Q.7. What is business ethics? Explain the various elements of business ethics.
Dear Student,
Business Ethics
Ethics is concerned with what is right and what is wrong in human behaviour judged on the basis of socially determined standards of behaviour . Business ethics concerns itself with relationship between objectives , practices and techniques and the good of society. Ethics is important for every business.
Elements
Top management commitment - Top management has a crucial role in guiding the entire organisation towards ethically upright behaviour. To achieve results, the chief executive officer (CEO) and other higher level managers need to openly and strongly committed to ethical conduct.
Publication of a 'code' - Enterprises with effective ethics programmes do define the principles of conduct for the whole organisation in the form of written documents which referred to as a "code".This generally covers areas such as fundamental honesty and adherence to laws; health and safety in the workplace; product safety and quality; conflicts of interest; financial reporting.
Involving employees at all levels - It is the employees at different levels who implement ethics policies to make ethical business a reality. Therefore, their involvement in ethics programmes becomes a must . For example, small groups of employees can be formed to discuss the important ethics policies of firms and examine attitudes of employees towards these policies.
Measuring results - Although it is difficult to accurately measure the end results of ethics programmes , the firms can certainly audit to monitor compliance with ethical standards. The top management team and other employees should then discuss the results for further course of action.
Regards
Business Ethics
Ethics is concerned with what is right and what is wrong in human behaviour judged on the basis of socially determined standards of behaviour . Business ethics concerns itself with relationship between objectives , practices and techniques and the good of society. Ethics is important for every business.
Elements
Top management commitment - Top management has a crucial role in guiding the entire organisation towards ethically upright behaviour. To achieve results, the chief executive officer (CEO) and other higher level managers need to openly and strongly committed to ethical conduct.
Publication of a 'code' - Enterprises with effective ethics programmes do define the principles of conduct for the whole organisation in the form of written documents which referred to as a "code".This generally covers areas such as fundamental honesty and adherence to laws; health and safety in the workplace; product safety and quality; conflicts of interest; financial reporting.
Involving employees at all levels - It is the employees at different levels who implement ethics policies to make ethical business a reality. Therefore, their involvement in ethics programmes becomes a must . For example, small groups of employees can be formed to discuss the important ethics policies of firms and examine attitudes of employees towards these policies.
Measuring results - Although it is difficult to accurately measure the end results of ethics programmes , the firms can certainly audit to monitor compliance with ethical standards. The top management team and other employees should then discuss the results for further course of action.
Regards