What is business ethics? Definition, Importance, Types


What is business ethics? Definition, Importance, Types

Introduction of business ethics not only enables organizations to maintain good moral and ethical responsibility at the workplace by enhancing accountability but also guides the management to conduct trade or work rightfully and legitimately. Before diving into the details, let us learn exactly what is business ethics and why is it important? By knowing its definition, importance, and types.

Definition: Business ethics in simple words is a set of rules or norms, and professional values masterminded by dignitaries of business organizations to determine the philosophy of the organization, establish a proper code of conduct at workplace environment to conduct business, and institute fundamental principles and personal code of behavior for corporate employees to follow while working at the association.

Formulating appropriate professional ethics and values in the business world eliminates the risk of fraudulent practices at the workplace by empowering corporations to combat unnecessary and unanticipated issues/ problems at early stages without affecting the individuals and profits of the organizations.

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Importance of Business Ethics

  • Implementing good business ethics eliminates cropping up of legal issues such as trademark and copyright infringement, patent and copyright misuse, trademark trolling, employee raiding and monopolizing talent, bio-piracy, industrial espionage, bribery, and many more
  • Business ethics abolishes discrimination, inequality, prejudice, sexism, and racialism at the workplace environment
  • Good business ethics improve decision-making, and governance of organization and employees working in it
  • Reliable professional ethics attract employees to stay longer and work harder
  • Good business ethics attract investors to invest in the company, and customers to purchase the product
  • Wholesome business ethics contribute to the enhancement of the positive reputation of the organization
  • Creates a hassle-free work environment by encouraging employees to improves social and personal responsibility, follow business principles, and develop a good professional code of behavior

Principles of Business Ethics

The common and fundamental components of the principles of business ethics are:

  • Transparency and Truthfulness
  • Honesty
  • Integrity
  • Loyalty
  • Respect for Privacy and Autonomy
  • Equality and Fairness
date  08 Jul 2019

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