Business ethic is a very fundamental factor for the success of an organization. It was introduced as a result of business scandal or misconduct by both the employees and the employers. For instance, the financial debacle of 2008 made the country to suffer from the bad reputation because of irresponsibility of some organizations. Another breach of the business ethic concept is evident by the Chinese export sector, whereby their products were contaminated for example the toys and the drywalls.
The 2008 financial disaster affected the U.S.A. market and the entire banking system. The market enjoyed the privilege of borrowing money at cheaper rates. It therefore frightens the investors from investing in real estate. In a general perspective, business ethic focuses on the creation of positive values hence encouraging coexistence in the workplace and any other business operation. The main cause of unethical scenario is the people’s bad character in an organization.
Business ethic is a self-acquired trait through good morals in the community. This means that people in the business does not need to attend for a lesson in order to be able to differentiate between bad and wrong. This argument is supported by its definition, which states that ethics are the moral values that stands or portrays an individual as relative and personal. Using the managerial approach, ethic in business can be managed by taking looking at the human behavior and understanding them within the organization.
Ethic goes hand in hand with the law abiding the country or the community. This implies that following the set rules and regulation would result to the (good control) of the behavior hence creating a connection between ethic and law. It is very fundamental to be ethical because it would influence the manner in which a person performs or relates to issues within the organization. This comes along with the development of care as a manager, executive and any other leadership position.
The concept of business ethics assists in the decision of making process of an individual having acquired or being aware of what is right and wrong. Using the prescriptive approach helps in decision making of a person. Ethical decision-making requires a person to rule right over wrong. It simply means that a person should be in a good position to identify two conflicting values and pit the most suitable and convenient against the other. It would show how to use the prescriptive approach in an ethical dilemma.
The best approach to use in the evaluation of the ethical dilemmas is determining whether deciding on what is right or wrong would result in any consequences. The approach would pay more attention on the possible consequences of the decision made. The next approach should focus on the principles, duties and obligation of the decision made. This means that some moral values are more fundament despite the consequences that is associated with decision. For instance, the principles binding the drug study regardless of the impact it has to the cancer patients
For a business ethical decision making to take place, the following step should be adhered to;
- All facts should be gathered together
- The ethical issued need a clear and distinguishing definition
- The affected parties need to be stated that is the identification of the stakeholder.
- Outline the obligation of the entire process
- Proper any decision making there should be a consideration of one’s integrity and character.
- Finally determine creatively the possible actions.
Velasquez, Manuel G., and Manuel Velazquez. Business ethics: Concepts and cases. 5th ed. Upper Saddle River, NJ: Prentice Hall, 2002.
Crane, Andrew, and Dirk Matten. Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press, 2007.