Question

write a 3 page paper on business ethics, why is it important? alao write about International business ethics and Psychological roots of business ethics.

Answer 1

Business ethics -

Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects.

Business ethics ensure that a certain basic level of trust exists between consumers and various forms of market participants with businesses.

Business ethics goes beyond just a moral code of right and wrong; it attempts to reconcile what companies must do legally versus maintaining a competitive advantage over other businesses.

Firms display business ethics in several ways.

IMPORTANCE -

Ethical behaviour and corporate social responsibility can bring significant benefits to a business.

• Attract customers to the firm's products, thereby boosting sales and profits
• Make employees want to stay with the business, reduce labour turnover and therefore increase productivity
• Attract more employees wanting to work for the business, reduce recruitment costs and enable the company to get the most talented employees
• Attract investors and keep the company's share price high, thereby protecting the business from takeover.
• Some businessmen do business malpractices by indulging in unfair trade practices like black-marketing, artificial high pricing, adulteration, cheating in weights and measures, selling of counterfeit and harmful products, illegal hoarding, etc. These business malpractices are harmful to consumers and the safety of society. Business ethics help to stop these malpractices and safeguard society. It creates a healthy business environment for everyone.
• Business ethics are needed to improve the customers' confidence about the quality, utility, reliability, quantity, price, etc. of the products. The customers have more trust and confidence in the businessmen who follow ethical business rules or principles. They feel safe that such businessmen will not cheat them. Ethics binds businessmen to maintain trust by offering quality products and services to customers.
• Business ethics are required to protect the interest of employees, shareholders, competitors, dealers, suppliers, customers, government, etc. It protects them from exploiting each other through unfair trade practices like cheatings or frauds. Ethics compels each entity participating in the business activity to properly execute its role by adhering the established code of conduct. Since everyone is disciplined and function appropriately, business grows well in the long run.
• Business ethics are important to develop good and friendly relations between business and society. This will result in a regular supply of good quality goods and services at low prices to the society. It will also result in good profits for the businesses thereby resulting in the growth of the economy. If the economy keeps growing, it ultimately improves the standard of living of the society.
• If the business follows all the business ethics, then the employees, shareholders, consumers, dealers, and suppliers will all be happy. So, they will give full cooperation to the business. This will result in the smooth functioning of business activities. So, the business will grow, expand and diversify easily and quickly. It will have more sales and eventually more profits. If even one entity participating in the business activities is unhappy and not fully satisfied then also the business will not function smoothly. The satisfaction of all involved parties is necessary for the smooth functioning of a business. Business ethics maintain this safe level of satisfaction and protects the business from being dysfunctional.

International business ethics -

International business ethics are moral principles that should be applied by businesses all around the world. These are values that can be universalized.

"International business ethics" refers to such a code that can be applied around the world.

Technologies like the Internet have made international business all the more viable, and many companies can only find the desirable growth and profit they seek by expanding into new markets. This means that just as business ethics domestically have grown in importance along with the power and significance of major businesses, so must international business ethics take center stage as a major concern of the modern era.

Psychological roots of business ethics.

There is some interesting psychology behind business ethics . The occasional person without a moral compass may wreak havoc on a company’s ethos of ethics. However, even people with strong morals can get caught making terrible ethical decisions.

Within a corporation, there are 3 main psychological dynamics that lead regular people to cross ethical lines. They are

3 psychological dynamics in a workplace that can lead to crossing ethical lines are

1.Omnipotence,

2.Cultural numbness, and

3.Justified neglect.