Importance of ethics in business pdf

To teach values in business firm. To understand ethical issues in business. To increase awareness about the statutory and legal compliances involved in corporate governance. Students understand nature of ethical problem and analyse it. The study of ethics leads the students to respect opposite view. Ethical behaviours is importance for business leader as they spread ethical climate for everyone else.

The high degree of trust are value based in organization. A business has to share part of its prosperity with community by offering services. It comply with codes to the overall good of all constituents. This in turn has made market most decisive factors in setting economic issue. Essentials of Good Corporate Governance Good Corporate Governance is a formal system of Accountability and Control of Ethical and socially responsible decisions and use of resources.

The following Are the chief characteristics of Good Corporate Governance: it is? Participatory 2. Consensus Oriented 3. Accountable 4. Transparent 5. Responsive 6. Effective and Efficient 7. Equitable and Inclusive and 8.

Follows the Rule of Law. It leads to exploring inner world. The approach by both government and private sectors has involved passing legislation, developing codes of Author : International Monetary Fund. However, there are a number of high-profile examples of companies taking their codes of ethics Author : Timothy J.

Leadership Lesson 3 is included in this class with the examination of traits and personal factors, If they perceive them as fair they are motivated to work ethically. On the other hand if they perceive them as unfair they tend to adopt unethical behavior which they feel is right thing to do. Fairness should always be the central theme of all organisational policies.

Therefore, to set the right precedent unethical conduct whether it occurs at the higher or lower levels of the organisation should be condemned and strict action initiated against the wrong doers. Organizations needs to develop transparency in communication process. The important aspect should always be on presenting the accurate picture about the organization before the employees.

Creating awareness about the disciplinary mechanisms that deal with impropriety and lack of integrity at all levels of organisational hierarchy. At the government level the major role of the executive, legislative and judicial organisations is to insure the health and safety of its people and provide that all will be protected from the negative outcomes which do occur in the society. Legal aspects are often supplemented by codes of conduct.

Every organizational practice, process and system should be so designed in such a way as to propagate core values of the organization. It is only when ethics are incorporated into the everyday conduct of the employees, a true ethical culture that is long lasting becomes a reality.

Institutional culture and individual behavior: Creating an ethical environment. Science and Engineering Ethics, 10 2 , Trevino, L. Managing business ethics: Straight talk about how to do it right. New Your: Wiley. Thus, an ethical dilemma is born: To what extent is it appropriate to spy on customers' online lives to gain a marketing advantage?

The importance of business ethics reaches far beyond employee loyalty and morale or the strength of a management team bond. As with all business initiatives, the ethical operation of a company is directly related to profitability in both the short and long term. The reputation of a business in the surrounding community, other businesses, and individual investors is paramount in determining whether a company is a worthwhile investment.

If a company is perceived to not operate ethically, investors are less inclined to buy stock or otherwise support its operations. Companies have more and more of an incentive to be ethical as the area of socially responsible and ethical investing keeps growing. The increasing number of investors seeking out ethically operating companies to invest in is driving more firms to take this issue more seriously.

With consistent ethical behavior comes an increasingly positive public image, and there are few other considerations as important to potential investors and current shareholders. To retain a positive image, businesses must be committed to operating on an ethical foundation as it relates to the treatment of employees, respecting the surrounding environment , and fair market practices in terms of price and consumer treatment. British Petroleum.

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