What Makes Business ethics so important?
The system of moral beliefs that guides behaviors and decisions is known as business ethics. Certain ethical requirements for companies across the world are embedded into law, minimum wage, and environmental regulations.
ETHICS IN LEADERSHIP:
The management group provides precedent for how the company runs on a monthly basis. When the management’s philosophy is centered on ethical behaviors and practices, leaders could direct their employees by example and direct them as individuals. Building a foundation of ethical behaviors provides positive effects that will stand the test of time.
When leaders of a company are directing an organization in an ethical manner, employees are forced to follow in their footsteps. Employees are more prone to be better decision makers which increases productivity and the employee’s morale. When employees finish the day that is based off of honesty and integrity, the entire organization benefits.
Ethics Vary by Industry:
As you may already know, business ethics are different from industry to industry. The nature of a company’s operations has a distinct influence on the ethical problems with which it faces. As an example, an ethical problem comes up for an investment brokerage when the right decision for a client and her or his money does not clash with what pays the brokerage the biggest commission.
Another example of business ethics specific to an industry is in the energy field. Businesses that give energy, more specifically non-renewable energy, face scrutiny on how they treat the environment. One miscalculation, like the 2010 BP oil spill, forces the company to answer to high profile bodies in regards to whether or not it skirted on its duty. Online companies like Google and Amazon, are not as scrutinized as far as impact on the environment like Exxon and BP are. However, Google and Amazon are monitored closely when it comes to security and privacy ethics.
One area where online companies make tough decisions is in regards to marketing.
With the advancements of modern technology allow companies to track their consumers locations online and sell that information to marketing companies. In addition, these companies like to track consumers location in order to send advertising promotions to their consumers. Some people argue that this kind of activity is a large invasion of privacy. This is the dilemma that is born from online companies as far as business ethics.
In closing, with consistent ethical behavior comes a positive public image. To keep that positive image, businesses must make an ethical foundation its priority.