What does ethical mean in business?
By definition, business ethics refers to the standards for morally right and wrong conduct in business. Law partially defines the conduct, but “legal” and “ethical” aren't necessarily the same. Business ethics enhances the law by outlining acceptable behaviors beyond government control.
Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. Some issues that come up in a discussion of ethics include corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.
Ethical comes from the Greek ethos "moral character" and describes a person or behavior as right in the moral sense - truthful, fair, and honest. Sometimes the word is used for people who follow the moral standards of their profession.
Ethical leaders display good values through their words and actions. Ethical leaders do not overlook wrongdoing, even in cases when doing so may benefit their businesses. Showing integrity and doing what's right is at the core of being an ethical leader. Ethical leaders set an example for the rest of the company.
It's important for organizations to operate with good business ethics to avoid legal and regulatory problems. However, it's also vital to exhibit strong ethical behavior to maintain a positive reputation, both with the public and employees.
Ethics, for example, refers to those standards that impose the reasonable obligations to refrain from rape, stealing, murder, assault, slander, and fraud. Ethical standards also include those that enjoin virtues of honesty, compassion, and loyalty.
Ethics examines the rational justification for our moral judgments; it studies what is morally right or wrong, just or unjust. In a broader sense, ethics reflects on human beings and their interaction with nature and with other humans, on freedom, on responsibility and on justice.
Ethics is what guides us to tell the truth, keep our promises, or help someone in need. There is a framework of ethics underlying our lives on a daily basis, helping us make decisions that create positive impacts and steering us away from unjust outcomes.
Ethical behaviour is characterized by honesty, fairness and equity in interpersonal, professional and academic relationships and in research and scholarly activities. Ethical behaviour respects the dignity, diversity and rights of individuals and groups of people.
If highly ethical people say they're going to do something, they do it. They are almost always on time, and if they're late, you should be worried because something is probably wrong. They don't break or cancel appointments and they are extremely dependable. They don't make promises they can't keep.
How do you know if a business is ethical?
Customers constantly demand more transparency, making certifications a great way to see authenticity. Documents you can look for include Global Recycled Standard, Fair Trade, and Certified B Corporation, among others.
Strong values and ethical behaviour lead to a high performing team. New employees are also more likely to want to work with organisations which are known to have a strong ethics policy and a code of conduct because those values set them apart from others.
In business, ethics refer to making decisions that the average person will support and view as socially acceptable. Such points include offering a good work environment for employees, having a high-quality and valuable product and taking into consideration customer and social safety.
Business Ethics Explained
Business ethics ascertain social, cultural, legal, and other economic limitations and safeguard the interest of parties involved. Further, it emphasizes moral and social values like consumer protection, welfare, fair business practices, and service to society.
There are seven principles of business ethics including accountability, care and respect, honesty, healthy competition, loyalty, transparency, and respect for the rule of law.
Misleading communication, fraudulent behavior, anticompetitive activity, knowledge hiding, withdrawal, and production deviance are unethical business practices. It is illegal but not unethical to force an employee to work off their stipulated time.
Examples of ethical behaviors in the workplace includes; obeying the company's rules, effective communication, taking responsibility, accountability, professionalism, trust and mutual respect for your colleagues at work.
Ethical goals in short-term missions are ones that prioritise the best interests of the most marginalised person in our midst.
There is a belief that the employer has a moral and ethical obligation to the workforce. (2017) There are huge moral, legal and ethical issues. The desire to win medals superseded their collective moral and ethical compass and Olympic values of fair play.
| Acceptance | Favorable reception or belief in something |
|---|---|
| Promise-keeping | Keeping your word that that you will certainly do something |
| Prudence | Doing something right because it is the right thing to do |
| Punctuality | Adherence to the exact time of a commitment or event |
Why is it better to be ethical?
Ethical decisions generate and sustain trust; demonstrate respect, responsibility, fairness and caring; and are consistent with good citizenship. These behaviors provide a foundation for making better decisions by setting the ground rules for our behavior.
Workplace ethics refers to the way employees in an organization govern themselves and their overall work attitude, but it can also refer to the morality, or lack thereof, permeating a workplace. The way a company operates and is perceived by both the public and competitors often comes down to the workplace ethics.
Ethical traits are characteristics of a person or company that demonstrate respect and responsibility. Individuals who develop these traits generally make fair leaders and contribute to a supportive workplace environment.
Some common synonyms of ethical are moral, noble, righteous, and virtuous.
Do no harm.Do and say nothing that may bring harm to another person, shame them for any reason, and avoid bullying behavior. Contribute to the betterment of others.Do something every day to show kindness to others. It can be something as simple as saying “thank you” or complimenting someone.
