Business ethics refers to application of rules and regulations that govern business conduct by both individuals and organizations. It forms a basis for the philosophy that gives a business or an organization a purpose to operate. The complexity and demands of business in today’s world have changed how business is executed. Business owners determine what is ethical and what is unethical . Why Is Business Ethics an Oxymoron? Business ethics is an oxymoron because business and ethics are incompatible. Therefore, businesses should focus on what they do and leave ethics to individuals. Looking at their respective definitions gives an indication of two contradictory sets of principles. To ensure success in business, it is necessary to prioritize personal interests. This requires aggressive competition with other businesses, an insatiable appetite for money and power, and stringent business principles. It is difficult to achieve these business ideals by being overly ethical. The contradiction presented Continue reading
Business Ethics
Carroll’s Pyramid of Corporate Social Responsibility
In the past, the common perception of a business responsibility was to maximize their firm’s profit. This is because businesses were perceived to always put the shareholder interests first. However, businesses are moving towards impacting the socials and environments. Several studies have found that businesses now have direct responsibilities to various other stakeholders which include preventing the harm of human rights and ensuring that there are solutions available if abuses occur. The modern view of business responsibility demands companies to help in problems relating to public welfare. As firms have no utmost responsibility for these unpleasant situations, philanthropic responsibilities are still not mandatory. However, due to a decrease of social institutions that provide help to the communities, people have higher expectations towards company and believe that they should take part in filling up the shortages. Carroll has proposed a CSR concept, Carroll’s Pyramid of Corporate Social Responsibility, which states the Continue reading
Benefits of Ethical Practices in Business
Business ethics set the standard for how your business is conducted. Ethical principles provide the foundations for various modern concepts for work, business and organization’s, which broaden individual and corporate priorities far beyond traditional business aims of profit and shareholder enrichment. Ethical factors are also a significant influence on institutions and public sector organization’s, for whom the traditional priorities of service quality and cost management must now increasingly take account of these same ethical considerations affecting the commercial and corporate world. Importance of Ethics in today’s Business world With legal scandals concerning insider trading and employee theft making the news, it is no wonder that businesses are increasingly giving attention to the ethical basis of their business and how to lead in an ethical way. Ethical investment is a useful aspect for considering ethical business, since large scale investment is ultimately subject to market forces, which largely reflect public opinion. As Continue reading
A comparative study of Value System of Japan, China , America and India
In order to understand the members of a particular society, it is required to have some idea of their daily lives , their tradition , their beliefs , their way of looking at the world , their value system. Values determine what is right and what is wrong for an individual , for a group of people ,for the people living in a particular nation. Individual’s value system decide the dos and the don’ts in their life. It forms the foundations of their characters. Depending on their value system , in a given situation they behave in a particular manner. The culture of various countries differ. There may be some similarity, but they are not the same. The values, beliefs and notions of Japan differ that of America, china or India. An organization is a part of the society . therefore, as far as an organization in a Continue reading
Business Ethics: Theories and Approaches
Business ethics is the attitude and ways in which a business is formed and the way in which a business deal with the world. Many businesses behave in divert or different ways depend on the way it’s formed by the owners of the business. Business ethics can be described as principle and standard that is guiding behavior of people in the business. Many business have different reputation depends on the ways in which they are formed some business have bad reputation while some have bad reputation. Some businesses are formed for money making venture while some are formed because they want to make money and at the same time want to give its customers maximum satisfaction. The way in which a business is formed brings about ethical behavior. Ethics is a set of moral principles that a business should follow and values that a business should embraced in order for Continue reading
Corporate Governance – Concept, Need and Principles
Corporate governance can be defined as a set of rules and regulations according to which the behavior of a company is affected. Another aspect of it is that it is also concerned with the relationships which exists among different stakeholders of the company and with the goals which the company has in view. Shareholders, board of directors, employees, customers, creditors, suppliers, and the community at large are the main stakeholders of a business. Gabrielle O’Donovan defines corporate governance as ‘an internal system encompassing policies, processes and people, which serves the needs of shareholders and other stakeholders, by directing and controlling management activities with good business know-how, objectivity, accountability and integrity. Sound corporate governance is reliant on external marketplace commitment and legislation, plus a healthy board culture which safeguards policies and processes. The most common definition of corporate governance has been provided by the Organization for Economic Cooperation and Development (OCED), Continue reading