Role and Relevance of Business Ethics

Published: 2018-02-05 21:28:34
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Introduction

Ethics is the act of differentiating what is right and what is wrong according to human moral perspective. Therefore business ethics is where morally approved values are encouraged in the day to day operations of business. Ethics can be broadly stated as the core guidelines the moral outcome of daily human life, ethics enables people to differentiate the good from the bad. In the 21st century, humanity has been pushing for good moral. Thus there has been growing impatience towards activity that manipulates others in a community. The concern has grown far and wide, and even the business world is currently facing ethical revolution.

In the contemporary society, organizations have become more concerned with how the company relates to consumer which largely depends on business policies in a company. The policies that the organizations are enforcing bring about business ethics. Therefore, business ethics can be elaborated as the fundamental attributes that follow the moral guidelines hence ensuring that everyone involved in business is served right (Ferrell 2015). Globalization has lead to increased awareness and growth of business ethics in institutions across the world. The paper intends to open a discourse on role and relevance of business ethics in the current society.

Business Ethics as a Priority

Priorities are things that are of great importance thus gives them more time and focus. When ethics are given priority in an organization significant impact is achieved through employees customers relations. Ethics builds a company's brand through its mission, and vision statements and an organization purposed actions. Business ethics enable the top management to concern itself with upcoming technological advancement and competitors strategies that might bring down the company economically. Ethical practice will enable managers to set their eyes on the main price in a morally upright manner. Thus, a business that practices ethical operations will gain necessary recognition among consumers and hence it will improve its operations and growth.  

The current state of affairs in business world necessitates business ethics so as to enable management to safeguard the business reputation. Ethical values are significant for the growth of business in the current business situation since values attract opportunities. A good example is a company like the McDonald; the company upholds business ethics towards its customers and even to other people affiliated with the enterprise. Upholding business ethics at McDonald has elevated the company to attain a global status. Additional, absolute business ethics at McDonald has enabled them to control a large market share of the food industry. Google and Apple are also other companies that have also grown immensely due to the positive business ethics practiced by the administration.

Value Culture

Business ethics enable companies to set standards of operation that must be adhered; the standards leads to quality that a company can be associated with for a long time. The ethical environment creates room for employees to be nurtured into future employees with more knowledge on how to improve company advancement (Ferrell 2015). The ethical business environment will lead shared core values such as respect, honesty, compassion, fairness, and responsibilities. Which such values decisions made in an organization will always be quality decisions that lead to progress. An example of a company with such core value is the Starbuck; Starbuck is a coffee house giant due to the ethical practice of business. 

Business ethics also enable companies to involve to have a common language that can enable them talk and solve most issues that arise within and without. Employees are trained to have the moral courage to face daily company operation with an upright mind thus increasing profitability. Ethics also improves how people relates to a company and hence increasing positive interaction at work thus product at work. 

Globalization gas ushered in a new age in the business world, every business is constantly struggling so as to improve and keep their market share. Public image has become a major concern thus business must work in all way possible to maintain the public image through positive ethics. Businesses that have not worked hard to maintain their often fail because people refuse to associate with them.  Therefore, companies are constantly using lots of revenue to enable the management to improve its public image through training and workshop on ethical issues necessitated in an organization (Ferrell 2015). Costa coffee is an example of a company that uses its revenues to constantly train and equip it to staff with new skills and knowledge on business ethics. This is because business ethics not only bear positive result to the business but also build the future business image of the company.

Roles and Relevance in Internal Operations of the Business

1. Business Ethics Increases Company’s Superiority

A company that practices ethical principles of business will attract more qualified staff, suppliers, and consumers in the long run. Humans tend to be attracted to places where they are treated with integrity and respect. Therefore, a business that appeals to the humanity part of humans will win their heart in the long run. For instance, Vodafone had to reevaluate all its mission and vision priorities to suite customers satisfaction. Business ethics is a tool of sustainability for business in the long run, though organization with ethical principles will earn profits, but only for a short run.  But business practicing ethical principles will survive and earn profit plus achieve substantial growth in the long run.

2. Competitive Advantage

Business ethics cultivates a culture of trust between the organization and the people and institution it interacts with on a daily basis. Trust between employees and the organization management is of the great essence since it leads to a performance culture. Continuously performing employees increases the competitiveness of the company through the quality result that the staff does offer. Loyalty to the company is earned through ethical business practices, and the staff pays back by offering quality services that take the business to the next level in the long run (Carroll 2014). In the long run, the business will be able to attract high-ranking investors who will expand its liquidity. With more investors, a chain of activity will result leading to efficiency and profitability of business due to the ethical practice that they had enforced.

