What is Business Ethics?
Business ethics (also known as corporate ethics) is a type of applied ethics or professional ethics that considers ethical principles and moral or ethical problems that occur in a business environment. It concerns all aspects of business demeanor and is relevant to the conduct of individuals and intact organizations. It is the study of appropriate business procedure and practices concerning potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibilities and fiduciary responsibilities. Business ethics are often guided by law, whereas other times provide an essential framework that businesses ...view middle of the document...
A corporation's environmental policy, the way they treat their workers and the way they treat the communities they are located in are all part of their overall behavior and this in turn is the principal issue which influences their public image.
Since public image is mainly a result of a company’s behavior, business ethics takes a huge part in determining public image since they determine behavior. And public image is important to corporation’s success in most cases, which is one of the reasons as to why business ethics are important to a business’ overall success.
A further reason why business ethics are important is the relationship they have to investment. Whenever an individual or an entity is taking into consideration investing in a particular stock, there are several things they take into account. Aside from the quantitative factors surrounding a company's profit margin and future prospects, consideration s are also given to a particular company from the perspective of the qualitative aspects such as their public image and the products that they offer the market. All of these things are taken into deliberation before concluding investments are made.
Thus, a company that has the intention to promote additional business investment is a company that has a strong sense of business ethics. Part of business ethics is the accountability to the investor and for that reason companies with desirable reputations in the field of ethical business behavior are the companies that are more inclined to draw more
Importance of Ethics in Business 3
investment from people that are new to the market. Drawing more investments to your company is without a doubt essential to success.
In the business world, joint ventures come about all the time. They happen incessantly because they are eventually of immense importance to the outcome of most businesses. A business can be made or broken on just a single joint venture and part of the reason that joint ventures are doing well is that they merge the forces of two very powerful companies on occasion.
If a business is to do well in joint ventures, then the proprietor needs...