Ethics is commonly defined as a set of morals that influence an individual’s behaviour depending on a beings ideological belief. There is no right or wrong understanding to the word as the term is subjective to each person and to every separate situation.
The evolution of business ethics originated in the 1960s where issues such as that of civil rights, work ethics and the environment played an influential role in the implementation of ethics in the internal and external development of a business.
Business ethics came to light in the 1970’s when the world was hit by the economic recession. During these times unemployment levels escalated to extreme heights, those left in jobs were subjected to inadequate working conditions and many businesses were riddled with scandals.
The Ethics Resource Centre was founded in Washington DC USA during the year 1977. The ERC is a non-profit organization with one aim to educate businesses on how to act ethically by offering services such as research facilities.
How a company is functioning ethically is now a major determining factor of whether or not a business is deemed successful. Businesses in 2013 have the ability to transform an individual’s life through multiple ways from introducing higher wages or non-financial rewards such as courtesy car, paying for child’s education or even doctors’ bills. These are all incentives company’s offer to their employees in order to get the best out of them.
In the words of Sir Thomas Woodrow Wilson a businessman must have a conscience which is mirrored in all associated departments.
Examine the key ethical issues in business and explain how and why ethical behaviour has become a key measure of business success.
Business ethics is the search for and commitment to meet appropriate standards of moral conduct in business situations. Fry et al/2004
Ethical business practice has become an important factor
References: * Anthony E. Henry (2011) Understanding Strategic Management. 2nd edition. * Kew, J. and Stredwick, J. (2008) Business environment: managing in a strategic context. 2nd ed. London: Chartered Institute of Personnel and Development. * 2012), Available through - http://ethisphere.com/wme/, (Accessed on 13/05/2013). * Reference teachers lecture slides.