From an individual point of view, the primary objective of a business firm is to earn profits. 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.
The employees of the organization, also has to follow the same ethical principles. They assert that to assume that the primary function of a business is to serve its client base in an ethical manner is idealistic and that the nature of a free economy dictates that ethics must take a back seat to increasing profits.
Even with a sense of clarity applied to the use of business ethics, reaching a just and moral decision can be a complex process for most individuals. Social learning theory provides more hope that business ethics can be taught. The beliefs where it is “Okay to come in late” or “You mean I have to work?” or “Everyone else does it” are direct reflections of each individual’s core values and ethics.
Business Ethics is a form of the art of applied ethics that examines ethical principles and moral or ethical problems that can arise in business environment. One of the biggest aspects of business ethics is human resource management. The short term adjustments made by the companies such as bribes and cartels will only be for a short period of time, it will never achieve a long time sustainability the organizations attitude towards the environment in which it is embedded.
Even if senior management and employees embrace a code of ethics, someone needs to be put in charge of applying and updating it. This person is typically known as an ethical officer or, in more intimidating terminology, a compliance officer. Cultivating trust among your customers and other people you transact with is one of the basic business ethics that can greatly affect your enterprise.