What Influence does Responsibilty and Ethics In Business Establish
Kirjoittanut: Julieta Villafuerte - tiimistä Kaaos.
When a person is business minded by nature, whenever it gets the chance to set up one, that person will not let go of the opportunity to build it. Many people who want to start a business are convince that business can be a source of a passive income which is argumentative.
Business is always defined as an active process which is an integral part of human society. It is an organization where economic resources or inputs, such as materials and services, are brought together and distributed to deliver or to give consumers goods, products or outputs. It involves significant operations such as buying, assembling, distributing, advertising, selling and accounting.
Business is an integral part of human society which contributes greatly to the process of movement and sustenance of lifestyle in humanity. It is an important part of an organization within a big organization. While human society has a government to refer its actions, business has its own rule to comply with its business matters.
2. What must we know about Business Ethics and Responsibilities?
To highlight what influence does responsibility and ethics in business can establish we need to know where these two stands. The practical way of knowing between right and wrong will depend whichever is more accepted by the society disregarding the value of what is proper and what is not while ethics is a standard concept of morality in particular.
Ethics is from the Greek word “ethos which means “character” a way of living which concerns the human conduct, more specifically the behaviour of individuals in society.
Business refers to an enterprising entity or organization that carries out professional activities with the practice of making one’s living by engaging in commerce. Putting these words together, business ethics leads to the standards for moral right and wrong conduct in business. Business Ethics enhances the law by outlining acceptable behaviours beyond legal controls.
Ethical responsibility is the ability to recognize, interpret and act upon multiple principles and values according to the standards given within a given field or context. An obligation to perform certain functions in order to achieve certain results focusing to the task assigned and therefore accountable in the performance of carrying out to the assigned function within the organization.
When Ethics in Business and responsibility is practiced within the organization, it will create a positive working environment for the employees and thus a teamwork is observed. A working environment with positive values and respects the position of everyone establish a strong connection of teamwork to employees creating one objective and give high importance of being part of the organization. Teamwork and being part of the company as an important individual is established in the working environment.
2.The wide role of Ethics in Business and Responsibility
Building an organization is not just about capital, product and location. Another vital aspect is the workforce, the people who will work for you and if you will start with a big number without house rules it will result to chaos. The man-power is designed to work and not to make a decision, therefore one factor they highly consider is the house rules, with these rules the order in an organization will be maintained. Hiring professionals to work in an organization is one requirement; it is not only the skills that the organization seeks for but as well as the behaviour and the professionalism of an employee.
Behaviour is an essential factor to consider, for this reason many organizations require behaviour assessment upon the hiring process to evaluate the behavioural capability of an individual, any signs of an unacceptable behaviour especially with the matter of insubordination, unprofessionalism and unethical, means a no chance to be part of the organization. Ethical behaviour is about doing things that are morally right which is a must to be exercised within the business vicinity. It is about setting an ethical standard of respect to yourself, to your colleagues, to your work and your organization in particular areas such as age, sex, ethnicity, and even race. In an instance of Ethical lapse where in a temporary failure action occurs and an ethical dilemma arise which mostly involves selfishness and lack of respect to others and to the organization, ethical standard must be followed. Any ethical issues within the organization can be mostly resolved by using the ethical standards. An ethical stance can be organized to recognize other’s opinion in regards to the ethical issue especially the involved parties for disciplinary action and reconciliation. (Page 108, Corporate Social Responsibility, Bill M.)
Having accountable with the responsibility accomplished in a professional manner is counted as part of personal growth of an individual. In an organization everyone works on a task given according to their profession and position. As professionals they are expected to act with professionalism and with good values, ethics is expected to be practiced both in business and responsibility to establish a professional working environment.
4. Business Ethics and Ethical Responsibility are important.
Companies that carry out to work the right way are companies that possess tool for promoting moral conduct and is highly to improve profitability and reduce losses. When employees have the ability to do ethical decision making, predicaments will be prevented to happen and will not waste the time, money and effort of the company. The efficiency to accomplish every task, done in a right and trusted way are expected to achieve.
According to Gartner, “A well-implemented ethics program can also reduce losses”:
As an example, from the Business and the Society Blog, Twenty-two percent of cases examined in the 2018 Global Study on Occupational Fraud and Abuse cost the victim organization $1 million or more. Companies that practice questionable ethics may also experience a decrease in stock price and severed business partnerships, which can affect profitability. In addition, business ethics is linked to customer loyalty. Over half of U.S. consumers said they no longer buy from companies they perceive as unethical. On the flip side, three in 10 consumers will express support for ethical companies on social media. Business ethics cultivates trust, which strengthens branding and sales. (Schroeder,2022)
The absence of Ethics and taking responsibility projects the freedom of actions without taking considerations of what is proper and what is not. Taking actions with our own will fulfils only our desire of results without which will depend even without the absence of order and considerations. Ethics bridges the gap to control the improper actions involving our own discretion between right and wrong and thus avoiding unacceptable results that will affect our professionalism.
On the whole, organizations establish business ethics to promote integrity among employees. It promotes trust to investors and consumers. When an organization observes accountability and ethics, these creates orderliness, confidence, trust and reliability that will lead to excellent performance of the organization as a whole. Most investors and consumers highly consider the values as part of quality and reliability of an organization. These prevents subterfuge or deception from all the departments and working as a team is highly practiced instead. Responsibility and Ethics in business does not only establish individual growth but as well as Business growth.