You are on page 1of 4

Business environment 2013

Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit-maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters. Adam Smith said, "People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices." Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control. The emergence of large corporations with limited relationships and sensitivity to the communities in which they operate accelerated the development of formal ethics regimes.

Principles of business
Legality We observe the laws and regulations governing our profession. We meet the terms of contracts we undertake. We ensure that all terms are consistent with laws and regulations locally and globally, as applicable, and with STC ethical principles.

Ashok.reddy701@gmail.com

Page 1

We obtain releases from clients and employers before including any business-sensitive materials in our portfolios or commercial demonstrations or before using such materials for another client or employer. We negotiate realistic agreements with clients and employers on schedules. responsible manner. Additionally. Confidentiality We respect the confidentiality of our clients. If we discern a conflict of interest. except with their permission. Whenever possible. We serve the business interests of our clients and employers as long as they are consistent with the public good. We do not perform work outside our job scope during hours compensated by clients or employers. causing accepted behaviors to become objectionable. As time passes norms evolve. budgets. Quality We endeavor to produce excellence in our communication products. To the best of our ability. employers. or supplies without their approval. development teams. Professionalism We evaluate communication products and services constructively and tactfully. we disclose it to those concerned and obtain their approval before proceeding. and instruction.Business environment 2013 Honesty We seek to promote the public good in our activities.reddy701@gmail. and creativity. We attribute authorship of material and ideas only to those who make an original and substantive contribution. and audiences. we provide truthful and accurate communications. we do so truthfully. We also dedicate ourselves to conciseness. employers. Fairness We respect cultural variety and other aspects of diversity in our clients. and professional organizations. We advance technical communication through our integrity and excellence in performing each task we undertake. networking. we assist other persons in our profession through mentoring. equipment. we avoid conflicts of interest in fulfilling our professional responsibilities and activities. coherence. clarity. We disclose business-sensitive information only with their consent or when legally required to do so. striving to meet the needs of those who use our products and services.com Page 2 . When we advertise our services. History Business ethical norms reflect the norms of each historical period. colonialism Ashok. and seek definitive assessments of our own professional performance. especially through courses and conferences. Then we strive to fulfill our obligations in a timely. Business was involved in slavery. nor do we use their facilities. Before using another person's work. and deliverables during project planning. We also pursue professional selfimprovement. We alert our clients and employers when we believe that material is ambiguous. Business ethics and the resulting behavior evolved as well. we obtain permission.

internal audit. but may also cost jobs by demanding unsustainable compensation and work rules. If a company's purpose is to maximize shareholder returns. training and development. Management strategy Among the many people management strategies that companies employ are a "soft" approach that regards employees as a source of creative energy and participants in workplace decision making. The 'corporate persons' are legally entitled to the rights and liabilities due to citizens as persons Functional business areas Finance Fundamentally. external audit and executive compensation also fall under the umbrella of finance and accounting. bribery/kickbacks and facilitation payments. a "hard" version explicitly focused on control and Theory Z that emphasizes philosophy. portfolio diversification and many others. dividend policy. It concerns technical issues such as the mix of debt and equity. Particular corporate ethical/legal abuses include: creative accounting.com Page 3 . finance is a social science discipline. performance appraisal. Human resource management Human resource management occupies the sphere of activity of recruitment selection. Some studies claim that sustainable success requires a humanely treated and satisfied workforce. industrial relations and health and safety issues Trade unions Unions for example. None ensure ethical behavior. financial contracting. Corporate entities are legally considered as persons in USA and in most nations. accounting and management.reddy701@gmail. orientation. the evaluation of alternative investment projects. futures. swaps. one of whose aims is to determine the fundamental purposes of a company. and other derivatives. Ashok. options. misleading financial analysis insider trading. may push employers to establish due process for workers. economics. tax payments. earnings management. consultancy services. sociology. The discipline borders behavioral economics.Business environment 2013 Overview Business ethics reflects the philosophy of business. trading conditions. culture and consensus. sales practices. securities fraud. then sacrificing profits to other concerns is a violation of its fiduciary responsibility. Other issues Fairness in trading practices.

Certain promotional activities have drawn fire. beyond the previously described issue of potential conflicts between profitability and other concerns. respect for consumer privacy and autonomy.Business environment 2013 Ethics in marketing Ethics in marketing deals with the principles. transparency about product ingredients such as organisms possible health risks. rather than as a reproducible good or service. financial risks. including illegal actions such as price fixing and legal actions including price discrimination and price skimming. "Intellectual property rights" (IPR) treat IP as a kind of real property. Marketing ethics involves pricing practices. thoughts.com Page 4 . security risks. values and/or ideals by which marketers (and marketing institutions) ought to act. Advertising has raised objections about attack ads. subliminal messages. bait and switch. viral marketing. including green washing. etc.[117] advertising truthfulness and fairness in pricing & distribution. subject to analogous protections. codes and information. Intellectual property Intellectual property (IP) encompasses expressions of ideas. Ashok.reddy701@gmail. Boldrin and Levine argue that "government does not ordinarily enforce monopolies for producers of other goods. pyramid schemes and multi-level marketing. sex in advertising and marketing in school Production This area of business ethics usually deals with the duties of a company to ensure that products and production processes do not needlessly cause harm. Ethical marketing issues include marketing redundant or dangerous products/services transparency about environmental risks. This is because it is widely recognized that monopoly creates many social costs. ethics is also contested terrain. shilling. spam (electronic).