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Being good from a business perspective refers to making good decisions, based on the decisions taken by the business, growth and progress of the business can be estimated. The profits generated by inculcating good decision and practices by the organisation can be called a good business. To understand the above statement in detail we need to understand the ethical foundation and the core values inhabited by the business to make good business decisions.
Business ethics can be defined as "behaviour that is consistent with the principles, norms, and standards of business practice that have been agreed upon by society."
Business ethics is the code of conduct followed by the organisation which can be both written or unwritten codes of morals, values and principles.
Business ethics differs from business to business and also it is affected by the geography, nature of business and other various factors. However a bad ethical practice followed by the organisation can easily be identified, For example practice of employing child labour, accepting or giving bribes, illegal usage of copyrighted materials.
Good ethical practice creates not only trust between the organisation and customers it also builds trust between employees and the organisation.
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Thus creating a productive environment which is the base of any organisations growth.
In today's highly globalised and competitive world there are various factors that organisation should focus on and provide attention to, in order to survive the competition. Few of the factors being reputation of the business, quality of services and products, returns on Investments, financial stability.
To take right decisions and to boost the performance of the organisations, Business ethics plays an import role.
Few benefits of having strong ethics are, it builds customer trust, increases the reputation of the brand, increases the productivity of the organisation, it motivates the employees and attracts investors.
Recognizing ethical strategies incorporates gathering the realities, accessing any alternative actions, making decisions, testing the fairness of the decision. Ethical decision making should focus on ensuring representative and client rights, ensuring all business activities are reasonable and serving the benefit of all, and ensuring the employees individual beliefs and values are protected.
However, any biased or wrong decision made will have a negative impact on the organisational reputation and on its market value.
In business organisations the code of ethics can strengthen the support of top management for ethical behaviour and help the organisation to incorporate favourable ethical culture and to have desired effects. It is also important for business organisations to communicate, monitor and enforce code of ethics. Implementation of code of ethics is directly related to organisation growth for a long term.
However, an organisation must appoint an ethical supervisor to monitor the ethical behaviour of the organisation to check whether it is implemented in a right way or not and also an organisation to appoint trainers and conduct training programs regularly to maintain the integrity of the organisation.
Corporate governance presents two perspectives for the business organizational governance; the Principal Theory which suggests that the organizational owners and managers can often be ethically opportunistic and benefit from the employees who serve them, and guiding Principal Theory that is sometimes taken too far in the organization. In introducing these two new organizational governance perspectives, we offer insights into the value of rethinking ethical duties owned to the organization.
Corporate governance is a major defense against unethical corporate conduct. Good corporate governance provides a level of disclosure and transparency in the conduct of corporations, their boards and directors that enables their accountability to be monitored while ensuring that, they fulfill their legal obligations, they are accountable to the investors and shareholders. Corporate Governance enhances the few important aspects of the business like fairness, accountability, responsibility and transparency.
Corporate Social Responsibility is the integration of socially beneficial programs in practices into a corporation's business model and culture. CSR aims to increase long term profits for online and offline businesses by enabling them to become more efficient and attract positive attention for their efforts.
Consumers consider more than quality merchandise and ventures while picking a brand for affecting social change with their business convictions, practices and benefits. Truth be told, some will even walk out on their most loved organizations on the off chance that they accept they're not standing firm for societal and ecological issues. 'Corporate duty is essentially a path for organizations to assume liability for the social and natural effects of their business tasks,' In a study most customers said that they would buy an item on the grounds that an organization supports an issue they care about. All the more essentially, a customer will not purchase from an organization that does not support an issue in opposition to their very own convictions. Corporate Social Responsibility makes a channel for the activities of an organization.
The important duty of an organization is to mainly undertake corporate social activities in the society. Organizations general point is to accomplish a positive effect on society overall while boosting the proprietors of the business, its representatives, investors and partners. But then, in spite of the energy and confidence that CSR conveys to the corporate table, organizations don't generally acknowledge their duties around there in great heart. At times, firms may have been pressured into
Corporate Social Responsibility activities and did as such with inadequate eagerness and energy, leaving huge numbers of them to contemplate what they could and ought to have done any other way.
Coca-Cola is making further steps to help reduce environmental problems. After realizing that Coca-Cola has made significant changes to its supply chain, such as investing in trucks powered by alternative fuels, with its fleet of delivery trucks accounting for 3.7 million tons of greenhouse gases (GHGs) in 2014. These changes should support the company's objective to reduce its carbon footprint by 25% by 2020.
Ford is another company which seeks to improve its environmental performance. In an effort to reduce its GHG emissions, an Eco Boost engine was developed to increase fuel efficiency and the company hopes to offer 13 new electric vehicle models by 2020. In addition, American Ford dealerships now use wind sail and solar PV systems as their primary power source.
Toyota has taken an initiative towards an eco-friendly environment by manufacturing hybrid cars, which are fuel-efficient, and reduced carbon emission engine design for an affordable price. Toyota had received many complaints on the safety features of the cars, it made the bottom line by improving the safety features alongside by taking an CSR approach to increase the sales and give a formidable returns to the investors.
The organizational decision making processes are the main and another part of an ethical behaviour. Leaders make ethical concerns a formal part of all decision making in an aligned ethical culture. This emphasis on ethics and decision making can be strengthened by addressing ethical concerns in meeting on a regular basis and making them an expected part of managers reporting on new products or new business ventures.
Ethical issues in the business world have become increasingly complex at a time when they deal almost exclusively with fraudulent behaviour or personal issues in the workplace. Ethical issues within the organisation can create a negative impact in the working environment degrading the motivation of the employees which results in overall performance of the business. Ethical issues concerning the society or the customers can lead to downfall of brand value and also losing the customer base, welcoming competitors to overtake the business.
Ethics is a building block of our society, it is critically important to incorporate a good ethics in the organisation. Business ethics focus on ethical issues that emerge in the business world and implementing code of ethics is related to organisation growth for a long term. As organisations mission is to have a positive impact on society and on its business partners and clients. Implementing CSR makes a channel for the activities in an organization and in business it helps to boost its performance and to gain long term profit. Moreover, an organisation should appoint an ethical supervisor to monitor the ethical behaviour and ethical decisions of the organisation to check and ensure whether it is implemented in a correct way or not and also to govern whether it meets the ethical standards of the organisation. This concludes being good is good business.
Being Good Is Good Business. (2024, Feb 19). Retrieved from https://studymoose.com/being-good-is-good-business-essay
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