Should you apologize when delivering bad news? Many individual factors affect a person's ethical behavior at work, such as knowledge, values, personal goals, morals and personality. It can justify its existence of fulfilling its obligations to the society. A society with fewer problems provides better environment for a firm to conduct its business. Morals are the rules people develop as a result of cultural norms and values and are, traditionally, what employees learn from their childhood, culture, education, religion, etc. What makes you confess to your boss? Powered by WordPress -Web Hosting by GreenGeeks, Finance, Business Studies and Accounting Study Notes. New social standards consider economic activity of business enterprises as legitimate but the condition that they must serve social needs. Therefore any talk of social responsibility is against this objective. It is ‘the principles, norms, and standards of conduct governing an individual or group’ This has forced businessman to pay due regard to the welfare of workers. Good ethics is good business.’ Similarly, ‘Virtue Ethics’ are a set of ethics that is in relation to an actor’s character traits and habits. o Reporting and advice channels Understanding current trends in ethics in society is the best way to know what consumers are paying attention to and worrying about. They are a combination of formal and informal mindsets and rules that determine behaviour in business situations.  Background and experience: exposure to different environments Saying that business ethics is an oxymoron, Ethics is the system of moral principles which affect people in taking decisions and lead their lives. Earlier it was noted that ethics have evolved. o Design codes of ethics realistic with respect to the workplace This might be unethical to you but considered an acceptable norm in their workplace. It is commonly used to all things which people regard as good, desirable and just. Impact of consumer consciousness : Development of education and mass media and increasing competition in the market have made the consumer conscious of his right and power. W. Discuss the ethical behavior of Douglas Durand in the context of the federal whistle-blower law. (a) Responsibility towards shareholders or owners : A firm must provide fair rate of return to shareholders on their capital investment and to ensure safely of their investment. (b) Reduced Risk of Liability : It is possible that an enterprise is held liable to pay compensation to people affected by the toxicity of gaseous, liquid and solid wastes it has released into environment. A good way to stay in touch with current social trends is to follow or hire marketing influencers. Consumers are concerned not only about where their products come from but also how employees are treated, both at the company and manufacturers or suppliers. - Tangible & Intangible, Inheritance Tax: Definition, State & Federal, Quiz & Worksheet - ABC Cost & Inventory Analysis. As mentioned, some industries and professions have ethical codes that are actual law. (Trevino and Nelson, 2014) Ethical Behavior in Marketing: What Are Marketing Ethics? behavior Therefore, business cannot operate successfully because of lack of public confidence. Similarly, business ethics have evolved in ways specific to certain industries. The Factors affecting business ethics are numerous, ranging from internal to external ones. An error occurred trying to load this video. values Cultural values : These are passed on from generation to generation. This will help you to guide your business in a more ethical direction in line with consumers and societies wishes. , there is no factor more important than the social trends in morals and ethics. o A way of predicting moral behavior of people if you know what their general Create your account. Ethics. (b) Responsibility towards : The workers management must provide workers with better conditions to work in, fair wages, bonus and fair dealing. Ethical lapses are not only common in that environment, they’re almost expected. Business ethics Required fields are marked *. study Business ethics is a set of moral standards and principles, Assignment Title Ethics Essay The collapse of Enron and Anderson Accounting along with it put the spotlight on the ethical climate within the accounting industry. However, in other countries, the same behaviour may be perfectly legal and this would influence business ethics in that country with regards to the behaviour. Create an account to start this course today. For example, in the case of the agitation against the Coca Cola Company at Plachimada by the people regarding water pollution concerns, the issue came up only because the people decided to. Far example, professional managers tend to focus less on profit maximisation than owner-managers.