business ethics

Y-Negocios

2022

We explain what business ethics is, its origin and characteristics. Also, examples of business ethics and lack of ethics.

Business ethics includes minimizing the ecological impact.

What is business ethics?

Business ethics is a set of principles and rules that guide the performance of a business in the field of business. It is governed by moral, that is, the difference between what is right and what is wrong, between what is right and what is inappropriate. It is also governed by ideals and values.

Business ethics applies to all aspects of the organization, even in the behavior of the individuals that make it up. The interrelation between business ethics and the professional ethics of its human Resources It is the foundation that will guide the business.

In addition, companies must minimize any damage or impact negative that may generate in the environment or in nearby communities. This is also part of the ethical principles, but due to the specificity and complexity of the social issue, this area is called Corporate Social Responsibility (CSR).

Ethical business is highly valued among customers and collaborators. The ethics must be part of the corporate culture at all times so that the society trust the products or services it provides, especially in the long term.

Origin of business ethics

Ethics is a branch of the philosophy that deals with the rational study of morality, virtue, duty and good living. In the field of business worldwide, business ethics seeks to find the reasons that justify one moral system with respect to the other, to achieve a balance or general improvement.

The term "business ethics" emerged in the United States in the 1970s and expanded in Europe and in Japan in the eighties. From the moral point of view, the concept did not mean the same for all regions of the world, due to the socio-political and economic differences of each one. What in a territory it was considered acceptable, in another it might not be.

Business ethics became a discipline academic after a group of philosophers intervened and debated "ethics in medicine." As a discipline, business ethics deals with studying the morals around the performance of companies and their impact on society.

In 2000, issues around business ethics were associated with the United Nations Global Compact. This pact consists of an international initiative to promote ten universally accepted principles on the importance of integrity and ethics in the commercial relations of companies and between companies. persons of the business world.

Characteristics of business ethics

Companies are legal entities and, like the Humans, their activities should be based on compliance with the law and be legitimate before the community. That is why they must apply ethics at the organizational level. Some characteristics of business ethics, as established by the United Nations, are:

  • The solidarity. It consists of actively expressing interest in the well-being of others (of its members and external agents).
  • The efficiency. It consists of the responsible use of means, both for production and for the performance of the organization.
  • Rationality. It consists of using the logic to make decisions, and not impulses, prejudices or emotions.
  • The equity. It consists of treating individuals equally, without prejudice or discrimination. Requires having the ability to empathy.
  • The dignity. It consists of acting responsibly, respecting others (other organizations or people) despite differences.
  • Transparency. It consists of showing your activity clearly and simply, without hiding information or generating confusing messages.
  • Continuous improvement. It consists of a performance in constant evaluation, even though it is working correctly.

Importance of business ethics

Business ethics is an essential factor for society. Companies have great potential to transform people's lives and alleviate the poverty through economic growth.

However, they must be aligned with the objectives of the society they serve, that is, they must act under business ethics. Otherwise, the long-term growth of one of the parties (of the company or the company) may be reduced.

The governments of developing countries face many Social problems Y economic that challenge ethical practices, due to the contrasts between poverty and the better-off classes, the Social inequality and access to a quality of life that meets basic needs.

Acting under business ethics represents a financial cost for any organization, which is a investment long-term for their livelihood and that of their environment.

The benefits are several: reduction of fatal accidents, optimization of the budget after proper management of resources, increased motivation of employees improves the image of the institution within the market.

Examples of business ethics

Some examples of behaviors Ethics that can occur in the business world are:

  • Act according to values ​​such as equality, Liberty, dialogue, I respect and solidarity.
  • Develop a organizational culture with common values ​​for all its members, beyond the different levels of hierarchy.
  • Make an effort to achieve the satisfaction of all the agents involved in the company, such as shareholders, managers, employees, suppliers and customers.
  • Assume social responsibility for their actions and for their direct and indirect impact.
  • Work actively to reduce conflicts between the parts that make up the company.

Examples of Lack of Business Ethics

Some examples of unethical conduct that can occur in the business world are:

  • Bribes to the authorities to make a profit.
  • Corruption such as the illegitimate use of privileged information (tax, financial or legal).
  • The lack of security measures to carry out activities.
  • The abuse of power internally and with agents external to the company.
  • Failure to comply with current regulations.
  • Discrimination that can occur based on race, gender, ideology, religion, physical appearance, among others.
  • The exploitation labor in any of its forms (such as long hours or child labor).
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