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Business Ethics

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Business Ethics
Business ethics is a form of applied principles that relates to right and wrong conduct or
professional morality which examines the principles, morals and problems arising in a
business environment. They are the set of values and standards that governs the behaviour
and actions of an individual in the organization. Business ethics ensures there is a trust
between consumers and other market participants with the company. It also tries stating what
the organization must do legally while it maintains a competitive advantage over other
entities. It refers to implementation of practices and policies in a business setup with regard to
arguably controversial subjects. Therefore, business ethics is important for the business
hygiene and give the organisation a better place when competing with its competitors.
Business Ethical issues
The very important principle in building a business on s strong business ethic is
honesty. Many companies find it a challenge to get socially responsible and ethical
employees. Honesty is not just about doing what is right but expressing the values in which
the company is founded(Moore, 2005). Organizations struggle cutting costs at every corner in
order to make profits. What they do not know is, their employees lack trust which equals to
honesty.
Secondly, stakeholders value a leadership team that chooses the ethical ways to
accomplish the company’s goals. Integrity in business includes treating customers, clients
and employees with honest and respect. Leaders should be upright and principled to the
extent of doing what is right even when they are under pressure(Moore, 2005).. They should
not be hypocritical and exchange their freedom with expediency.
Moreover, trustworthiness and keeping promises is the basis of business and
establishing organizational control. Without it, transactions may not be completed because
companies must trust customers to pay for their purchases and suppliers must trust companies
to settle their debts.
To add on that, stronger customer loyalty helps companies grow. Ethical executives
need to be loyal to their colleagues to the company. They should not keep secrets and should
provide reasonable notice in case of a need to hire new employees. They should not disclose
private information of their former employers and should not engage in activities that take
due advantage of their previous positions.
Furthermore, executives should not take advantage of their positions to frustrate and
humiliate their employees or customers. They should treat all the employees with fairness
despite the difficulties one is going through (Beekun. 1997). They should be ready to admit
that they are wrong and where appropriate, change their position or views.
Concern for others is a golden rule that should be implemented and adopted by all
ethical executives. They should be kind, compassionate and caring. They should be ready to
help the needy ones and seek to accomplish their organizational objectives in a manner that is
harmless and that is found good by the entire company and consumers included.
Resect for other employees should also be taken care of as the principle of ethical
issues in business. (Keiser, 2008) Executive leaders should respect everyone and their
privacy, rights and the human dignity. They should treat everyone equal regardless of race,
religion or region of nationality.
It is obvious that where there is no rule of law, behaviour is really bad. Ethical
executives should ensure they abide by law, regulations and rules relating to their business
operations. The areas where law is arguably more active in daily life, which is paying taxes
and driving is arguably the department that experiences the most cheating and frauds.
Additionally, executives should ensure they are committed to excellence while
performing their duties (Moore, 2005). They should be well prepared and informed to ensure
proficiency in their services delivery.
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In any organization, ethical executives should be conscious of the opportunity and the
responsibilities of their leadership positions. They should be role models and advocate in
creating an environment in which ethical decision making are highly valued. A leader’s
choice is also influenced by their moral development (White, 2001). Leaders in an
organisation should have respect for ethical beliefs and values and for the dignity and rights
for others.
More so, ethical leaders should work toward building and protecting the reputation of
the organization and its employees. A company’s reputation is formed by a key number of
outsiders’ perceptions of its actions. However, a company should work on making good
ethical decisions and ethical reputation shall just follow.
Lastly, an organization’s top leaders should accept accountability for the ethical
quality of their overall and personal decisions.
Production
Companies should stand in the forefront in ensuring that products and the production
processes do not cause harm in any way. Determining the ethical cause in foods can be a
problem since few foods can be produced and consumed with zero risk. Products that harm
like Tobacco should be sold with a warning on their package and a campaign done to
sensitize consumers of its dangers. They should also be informed of the dangers associated
with the usage of such products, including addiction. Some products negatively impact the
environment through urban sprawl, destruction of habitats and pollution (White, 2001). The
best should be done by the companies producing such, to minimise the risks and built habitat
for organisms where necessary. Genetically modified organisms and nuclear power should be
sensitized to the consumers as they have little information concerning them. However,
product testing protocol have been attacked in recent days for violating the rights of both
animals and humans. This includes the animal cell culture and organ manufacturing.
Intellectual property Rights.
Intellectual property rights are Mechanisms Company put in place to protect their
innovations.it has been in place since the ancient time when pot makers were forced to put
stamps on their potteries in order to differentiate them from those of their competitors. In
