Ethical Conduct

Topics: Economics, Types of business entity, Business Pages: 2 (486 words) Published: March 17, 2010
Ethical conduct on the part of a business is essential to its long-term survival.

Ethical conduct is involved in the whole level of a business from one person to the whole industry. Ethical behavior is significant for long-term operations of business entities. Therefore, ethical conduct is beneficial to the consolidation of the business reputation, the sound development of management system and attraction of honest employees.

Business reputation is built on the basis of trust, and the trust is connected by ethical conduct. That means business entities regulate themselves with acquisition of trust from customers and are able to have good reputation, which is the most importance for business entities to operate continuously. For example, if a company doesn’t do the right things and breaks ethical conduct just for short-term profit, but the problem existed in this company can’t be covered under the water. Certainly it will be revealed in public, which will impact on the reputation of this company and bring about the serious disaster, and vice versa. Thus, ethical conduct can influence the further activities of business entities.

Building up a health management system benefits the long-term running of corporations, so the ethical conduct is the foundation of this system. Ethical conduct can minimize the percentage of fraudulence on business. Because the conduct has its law of behaviors, the management system following its regulation won’t produce problems, which can result in the lack of links in the system. For instance, a non ethical economic activity happens and the fraudulent data are recorded in the system. Then the wrong information will result in the wrong decision making and finally the collapse system is probably due to this successive fraudulence. Ethical conduct shouldn’t be neglected, even though it is petty.

Long- term development of the entity needs honest competent employees, who are the wealth of the entity, while ethical conduct is a...
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