Sources Of Business Ethics

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

278

Pages:

2
Author:

JJIssac

SOURCES OF BUSINESS ETHICS Business ethics draw from three main sources:    Religion - Ethics seen as divine will revealing right and wrong conduct. Major religions agree on this. Law - Laws codify expected ethical conduct, changing over time. Businesses must obey laws to be considered ethical. Culture - Shared values and norms shaping acceptable conduct and transmitted across generations. Culture evolves with civilization.  Customers: Fair pricing, product information, safety, complaint redressal  Employees: Fair pay, safe working conditions, training, reasonable job expectations  Investors: Competent management, information, dividends, asset sale rights  Creditors: Timely payment, risk avoidance, information disclosure  Suppliers: Loyalty, bidding opportunities, preference, advice on changes  Communities: Environmental protection, efficient resource use, limited disruption  Competitors: Right to compete, fair practices, honest statements and pricing Benefits of Ethics Ethical conduct benefits: provides multiple  Develops trust through manager predictability and reliability Social Responsibility  Limits regulations as fewer unethical actions mean fewer controlling laws Beyond profit, businesses have a social responsibility to address issues like:  Signals poor management as unethical practices warn of underlying issues   Enables clearer vision as ethical managers formulate sound objectives  Employee welfare and equitable reward  Consumer protection through quality, fair prices, and complaint handling  Supplier relations through prompt payment and fostering goodwill  Community support projects and employment Identifies worthy pursuits that merit priority Stakeholder Rights Key stakeholders have rights that businesses must respect: through minority  Government compliance by adhering to laws, paying taxes, avoiding trade malpractices Managers must balance obligations to shareholders and society for long-term success.