The Importance of Business Ethics and why it Matters

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The Importance of Business Ethics and why it Matters

Ethics are moral ideals that guide a person's behavior. Everyone is expected to act ethically at all

times since it is the only way to build and maintain relationships with others. To achieve a

competitive edge, corporate companies must also exhibit a high level of business ethics. People

and corporate organizations in modern society tend to distrust one other; as a result, most entities

must build strong ethical business strategies to create and sustain consumer loyalty.

Shefali Roy comments in a TED Talk at Oxford that it might be difficult to implement ethical

principles at times since some individuals profess to be ethical in public but in reality they are

not. However, whether or not to be ethical is a personal choice. In a corporate setting, for

example, managers and executives can choose whether or not to be ethical. Their code of ethics

has a major impact on the company's success (Why do ethics matter? | Shefali Roy |

TEDxOxbridge, 2017). In this regard, corporate executives must consider not just commercial

gains and losses, but also ethical compromise. Commitment to ethical business models aids in

the development of a healthy company culture, resulting in happier and more pleased customers

and employees.

According to Melisa Horton's article, exhibiting ethical behavior at both the individual and

organizational levels is critical to success in any endeavor. For example, ethical behavior aids in

making smart decisions since the individual is held accountable and transparent. Every

individual will experience a sense of togetherness and belonging in an atmosphere where

everyone is aligned with the organization's mission and ethical principles. This aids in the

development of team spirit and, as a result, the achievement of high workforce efficiency. From

the journal it is clearly stated that, the senior management establishes the atmosphere for how the

whole organization operates on a daily basis. When the dominant management philosophy is
founded on ethical practices and conduct, executives within an enterprise may lead by example

and guide workers in making decisions that benefit not just them as personalities, but also the

corporation itself. Establishing a bedrock of ethical conduct helps a firm produce long-term

beneficial impacts, such as the capacity to recruit and retain highly skilled employees, as well as

build and maintain a great reputation within the community.

The application of ethics to the realm of business has given me a fresh understanding of what it

means in the corporate world. My first perception had been that business etiquette was entirely

distinct and, to a large part, resided in a realm where it didn't really correlate with reality.

Consequently, the first discovery to me has been that business was not a transcendental world but

an entity in which individuals performed and were supposed to behave appropriately and in ways

that indicated that the requirement is that management and workers are to behave in ways that do

not generate setbacks by attending to the gratification of business goals without losing track of

maintaining the integrity of the organization. To conclude, ethics assists individuals and

corporate organizations in creating a constructive relationship with one another. As a result,

ethical behavior contributes significantly to the development of positive relationships and the

improvement of the world.

References

Why do ethics matter? | Shefali Roy | TEDxOxbridge [Video file]. (2017, June 23). Retrieved

from https://www.youtube.com/watch?v=yesE4mcv4CM

https://www.investopedia.com/ask/answers/040815/why-are-business-ethics-important.asp