SCHOOL OF BUSINESS AND ECONOMICS
ELDORET WEST CAMPUS
(Human Resource option)
COURSE CODE:BBM 406
PRESENTED BY:Jayne Wairimu Njenga
ADM NO. BBM/1491/07
PRESENTED TO:ROSE OMONDI
Is good Ethics good business?
Definition of Business Ethics
Business Ethics is a set of moral principles applied in the commercial world. Business ethics provide guidelines for acceptable behavior by organizations in both their strategy formulation and day-to-day operations. An ethical approach is becoming necessary both for corporate success and a positive corporate image. Following pressure from consumers for more ethical and responsible business practices, many organizations are choosing to make a public commitment to ethical business by formulating codes of conduct and operating principles. In doing so, they must translate into action the concepts of personal and corporate accountability, corporate giving, corporate governance, and whistleblowing. Business Ethics can also be defined as a specialized study of moral right or wrong. It concentrates on moral standards as they apply to business policies, institutions and behaviour.
Ethics are about making choices that may not always feel good or seem like they benefit you but are the "right" choices to make. They are the choices that are examples of "model citizens" and examples of the golden rules. We have the golden rules: on't hurt, don't steal, don't lie, or one of the most famous: "Do unto others as you would have done to you." These are not just catchy phrases; these are words of wisdom that any productive member of society should strive to live by. In our personal lives, most people try to do exactly that. Ethics are thought of by many people as something that is related to the private side of life and not to the business side. In many businesses, having ethics is frowned upon or thought of as a negative subject. This is because business is usually about doing what's best for number one, not about what's really the right thing to do.
IMPORTANCE OF ETHICS
Applying ethics in business makes good sense. A business that behaves ethically induces other business associates to behave ethically as well. If a company (or a manager) exercises particular care in meeting all responsibilities to employees, customers and suppliers it usually is awarded with a high degree of loyalty, honesty, quality and productivity. For examples, employees who are treated ethically will more likely behave ethically themselves in dealing with customers and business associates. A supplier who refuses to exploit its advantage during a seller's market retains the loyalty and continued business of its customers when conditions change to those of a buyer's market. A company that refuses to discriminate against older or handicapped employees often discovers that they are fiercely loyal, hard working and productive.
Business managers face ethical dilemmas (ethical questions) almost every day. Ethical dilemmas occur when a manager is faced with two or more conflicting ethical issues, and has to make a choice.
1.Business to Employee. A business has a responsibility to act ethically towards its employees. Most importantly, employers must hire and fire people in ethical ways. Wages and working conditions are a second ethical issue. Businesses must ensure that employees are paid a fair wage, and that working conditions are reasonable. For instance, paying a worker $1 per day is considered unethical. The same could be said of having an employee work in a room filled with toxic fumes that would cause illness. Privacy is the final ethical issue with respect to employees. This includes random drug testing; and listening to employee telephone calls.
2.Employee to Business. Employees have ethical responsibilities towards their...