Importance of Business Ethics

Business ethics can be defined as applied ethics or professional ethics that verifies ethical principles and moral problems which can happen in a business environment. It is applicable to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.

Very simply, it means doing the ‘right’ thing even if it is not legally enforced.

Why Are Business Ethics Important?

Business ethics are very significant and have direct impact on the short term as well as long term profitability of any company. It creates goodwill and base for the company. Based on this reputation, businesses and individuals determine whether company is worth investing in. This reputation is important even in the attraction and retention of talented employees.

Needless to say that lack of business ethics does not only destroy the particular company in the long run, but also has collateral damage in the surrounding community. The global financial crisis of 2008-09 is the best example where some renowned companies lacking in Business Ethics were affected badly.

How to Improve Business Ethics as a Skill?

One of the most important aspects of long-term success of a firm, regardless of its size, profitability, or industry, is business ethics. Therefore, following tips can be helpful in improving your business ethics skills:

• Regular Reading: Develop a habit to read at least one book every year, not only about the philosophy of ethics but also some biographies, which gives you an opportunity to learn from other established people’s experience. It will also help you learn, from the experience of others, to make the most difficult judgment of what is right and what is not.
• Joining Peer Group: Get associated with a peer group within your industry or outside, where you can freely discuss ethical issues without the fear of being judged by others. Such groups also helps in getting valuable feedback, as well as the experiences of others.
• Become a role model: It’s often said that actions speak louder than words. Your moral standards and honesty should be reflected from your actions at all times. Inspire your coworkers and subordinates look to adopt the same practices as yours. Often being an inspiration for your coworkers will serve as a greater source of motivation for you to maintain that reputation than being appreciated or rewarded by your boss.

Ethics Vary by Industry

Business ethics differs from industry to industry and nation to nation. The type and nature of a business’s operations has a major impact on the ethical principles that it must adopt. For example, a media production company that makes TV content for children it is an ethical obligation for them to promote good values.

There are 2 striking examples of business ethics in different fields

Business ethics in the energy field would be to have conservative & clearly defined system of environmental ethics if it wants to thrive in a climate of increased regulations and public awareness on environmental issues.

Companies such as Amazon and Google would have their ethical values in protecting their customers’ privacy and security at any cost.

Conclusion:
Business ethics is much more than just a concept used to improvise the public image of any company. It is foundation of a successful entrepreneurial journey and it should be applied from the very moment the enterprise is established. Business ethics actually guides the actions of every individual working within organization.

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