What is Business Ethics ?
Business ethics is a code of behaviour which suits in specific business situation. It concerns the critical and structured test of the principal, values and standards that the business world follows. It refers to the morals and values in a business should ideally and fairly run.
Types of Business Ethics
1. Descriptive Ethics :- It is concerned with observing existing modalities within communities in a precise manner. It test ethics from views of individuals who are in practice and is a value free approach.
2. Meta Ethics :- It is oriented with how ethical judgement are significant, aim to properties, statement, attitudes and how they may be safeguarded. It appeals to the logical, semantic and pragmatic structure of ethico – moral system.
3. Normative Ethics :- It is popularly known as Perspective Ethics. This branch decides how things in a business environment ought to be, how to value them, differentiating between good and bad elements.
a. Applied Ethics :- It concerns with use of ethics to particular and controversial real world moral issues like animals rights, abortion etc.
b. Fundamental Ethics :- This branch paves a path of ethical thoughts and views towards moral judgements.
Significance of Business Ethics
1. Building stakeholder confidence :- business ethics ensure that its stakeholders receive fair treatment and considerations so a trust factor gets developed.
2. Harmoniuos Organisational culture– business ethics builds harmony among colleagues, clients and others in the business which promotes teamwork and well-being of the enterprise.
3. Help stop business malpractices – a strong ethical influence in business helps avoid malpractices in business like black-marketing, product alteration, etc.
Business Ethics Principles
These principles provide a guide to resolve ethical issues that codes of ethics might miss out to provide. The ethical principles also provide a guideline according to which ethical dilemmas may be analysed.
The best example of business ethics is the trust worthiness and transparency among the stakeholders and management of an enterprise.
Relation Between Business Ethics and Corporate Governance
Business ethics and corporate governance must go hand in hand. The more an organisation abides by ethics, the better it is and keeps getting better too.
With the emergence of the Sarbanes-Oxley Act and the setting up of various committees to ensure corporate governance has become an obligation for the enterprises in the corporate world.
However, where the law does not apply, the value and importance of ethics remains considerably same.
Role of Ethics in Corporate Governance
1. Honesty and integrity – the members of an organisation are expected to behave fairly and in absolute upright manner to avoid conflicts in the organisation.
2. Protect confidentiality – the stakeholders of an organisation are supposed to protect some matters of business and keep them confidential. They must not disclose such matters unless agreed by all the members of the board.
3. Maintain responsibility and care – the individuals of an ethical organisation always act with faith and responsibility avoiding mishaps and distortions in their relations.
Such features of ethics in corporate helps in the smooth running of any business.
7 thoughts on “What is Business Ethics ? It’s types, Significance, Principles ?”
Pingback: What is Employee Relations ? | Types, Importance and Objectives
Pingback: What is Guerrilla Marketing ? Example and Types of Guerrilla Marketing
Pingback: What is Economies of Scale | Internal and External | Advantages and Disadvantages
Pingback: Business Administration and Business Management | Salary and Degree
Pingback: Technique of Controlling : Types, Process, Principles
I think the admin of this website is actually working hard for his web page, for the reason that here every data is quality based data.
I wanted to thank you for this very good read!! I absolutely enjoyed every bit of it.
I have got you bookmarked to check out new things you post…