Name:

Manuela Chalas

Enrollment:
18-01-0107

Subject:
Inglés Técnico II

Teacher:
Antonio Toledo

Topic:
Ethics

03/02/2022
IS ETHICS AN IMPORTANT TOOL IN BUSINESS? WHY YES OR NO. THERE
ARE SEVERAL BUSINESSES OR ENTERPRISES THAT KEEP AN ETHICAL
TREND?
Business ethics is the study of appropriate business policies and practices regarding
potentially controversial subjects including corporate governance, insider trading,
bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. The
law often guides business ethics, but at other times business ethics provide a basic
guideline that businesses can choose to follow to gain public approval.
Business ethics are important for every company. They keep workers safe, help trade and
interactions between companies remain honest and fair, and generally make for better
goods and services. Distinguishing what a company will and won’t stand for is not always
the same for each organization, but knowing basic ethical guidelines is a key component
of company management.
Consider an employee who is told in a meeting that the company will face an earnings
shortfall for the quarter. This employee also owns shares in the firm. It would be unethical
for the employee to sell their shares since they would be subject to insider information.
Alternatively, if two large competitors came together to gain an unfair advantage, such as
controlling prices in a given market, this would raise serious ethical concerns.
Business ethics is something of the utmost importance in all companies because it is
essential for their success to be complete. A company cannot only sell to generate profits,
without dealing with values and ethical principles, because the lack of business ethics will
lead it, sooner or later, to failure.
According to Gemma Juan Giner ¨Business ethics is based on a series of written and tacit
rules on the principles that govern the actions and decision-making of a company. Ethics
comes from a branch of philosophy that views human values in relation to their behavior
to good or bad, right and wrong. In the business world, this ideology, as we will see
throughout this article, ensures better employees and more investments¨.
Business ethics are important because they have lasting implications on several levels.
With increased investor awareness on environmental, social, and governance issues, a
company's reputation is at stake. For instance, if a company partakes in unethical
practices, such as poor customer privacy procedures and protections, it could result in a
data breach. This, in turn, may lead to a significant loss of customers, erosion of trust,
less competitive hires, and share price declines.
Ethics goes beyond the legal requirements for a company and is, therefore, about
discretionary decisions and behaviour guided by values.

First, it makes sure the company operates according to all applicable laws. Operating
lawfully, whether on a local or national level, maintains the company's respect among its
peers and potential clients or customers, and enables it to continue running.
A company's business ethics also help it attract quality employees. Businesses that care
for their employees at every level and treat them according to the highest ethical standards
are attractive to job seekers. Also, if you work for a company that respects its employees,
you are more likely to perform well and stay with the business for a long time.

Finally, a business that treats its customers or clients ethically builds trust with them, as
well as an ongoing relationship. These customers will be return customers, and they will
likely recommend that business to people within their sphere of influence. Also, a
business known for its high ethical principles can gain respect and elevate the quality of
its brand.

Reference:

 https://www.investopedia.com/terms/b/business-ethics.asp

 https://corporatefinanceinstitute.com/resources/knowledge/other/busi
ness-ethics/

 https://www.escueladenegociosydireccion.com/revista/business/rr-
hh/la-importancia-de-la-etica-en-los-negocios/