Access over 20 million homework & study documents


Business Ethics


Study Guide


Showing Page:
Insert Surname here 1
Business Ethics
Business ethics refers to a particular code of conduct or rather professional behavior,
which examines the moral principles that arise in a given business environment. It is a decisive,
structured evaluation of how best stakeholders of organizations among them the employees, the
executives, the suppliers, and the customers of a firm should act in a business setting. Primarily,
the principles of business ethics apply to every aspect of business conduct, and are vital to the
moral uprightness of all individuals in the entire organization. They further play a significant role
in the examination of suitable constraints in attempts to attain self-interest or enhanced
profitability in the operations of the firm, especially when they involve other stakeholders of the
organization such as customers. (Shaw 86)
Like any other field of operation, the field of business requires high standards of ethical
behavior on the verge to enhance efficiency in its activities. It is a given that business operations
often involve multiple people or stakeholders who must interact appropriately and accordingly in
order to achieve the long-term success required in a given business operation. All these persons
including the business shareholders, employees, suppliers, and customers of equal importance to
the firm, and their content in a business setting is equally important. As a result, all workplaces
have a specified outline of rules and regulations that govern them and business operations are not
an exception. Business ethics is among the key business laws that all stakeholders must adhere to
in order to bring satisfaction, efficiency, and eventually increased profitability in a firm. It

Sign up to view the full document!

lock_open Sign Up
Insert Surname here 2
determines the general moral conduct of everyone in a business setting for the good of the
organization, and that of its associates or stakeholders. (Weiss 13)
Components or Elements of Business Ethics
The concept of business ethics involves the study of appropriate business policies as well
as practices concerning potentially controversial issues in a business environment. It includes a
wide range of actions that enable transparency and moral uprightness in the diverse operations of
an organization. Some of the components of business ethics include:
Corporate social responsibility: this is a situation where the business, firm, or
organization is liable to the environment in which it operates. All organizations have a role to
play in making the areas surrounding their geographical location, and the entire market they
serve better places. They are responsible to the members of the surrounding communities and
must embrace business systems that will serve for their good. Based on that, many organizations
have employed such practices as environmental conservation programs, capacity building
schemes, education-sponsoring programs, and many more that may not have an immediate
economic return to the organization, yet works for its long-term good through the creation of
good reputation among its clientele and potential customers. However, the process of making
corporate social responsibility program of a firm requires high levels of business ethics. It
involves such practices as dedication to the program, respect and appreciation of the local
environments and their residents, honesty in the operations, and several others that work
collectively for the good of all involved parties.
Trustworthiness: trustworthiness in a business setting implies to the ability of maintaining
high levels of confidence among the clients of a business on the efficiency of its operations and
the general ability of the organization. This is only attainable through the embracement of
organizational operating systems that will prove reliable, efficient, satisfying, fair, and effective
to the clientele and the entire public. (Nelson and Trevino 36)

Sign up to view the full document!

lock_open Sign Up
Insert Surname here 3
Honesty in service delivery: honesty is undoubtedly one of the key components of
business ethics, and contributes massively in the creation of good reputation of the company
among its customers and potential target markets. It requires that the organization be able to meet
all its promises to the customers, deliver the products and services in due time, embrace good
and acceptable product and service pricing that are not detrimental to the customers while
simultaneously over-profitable to the firm, and admit to its failures and work towards improving
its general weaknesses in service delivery processes.
Confidentiality: it is necessary that all organizations keep the private and confidential
details of their clients to themselves. They must have a well-outlined system that ensures the
information of their clients that is not to be shared with any other person remains confidential
and accessible to unauthorized persons. It is important that information as business contracts and
financial statements issued to any business by a client with intentions of creating an effective and
trustworthy business setting remain confidential between the two involved parties. This helps to
create good long-term work relationship between them. (Kaler and Chryssides 47)
Transparency: transparency is vital for business success as allows all the business
operations to be done in such a way that is free to scrutiny every relevant authorities or
stakeholders of the firm. It outdoes all elements of distrust among the stakeholders of the
organization, as anyone who is not contented with any process in the business is free to further
analyze, consult, file complaints, and demand for explanations through the right channels. This
eventually helps to curb multiple business challenges.
Open-mindedness and Innovativeness: it is important that all businesses give room for
innovation. An open-minded business is that which embraces opinions, suggestions, and
directions from all relevant persons for the good of the firm and its clientele. It puts the business
in a position where the management does not assume perfection; hence, can always consider
ideas from specialists and anyone else who may have the organization and its customers at heart.

Sign up to view the full document!

lock_open Sign Up
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Just what I needed…Fantastic!