Business Ethics Essay

Submitted By emagaju
Words: 645
Pages: 3

Business ethics refers to those values, standards and principles that operate within business (McGraw-Hill Irwin). Business ethics can also be defined as written and unwritten codes of principles and values that govern decisions and actions within a company. In the business world, the company’s culture sets standards for determining the difference between good and bad decision making and behavior. In today's modern business world, the road to success requires more than merely technical skills, practical knowledge and a good product. Business ethics, above all, are the guiding forces to achieve and sustain success.
The questions today are less about why or should ethics be a part of business, than about which ethics should guide business decisions and how ethics can be integrated within business. Code of ethics in a company provides the basis of a fair treatment of all employees that mutually trust each other and that respect human rights and equal opportunity whilst maximizing its talent, capability and performance, which is essential in regard to its reputation and its brands, and ultimately, in regard to continuing business success with the company’s valued customers.
If a company wants to do well in business, then it needs to have good partners. The only way to get good partners is to have a good reputation both in terms of a track record and in terms of its business overall. And of course, the best way to get a good reputation is to ensure that the company has a strong tradition of ethical business behavior and hence business ethics constitutes a successful way of doing business. There are several benefits of ethical behaviors in business which can be summarized as below:
• A reputation as an ethical vendor makes customers want to do business with you.
• Some investors go out of their way to select companies with a good track record of ethical behavior.
• Ethical behavior can improve the organization’s relation with the community, which tends to attract customers and top-notch employees.
• Ethical behavior tends to reduce public pressure for government regulation.
For a business owner, there is a very fine line between doing what's best for the profitability of the company and crossing the line over into the unethical. While many may argue that there is no place for personal values in the dog-eat-dog world of business, the truth is that ethics can make or break a growing business in a number of ways. Companies are boycotted for unethical behavior and profits go down as does consumer trust in the…