BUSINESS ETHICS

ASSIGNMENT
NZYABAKE STELLA
19/BCC/BU/R/0011
 What are Ethics?
Ethics are a system of moral principles or rules that say what is and is
not acceptable.
 what are business ethics?
business ethics are the moral principles that act as guidelines for the
way a business conducts itself and its transactions.
MYTHS ABOUT BUSINESS ETHICS
Ethics is personal. This myth holds that individual ethics is based on
personal or religious beliefs and that one decides what is right and
wrong in the privacy of one’s own conscience.
Business ethics and ethics do not mix. This popular myth holds that
business practices are basically amoral , since businesses operate in a
free market.
Business ethics is more a matter of religion than management.
Behind this myth lies the confused belief that ethics are a means of
altering people’s values.
It’s easy to be ethical. This myth ignores the complexity surrounding
ethical decision-making, particularly within business organizations.
Good business means good ethics
Business ethics is relative. This myth holds that no right or wrong way
of believing or acting exists. Right and wrong are in the eye of the
beholder.
Ethics can’t be managed. Every business has complex and diverse
dilemmas which are not specifically covered in documented
procedures, so employees need clear values leadership for guidance.
 Benefits of managing Ethics in Workplace
✔ It promotes employee satisfaction at the work place
✔ There is improved workplace culture
✔ There is improved public reputation. When organizations set out clear
ethical standards for their workplace, they can typically enjoy an
improved public image
✔ It promotes customer engagement and loyalty
✔ It helps organizational leaders make streamlined decisions and solve
problems efficiently when challenges arise
✔ It also helps in safe guarding assets at the workplace
Description of a highly ethical organization
▪ Respect. As an entrepreneur building a business, you need to respect yourself and surround
yourself with people you can respect
▪ Honor. Give special attention to strong performers and people who exemplify the spirit of your
organization. Most companies recognize top achievers and producers
▪ Integrity. Make your word your bond and always stand by your word. When you are wrong, own
up to it and make good on the deal. Treat others as you’d want to be treated.
▪ Customer focus. A company is nothing if it does not have customers. More to the point, if a
company does not produce what people want and will pay for, there is no point to that company.
▪ Risk taking. Organizations that thrive, prosper and grow do so by taking risks. They do not stick to
the safe path. Great companies innovate, they think “out of the box”, and they try new things.
▪ Passion. Great organizations are comprised of people who have a passion for what they are
doing.
▪ Persistence. People in awesome organizations have the will to persist. They will keep working
even when results are not what they hoped, or when customers refuse to buy.
Guidelines for managing Ethics in the
workplace
Be a role model and be visible.
Communicate ethical expectations to your employees
Offer Ethics training by setting up seminars and workshops
Reward ethical acts and punish unethical acts at the work place.
Learn from your mistakes at the work place.
Report unethical behavior.
Group decision making among the employees and employers
Atmosphere of trust. Creating an atmosphere of trust is critical in encouraging employees to
report unethical activities they come across
Updating policies and procedures. Policies and procedures concerning ethics at the workplace
should be reviewed and updated on a regular basis
Development of Business Ethics
• Development of business Ethics prior to the 1960’s, focus to ensure that workers were fairly paid and that businesses did
not increase the prices of their products to a level that would be intolerable or harmful to the average consumer. It was
also during this period that issues of civil rights and environmental responsibilities were introduced into ethical issues for
business to address. At this early stage of business ethics, much of the issues (fair wages, labour practices, and the
morality of capitalism) were discussed from theological perspectives.

• From the 1960’s, primary attention shifted to social issues in business. These included questions of environmental
pollution and consumer rights (rights to safety, information and choice). It was in the 1970’s, however, that business
ethics began to develop as a distinct academic field. Using the framework of some religious principles that could be
applied in business, the idea of corporate social responsibility was developed. For instance, the religious precept that
truth should always be told was employed in support of the demand for honesty in business. By this time, philosophers
had entered the discourse of business ethics, employing basic ethical principles and theories, as well as philosophical
analysis to structure the discipline of business ethics. Issues that became prominent during this period include bribery,
deceptive advertising, product safety, and of course, environmental pollution.

• By the 1980’s business ethics, as an academic discipline, became firmly consolidated. Several centres and academic
institutions began to offer courses in business ethics. It also became a prominent concern of many leading companies.
From the 1990’s till date, emphasis in business ethics include such issues as free trade and self regulation of businesses.
During this period, there has been a transition from legally based ethical initiatives to culturally and integrity based
initiatives that make ethics a part of core organizational culture.
Prepositions enabling the appreciation of
business ethics
Principles of business Ethics
❖ Accountability. This means businesses taking full responsibility for their actions or practices.
❖ Care and Respect. Mutual respect must be maintained between business owners, employees, and
customers.
❖ Honesty. Transparent communication between business owners and employees is much desired.
❖ Healthy competition. Businesses should encourage healthy competition in their workforce and
reduce conflicts of interest to a minimum among employees.
❖ Loyalty and respect for commitments. All disagreements between businesses and their
employees should be resolved internally away from the eyes of the public. Employees are to stay
faithful to upholding the business vision and promoting business brands.
❖ Information transparency. Important information disseminated among a business's customers,
employees, or partners is to be provided comprehensively.
❖ Respect for the rule of law. Corporate laws, rules, and regulations guiding business practices are
to be respected and abided by, as any flouting of such law is considered unethical.
Role of business ethics in decision making