In order to fully understand ethics and how they relate to business, one must first define its key components. Business ethics start with determining what the exact purpose of the business or company is. For example, a corporation has an ethical duty to secure the maximum return to its shareholders. Ethics is about how we live in the present to prepare for the future, and a business without profits (or a plan to create them) is not meeting its ethical obligations to prepare for the future well-being of the company, its employees and customers.
There are number of factors that determine the sustainability of an organization, which are its ethics, strategy, employees, financial capital etc. With the recent boom in business ethics comes a curious irony: the more entrenched the discipline becomes in business schools, the more bewildering—and even off-putting—it appears to actual managers.
It should address both the particular nuances of the company’s industry as well as its broader goals for social responsibility and should be concrete enough to serve as a guide for employees in a quandary without laying out rules for every situation that could arise.
A proactive business leader formulates a statement of organizational values that employees of the company are expected to embrace – at least while performing duties in the service of the company. Practices and social responsibility programs are more accessible and more interesting for small business enterprises.
Even though there are many issues when we talk about business ethics, what I want to say now is about one and, in my opinion, the most awful mistake people do when doing it. That is placing their need ahead of the need of their customers. The actions and decisions of coworkers is another social factor believed to shape a person’s sense of business ethics.