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Why Business Ethics is Important?

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Why Business Ethics is Important?, This article will cover about the ethics which is very important now a days and has become the deciding factor of purchasing product. So it will acknowledge you about the importance of the business ethics in the venture and what the scope of the same in the business. This has become the integral part of any business as there has been now virtual trading and e-commerce transactions which would largely include business ethics.

Why Business Ethics is Important

Scope of Business Ethics

Business Ethics is a very broad term which would include the business rules and regulations and many other matters. Ethical issues is very common in any organisation, the only matter is that how we can solve it. Business ethics are the ground rules of individual company and societal behaviour.

  1. Society:
    1. Concerns and help the needy and the poor people in the society.
    2. There should be no discrimination against any kind of particular group and the section of the people.
    3. Keep the surroundings and the environment clean
    4. Preserve the scarce resources in the environment
  2. Internal Policy:
    1. Equal level of importance to each and every employee of the company and no discrimination on the basis of caste, creed, etc.
    2. Company should motivate the employee with monetary and non-monetary benefits.
    3. Communication process should be simple and easy.
  3. Personal Policy:
    1. Should not only focus on the personal goals, it should rather focus on the organisation’s goal
    2. Not to indulge in any unfair practices, such as manipulation of books of accounts.
    3. Keep Mutual understanding amongst the employees and every staff of the company.
    4. Follow the standard method of processing and avoid shortcuts.
  4. Stakeholder:
    1. The quality of the products should be maintained at the quality standards of the company.
    2. The price charged should be affordable to the customers.
    3. Ensure that the share holders get the steady returns.
    4. See that there is prompt payment of the loans borrowed.

Importance of Business Ethics:

  1. Credit Building Always the image or the reputation of the company is created by how the company is behaving with their employees, with their creditors and debtors etc. There may be chances where one appreciates the person who may have no information of the working of the company.
  2. To satisfy human needs Every employee working in the organisation has some basic human needs due to which he is working over here. If such needs are not satisfied then he would not be able to work properly in the organisation. Every employee needs the organisation which is doing all the things ethical and fair.
  3. Long term gains – The organisation which is adopting ethics in their venture would surely get success in the long run, it might be possible that in the short run, that there are profits when following unethical practices, but you should be clear in the mind that ethical practices should only be adopted.
  4. Improves Decision Making There are various situations in which the decision of the person is very much relevant due to which the organisation’s future is dependent on. The person should be very clear that what he needs to achieve for the organisation as a whole.
  5. Secures the society Following the Business Ethics would surely improve the society’s trust towards the organisation and would result into the more profitability amongst the organisation.
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About Yash Shah

Yash Shah is passionate article writer and has written more than 100 articles in the field of Finance, Insurance, Stock Market, Company Law, Auditing, Taxation and many others. In case of any queries or suggestions, you can reach the author @ [email protected], you can also catch him on facebook @ yashshah299

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