Question

discuss three ethical business practices in detail. Why do you think these ethical practices are in place?

Answer 1

Three ethical business practices are-

1. Develop Ethical Standards

An integral first step is to formalize your expectations and make it clear about which behaviors are and aren’t acceptable. If you haven’t done so already, create a code of ethics section in your employee handbook that outlines proper business conduct. This should eliminate any confusion and ambiguity about your company’s ethical practices and keep everyone on the same page.

2. Ensure Leaders Exhibit Proper Behavior

Behavior often trickles down from top to bottom within an organization. It’s therefore crucial that your leaders act virtuously and serve as examples for the rest of your staff. After all, if managers demonstrate questionable ethical behavior, why should anyone else be expected to act with moral conviction? When leaders practice what they preach and uphold a high standard of ethics, the rest of your staff will have a positive role model.

3. Be Diligent About Enforcing Policies

Let’s be realistic. Not everyone is going to uphold every single ethical expectation 100 percent of the time, and rules will inevitably be broken. It’s important that you don’t tolerate unacceptable behavior and show that there are consequences. Holding employees accountable should prevent the perpetuation of any unsavory behaviors and nip them before they get out of control.

Business ethics are, “The study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate responsibility and fiduciary responsibilities.” Upholding certain values and moral principles is important to the success and longevity of the business because poor ethics can hurt your culture, lower your retention rate and sour relationships. Unethical practices also greatly increase the odds of incurring penalties and open the door for litigation.