Business Ethics- The Concept and Its Benefits
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Business Ethics- The Concept and Its Benefits

This writing provides a brief intro about what business ethics are, how are the implemented in an organization, and what benefits could a business have from their implementation.

By definition a company is a legal person, and like any person in the society, it is also obliged to some norms and ethics. Thus businesses need the concept of business ethics. In simple and plain words, business ethics are the values and virtues business intakes and cares for when conducting the matters of business. A business that has a sense of responsibility will always believe in observance of business ethics.

The Concept:

As per definition business ethics are the values and principles that a business develops, and conducts its functions in the light of these values and principles. All the person involved in the business, whether they are the employees or the business owner, find themselves under obligation to observe the conduction of business ethics.

Whenever the business processes are conducted by both leadership and the workforce in such a manner that they have the ability to differentiate the rights from the wrongs, then the business is said to be running under a code of ethics.

The Need of Business Ethics:

The basic utilization of business ethics or the need of it surfaces when a business needs to develop its culture. The culture of an organization flows from top to bottom, so if the leadership of a company starts to observe ethical behavior, rewards those who follow it, and penalizes those who stray from it, then the business is sure to have developed an ethical culture for its processes.

The benefits of Business Ethics:

The major benefits of business ethics on a business are given below:

  • The primary benefit of business ethics can be seen when a business develops its culture, the better and clear the ethics of a business, the more will it have a strong and valued culture.

  • The other advantage of business ethics is when it comes to the decision making process. A business that conducts its process on ethical basis, whenever it is to make a decision about something it will always keep the benefits of stakeholders in mind, and would never go for only making money on the cost of loss to stakeholders benefits.

  • The third benefit of conduction of business ethics for a business is long term. When a business makes all its decision by keeping the benefits of stakeholders in mind, then the business develops a trustful relationship with the stakeholders. The more the stakeholders trust a business, the more is a business to long last and have a prosperous future.

Conclusion:

In short, the more a business conducts its processes on ethical grounds, the more healthy and trustful relation will it have with stakeholders, and a more prosperous future.

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Comments (2)

very informative information!

This is a great topic. Managers, leaders and business owners should learn from this. :)

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