Business Ethics | Needs and Importance of Business Ethics

Business Ethics 

Moral principles or a set of rules and regulations and policies which should be followed by all the business enterprises to conduct and execute the functioning of businesses in the right direction ethically.

It is basically to consider what is right and what is wrong and what function is required to run the businesses in an ethical way. Ethical practices make a positive image and boost goodwill and provide benefits for both business enterprises and society.

Business ethics is generally concerned with obligations of businessmen behavior which should be right and acceptable in doing business ethically in the society. Unethical practices may create hurdles and cumbersome problems in continuing businesses. Immoral or unjust practices in the business are strictly unacceptable in the society; this will impact on the law of conducting business. Hence there should be an ethical environment within the organization and the society. Any law or provision which does not fit or unjust businesses can take necessary steps regarding certain provisions to make change. And if businesses do not implement laws and provisions regarding businesses then these activities become punishable for businessmen.

Need and Importance of Business Ethics

Business ethics refers to ethical and unethical actions, where certain guidelines are given which must be followed by the businessmen in their business enterprise. Whenever Businesses going to manufacture goods or any kind of services they should take care of society so as not to harm them.

However, ethical behaviors of businessmen in the business enterprise has played a vital role. They should maintain a harmonious environment within the business enterprise and also in the society. 

There are following major points in this context are as under:

1) Social Pressure

Generally businesses are in high social pressure because they are surrounded by Trade unions, Shareholders, investors, Consumer Forums etc. These people have joined part of the business hence businesses are in conditions where they do not follow unethical practices such as fraudulent activities, misappropriation, false advertisement etc.

2) Legal Requirement

Laws are the legal way to conduct or govern business activities in an ethical way. To survive business in the society businessmen must follow the laws and various guidelines which are issued by the government (Wages of employees, Safety of health, Employees Welfare etc.) without proper implementation of laws and regulations  existence of business in the society in long run will be demolished.

3) Moral obligations

Good businesses are those who followed the ethical practices and behavior in terms of avoiding overcharging money, black-marketing, adulteration, misleading consumers etc. which is illegal in the eyes of law. Businesses have to be conscious about these practices which are unethical and should follow good behavior towards society.

4) Self-interest

This should be the inner feelings of a business owner to stand their business in the pillar of ethics. With this intention to maintain their business in the long run they have to serve the society with full dignity in terms of quality of goods and services, charging fair price, rewards to shareholders as a dividend in capital gain etc. this will not only enhance coordination and cooperation in the business but also boost its goodwill.

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