There are many subdivisions in the field of ethics; some of the common ones are descriptive, normative and comparative ethics. Business ethics, more specifically, deals with the creation and application of moral standards in the business environment. Morals are judgments, standards and rules of good conduct in the society.
They guide people toward permissible behavior with regard to basic values. Consider the following dilemma and how the terms values, ethics and morals apply. A thief named Zar guarantees that you will receive the agreed upon confidential information from your competitor in five days. Zar is professing a value — he will deal with you honestly because you, as the customer, are very important to his business. When Zar has delivered the proper documents within the agreed upon time five days , one can say that Zar has behaved ethically because he was consistent with his professed values.
The following year, you ask Dar, who is a competitor to Zar, to do the same thing. He makes the same promise as Zar by professing the same values. Five days later, Dar only delivers part of the information, which is not totally accurate, and at the same time, blackmails you for more money. Dar says that if does not get more money, he will go to the authorities and the competitor to report this business dealing.
One can say that Dar has behaved unethically because his actions were not consistent with his professed values. And, you can conclude that all three parties involved in stealing insider information have acted immorally as judged by majority of the population.
With an understanding of values, ethics and morals while using ethical principles, a business owner or leader can form a framework for effective decision-making with formalized strategies. First, moral talk threatens harmony within an organization, in that these discourses often prompt personal confrontations. In these confrontations, questions are raised about certain actions of others whether they are superiors or colleagues or in more serious cases, unethical practices of particular persons are revealed.
In any of these circumstances, managers find them hard to deal with because these problems would only bring more accusations and their organizations do not want to be disrupted by these moral issues.
Second, moral talk is also a threat to organizational efficiency in that it distracts people from finding real solutions to difficult problems. Because moral talk is used to praise and blame people for their c
For the sophisticated, the notion of business ethics is in effect a contradiction in terms, very much like the concept of a rounded triangle.
A company which sets out to work within its own ethical guidelines is also less at risk of being fined for poor behaviour, and less likely to find themselves in breach of one of a large number of laws concerning required behaviour.
Bowie, , Ethical Theory and Business, 2nd ed. Business ethics in simple terms is application of ethics in businesses.
The reason behind is that leaders have the authority to apply their styles towards their employees to prevent any risks or hazards caused by ineffective skill management to a certain function or operation. First, moral talk threatens harmony within an organization, in that these discourses often prompt personal confrontations. Beliefs are the feelings of trust confidence of what is real and what is true. Normative science is judging the situations, analyse the facts, weigh the consequences in terms of an idea and take judgment. Whether business is part or separate from society has different viewpoints: 1 The Unitarian View: The business is considered a sub set of a society.
These companies have a brand value and accepted as leaders in the industry. Business hence becomes ethics in society even when it makes profit. Though managers believe that these qualities are better preserved if they avoid moral talk, moral muteness eventually creates far more damage in the long run for organizations. But success in business has not been accompanied by good performance in ethics. There are three key ideas used to understand this. Secondly, ethics provides businesses with a broader understanding of everything to do with their business.
The Unitarian view may be seen in Fig. There are rules and policies that are indicated from the contract that has been drafted and applied by the corporate world in order to ensure that the quality of ethical responsibilities is followed. Selected References Beauchamp, T. Ethical good image is important because all stakeholders stand to gain.
It examines moral or ethical problems that arise in a business environment. However, business ethics can be defined as moral principles of a business. Chan and K. With an understanding of values, ethics and morals while using ethical principles, a business owner or leader can form a framework for effective decision-making with formalized strategies. At the end of the day, a company influences the interest as well as productivity by means of engaging in a humane way of operating the company to both local and international markets Churchland, Ethics is important to businesses for many reasons.
The natural world can be affected by a lack of business ethics. Normative science is judging the situations, analyse the facts, weigh the consequences in terms of an idea and take judgment. Today it is considered profit is a must for any business for its existences and growth. The company policies with regards to profit sharing bonuses, social responsibility, balance of work and social life are quoted. Leadership behavior is not only based on knowledge and expertise, it is an expectation that leaders understand the vision and core values that guide moral and ethical leadership at all times.
Although morals and ethics are synonymous for the most part, the terms are distinguishable. Business and ethics overlap as may be seen in Fig. Some people value honesty or truthfulness in all situations; others value loyalty to a higher degree in certain situations. It is only human beings who have the freedom of choices. Any decision in situational ethics takes it into account, the goals, the motives, the methods and the consequences and their sub-factors as detailed in the figure: Business ethics is application of ethics in business. Business hence becomes ethics in society even when it makes profit.
Any managerial decision has to distinguish between good and bad, right and wrong, just and proper. Many managers avoid moral talk in the work place because they believe it has a negative impact in three areas of organizational harmony, organizational efficiency, and their own reputation for power and effectiveness. He makes the same promise as Zar by professing the same values. There are classical normative ethical philosophies as well as contemporary ethical philosophies being used. Selected References Beauchamp, T. Matthews Sr.