Is it business ethics or just the golden rule? Teaching individuals how to apply ethics when it comes to moral controversies must become a key focus of leaders in the new paradigm (p. 7). “Applied ethics focuses on norms and guidelines of professional practice, methodologies for promoting ethical decision-making, various codes of conducts and how these function to promote discussion, informal decisions, and resolve practical ethical problems (p. 7). This focus must become a new major responsibility of every manager and leader within the new organization.
Given these definitions, business ethics is at minimum something more than operating a business under existing laws; the values to be applied arise from values currently held by society; but the ethics a company may define as its own may hold to an even higher standard.
Rather, ethical management is a process of anticipating both the law and the marketâ€”and for sound business reasons. As a result, POSCO enacted the code of ethics in 2003 that must be adhered to by all employees, and explicitly included the US Human Rights that claim to support respect for human life and dignity in 2014.
There are many reasons for an organization to follow unethical practices they are personal gain and selfish interest, competitive pressures on profits, business goals and personal goals, cross cultural contradictions. To achieve ethical equilibrium positive values (those of giving) and the negative values (those of taking) have to be understood and the effects of these values on the business.
The Institute of Business Ethics, whose slogan is “doing business ethically makes for better business”, describes the term business ethics as such. Consistent compliance with a strong code of ethical conduct will be a major stimulus to having ethics become self-perpetuating.