Business ethics itself can be defined as “the application of ethical values to business behaviour” (IBE Institute of Business Ethics); this applies to both behaviour of individuals who work within the company, and to the organization itself as a whole. This means it includes every aspect of how a business is run, from meetings, presentations, employee teamwork and even the sales techniques used by a company. The importance of having business ethics varies across the different roles of individuals within a company.
Ethics in Management
Leaders in a company set examples and set the tone of the whole company. Leaders should be people who employees can look up to and trust. While leaders should always remember the responsibility they have that comes along with this. Businesses set values and beliefs where employees are expected to follow as guidelines, it is up to the management to make sure that these expectations are met and are realistic. Creating a foundation within a business with ethical behaviour helps make long lasting positive effects for the company, as it increases productivity as well as the ability to attract talented individuals to work. Overall, it creates a positive atmosphere for individuals to work in, thus increasing the chances of a better stability within the workplace.
Ethics in Employees
As the management sets guidelines and expectations, employees are expected to fill these expectations by performing to their ability.Employees need to understand the importance of having business ethics. For example, company guidelines or a set of values set by the company are there to help guide staff on how to do things. Some companies provide staff with “ethical tests” to help them in decision-making within those values set by the company. These tests may involve questions that make people think to themselves: “is this legal, does this go with the company’s business ethics, what should I do if this happens to me?” which then enhances employees to grasp the kind of attitude that the company wants to see. The more the employees perform under proper business ethics, the less chance of ethical issues the company could face. Some of these issues include: corruption, conflicts of interest, safety, political lobbying or even misuse of social media that can affect the company’s image.
Keeping consistent ethical behaviour within a company will result in a better public image, which leads to a higher chance of getting the attention of both potential and present business partners or even staff. Businesses, no matter the size, must be committed to the aspect of business ethics in order to maintain progress and a chance of long-term success.
Brodie Bavidge
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