Talking about business ethics means addressing a vast area that has created countless chairs, publications, and even organizations that have specialized solely and exclusively in studying this topic.
Despite such scope, we would like to share with you a clear definition of what business ethics is and some practical advice that we hope will help you understand how to create an ethical work environment and how to create a code of business ethics.
Table of Contents
The concept of Business Ethics
To have a clear definition of business ethics, we need to approach this concept from two different angles: one academic and one organizational.
Business Ethics as a discipline of study
From a theoretical point of view, BE can study the ethical dimensions of productive governments and commercial activities. Such study includes ethical analyzes related to the production, distribution, marketing, sale, and consumption of goods and services, from business products to no-down-payment car insurance
Parallel to the above, there are some specific areas in which business ethics has a great preponderance and among which the following stand out:
In addition to areas, it is essential to say the approach to business ethics varies according to the type of productive sector a company is located in. Let’s look at the ethical issues that are most relevant in the following sectors:
- Construction industry (contracting conditions, health, and safety, environmental sustainability, supply chain).
- Financial services (regulations, tax evasion, responsible practices, consumer protection)
- Mobile and computing technology (competition practices, wrike enterprise pricing policies and strategies, data protection, consumer protection, energy use)
Now that we know what business morals are from an academic point of view and its areas of focus, it is time to understand business ethics from an organizational point of view.
What is Business Ethics at the organizational level
Business ethics correspond to the set of values and behaviors that define how a business operates, makes decisions, serves its consumers, and treats its employees.
In other words, BE is the expression of how a company applies ethical values to its behavior. However, business ethics is relevant for the company as a whole and for each of the individuals who are part of it.
BE applies to all spheres of conduct of a company, from how it treats its employees and consumers to how it sells its products or conducts business accounting.
But why are business ethics important? What are the aids of having good BE? What risks do you run when you don’t have BE?
Importance of Business Ethics
it is necessary to take a look at the main benefits that derive from it as well as the potential damages that result when you do not have good BE.
Benefits of Business Ethics
1. Legal compliance
The first great benefit obtained when acting with BE lies in the simple fact of working by the provisions of the law,
which guarantees the company that its actions do not harm its employees, consumers, and all parties with the which interacts.
Avoiding legal problems is one of the best ways to protect your reputation and avoid unnecessary expenses in legal disputes.
2. Access to the best talent on the market
When it comes to accepting a job offer, salary is still a valuable item. However, the new generations of workers are looking for much more than a good salary.
In fact, for most of today’s young professionals. Being part of a company that has good BE and is socially responsible is something that counts a lot.
3. Good level of commitment among employees
When you involve your employees in long-term objectives such as the design of social responsibility initiatives, for example.
They will feel that they are part of something that goes far beyond their daily work, which will foster a hefty dose of commitment to your business.
4. Strong brand and reputation
When consumers associate your brand with ethical values, trust in your company goes through the roof. Generating a positive effect on the reputation and corporate image that your business has in the market.
5. Competitive advantage in the market
Continuing with the above, if you manage to consolidate a solid brand and corporate image. You will maintain a decisive competitive advantage in the market that will allow you to have a constantly growing business.
