Question

Give one-page paper insights or reaction about ethics in business

Answer 1

Ethics is a science of morals. Word ethics can be traced back to Latin word “Ethicus”. The origin of word is from “Ethos” which means character. Application of ethics in business environment gives rise to set of principles which are known as business ethics.

Ethics are set of standards which differentiates right or wrong actions. Hence business ethics are set of standards in business environment which differentiate between right and wrong doings in business place.

Business ethics are applicable in various sections of business such as

1. Finance and accounting – Various activities like embezzlement of funds and resources, window dressing, insider trading, accounts falsification or inflation of accounts, etc.
2. Human resources and grievances, sexual discrimination, whistle blowing, executive compensation
3. Price fixation, unfair trade practices, negative campaigning

Organisation structure plays a vital role in running any organisation and business ethics play important role in shaping organisation structure. In organisations where decision making powers are centralised in the hands of very few people and there is no control over decisions. Such organisations are prone to mishandling and are at risk. Whereas organisations which has delegated decision making powers through proper channels and division of power is clearly defined tend to function smoothly without any problem. Business ethics sets out principles to streamline organisation structure best suited for the organisation so that decisions are made in favour of business keeping in mind ethical behaviour.

Ethical dilemma is situation in business where choice is to be made between two or more morally acceptable alternatives or choosing between equally unacceptable alternatives. While evaluating these choices, an individual or business would face problem as these dilemmas are very complex in nature. Business ethics help solve these dilemmas with the help of clearly defined organisational approach and proper education on right and wrong.

Advantages of business ethics include but are not limited to customer satisfaction, attracting and retaining talent, improved brand value, customer loyalty.