest in business ethics has grown significantly during the 20th century, reaching a peak today due to several main reasons: First and foremost is the unique role of corporations in the modern society. This form of business, whose economic and social power may be immense and involves numerous stakeholders, motivated further thinking regarding the means in which possible negative influence of corporations can be restricted.
This was due to the explosions of scandals such as Enron and WorldCom as well as a growing interest in corporate affairs in Hollywood, leading to blockbusters such as Wall Street, Quiz Show, The Insider and Jerry Maguire.
Third, a new wing of economic and legislative thinking in all fields of ethics e. As the theoretical and practical efforts in the field of business ethics surround virtually all aspects of business conduct, there is also a great variety within this science. Some of the main issues that occupy business ethics scholars are: For example, a company may have very high marketing ethics standards, but the latter become obsolete when individual salespersons engage in ethically questionable behavior.
Moral behavior in the face of immoral environment: Examples may include environmental issues e. CO emissions , human rights e. Managing to be ethical: Debunking five business ethics myths. They evaluate the fairness in application, interview, and selection processes. Are those processes consistent over time and the same among individuals and groups? Is it in neutral and transparent situation? Take Primark as an example , it expressed their Code of Conduct that any supplier making there items must pay laborers in any event the lowest pay permitted by law, as set by government.
They deliberately vet each and every processing plant, checking wage and working hours records in point of interest and address specialists themselves, in certainty, to confirm the information. The United Nations, Office of the High Commissioner of Human Rights claimed that Human rights are rights inherent to all human beings, whatever our nationality, place of residence, sex, national or ethnic origin, colour, religion, language, or any other status.
We are all equally entitled to our human rights without discrimination. These rights are all interrelated, interdependent and indivisible. Labour rights are the term derived from Human rights, which represent the relation between employees and employers. It can be refer to the employers should respect the rights of all person to life, security of the person and privacy, respect the right of their employees to join trade unions and to bargain collectively and develop non discriminatory employees polices , and respect each person freedom of thought, religion, opinion and communication.
Weiss, Labour rights are stipulate under the labour and employment law. Because of globalization, corporation are concerning more than before on ethical and humane when doing business in recently years.
So the issues of Labour rights such as child labour, setting the minimum wages and labour abuse are raising public awareness on business ethics factors of employees. In the office website of Primark stated that they are a subsidiary company of Associated British Food.
They advocate that child labour should not be used and they sanction its supplier to deliver their item when the checking of the manufacturing plant to guarantee all the labourers are in a lawful working age.
Besides, they advance program that on raising public awareness of children rights. It also involved the implementation of safety training for employees and insurance schemes and safety guideline and policies to reduce the risk of employee might suffer. Working hours is the important factor of the productivity.
However, in order to reach the highest productivity and efficiency, some companies abuse their workers with extremely long working hours. Standards on part-time work have become increasingly important instruments for addressing such issues as job creation and promoting equality between men and women.
Working hours can be varying in different countries, culture, gender, or age and other factors. According to International labour organization, table 1 illustrates the legal working hour among five productive countries, such as Bangladesh, China, Germany, India, and United State International labour organization, To treat employees ethically, maximum working hours must be compliance and concerned by every business corporation. Primark has a strict Code of Conduct that meets universal guidelines.
Suppliers must take after this Code to guarantee items are made in great working conditions, and the individuals making them are dealt with well and paid a reasonable pay.
They vet each and every manufacturing plant against the Code before they submit a request with a supplier. Importance of business ethic for a company 4. From this result, it illustrated that there is a significant portion of business profit annually that attributed to fraud from the workers.
Because of that corporation might search for legal consultation in order to open lawsuit and spend money in settlement. Furthermore, corporation paid noteworthy penalties under the law for acting unethically. Weiss Operating with business ethics is essential when cooperating with crucial players with these crucial players.
It is common for the profitability of publicly traded companies to decline rapidly when they encounter situations where information regarding unethical behaviour is discovered. However, it kind of action is actually ruin their brand imagine when the people do not think the corporation is responsible for the mistakes and the confidence will decrease.
Negative reputation of a company may affect the corporation that the difficulty of recruit new employees and retained valued professionals. Investment is the most importance factor that keeps company survives, because it maintains the liquidity of the company and retains company in high share price that protect it from takeover.
However, at the point when speculator certainty is lost, it can be a hard time for an organization to recover the trust of general society, its financial specialists and its important shareholders.
Profitability may take years to develop once more. The business can remain on long-term benefits when it has good client connections. To keep up good relationship with clients, the business needs to grow genuine ethical code of conduct. The conduct of the representative towards the clients will have an effect on them.
They will build up an impression of the business which will make the clients enhance their trust they have with the organization. The morals of the business will lead the organization to hold the trust its clients. It is clear that the profit of the company will definitely increase if all the stakeholders are supporting the business.
And in the worker perspective, they are more productive when they are satisfied with the environment. Foxconn is hands down the largest manufacturing of electronic, computer and computer components in the world. They employ more than , workers , in which , labours manufacture for Apple Inc products, such as Iphone, IPad. Between and , there is a string of suicide at Foxconn. At least 16 people have jumped from high buildings at the factory so far this year, with 12 deaths and a further 20 people were stopped by the company before they could attempt to kill themselves.
A typical worker shares a dormitory room with nine other workers, eats in the campus cafeteria and works 11 to 13 hour shifts. Often they do little more than work and sleep. Some have no friends on campus and do not even know the names of their roommates. Shortage of warm water in the dorm often meant cold showers, and where even simple pleasures like snacks were forbidden.
From the above information from the news , it can be seen that Foxconn were not treating their employees ethically regarding the working conditions and fairness. Many worker were working long hours for low pay under heavy pressure.
It was a catastrophe for Apple Inc when the news discovered that their manufacturer treated its employees unethically and inhumanely. Apple Inc share of stock dropped by 1.
Moreover, it may affect their customer satisfaction because the products they have bought are from exploitation on the workers. This issue has raised the public awareness on ethical business.
“What is Business Ethics?” Essay Posted on July 5, 1 Introduction Dated back to Code of Hammurabi some 4, years ago, business ethics is a social science, whose main aim is to define and examine the responsibilities of businesses and their agents as a .
Ethics programs help maintain a moral course in turbulent times. Wallace and Pekel explain that attention to business ethics is critical during times of fundamental change -- times much like those faced now by businesses, either non-profit or for-profit.
Business Ethics essay: The world is in the age of innovations, with an exponential free market growth in a world economy. This essay will focus on the business ethics on employees. After the introduction part, the definition of business ethic and corporate social responsibility will be given in Chapter 2. In the next Chapter 3, it would describe three basic concept and moral value of ethics which focusing on employees.
The Importance of Ethics in Business Essay Words 6 Pages Ethics is the branch of philosophy that deals with the principles correlated to human behavior concerning the rightness and wrongness of specific conduct, and to the good and bad that influences and ends those actions (directlenders.ml, ). 1 Introduction. Dated back to Code of Hammurabi some 4, years ago, business ethics is a social science, whose main aim is to define and examine the responsibilities of businesses and their agents as a part of the general moral environment of a given society.