Question

6.) When is a business obligated to punish or reward its employees and managers for ethical behavior inside and outside of the business?

Answer 1

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Ethics can be thought of as a concept of how a person’s innate sense that makes a person carry their ideas, follow a code and identify every part of life with respect, be it people, situations and actions that they have to deal with in everyday life.
Business ethics can be considered as the ethical framework which adheres to rules of moral principles while dealing or indulging in business dealings or business interaction in the professional life instead of the personal life. Business ethics can be divided into two elements, namely normative and descriptive. Normative elements refer to behavioural understanding like cultural or social like personal beliefs or social interactions upbringing of employees. Whereas descriptive elements refer to incorporating best practices for policies and procedures of an organization while maintaining ethical barriers. For example, creating the products which are safe, environmental protection, truthful about financial status or fair treatment of employees.

Every person adheres to some form of ethics in his personal life while dealing with daily activities in an organisation, however "a business is obligated to punish its employees and managers for ethical behaviour inside and outside of the business" if they disobey the ethical code of conduct of the organisation, For example, indulging in activities of bribery or not treating people differently by discriminating on the basis of race, religion or sexual orientation can be considered as the value of ethics which can essentially be differentiated from the concept of morality. Morality and ethics are the two sides to the same coin with the main difference being that ethics are values that a person carries within while morality is the sense that people have within them which influence the actions that they perform.

Organizational reward: organization can give rewards based on an individual’s performance by comparing the equity between different employees and creating a sense of achievement.
Utilizing an individual’s need for achievement: it is important for an organization to understand that some people are driven by a sense of achievement and use this as a tool for motivation.