Question

Why are business ethics important to the different stakeholders: the shareholders, employees, and community, and what role do they play in businesses?

Answer 1

Business ethics is very important for stakeholders because it reduces the conflict between shareholders and stakeholders. Business ethics develops the understanding of what is right and what is wrong. Strong business ethics benefits all stakeholders of an organization. It protects the interest of each stakeholder and protects them from exploitation through unfair trade practices within the organization. it develops the friendly relations between business and society.

Role of business ethics in business-

1. Increase customer loyalty

2. Increase ability to attract new customers

3. Improve employee and organization’s morale

4. Make a positive impact on community

5. Reduce risk of negative exposure

6. Attract new shareholders.

Role of stakeholders in business-

1. Make decisions for business’s sustainable development

2. Introduce new ideas to the organization.

3. Gave financial help and assistance to organization

4. Review financial data of an organization

5. Ensure company is doing well or not