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Business ethics is the most debated topic of our times. The difference
between right and wrong business practices and their outcome is crucial for
economic development.
"I have always recognized that the object of business is to make money in an
honorable manner. I have endeavored to remember that the object of life is to
do good." - Peter Cooper, American Inventor, Manufacturer and Philanthropist
Business ethics are moral values and principles that determine our conduct in
the business world. It refers to commercial activities, either with other business
houses or with a single customer. They can be applied to all aspects of
business; from generation of an idea to its sale. Businesses use the society
for its resources and functioning, thereby obligating it to the welfare of the
society. While the objective of any business is to make profits, it should
contribute to the interest of the society by ensuring fair practices. However,
greed has led the present business scenario towards unethical business
practices, legal complications and general mistrust.
Code of Ethics
Many organizations now implement the code of ethics in their company
polices, which they implement during induction and regular training. A Code of
Ethics "is generally a more blanket statement of values and beliefs that
defines the organization or group" (Brandl and Maguire). It is primarily for the
following areas:
an unethical manner. Following are some of the activities that come under the
ambit of unethical practice.
- Resorting to dishonesty, trickery or deception.
- Distortion of facts to mislead or confuse.
- Manipulating people emotionally by exploiting their vulnerabilities.
- Greed to amass excessive profit.
- Creation of false documents to show increased profits.
- Avoiding penalty or compensation for unlawful act.
- Lack of transparency and resistance to investigation.
- Harming the environment by exceeding the government prescribed norms for
pollution.
- Invasion of privacy used as leverage, for obtaining personal or professional
gains.
- Sexual discrimination
Preventing Unethical Practices in Organizations
Addressing unethical behavior and practices is essential to maintain an ethical
climate in an organization. Incorporation of ethical norms and conduct into all
levels of the organization can be done in the following ways.
- Codes of corporate ethics must be formulated so that employees are aware
of the organization's expectations regarding ethical norms and conduct.
- An appeal process must be in place so that any unethical practice can be
brought into light.
- Seminars on business ethics should be conducted for employees. This will
help them in understanding the importance of ethical work culture.