recent times, IPR has been tested and pushed to the limit by the introduction of technology
and internet. These rights gives someone/ and organisation the monopoly right to exploit their
ideas. It is often enforced through trademark, patents and copyrights. These rights give the
owner of the idea the right to exclude others in infringing and using their concept. Societies
view these rights as a monopoly and a problem in business since it prevents competition,
creativity and discourages innovation. IPR is encouraged for disclosure of knowledge,
imitation and recouping costs (Beekun, 1997). If at all there are any ethical abuse of
Intellectual property Right, it should be against filing the patent other than using it. Today’s
electronic era has made it a challenge to discuss and solve ethical issues on intellectual
property right laws. However, ethical issues still remain to narrow down to cheating, copying
and stealing. In today’s world, knowledge and information remains to be a company’s most
valuable asset. This has been proved by the Coca-Cola company, KFC, and Kodak company
by securing and making the recipe to the production of their products a secret known to just
the top executives in those firms.
International issues
As businesses expand their services too internationally, they must take into
consideration the legal and ethical issues in the international businesses besides their policies,
goals, strategies, vision and mission. Organisations must tactfully handle ethical issues in
other countries in order to make their operation smooth and a success. Among others, some
of the most common ethical issues arising globally includes; corruption, bribery,
environment, religion, politics, human rights, integrities, child labour and trust. Nevertheless,
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some countries have strict laws where women do not enjoy the same rights as men. In such,
the company should be brave enough not to go against the laws of such countries at the same
time protecting their consumers.
Cultural practices can either break or make a company that is expanding its businesses
globally. Every nation has its own cultures which has different traditions and code of ethics.
Some of the cultural barriers include language, which a company must use a translator to
communicate to its customers in other countries (Velasquez & Velazquez, 2002). A slight
misunderstanding caused as a result of language barrier might go against the cultures and
belief of a community hence breaking a company. Gender and religion can also be a major
issue in countries that have strict laws such as in the Middle East where women are more
privileged than men. Religion can restrict business operation on certain days and time.
Operating within the bracket of ethical and cultural values is important for a company
operating globally on winning support, clients and effectively competing in the market. The
rapid growth of multi-international businesses ha increased demand for employees who are
trained and well versed with ethical issues, business practices, global markets and cultural
consideration in global markets.
Ethics officers
As a result of corruption, fraud and scandals affecting the world of business, this body
was created in the United States and named as the Defence Industry Initiative (DII). Its main
purpose was to promote ethics management ethical business practices and in various
organizations(Weiss, 1994). This resulted to several companies appointing ethical officers
who later formed the Ethics and Compliance Officer Association (ECOA). Ethical officer
ensures there are no unethical and criminal activities going on in the organisation. They
assess the ethical activities of the company, make ethical recommendations and disseminate
important information to employees. They then submit the final report to the Chief Executive
Officer. However, for this to be effectively implemented there is need for establishment of a
corporate culture that values ethical behaviour.
How to handle daily ethical issues
We are surrounded and our lives are attached to businesses. In one way or another, we
must be the consumers or the providers of good or services. A company’s good reputation
and integrity is rated by the outsiders. It is upon the company to improve on their services and
their ethical integrity as to attract more customers. For instance, network providers are
required to be humble and respectful to their customers whenever they are communicating to
them to avoid irritating and losing them. Companies promise us of better services and to
protect our privacy in future. Organizations like Google and other social media gets a lot of
its user’s information and promises to not disclose it to the outsiders. In 2015, United States
FBI filed a case against Apple requesting them to hand over personal information of the then
terrorist. However, Apple inc refused to disclose claiming it had an agreement with its users
and promised never to disclose their privacy to any outsider.
In conclusion, organisations are required to manifest the highest level of integrity and
remain ethical to its consumers. Companies must employ qualified ethical executives who in
return should portray a good image and remain ethical in every aspect. Multi international
companies should be very cautious not to cross cultural and ethical barriers in their respective
countries of operation as not to collide with local authorities.
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References

Moore, G. (2005). The Institute of Business Ethics/European Business Ethics Network-UK

Student Competition in Business Ethics. Business Ethics: A European Review, 14(1),
76-76. doi: 10.1111/j.1467-8608.2005.00388.x
Keiser, J. (2008). Business Ethics and Ethics Education in American Business
Programs. Competitio, 7(2), 195-200. doi: 10.21845/comp/2008/2/13
Velasquez, M. G., & Velazquez, M. (2002). Business ethics: Concepts and cases (Vol. 111).
Upper Saddle River, NJ: Prentice Hall.
Weiss, J. W. (1994). Business ethics: A managerial, stakeholder approach (No. s 287).
Belmont, California: Wadsworth Publishing Company.
White, G. W. (2001). Business ethics. Journal of Business & Finance Librarianship, 6(4),
49-49.
Beekun, R. I. (1997). Islamic business ethics (No. 2). International Institute of Islamic
Thought (IIIT).