What Are Business Ethics And How Important They Are?

What Are Business Ethics And How Important They Are?

Business ethics is a matter of much debate. Each MBA participant is taught the meaning of them, yet many do not follow the patterns of real life career. It has become a vast and complex, and is the subject of much research. Business ethics covers a large and significant portion of what it takes to do business today. In the context of business ethics is:


• Social responsibility of business is supposed to be against society in general, including one in which it operates, or has any interest. An example of this would be the oil spill of Exxon Mobil. It is a commitment to protect the interests of people, animals and the environment in which it uses resources. Due to the mishandling of the problem, it was a public relations nightmare for the company. Exxon was ordered to clean the area he would have taken care not to damage at first. Indifference to business ethics in this case because a negative image for the company and a huge trial.

• Questions regarding the liability of a company to its shareholders. This is a highly regulated field, but requires a lot of government intervention because of some unethical practices that many companies in the past. The concept of shareholder value is one of the fundamentals of a company whose business ethics is not at stake here, the business may collapse due to pressure from shareholders.

• Intercompany transactions and negotiations. Companies often rivalries can turn ugly because of money and I guide them. hostile takeovers and espionage activities are some examples of unethical behavior within the business world. If detected, these acts are punishable by law, or simply public opinion. So that fair play and keeping the best interests of consumers in mind, the government sets a lot of what is happening with the company's business. Microsoft has had a lot of abuse and resentment, because of his alleged business dominant technologies. Although this is not sunk IT giant, which many say may be a long-term effect. The government has also agreed to ensure that other businesses and consumers from danger.

• The protection of stakeholders. Every company has stakeholders other than their owners - employees, shareholders and the general public. The company must ensure that the rights and interests of all groups are adequately protected in the framework of its activities. Recent protests about the harassment and poor working conditions of employees of Wal-Mart has led to the generation of a lot of bad press over the tent outside the norm. This gives the head of the competition and rivals to take this opportunity to advance, while the company is busy trying to do some damage control.

• The basic business practices of a society. reports of the secret use of inferior products, spreading false information about the product, hiring illegal workers less than minimum wage, and so demonstrate that a company is managed in a manner contrary to the ethics and this is not a place high quality work or service. For example, tobacco companies have spent much of the seventies to tell people that smoking was unhealthy, even though I knew it's wrong. In a recent case, one such company was forced to pay $ 28 billion.