ASSIGNMENT 2:

What the advantages of good business ethics??..

          A business is not just about money making at all costs.  There are considerations to be made outside traditional money making and ethical and moral considerations. A business should have a positive influence on its immediate surroundings and the people that live in the community by creating jobs and playing a significant role in the economical and social welfare of the community. The effect of unethical practices by a business will create a bad reputation and distrust among the employees and the community.

Companies with good ethical policies earn:

• The performance of employees improves with good ethical policies present in a company. Morale is high and employees feel obligated to put in their all to continue to make it a success.

• Reputation management: a bad reputation is created by unethical behaviour which will eventually lead to a scandal. A scandal will result in falling stock prices, anxiety, and low morale among employees as well as government and public scrutiny and inquests.

           Individual opinion of what is ethical varies, hence the importance for the company to set standards that represent and are applied throughout the organization. The Human resource team is the starting point of ethical reformation in an organization. The careful selection and training of the human resource team is necessary if they are to train other employees on ethics. Sound ethical policies in a company create a unified and morally sound approach to business practice.

 

           Business ethics offer companies a competitive advantage. Consumers learn to trust ethical brands and remain loyal to them, even during difficult periods. Society benefits from business ethics because ethical companies recognize their social responsibilities. 

References:-

 

- http://smallbusiness.chron.com/advantages-disadvantages-business-ethics-10414.html 
 
- http://www.sixsigmaonline.org/six-sigma-training-certification-information/the-importance-and-advantages-of-good-business-ethics.html
 
- Book - Oxford Business Ethics (Third Edition)