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All of us would have heard an old saying “It’s all fair in Love, War & Business”. Am not sure about love and war but not everything is fair in business as today’s civilization is sensitizes and present to how the business is conducted. All big business houses today have an ethical code of conduct or value system in place which guides them on how to function or how to take business decisions which confirms to their ethical code of conduct or framework of alee system and beliefs.
Customers want to be associated with the brands/ organization which are ethical and organizations are constantly working towards building their value systems and ensuring that they are perceived as ethical company in the eyes of external world as its one of the key essentials Of business. Business ethics are moral principles that guide the way a business behaves. Acting in an ethical way involves distinguishing been “right” and “wrong’ and then making the “right” choice. It is relatively easy to identify unethical business practices.
For example, companies should not use child labor. They should not get involved in copyright infringements or they should not engage in bribery. But it’s not very simple or easy to determine what’s right “As what right for you might be wrong for others”. For example mission statement of an organization can be “to give a competitive returns to the shareholders of the company” which is perfectly ethical but they should ensure that it’s not done at the cost of harming the society, environment or communities.
Hence it’s the value system of the organization that sets the standard of Ethics. Companies are constantly working in getting the value system to be imbibed in their employees as the employees of the organization interact with their external customers and their actions should ensure that the value systems are being followed. Hence once the value system becomes the DNA of the organization the business ethics would automatically be followed and complied with the set standards. Some organization ensure that the value system acts as kava ( Karma in
Inhabitant could not be defeated till he wore the kava, which he ultimately donated) and ensure that even under extreme pressures to perform the employees never violate it. It can be even compared to Lashing Reach which should never be crossed. Business ethics (also corporate ethics) is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations.
Business ethics has normative and descriptive dimensions. As a corporate practice and a career specialization, the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflects the interaction of profit- maximizing behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the sass and 1 sass, both within major corporations and within academia.
For example, most major corporations today promote their commitment to non-economic values under headings such as ethics codes and social responsibility charters. Adam Smith said, “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices. “Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control.
The emergence of large corporations with limited relationships and sensitivity to the communities in which they operate accelerated the development of formal ethics regimes. – e wisped Customer satisfaction and business ethics are closely related to each other. They are like two sides of a coin and ethical behavior norms of the companies play a crucial part in customers being satisfied or unsatisfied. Though business ethics plays a crucial part in customer satisfaction there are more dimensions to customer satisfaction.