Most businesses have a mission statement, centered round qualities and values they swear to uphold. When employees know the true how and why behind organizational strategy, decision-making, and performance management, they generally feel more trust toward the management of their organization and thus can become more committed and engaged in their work.
Historically, transparency has been seen more as an ethics practice for third party analysis of an institution’s finances and practices; however, the more widespread study of business ethics and organizational behavior is pointing to operational transparency as a management practice that can both address those daily management issues, and also become an internal source of sustainable competitive advantage that is difficult for competitors to imitate.
McMahon C. (2010), The public authority of the managers of private corporations, in Brenkert G.G. and Beauchamp T.L. (dir.), The Oxford handbook of business ethics, Oxford University Press. First, they disagree that ethical behavior is always in a company’s best interest, however enlightened.
The ethical issues in business have become more complicated because of the global and diversified nature of many large corporation and because of the complexity of economic, social, global, natural, political, legal and government regulations and environment, hence the company must decide whether to adhere to constant ethical principles or to adjust to domestic standards and culture.
Ethical theory can help illuminate the moral problems managers face. Business ethics is the application of ethical values to business behaviour. An entrepreneur should not only know the ethical behavior standards, but also to follow them. In this form, social responsibility is nothing but a modern and open way of flexible management.