3 Ethic Challenge in Organization

When the top management introduces business ethics as one of its core values, all the employees, supplies and the community surrounding the business will be challenged. Employees will be challenged to work harder and meet the set ethical standards. Suppliers will have to bring materials that are ethical satisfied and timely to meet the set ethical set rules (Carroll 2014). In the end, everyone affiliated with the company will try to give his\her best to meet the set standards. The challenge will take the company to the next level in the competitive business world.

4. Acquiring Qualified Ethical employees

Business ethics will necessitate the human resource manager to dig deep into the human resource market and get employees who can meet the ethical set standards. Qualified employees have the capacity to bring in new ideas and challenges that will nurture the growth of the organization ethically. Human resource department will be challenged to bring in ethically qualified employees that creating an ethically-certified business environment.

5. Discrimination 

Business ethics does not tolerate discrimination. Therefore, a business with ethical standards sets up a system where people are rated by merit and not appearance or class. Such an environment will push the people involved to worker harder since merit is awarded. Working in an environment where people are treated equally creates a friendly atmosphere to the people involved in the company (Carroll 2014). Employees will tend to achieve more at work since merit is the only standard that makes a difference. An active environment can only be achieved through positive business ethics that empowers it, employees.

6. Communication

Business ethics improves communication in work environment employees will feel free to communicate their challenges to the supervisor or the manager without fear. Communication is a critical part of an organization, and thus it should be enhanced through positive ethics. Google Corporation is a relevant example of a company that has enhanced how employees communicate and share information. The results can be seen through the success that the company has achieved. 

Roles and Relevance Business Ethics in Real Corporate World

Insurance to Employees

Mega corporate such as Microsoft and Intel do give huge sums of money as insurance for health cover or life cover for their employees. Such incentive motivates workers to give the company their nest since they are not worried about bills that the company has already taken. Microsoft gives its employees 100% medical cover; such action keeps its employees happy and motivated to work and make the company proper. Such incentives are among major reasons why Microsoft has remained successful despite competition from other technology companies such as Apple.

Education and Scholarships 

Corporate companies that have achieved self-sufficiency often tend to offer scholarships and education opportunities to bright young minds. Such activities are always meant to benefit not only the company but also the community members. An example is SAS Institute, a corporate that supports bright minds financially in areas of science and technology. The company promotes the program so as to fetch brilliant minds and also to empower the society though education.  Additional, the program encourages children to like mathematic and thus they contribute to the growth and development of technology. 

Community Support

Top corporate supports the communities that surround them in several ways as an ethical way of giving back to the society. Construction of roads and health amenities are but some of the ways through which companies supports the society. Microsoft is an example top corporate that sends his employees to teach for free in colleges and encourage students to embrace technology. Additionally, the company selects bright minds from the surrounding and puts them through an apprentice program so as to make them future employees of the company. SAS is also giving back to the society through encouraging the employees to engage on non-profitable charities as volunteers so as to empower the society.

Conscious Discount

Starbucks is an example of a corporate that offers discounts to customers who carry their cup to the shop. Additionally, the company gives free coffee to customers who offer to make the used cups usable as compost. The actions make Starbucks an ethically conscious company, the company ethically strategy is environmental friendly and also creates other opportunities for people in their surroundings.

Awards and Social Functions

Giving awards to customers or employees due to a heroic action is an ethical way of encouraging good deeds in the society. Several businesses do give awards to their loyal customers or to most outstanding citizens. Starbuck has stock awards; Google has scholarship wards the awards encourages hard work and good deeds among people in the surrounding environment.

Total Commitment to Employees

NuStar Energy is an example of corporate that takes full responsible when their employees are in trouble. The company ethical policy allows management to set the company jet when an employee is in trouble. The company also has a no-layoff police that builds employee’s confidence and empowers them to work without fear since the company is their family

Conclusion

Business ethics can work wonders to employees, consumer, community and the country as well. It influences the organization to empower the society through several ways and by empowering the society the company also empowers itself. For example, if a company scholar a talented student, the student will one day contribute immensely to the growth of the organization through the knowledge that he will gain from the program. Additional, internal progress in an organization also requires ethics because ethics creates a conducive environment for work. Employees will find it easy to relate with their superiors when the working relationship is enhanced by active policies. Participation of top companies in civil activities such as human rights empowers the society to attain their rights; this is because strong brands such as Starbuck attract a lot of attention. All in all, the roles and relevance of business ethics are crystal clear in the current business world given the example narrated in the paper. 

References

Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson Education.

Carroll, A.B. and Buchholtz, A.K., 2014. Business and society: Ethics, sustainability, and stakeholder management. Nelson Education.

Bryman, A. and Bell, E., 2015. Business research methods. Oxford University Press, USA.

Hoffman, W.M., Frederick, R.E. and Schwartz, M.S. eds., 2014. Business ethics: Readings and cases in corporate morality. John Wiley & Sons.

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