For every organization/Institution, it is important for every
organization to follow the ethical standards. To accomplish
success, every must have to ensure the compliance of ethical
standards in their institution. It may advantage the business
organization in several ways which includes employees motivation,
customer satisfaction, improve productivity, reduces operative
cost, long term advantage, competitive advantage etc.
Hence following are some fundamental principles or requirements
of business ethics.
- Legal
compliance- Every decision and action should be total
compliance with the laws , rules and regulations. If the company
wants to grab success then it is important for the organizations to
follow the law or act made upon them.
- Ethical
conduct- The business decisions should be based on the
financial factors as well as the impact of such decisions on the
society. The decisions and action should be complied with
expectations of the society and ethical principles.
- Accountability-
The management should be accountable for the decision taken by it.
The decisions taken should be in accordance with the set goals and
objectives, strategies and policies.
- Fairness-
Fairness and honesty must be there in the decisions taken by the
company.. It should address general concerns like recognizing and
responding to the needs of the others.
- Transparency-
Company shall ensure that the true picture of financial position
shall be given to the stakeholders. There shall be no window
dressing in the financial statements of the company.
- Stakeholder’s
protection- It is important to protect the interest of all
the stakeholders as they have certain rights with respect to the
working of the organization