Business ethics are the principles needed to run a business successfully. It will help the businessmen to have a better bond with the other stakeholders. Business ethics are classified into two forms.
- Normative business ethics
- Descriptive business ethics
For corporate companies and many specialized organizations, the ethics will be normative and for the business understanding, the ethics will be descriptive. The business ethics will definitely have a reflection in the profits and losses of the organizations. The business ethics was first used in the United States of America in the 1970s. It will make a change in the philosophy of the business which is generally used to examine the basic purposes of the organization.
The emerging issues in business ethics:
Every businessman will have a doubt whether the company is moving ethically or not. We can find out more about the business ethics from many websites. Let us discuss some emerging issues in business ethics.
Fairness is just an activity to motivate the people. There are three main aspects of motivating them. They include equality, optimization, and reciprocity.
- Misuse of company’s rules and resources:
When an employee arrives at the office late, it will definitely affect the profit of the company. So, the misuse of company’s rules will make the company to lose some money. This will make an impact on the salary of the employees. So, arriving office at the correct time is the best ethic to be followed by all the employees.
- Consumer fraud:
Fraudulent activities are going on in many fields in many ways like selling stolen goods, return fraud, friendly fraud, and price arbitrage. Fraud is a main unethical activity that will affect the company’s profits and benefits given to the employees.
- Abusive behavior:
Abusive behavior is the most important one to be avoided by the employees in an organization. Many employees do harassing, threatening the other people around them. This will lead to unethical situations in businesses.
Importance of ethics in a business:
Ethics is an important thing to be followed in an organization or a business. The wrong decisions taken by the individuals in a company will make the company meet a great loss. The ethical behavior of the employees will absolutely make a huge difference in the benefits of the company. The ethics will attract the people to purchase the products thereby the company will yield a profit. It will improve the productivity of the company and it will make the employees stay back in the same company for more years.