In business ethics our goal is to do the right thing. Business ethics is the application of ethical principle in the organization or business. Texas Instruments is an example of a company that embodies this new organizational paradigm of management. The leader must perform a key role in enhancing the competitiveness of the company by preventing and eradicating unethical conduct through ethical compliance.
Companies which conduct business in an unethical manner run the risk of harming not only its stakeholders, but also the general public. A code of ethics can help a business determine its priorities and values. In other words, if a university ethics professor is attempting to model ethical behavior through his or her lessons, students will sort through the information and determine which ethical characteristics (if any) they will adopt.
A code of ethics is a collection of principles and practices that a business believes in and aims to live by. A code of business ethics usually doesn’t stand alone, it works in conjunction with a company’s mission statement and more specific policies about conduct to give employees, partners, vendors, and outsiders an idea of what the company stands for and how it’s members should conduct themselves.
But this means that business ethicists must get their hands dirty and seriously consider the costs that sometimes attend doing the right thing.â€ They must help managers do the arduous, conceptual balancing required in difficult cases where every alternative has both moral and financial costs.
Even when business ethicists try to be practical, however, much of what they recommend is not particularly useful to managers. Tata group of companies is one company which follows ethical practises. According to elkington the business does not have one single goal of attaining profit but to extend the goal set by adding environmental and social values.