Business ethics are the moral principles that act as guidelines for the way a business conducts itself and in its transactions. The law often guides business ethics, but at other times business ethics provide a basic guideline that businesses can choose to follow to gain public approval. The practices mostly revolve around matters involving corporate governance, insider trading, bribery, discrimination and corporate social responsibility. The same guidelines that individuals use to conduct themselves in an acceptable way, in both personal and professional settings, apply to businesses as well. Following business ethics ensures that the public receives fair treatment.
The concept of business ethics began in the 1960s as corporations became more aware of a rising consumer-based society that showed concerns regarding the environment, social causes, and corporate responsibility. The increased focus on so-called social issues was a hallmark of the decade. Since that time period, the concept of business ethics has evolved. Business ethics goes beyond just a moral code of right and wrong; it attempts to reconcile what companies must do legally versus maintaining a competitive advantage over other businesses. the most recent and continually developing aspect of ethics is the third piece – the idea that companies are building business ethics into the core of their companies, making them a standard part of their operational blueprint. As the world continues to grow more political and more politically correct, an increased focus on proper business ethics and strong adherence to them has become ever more the norm. Buisness ethics also keep workers safe, help trade and interactions between companies remain honest and fair, and generally make for better goods and services.
Buisnesses display ethics in several ways. If a customer comes into a store looking for a product that meets very specific needs, it’s important to provide them the best product for the situation described instead of upselling them or encouraging them to buy a product that won’t meet their needs. However, it is important to ensure that this “customer first” attitude does not unintentionally result in the unethical treatment of employees.
If a company is faced with a public relations crisis, companies should call a meeting and address the problem directly with their employees. It’s important to truthfully describe the situation as it unfolded, present solutions, and accept criticism humbly.
If an employee notices that management tends to hire the same type of person (race, caste, gender etc.), they may suggest getting employees more involved in the hiring process. This will introduce different perspectives to the hiring process and increase the possibility that different kinds of applicants will be selected for a position.
These are some ways that companies practice business ethics.