Q1. What are business ethics?
Ans: We define Ethics as society’s accepted standards of moral behavior, i.e. behavior accepted by society as right versus wrong. Business Ethics are rules of conduct and principles and patterns of business behavior that involve ‘doing the right thing’. It includes shaping an Ethical Conduct, Acting Responsibly to Satisfy Society, Responsibilities to the General Public, Responsibilities to the Customers, Responsibilities to the Employees and Responsibilities to the Investors and the Financial Community. A business can Shape an Ethical Conduct by creating an Ethical Environment. The structure of an ethical environment starts by creating Ethical Awareness through a Code of Conduct. A code of conduct is a formal statement that defines how the organization requires and expects employees to resolve ethical questions. The code on conduct sets out the company’s policy and is part of its legal terms and condition. Primark has a code of conduct which is translated into 26 languages, all published on its website, to ensure clear communication on standards. The next step towards creating an ethical environment is to provide Ethical Education. Code of conduct cannot detail a solution for every ethical situation; so many firms provide training in ethical reasoning. This training allows employees to practice the application of ethics to different scenarios. Ethical actions are the next step towards creating an ethical environment. Firms must provide structures and approaches that allow decisions to be turned in to ethical actions. The final step towards creating an environment that supports an ethically sound behavior is Ethical Leadership. Top level officials must demonstrate ethical behavior in their actions setting an example for the lower level officials. The case study shows how Primark enforces its business ethics and how it deals with various ethical responsibilities towards the stakeholders. Primark works with third party suppliers and...
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