Running head: BUSINESS ETHICS 1 BUSINESS ETHICS Robert Nunez Citrus College Introduction to Business Dr. Richard 11/14/19 BUSINESS ETHICS 2 Business Ethics Abstract The purpose of this research paper is to define what business ethics means and critically evaluate its purpose in the business. In this research paper, there will be an analysis of peerreviewed articles that are concerned about business ethics and an explanation on how the application of ethical standards functions in personal and a professional business setting. There will be an understanding of business ethics in three different aspects. There will be an analysis of how business ethics determines the wrong from the right in a business or firm setting. The effect of the same on the corporate leaders and followers will also be considered. There will be discussion and consideration of the weaknesses and the strengths of the application of the ethical standards in the workplace. Lastly, I will recommend the best professional and personal ethical behavior and characteristics in a business or any organization that I will find appropriately fit. Keywords: Business Ethics, Ethical, Standards, Corporate, Leaders, Followers, Professional, Personal BUSINESS ETHICS 3 Introduction When one is describing business ethics, these are moral principles that govern the guidelines of a business's way of conducting itself and its transactions. These are the same guidelines that every person who is working in any business uses to act accordingly in an acceptable manner that is both on personal and professional settings and the application in the business. The business ethics is itself “a study of the proper business practices and policies concerning the controversial subjects, which are potential like insider trading, corporate governance, discrimination, bribery, fiduciary responsibilities, and corporate social ethics” (Luetge, 2015). The law sometimes guides business ethics, yet the business ethics help in the provision of a basic guideline that the businesses or firms can use in a way of getting public approval. Thesis statement: Business ethics are an essential part of all forms of businesses, firms, organizations, and companies and should be considered and followed to the latter appropriately. Analysis of Business Ethics When trying to understand how business ethics work, there are vital things that should be checked and analyzed properly. The business ethics ensure that there is a certain basic level of connection and trust, which is existent between the consumer and participants in a variety of markets with the businesses. Taking an example, a portfolio manager should pay special attention to the portfolios of the small individual investors and family members all the same (Wasieleski, 2010). This kind of business practice makes sure that the public feels treated right and in a fairway. Since the 1960s, the concept of business ethics has been existent because the corporations and organizations identified that there was a rising consumer-based society that had special attention concerning social issues, corporate responsibility, and the environment. There BUSINESS ETHICS 4 was a hallmark of a decade because of the increased focus on social issues. Since this special time of implementation of business ethics, there has been an evolution of the issue to date. The business ethics are more than just being right or wrong because it tries a reconciliation of what the companies should do in legal terms and tries to maintain the competitive advantage making sure that the business has the upper hand than others. Different organizations represent business ethics in different ways, but the most important thing is that they follow guidelines. The business ethics are for insurance that there is built trust between the consumers and the corporations because this guarantees equal treatment, among other privileges. There is another angel of understanding ethics, and this can be done in three parts, that is history, scandals, and integration. These three are the basic components of business ethics. History explains where the idea came from and the creation of the first organizations and companies back in the 1960s. In the United States, the term began being used in the 1970s. The main principles of this are basically on academic writing and academia on proper operations of the business, which are integrated through proper practical and research study of how the business is supposed to work on its own or with other businesses. Business ethics can also be understood from the perspective of scandals. There is a close relationship between the use of business ethics and their application when there is an arise in the scandals in any organization or business. A company or a firm can explain the scandalous occurrences selling goods which its creation involved poor working conditions or child labor. Finally, the integration is the third piece, which is on its developmental stages, which are concerned about business ethics. This idea is based on the fact that each company is building business ethics into the foundation of their companies, ensuring that they operate on ethical grounds, and they are the main part and standard of their operational blueprint (Ciulla, 2011). BUSINESS ETHICS 5 About the current world of business, there should be an increased focus on the appropriate business ethics, and there should be string adherence to them until they become a norm. A special example can show the application of business ethics. For instance, let's take an example of quality control for a company that deals with electronic components for the computer servers and also does the manufacturing. The components which are manufactured here should be shipped on time, or on the other hand, there is the risk of losing the lucrative contract of manufacture of the parts (Desai, von der Embse, & Ofori-Brobbey, 2008). The quality control department is more concerned about business ethics, and there is the discovery of a possible defect, and this makes all the components from the shipment to be checked. Due to the checks because of the defects, then there might be a delay in shipment passing, and this might delay the product release of the customer. The quality control