- From your upbringing, you have developed a set of unique values and morals, so that you what is right and what is wrong.
- Ethics are moral principles which govern an individual or organisation’s behaviour or how to conduct certain activities.
- Different countries and religions have slightly different ethics.
Businesses
Businesses often have to decide ethical questions which can affect their operations. Such as:
- Should a loyal, long serving employee who cannot adapt to new technology be fired?
- How should confidential information be handled?
- How should the business decide who to promote? (eg. based on age, sex, ethnic background)
- What is the best method to exploit the market? (eg. deceptive marketing)
Businesses who have made poor ethical decisions will lead to poor business reputation and can result in significant decline in sales revenue.
The global society expects all businesses (especially Transnational Corporations) to be responsible for their actions and behaviour, ie. Corporate Social Responsibility (CSR).
CSR
Corporate social responsibility refers to the business ability to balance the impact financially, social and environmentally.
- Financially: able to achieve reasonable profit to satisfy shareholders.
- Socially: able to improve the lives of the greater society (eg. equal rights, free from discriminations)
- Environmentally: ensure the natural environment is sustainable such that future generations will thrive.
Ethical decision-making can yield multiple benefits to the business. This can include:
- Increase in productivity
- Reduce costs
- Increase in customer sales
- Enhanced business reputation
- Attract potential employees who are knowledgeable and skilful.