Business ethics refers to the implementation of moral principles and a set of values that employers and employees need to follow in a company.
These ethics play an important part in differentiating right behaviour from wrong behaviour, be it professional or personal decision. In business, ethics is a way to endure that the right practices are followed in a company.
An organisation may have different ideas when it comes to the question, what is business ethics? Organisations that understand the importance of business ethics are respected for their conduct. To earn the loyalty of the society and the employees a company should be bound to the business ethics.
Dr. Timi Olubiyi, an entrepreneurship and business management expert said that “no one deny the importance of workplace ethics. Because ethics are those principles that help us make the right decision in any situation.”
He noted that as employees, it is important to be aware of the ethical boundaries that exist in the workplace and how to stay within them.
Fundamental Business Ethics
There are many fundamental business ethics important to a company.
Fairness: All employees, from the entry-level to the executives, must commit themselves to fairness in the workplace. Fairness ensures that all employees treat each other equally, regardless of their status, tenure, race or age.
Respect: All employees should have respect for themselves and their co-workers.
Honesty: Honesty includes telling the truth, being transparent, and taking ownership of your words, work and actions.
Accountability: Accountability means taking responsibility for your actions. When all employees are aware of the expectations set for them, it becomes easier for them to understand what they are accountable for.
Loyalty: Loyalty includes being loyal to the company and its mission.
Integrity: Integrity means doing what is right and honest, even under the most difficult situations.
Why Business Ethics are Important
The key reason why the conduct of business ethics is important is that it creates the difference between right and wrong. Hence, the organisation must encourage employees to follow business ethics.
Positive Brand Image: If ethical behaviour is followed in a business it is beneficial in various ways such as a good reputation for the company and a better work environment for the employees.
Better Work Environment: Running an organisation ethically and training the workforce to treat others with proper professional ethics is a win-win situation for the company management and employees.
Enhanced Productivity:Business ethics in the workplace are necessary to increase the productivity of employees. It helps to align business values with your staff and achieve goals.
Guide Decision-making: Conducting business ethically motivates a culture of making decisions depending on ethics. Also, it enhances transparency as well as accountability while taking any business-related decisions.
Improved Teamwork: When you implement business ethics in the workplace, individuals also start working as a team and help companies to grow especially in variable market conditions.
Avoid Legal Issues: Companies with unethical practices may experience legal actions which can negatively impact their reputation in the market. The unethical behaviour of a few employees can also affect the reputations of other employees. Hence, it is good to follow business ethics at the workplace as it mitigates the chances of legal problems.
One of the best practices to encourage the workforce to follow workplace ethics is by being specific about it during the hiring process. HR professionals must convey to potential candidates about the company policies and code of conduct so that they understand how to behave in the workplace.
