ETHICS AND BUSINESS.pdf

ETHICS AND BUSINESS I. What is a Business? - A business is an organization or economic system where goods and services are exchanged for another or money (Business Dictionary, n.d.). Every business requires some form of investment and enough customer...

ETHICS AND BUSINESS I. What is a Business? - A business is an organization or economic system where goods and services are exchanged for another or money (Business Dictionary, n.d.). Every business requires some form of investment and enough customers to whom its output can be sold consistently to make a profit. Businesses can be privately owned, not-for-profit, or state-owned. - Business is "an organization or enterprising entity engaged in commercial, industrial, or professional activities." It can be for-profit entities or non-profit organizations that operate to fulfil a charitable mission or further a social cause. Businesses range in scale from sole proprietorships to international corporations. Several lines of the theory are engaged with understanding business administration, including organizational behavior, organization theory, and strategic management. II. Nature of Business Businesses vary in size, as measured by the number of employees or sales volume, but all businesses share the same purpose: to earn profits. However, it should be noted that its purpose goes beyond making a profit. It also includes the following: An essential institution in society Supply of goods and services Creates job opportunities Offers a better quality of life Contributes to the economic growth of the country. Hence, it is understood that the role of business is crucial. Society cannot do without business. It needs no emphasis that business needs society as much. This is because business improves the people's standard of living by providing better quality and diverse goods and services at the right time and place. Besides, the business provides opportunities to work and earn a livelihood. Thus, it generates employment in the country, reducing poverty. When the business environment is conducive for a business organization, such business thrives well, reducing poverty (Aremu & Adeyemi, 2011). Business improves a country's national image by producing and exporting quality goods and services to foreign countries. Participating in international trade fairs and exhibitions also demonstrates its own country's progress and achievements to the outside world. III. The Morality of Profit Motive A profit motive is the goal of most businesses. In capitalism, it is generally considered to be the main reason most businesses exist and is closely tied to the concept of "self-interest." It has also developed a relatively poor reputation and is considered by many to be one of the primary reasons that businesses or corporations are not trusted or require regulation (Weisen & Bailey, 2020). Understanding the nature and morality of profit motive starts with examining some given factors and assumptions in which the idea of profit motive operates. These factors are the following: 1. Profit-motive in business is an ethical issue. Since business is an integral part of society, its activities, including profit- making, must be examined from the perspective of morality. 2. Profit-motive is an ethical issue that operates within two (2) important aspects of our human conduct: freedom and business structure. The element of freedom implies that businesspeople have the right to decide on the amount of profit they want to earn in selling goods and services to customers. IV. Ethics Ethics is a set of principles or standards of human conduct that govern the behavior of individuals or organizations. It can be further defined as the discipline dealing with moral duties and obligations and the explanation of what is good or not good for others and all, as well as the moral choices that are made in relationship with others (Crane & Matten, 2016). V. The Relationship Between Ethics and Business Ethics in business deals with the ethical path business firms ought to adopt. Discussion on ethics in business is necessary because companies can be unethical, and there is plenty of evidence of today's unethical corporate practices. Firms and corporations operate in the social and natural environment. By existing in the social and natural environment, business is duty-bound to be accountable to the natural and social context in which it survives. Irrespective of the demands and pressures upon it, business is bound to be ethical for at least two (2) reasons: 1. Whatever the business does affects its stakeholders. 2. Every juncture of action has trajectories of ethical and unethical paths wherein the business's existence is justified by ethical alternatives it responsibly chooses. The two (2) issues--an organization's social responsibility and responsiveness-ultimately depend on the ethical standards of management: Ethics corresponds to basic human needs. It is a human trait that man desires to be ethical, not only in his private life but also in his business. These basic moral needs compel organizations to be ethically oriented. Values build credibility with the public. A company perceived by the public to be ethically and socialy responsive will be honoured and respected. The management has creditbility with its employees because it has credibility with the public. An ethical attitude helps the management make better decisions because ethics will force the administration to take various aspects (e.g., economic, social, and moral). Value-driven companies are sure to be successful in the long run, though in the short term, they may lose money.  Ethics is important because the government, law, and lawyers cannot do everything to protect society. VI. Definition of Business Ethics Ethics is the discipline that investigates the rightness and wrongness of human actions. When this discipline is used to explore the rightness or wrongness of business activities and conduct of the businesspersons and professionals, it is called business ethics. In its simplest form, business ethics can be defined as a systematic study of ethics applied to business issues. It involves the application of standards of moral behavior to business situations. Concepts of right and wrong are increasingly being interpreted today to include the more complex and subtle questions of fairness, justice, and equity (Cortez, 2016). According to the Stanford Encyclopedia of Philosophy, business ethics is the study of moral standards and how these apply to social systems and organizations through which modern societies produce and distribute goods and services and to the behaviors of the people who work within these organizations. Business ethics, in other words, is a form of applied ethics. It not only includes the analysis of moral norms and values but also attempts to apply the conclusions of analysis to that assortment of institutions, organizations, activities, and pursuit of business. VII. The Importance of Business Ethics 1. The power and influence of business in society are higher than ever before. Business ethics helps in understanding why this is happening, its implications, and how people might address this situation. 2. Business can potentially contribute significantly to societies (producing goods and services, providing employment, etc.). How this contribution is made raises ethical issues that go to the heart of the social role of business in contemporary society. 3. Business malpractices tend to inflict enormous harm on individuals, communities, and the environment. Business ethics can be used to improve the human condition. 4. The demands placed on business to be ethical by its various stakeholders are continually becoming more complex and challenging. Business ethics helps understand these challenges more clearly so that firms can effectively meet these ethical expectations. 5. Business ethics can improve ethical decision-making by providing managers with knowledge and tools. 6. Ethical violations continue to occur in business. Business ethics help by looking at the reasons behind these violations and how managers, regulators, and others can deal with them. 7. Business ethics can allow people to assess the benefits and problems associated with the different ways of managing ethics in organizations. 8. Business ethics provides people with the knowledge that transcends the traditional framework of business studies and confronts people with some of the most important questions faced by society.