(3) Business Ethics Resources Globally: In recent years, several new ethics resource centers have been established around the globe. Some of these entities focus exclusively on business ethics while others deal more broadly with ethics . These include efforts by the Ethics Resource Center to help build or expand centers in Hong Kong, South Africa and the Middle East and the Berlin-based Transparency International, which works specifically to curb corruption and bribery worldwide.
(4) Corporate: The number of corporate ethics officer’s positions has dramatically increased over the past several years. In 1998, more than 500 U.S. companies had ethics officers as compared to 200 officers in 1992. In addition, a growing number of corporations have added the position of ombudsman, an individual who serves as a neutral, impartial arbiter who aids in dispute resolution. On the other hand, more and more companies that have identified ethics as an issue of critical business importance have chosen not to create a special ethics officer’s position, but instead to develop a decentralized approach whereby all managers are viewed as responsible for ethical decision-making.
Q.3. What do you mean by business ethics? Also explain its nature, importance and benefits in business.
Or Discuss the nature of business ethics.
Ans. Meaning of Business Ethics: Business ethics (also known as 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 organization.
Business ethics is an enquiry of ethics in the field of business. It concentrates on moral standards that the system of business, business organisations, and individuals within the business organisationS and individuals who deal with business organisations have to evaluate and follow in their day-to-day dealings and decisions.
Nature of Business Ethics: Business ethics has both normative and descriptive dimensions. As a corporate practice and a career specializatiOfl the field is primarily normative. Academics attempting to understand business behavior employ descriptive methods. The range and quantity of business ethical issues reflect the interaction of profit-maximising behavior with non-economic concerns. Interest in business ethics accelerated dramatically during the 1980s and 1990s, both within major corporations and within academia. For example, today most major corporations 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.
Importance of Business Ethics: Business ethics is that aspect of corporate governance that has to do with the moral values of managers encouraging them to be transparent in business dealings. Business ethics takes into consideration the feelings of customers in fashioning out the services or, goods that is given to our customers. It also takes into account the interest of other stakeholders. Good business ethics is the backbone of every forward thinking business. This is more important now that consumerism has rooted deep into the heart of the customers. Consumerism IS a term that is used to explain the rights of customers and the position of the law as far as knowing the content of what they consume is concerned.
Benefits of Good Business Ethics: Good business ethics brings much goodwill to a company that in the long run will translates into tangible benefits. Goodwill is that intangible asset that a company has earned over her period of operation as a result of being perceived by business associates and other third parties as being transparent, reliable, straightforward, trustworthy etc.