Business ethics is a set of moral and ethical principles that govern a company's values, behaviors, and decisions and its employees' values, behaviors, and decisions. While some business ethics comes into play during minimum wage, environmental regulations, etc, other things can be considered business ethics. However, what each corporate or company considers business ethics changes according to the trends and techniques that are being followed today.
One of the main ethics businesses usually fight with, is the fact that who are they responsible to. All companies are always concerned about profitability. Especially to satisfy their stakeholders, companies thrive to achieve increasing profits every year. However, while doing this, what most companies forget is that they undertake any methods to attain their goal. These methods can be annoying or problematic, but an unethical method is always an unethical method.
The answer to this question is really simple. If the company CEO and the others realize who their actions will affect and the impact it can have, this, in turn, can easily help them realize the company's values and what they actually have to abide by. This will help them understand the ethics they have vowed to follow and what would be unethical for their company.
Most of the long-lasting damage that a company incurs is due to lost trust. While you join a new company, you are always wary of your employees and the trust you have in them. However, you start trusting them after you take in the company's values and ideas. But, this trust that you have in them can be misused. For instance, if you are a hardworking person and is passionate about your job, and want to rise in ranks, your superiors can misuse the trust you have in them by asking or rather forcing you to take the fall for an issue or circumstance that might show them in a bad light. With fake promises overbearing you, you will blindly decide to take the fall for them and then be trapped in the maze of so-called 'corporate ethics'.
The role of business is to meet human needs – not just for ethical reasons, but also for financial reasons. These business interests are intertwined to create a business model that generates income in the end. Focusing solely on revenues rather than the underlying business model can lead to short-sighted decisions that erode a company's ability to fulfill its mission.
We also have to understand business ethics has been a part of the MBA curriculum for a really long time now. And it is not an optional subject, but a subject that is central to the course that they are learning. This course is taught to inspire students, who, after all, aspire to be tomorrow's business leaders, to think about the ethical aspects of decision-making, whether it's marketing responsibly, sales practises, supply chain management, or anything else.
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