department following the appropriate business ethics can decide to delay the release and check all the parts. If they ship the parts without checking, and with the hope that they are all good, there might be defective parts. When there is the defying of the business ethics, this comes with consequences, like in our case, if the parts are defective, the customers might backlash, and the company faces firestorm, and this can lead to the customers changing their parts supplier. The main lesson is that business ethics should be followed to the latter, and this is where you win the trust of the customer and build the trust of the customer (Anggraeni, 2014). In the determination of the wrong and the right using business ethics, there are basic standards that should be existent. When one is acting ethically or according to the ethical standards, this means that they can determine what “right” is and what is “wrong.” The basic standards are all over the world, and they determine all these terms in business practices. For BUSINESS ETHICS 6 example, conditions that put the workers at risk are said to be unethical and unsafe working conditions. There are situations where the line between the ethical and unethical conditions can be confused, like a case where a company has normally been operating in poor conditions; they might assume they are ethical, but they are unethical (Overall, 2016). Such conditions blur the meaning of ethical and unethical business. When the company is trying to cut a deal with another company on something like supplies, they try to use the grey area where they put the negotiator in a position which they will get the best deal from the other company. This issue is not illegal or bribery, but it is an unethical business practice. There is a long-term effect of business ethics application by the leaders, and this affects three specific areas in the firm, business, or company. The importance of the ethical leadership in business fosters positive relationships, which leads to the provision of the business in the three levels that is individually (professionally), the team (followers), and the organization (business). In a professional setting, every individual who goes to work daily should act according to the needed norms of the organization, especially if they are leaders (Wolmarans, 2014). They should fall in the broad spectrum of intoxicating, empowering, and validating other workers. In the case of the team, the leaders affect the followers directly. The leaders should empower the ethical relationship between followers and teams, either small or large, informal or formal, maintenanceoriented or project-focused, their performance is always based on whether there is a supportive relationship between the leaders and the followers. Lastly, in an organization, the leader impacts the success of the business directly. It depends on whether there are spans of communication and areas of responsibility and a strong bonding agent who is empowering enough (O’toole, 2019). The people need to feel like they are making a valuable and unique contribution as a whole. If the business has the appropriate ethics in all three areas, then success is said to be imminent. BUSINESS ETHICS 7 There are advantages and disadvantages which are associated with business ethics. The advantages of business ethics are that it offers the organization a competitive advantage and edge. There is the creation of loyalty of customers and the consumers because the ethical practices build trusted ethical brands. There is always a boost in customer confidence despite the hard times which the business might go through, like recalling products from the market (Pfarrer, Smith, Bartol, Khanin, & Zhang, 2008). The society is the main beneficiary of business ethics because the companies are reliable, and they produce products following their social responsibilities. The only weakness with business ethics is that it limits the business from maximizing the profits in its markets. Recommendations and conclusion The recommendation which I can give about business ethics on the personal level is that they should be adhered to the latter. All the unacceptable practices like poor health and safety, coerced employment, child labor, poverty-level wages, among others, should be kicked out of all the businesses. All three levels of ethical leadership should be followed in order to have success in the businesses and to create the customer loyalty and gain their trust. I would also recommend to the organizations or businesses which are yet to upgrade their business ethics to improve their working conditions like minimum health and safety standards to ensure there is a reduction of the level of cost-savings generated by the company. In conclusion, business ethics are an essential part of all forms of businesses, firms, organizations, and companies and should be considered and followed to the latter appropriately for the best future of businesses. BUSINESS ETHICS 8 References Anggraeni, A. I. (2014). Creating a good citizen through company ethical values. Jurnal Pengurusan, 42, 43–50. Ciulla, J. B. (2011). Is Business Ethics Getting Better? A Historical Perspective. Business Ethics Quarterly, 21(2), 335–343. Desai, M., von der Embse, T., & Ofori-Brobbey, K. (2008). Information Technology and Electronic Information: An Ethical Dilemma. SAM Advanced Management Journal, 73(3), 16. Luetge, C. (2015). Business Ethics. In International Encyclopedia of the Social & Behavioral Sciences: Second Edition. O’toole, J. (2019). The prospects for enlightened corporate leadership. California Management Review, 61(3), 72–92. Overall, J. (2016). Unethical behavior in organizations: Empirical findings that challenge CSR and egoism theory. Business Ethics, 25(2), 113–127. Pfarrer, M. D., Smith, K. G., Bartol, K. M., Khanin, D. M., & Zhang, X. (2008). Coming forward: The effects of social and regulatory forces on the voluntary restatement of earnings after wrongdoing. Organization Science, 19(3), 386–403. Wasieleski, D. M. (2010). Understanding Business Ethics. Journal of Business Ethics Education. Wolmarans, J. (2014). The Effect of Core Ethical Values on Ethical Leadership, Organisational Justice, Ethical Climate and Leader Effectiveness.
