The Business of Ethical Behavior

Why is business ethics important? As with all business initiatives, the ethical operation of a company is directly related to With consistent ethical behavior comes an increasingly.

The reasons for having high ethical standards include:.

Differentiate between ethical and legal behavior To Hire or Not to Hire Smokers—That Is the Question at American Express American Express, a financial services company, found that smokers were costing the company $5,–$6, more per year than nonsmokers.
Differentiate between ethical and legal behavior To Hire or Not to Hire Smokers—That Is the Question at American Express American Express, a financial services company, found that smokers were costing the company $5,–$6, more per year than nonsmokers.
6 Traits That Predict Ethical Behavior at Work. David De Cremer; December 22, Before moving to the UK he was a professor of management at China Europe International Business School in.
6 Traits That Predict Ethical Behavior at Work. David De Cremer; December 22, Before moving to the UK he was a professor of management at China Europe International Business School in.
Research from the University of Notre Dame finds that ethical business operations are highly important to success, while unethical behavior can negatively impact a business's future prospects.
What is 'Business Ethics'

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Business ethics is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading and bribery.

Firms display business ethics in several ways. Some competitors' advertisements tout high-fiber cereals that have the potential to reduce the risk of some types of cancer. Another case study involves quality control for a company that manufactures electronic components for computer servers. These components must ship on time, or the parts manufacturer risks losing a lucrative contract. The quality-control department can ship the parts, hoping that not all of them are defective, or delay the shipment and test everything.

The National Business Ethics Survey comes out every two years. In the edition, respondents saw an all-time low in unethical behavior. The survey concluded that possibly an uncertain economic climate led to less risk-taking in for-profit businesses leading more managers and executives to act more ethically.

You must determine how to balance conflicting needs. Ethical dilemmas are rarely simple. Several conflicting issues may be linked, and several parties may be involved. Most frustrating of all, you may find that a response to one of these situations may be unethical for the others. Clear communication is critical. Many of us have thought ourselves to be in an ethically compromising situation, only to discover later that we misunderstood, or were misinformed about, the motives, actions, or circumstances contributing to the situation.

Having an understanding of cause and effect is also vital. The process of how events develop is just as important as the end result. Establishing an ethical standard for business conduct involves more than a written policy. The most compelling support for an ethical standard is adherence to and enforcement of that standard by those who institute it, and by those for whom it is written. More than briefings and policies handed out to every single employee, our behavior, practice, and deeds are the foundation for creating an ethical standard and making it stick.

Find out how the US Navy is getting safe, sustainable modular offices quickly and at a low price point September 26, In "Contract Awards".

Six concepts form the foundation of trust upon which ethical business practice is built: Ethics refers to a set of rules that describes what is acceptable conduct in society. Ethics serve as a guide to moral daily living and helps us judge whether our behavior can be justified. Values are defined as the acts, customs, and institutions that a group of people regard in a favorable way.

Morals are a set of rules or mode of conduct on which society is based. Certain moral elements are universal, such as the laws forbidding homicide and the basic duties of doing good and furthering the well-being of others. To have integrity is to be honest and sincere.

Integrity is defined as adhering to a moral code in daily decision making. Integrity Put simply, when people and businesses possess integrity, it means they can be trusted. Code of Business Conduct: Sources of Ethical Standards in Business. Ethical Theories in Business: Ethical Behavior in Marketing: What Are Marketing Ethics? Ethics in Managerial Accounting.

Factors that Affect Ethical Behavior in the Workplace. Ethical Issues in HR: The Importance of Ethics in Accounting. Small Business in a Global Market. Ethical Issues in International Business. Praxis Mathematics - Content Knowledge Practice and Study Guide. Praxis Marketing Education Test Practice and Study Guide. Many people would agree that you don't have to look very far today to find examples of unethical behavior in business.

What Is Unethical Behavior? Unethical Behavior in the Real World There are many ways that businesses engage in unethical conduct, exploiting their workers, their customers, and even the public at large. Exploiting Workers Some businesses choose to increase the profits for the owners at the expense of their workers.

Dumping Toxins Manufacturing businesses may compromise public health by dumping hazardous waste into the water supply or by releasing toxins in the air far beyond what is allowed by law. Unnecessary Medical Procedures People don't always think of their doctor or dentist as a 'business,' but money does change hands for services provided, and the medical and dental professions aren't exempt from unethical business practices. Want to learn more? Select a subject to preview related courses: Product Design Technicality A prominent cell phone company deliberately designed its phones so that consumers would accidentally hit a button on the keypad that led to instant data charges, even if they had hit 'cancel' immediately.

Fake Identities Another example of unethical behavior involves creating fake organizations and profiles on the Internet and then using them to discredit and smear whistleblowers who speak out against hazardous products.

Falsified Portfolio Sometimes unethical business practices are designed to take advantage of investors. Lesson Summary Unethical behavior in business refers to actions that fail to rise to acceptable standards of business practices. Examples of Unethical Behavior Exploiting workers Over-billing customers Exploiting tax loopholes Dumping toxins into the air or water Prescribing unnecessary medical procedures Covering up car defects Designing phones so that users accidentally accept data charges Creating fake identities Using falsified portfolios Learning Outcomes As you get to the end of the video, you should have the ability to: Define ethics Explain what unethical behavior in business is Discuss several examples of unethical behavior in business.

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Employee Ethics

Acting in ways consistent with what society and individuals typically think are good values.. Ethical behavior tends to be good for business and involves demonstrating respect for key moral principles that include honesty, fairness, equality, dignity, diversity and individual rights. The Business of Ethical Behavior For more information on ethics, see the How To article from March , Determining What is Ethical. Paying attention to ethics makes good business sense. Ethics is an important part of business. Companies use ethical behavior models to ensure managers and employees follow the proper rules of the company and the business environment when working.

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