Ethical business policies

The analysis of ethical business policies and policies surrounding contentious topics such as bribery and unethical trading, corporate governance, and fiduciary obligations is referred to as business ethics (De George, 1999). It is typically specified in a company's code of conduct. It demonstrates how the corporation interacts with its clients and the society at large, i.e., it investigates all the rules and values that control workers of an organization within the corporate world. Laws refer to what is legal, such as the written guidelines that must be enforced in society, while morals refer to the rules that individuals form when affected by societal traditions and beliefs. The benefits of business ethics include cultivating strong teamwork and productivity. Management usually conducts a regular dialogue regarding values at the workplace, which develops openness and integrity and contributes to building a strong team at work. It also helps in creating a good image of the business, which contributes to long term profits. Usually, the customers will prefer to be part of a business that is not just profit-oriented but also values people more (Hunt & Scott, 2006).

Furthermore, ethics helps in supporting employees’ growth. The workers can face both good and bad side of the business and themselves. This helps them notice the areas that need improvements and those to be dropped. It also helps avoid criminal acts of omission and can lower fines. Ethical programs tend to detect ethical issues and violations early enough, so that they are reported and addressed before causing any damage.

The development of business ethics started in the end of the 1950s (De George, 1999). Before those times, ethical issues related to business situations were only discussed within the domain of philosophers and theologians in churches, mosques, and other spiritual institutions. Subjects such as fair wages, labor, and capitalism were considered. In the 1960s, social and political movement led to changes in business ethics. It was proposed that consumers have what is now considered fundamental human rights such as the right to safety, to be informed, to choose, and to be heard, which are contained in the customer bills of rights. In the 1970s, the set of morals and values was identified. The idea of maximizing positive impact on shareholders and clients and minimizing their adverse effects was adapted. The six principles initiated in the 1980s were the support of the code of conduct, ethical training for employees, an open atmosphere for the staff to report violation with no fear, preservation of integrity in the defense industry, and adopting a philosophy of public accountability. In the 1990s, the issue of poor working conditions was addressed. Even in the 21st century new problems arise, but they keep helping business ethics evolve. Therefore, these developments played a key role in shaping ethical imperatives that are still applied in modern businesses.

References

De George, R. T. (1999). Business ethics (5th edition). Upper Saddle River, NJ: Prentice Hall.

Hunt, S. D., & Scott J. V. (2006). The general theory of marketing ethics: A revision and three questions. Journal of Macro-Marketing 26(2), 1-11.