Business ethics is a form of moral or ethical professional principles for managing their business in a business environment. Business ethics affects all aspect of business conduct and is relevant to the conduct of individuals and entire organisations.
Business ethics can arise in relation to human right, corruption, economic growth, investment, corporate governance as well as environmental protection. The behaviours of business may violate with the broader community, human right of their employees and have serious economic and social effects.
In the long run, ethical business methods are more profitable than unethical business methods.
Unethical methods could seriously incur negative business reputation. It is also likely to lead more severe government regulation. Furthermore, international markets are calling on every business for a higher standard of business ethics. As result, businesses are reinforcing ethical management these days.
There are many theories regarding the business ethics. One of theory is called ‘corporate social responsibility’. This concept is used to apply integration of social and environmental issues into goals, decisions and operations. Also it argues that profit of business is privileges that come with certain social duties and moral responsibilities.
The ‘triple bottom line’ is another theory which applies to the business ethics. This concept is relative social, financial and environmental. This concept emphasises that a corporation should consider not only the financial outcome of its activities but also the social and environmental consequences. It also affects the social and environmental sustainability.
According to the text, Australian bank, CashKing Pty Ltd should concern with the social and environmental sustainability impact of its loans and investment. In generally, all banks have responsibilities of an intermediary role in the economic as well as ethical bank is a part of a larger societal toward more social and environmental responsibility in the financial part.
Many individual companies have ethical codes. The ethical codes of a particular business can be diverse. Ethical codes are moral standards used to guide employee or corporate actions. There are two type of approach of ethics code. An aspirational code sets out ideals of best practice but is generally unenforceable. Another approach is a prescriptive code. It is much more specific and breaches are subject to punishment.
International standard takes measures to enhance accounting and auditing in the private sector. These measures can develop codes of conduct for preventing conflicts of interest. It also prevents detecting acts of corruption.
Standard was made norms and compact regarding business. Business may commit to observing the principles embodied in these agreements. These principles relate human rights, labour and the environment. OECD guidelines have adopted a series for multinational enterprises. The…