Principles of Business Ethics
Business ethics can be also named as studying of good policy and business having certain problems such as discrimination, trading and corporate social responsibility (CSR). Business must be based on proper principles by providing the customers with good products and services at an affordable cost. A proper business ethics must be made to avoid the unfair means of buying and selling of products to the customers. A proper ethical business will only help the company to sustain for a long period. In order to perform proper duty in business, a nice working condition for staff is an important factor (Jondle, Ardichvili & Mitchell, 2014). Hence, for building up of a proper business plan is an important aspect for huge success in the business.
Among 12 main principles, related business ethics, illustration of the 4 are given below.
Abiding by law
While performing the proper business ethics, proper laws need to follow by the management. Proper rules and regulation are required for maintaining the law. The management needs to follow proper laws while performing their part in the business activity. There are certain laws while violating rules and regulation such as imposing of fine or loss of business license. The state government must abide by laws for the welfare of the business ethics. The illegal practice of business will not be entertained by the society. For the proper execution of a business plan, the management must keep in mind with the law. A proper ethical practice helps to get the need of stakeholders while carrying out the business planning (Treviño et al. 2014). Organizations always have a worker knowing properly about the legal practices. For the proper practice in the legal business, the organization tries to act like a legal way. Following of proper rules and regulations, must be company first preferences towards carrying out the business plan. Many organizations use recycling process for the betterment of the environment. A company always tries to make the proper legal practice for the welfare of the society. So while carrying out a proper business planning a company must focus on following of law.
Commitment to excellence
Commitment to the excellence is another important thing while carrying out the business ethics. While performing the duty by the staffs, commitment to excellence automatically raise the profit of the working areas. For the proper performance of an ethical business, a commitment to the excellence in the operational areas is highly needed. A commitment is made for the proper supply of service and products to the customers while performing business. A proper commitment towards the product and services will help the company to reach the customer's requirement. It automatically increases the quality and service of the product. While performing a long-term business a proper commitment to vendors and clients is required. The organization must be committed to providing a good working environment, equal opportunity to all employee, etc for carrying out the business ethics (Fu & Deshpande, 2014). Commitment must be based on proper trust from both the ends such as from management and from the workers. For the proper working of ethical business, a strong commitment is highly required. A success in business planning will come out from the proper commitment by the management. A false commitment towards the excellence will automatically reduce the growth of the business plan. Organizations must keep the idea of proper commitment for the better outcome in the business.
Reputation and morale
While proper running of an ethical business, reputation and morale is a vital factor. An organization needs to build up the reputation and morale of the staff. Ethical execution will help to understand the reputation of the organization. It also helps in building up of morale among the staffs for the proper performance of the given work. While the organization reputation is at a high stage and the morale of the workers is good, then the company must grow properly in the positive response towards business. In order to the high reputation of the company, the customers will automatically know the product values and services. While the staff is having a confidence towards their performance in the business, the growth rate is high in production. Two areas that are reputation and morale must be balanced properly for the proper execution of ethical business. To keep a reputation in the competitive market, the organization must implement a different innovative business plan (Zheng, Luo & Wang, (2014). New workers must be confident enough about the work was given to them for the proper completion of the job. The organization must hold their reputation properly due to the upcoming of a new organization in the market. A company must be well focused about the reputation and morale while proper execution of business.
It is another important factor while running of the ethical business. Accountability is the process of controlling the management in which many reactions rises from the action of the employee. This reaction can be negative or positive depending upon the mistaken done by them. It is also the responsibility of employee while performing duties. The organization holds strongly the accountability of the employee. Staffs must be responsible for any problems in accordance to their accountability. While the company high performance, accountability plays a vital part (Steinbauer et al. 2014). A proper communication with the set goal is essential for proper performance at every company. While performing the business properly, the employee must be accountable enough of own performance and raise the morale of the organization. Management must be accountable for the business policy and plans.
The principal of business ethics is the important factor while proper execution of business. Organizations must be aware of the twelve principles based on the ethical business. In this assignment, it is focused on the rules and regulation, commitment to the excellence, reputation and morale and the accountability. While the proper running of business all the principal ethics must be used properly. It is also for the better production of products and service to customers.
By keeping all the ethical terms in mind, the business growth will increase at a huge scale for the employment as well as for management.