What are the definition of business ethics and give your own opinion about why we should be ethical in business.

       The definition of business is an economic activity, a transaction where an offer is made by a seller and the offer is accepted by a buyer for a consideration with the hidden agenda of a gain or profit. The definition of ethics is the basic concepts and fundamental principles of decent human conduct. It includes study of universal values such as the essential equality of all men and women, human or natural rights, obedience to the law of land, concern for health and safety and, increasingly, also for the natural environment. See also morality.

       So, from both definitions, we can conclude the real meaning of business ethics. The definition of business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed. Business Ethics can be defined as the critical, structured examination of how people and institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affects others.

       Business ethics are not written in stone. There is no set guide to go by. Instead, business ethics simply means conducting your business in a way that is both honest and moral, whatever that means in your particular industry. There was a time when ethics played little or no role in business practices. Today, however, consumers, employees, and businesses that serve other businesses are extremely informed, and business ethics are more important than ever.

       Ethics! What do we imagine when we here this word. Some of our civilizations greatest minds for example Aristotle and Socrates have tried to define it. One of them thought that ethics is your self- knowledge, other explained ethics as self-realization. But i think that the most common definition of this word is values. Actions, which is we can divide by two. That it is a good or bad. If one does things that please others, we call him an ethical, but if his actions are not recognized by public, we call this person non-ethical, irrational and even bad. One fact is sure- ethics more something you feel not, what you know or can learn. But what role does this ethical issue play in business?

       I think that in nowadays this border between ethical and non-ethical actions is really thin, because persons who are working in business environment have to make decisions touching this question every day. For most of these people profit is the main aim and i think it’s pretty reasonable. But if the competition is acrimonious and government has implemented some new laws, which force us to pay tremendous taxes-, are we allowed doing illegal actions to save our business from bankruptcy? And the answer is simple: “no, we must obey the laws”. But what would happen if there weren’t such obligations as laws. Would entrepreneurs still work ethical?

       I believe that by complying with principles of ethics, businessman can provide themselves better surroundings for the future. It is a long term condition. For example if a businessman thinks only short term and acts unethical by providing bad service or selling flaws to his clients which is to save some money on expenses, it will provide him some extra euro’s. But sooner or later his clients will be tired from this disappointment and they will choose other companies. In long term unethical actions will rarely pay back. Good reputation is one of the reasons for being ethical.

       Let's take a look at some of the more important business ethics that you should be aware that I will share with you and everyone too. For the first business ethics that you should to aware is ethics that concern consumers. This would include things such as developing quality products, charging a fair amount for the product, backing the product with a guarantee and honoring that guarantee, and making sure that your customers - consumers - are completely satisfied in their business transactions with you. It also entails providing safe products for consumers, and advertising those products in an ethical - truthful - manner.

       Next is a business ethics that really concerning business-to-business transaction. Obviously, you should conduct business with other business owners in an ethical manner. Failing to pay vendors is not ethical. Ruining the reputation of a vendor, without just cause, is not ethical. Asking another business to do something illegal is not ethical. Getting creative with the accounting is not ethical. Bribery, kickbacks, and other types of transactions such as this, of course, are not ethical, and are illegal in most cases.

       Lastly is employee ethics. Just as you expect your employees to hold up to a certain set of standards, your employees expect you to hold up to a certain set of standards as well. Most people will remember the Enron scandal for years, and many business schools will hold the Enron scandal up as an example in their business ethics classes for the rest of time. Other ethical concerns that relate to employees include discrimination, sexual harassment, union busting, privacy issues, and even work place surveillance, such as reading the email of employees, or listening in on their personal phone calls.

       Experts in business management and researchers have endorsed the need for businessmen and company professionals to study ethics. They have asserted the importance of founding business on ethical values and following them. They have urged management professionals to adhere to ethics and accept it as a part of business. Ethics remain being important in business and strong ethical values shall take the business a long way!

       If you are a business owner, and you have never taken a course in business ethics, you should really consider doing so. Such classes are offered at most local colleges, and are even available online. Know what is and what is not acceptable in the business world, and you will be better able to help your business grow and succeed, with your reputation intact. Lastly from me, everyone should to remember this phrase ‘good ethics is good business’.

Assignment Two

The next post will be my second assignment for Business Ethics and Corporate Governance.

My assignment is all about of business ethics topic.

The topic that I was chooses is What is the definition of business ethics and give your own opinion about why we should be ethical in business. 

Let's take a look of my assignment now.

May be you should take a hot Nescafe' drink when you are reading my essay!  ツ

 

Business Ethics and Corporate Governance's assignment.

     

                                             The Definition of Business Ethics.

      Business Ethics can be defined as the critical, structured examination of how people and institutions should behave in the world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affects others.

