Analysis leads to the conclusion that observance of business ethics is not optional.
Every business venture aims at flourishing in the modern marketplace. There are several methods of achieving including the application of marketing strategies for sales increase, manufacturing and production concepts for cost-effectiveness and organizational management for over-all company harmony. However, the concept of an ethically-run business as necessary for the company to succeed is becoming more and more recognized.
Corporate Social Responsibility (CSR) has become a by word for many business professionals. Although it is generally observing ethics and morals in business dealings, CSR is thought to comprise of activities such as supporting charities is CSR, funding anti-crime and poverty programs, exceeding legal or regulatory obligations in areas of business operation such as health and safety and consumer rights, managing the supply chain to ensure that suppliers respect human rights is CSR and taking measures to ensure that products do not harm the environment. (Kotler and Nancy 2004, p. 3)
Our concern is not so much in defining CSR but in determining whether the observance of business ethics is optional or not. This paper will argue that business ethics is necessary and beneficial for the business firm. ...
Increased Job Performance Quality
The reason why a field in business called Human Resources Management (HRM) exists is that it was long recognized that there is a need to ensure that employee issues are properly addressed. One of the secrets of successful business companies is that they were able to derive extra commitment from all employees resulting to unprecedented quality and responsiveness in products and services along with heroic frugality, incredible levels of integration and collaboration within and without the organizations, and especially to pull off continuous, brilliant, and cheap innovation.
According to the only way one can "manage" high level human output is to set the conditions for everyone doing their best: including support of the core competencies of people, their ability to self-organize, their ability to change and grow. A company can achieve this if it fosters trust and build organizational cultures in which freedom and personal initiative can cohabit with cooperation, caring and a highly integrated harmony. Only thru a sincere observance of business ethics can the company assure that its employees do not stage rallies, release negative public statements regarding the company, resign and reveal company trade secrets.
Being ethical also helps in attracting excellent and skilled professionals to work for the company. The Industrial Society for the UK (in Price 2002) reports that "82% of UK professionals claimed that they would not work for an organisation whose values they did not believe in" and that "among smaller businesses, the survey showed that 62% of owner managers were influenced by their employees to be more socially active."
Observing moral and ethical values in the conduct of business does not