SCHOOL OF BUSINESS AND ECONOMICS
ELDORET WEST CAMPUS
(Human Resource option)
COURSE CODE: BBM 406
COURSE: BUSINESS ETHICS
TASK: Assignment I
PRESENTED BY: Jayne Wairimu Njenga
ADM NO. BBM/1491/07
PRESENTED TO: ROSE OMONDI Course Tutor
DATE: March 2009
Is good Ethics good business?
Definition of Business Ethics
Business Ethics is a set of moral principles applied in the commercial world. Business ethics provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. An ethical approach is becoming necessary both for corporate success and a positive corporate image. Following pressure from …show more content…
To be profitable, each firm has to produce only what the members of society want and has to do this by the most efficient means available.
ARGUMENTS FOR BUSINESS ETHICS
Business, like government, is a system that affects not only its managers and employees, but all members of the community. Many business decisions affect the lives of people in important ways. If businesses operate in unethical ways, this can contribute to people getting sick (as a result of pollution or defective products); or consumers could get taken advantage of (through false advertising).
The Harvard Business Review suggests that well over three-quarters of businesses are trying to build ethics into their organizations. Many business managers believe that, though more costly in the short run, ethical behaviour is profitable in the long run as customers and government regulators will appreciate it. This will ultimately result in higher profits.
Businesses earn huge profits from members of the community - they owe it to the communities to put something back through donating to charities. For example, the major banks earn $2 - $3 billion dollars a year each. A small portion of that should go back to the communities from which it came.
Ethics should be part of business. Business activities like any other human activities, cannot exist unless the people involved in the business and its