Montano, Mae Antoinette A.

MWF 7-8 AM

A synthesis in “Business Ethics”

Last meeting, we talked about Ethics and Social Responsibility

in an organization. The topic that interests me is the Business

Ethics. According to the definition that was given to us, Business

Ethics is the moral principles defining right and wrong behavior of

business and their agents. In other words, according to Bhattacharyya

(2016), Business Ethics can be denoted as written or unwritten codes

of morals, values, and principles that governs actions and decisions

in a company. In the business world, standards are set for

determining good and bad behavior and decision-making. Business

ethics is a broad topic, covering everything from corporate

governance to corporate social responsibility. Business ethics is a

subjective term. However, it is easy to identify unethical business

practices in an organization, such as employing child labor, taking

bribes, or illegally using copyrighted materials. When ethical

guidelines are followed, trust is developed between the employees and

management, as well as the public and the corporation. Thus, business

ethics leads to a more productive workplace.

Business Ethics is important to an organization because according to

Singh (2014), it attract customers to the firm’s products, which

means boosting sales and profits, make employees want to stay with
the business, reduce labor turnover and therefore increase

productivity, attract more employees wanting to work for the business,

reduce recruitment costs and enable the company to get the most

talented employees and attract investors and keep the company’s share

price high, thereby protecting the business from takeover.

Businesses not following any kind of ethical code or carrying

out their social responsibility leads to wider consequences.

Unethical behavior may damage a firm’s reputation and make it less

appealing to stakeholders. This means that profits could fall as a

result. The natural world can be affected by a lack of business

ethics. For example, a business which does not show care for where it

disposes its waste products, or fails to take a long-term view when

buying up land for development, is damaging the world in which every

human being lives, and damaging the future prospects of all companies.

Ethics is important to businesses for many reasons. Businesses can

increase sales or increase their reputation.

References:

Bhattacharyya, B. (2016, May 17). Importance of Business ethics in an organization.

Retrieved from https://blogs.accaglobal.com/2014/11/25/why-is-ethics-important-to-business/

Singh, G. (2014, November 25). Why is ethics important to business?. Retrieved from
https://www.keka.com/importance-of-business-ethics/

Newman, E. (2015, November 19). Effects of Unethical Behaviour on Business. Retrieved

from http://corp.yonyx.com/customer-service/effects-of-unethical-behaviour-on-business/