      The most widely accepted definition for business ethics says that it is a set of corporate values and codes of principles, which may be written or unwritten, by which a company evaluates its actions and business-related decisions. As the definition goes, business ethics can be written or unwritten. This is because most of the time, ethics business and the criteria for what is good and what is bad is shaped by a company’s best practices and long-standing culture.

      

      In simplest terms, ethics business refers to the propensity to differentiate right from wrong, and the resiliency to choose to do what’s right in terms of actions and decisions. It applies to the employees both rank-and-file and managers as well as the company as a whole.

      Companies and businesspeople who wish to thrive long-term must adopt sound ethical decision-making practices. Companies and people who behave in a socially responsible manner are much more likely to enjoy ultimate success than those whose actions are motivated solely by profits. Knowing the difference between right and wrong and choosing what is right is the foundation for ethical decision making. In many cases, doing the right thing often leads to the greatest financial, social, and personal rewards in the long run.

      In other way, Business ethics are ethics that refer to the moral rules and regulations governing the business world. In other words, they are the moral values that guide the way corporations or other business make decisions.

What is definition of Corporate Governance?

Corporate Governance refers to the way a corporation is governed. It is the technique by which companies are directed and managed. It means carrying the business as per the stakeholders’ desires. It is actually conducted by the board of Directors and the concerned committees for the company’s stakeholder’s benefit. It is all about balancing individual and societal goals, as well as, economic and social goals.

Corporate Governance is the interaction between various participants (shareholders, board of directors, and company’s management) in shaping corporation’s performance and the way it is proceeding towards. The relationship between the owners and the managers in an organization must be healthy and there should be no conflict between the two. The owners must see that individual’s actual performance is according to the standard performance. These dimensions of corporate governance should not be overlooked.

Corporate Governance deals with the manner the providers of finance guarantee themselves of getting a fair return on their investment. Corporate Governance clearly distinguishes between the owners and the managers. The managers are the deciding authority. In modern corporations, the functions or tasks of owners and managers should be clearly defined, rather, harmonizing.

Corporate Governance deals with determining ways to take effective strategic decisions. It gives ultimate authority and complete responsibility to the Board of Directors. In today’s market- oriented economy, the need for corporate governance arises. Also, efficiency as well as globalization are significant factors urging corporate governance. Corporate Governance is essential to develop added value to the stakeholders.

Corporate Governance ensures transparency which ensures strong and balanced economic development. This also ensures that the interests of all shareholders (majority as well as minority shareholders) are safeguarded. It ensures that all shareholders fully exercise their rights and that the organization fully recognizes their rights.

Corporate Governance has a broad scope. It includes both social and institutional aspects. Corporate Governance encourages a trustworthy, moral, as well as ethical environment.

That have a few of benefits of Corporate Governance.

1. Good corporate governance ensures corporate success and economic growth.
2. Strong corporate governance maintains investors’ confidence, as a result of which, company can raise capital efficiently and effectively.
3. It lowers the capital cost.
4. There is a positive impact on the share price.
5. It provides proper inducement to the owners as well as managers to achieve objectives that are in interests of the shareholders and the organization.
6. Good corporate governance also minimizes wastages, corruption, risks and mismanagement.
7. It helps in brand formation and development.
8. It ensures organization in managed in a manner that fits the best interests of all.  

Why Business Ethics is Considered “Oxymoron”?

An oxymoron is a figure of speech that combines incongruous or contradictory terms. Oxymorons or called as oxymora are literary figures of speech usually composed of a pair of neighbouring contradictory words (often within a sentence). However this is not always the case. The Webster Dictionary defines oxymoron as "a combination of contradictory or incongruous words".

By oxymoron, we mean the bringing together of two apparently contradictory concepts such as cheerful pessimist or deafening silence.

       The question determine if Business Ethic can be an oxymoron is very relevant because these two areas seem to be very incompatible. Indeed if we have a look to their respective definitions they do not work together first. Succeeding in business is largely about advancing our own private interests, aggressively competing against other people, beating them out for the same prize, and having unlimited ambition for money, position, and power. The moral life by contrast, focuses on our duties to hurt anyone (deliberately or accidentally ), to place other people's interest ahead of our own when it's called for, and always to treat others with the dignity and respect they deserve.

       An oxymoron is the juxtaposition of two apparently contradictory words or concepts. The very contradiction that is inherent in Business Ethics is an indication of the challenge that individuals who work for organisations face when they have to take decisions that involves conflicts of interest. Aim of business and ethics are contradictory and incompatible (apparently). Business ethics put values in conflict according to Trevino and Nelson on 2007. The global concept of business is fundamentally based on the principle of competation for limited resources. That means the practice of maximizing one's gains at the expense of others. The outcome is the creation of a hierarchy of those who have and those who have not. Therefore the aim is "to eliminate" the others in orders in order to obtain more. As said Mielton Friedman "The social responsibility of business is to increase its profits".