Ethics in business is one of the most disputable concepts in the business world. Lots of people claim that ethics is one of core principles for the contemporary business world as it ensures proper functioning of all agents in the global market. Scholars as well as business people note that recent financial crises (including the global crisis of 2008) were caused by unethical behavior of some agents. Besides, trust of clients as well as partners is very important in the competitive world of the twenty-first century.
Therefore, business people tend to agree that ethics should be an integral part of business and all stakeholders should act responsibly and ethically. However, to incorporate ethics in business, it is essential to understand what it is. Hence, it is crucial to define the concept. Though numerous definitions exist, it is necessary to provide a comprehensive definition.
In the first place, it is important to note that ethics in business can be defined as a set of regulations that adhere to the terrain of morality. These regulations address such concepts as trust, reliability, honesty, transparency, consistency, respect, etc. Noteworthy, stakeholders should be especially attentive and responsible when dealing with information. Hence, stakeholders should provide complete and correct information on any matter.
They should also share information especially when they notice certain hazards to their business or the entire market. Clearly, stakeholders cannot let themselves gain profits at the expense of other businesses. For example, agreements to act in a way that can cause bankruptcy of some companies are immoral. More so, they can lead to negative effects, e.g. unfavorable changes in the market or even a new crisis.
Apart from this, it is also important to mention that ethics in business is impossible if some stakeholders do not share ethical values. Ethical behavior should be present at all levels. Employees, top management and organizations should act ethically. Notably, employees often act unethically even though the company’s actions are ethical. On the contrary, sometimes companies act unethically although the majority of their employees act properly.
For example, a company can be involved in a scandal due to unethical actions of its CEO. However, the head of the company or shareholders can choose another CEO and try to diminish negative results of the previous CEO’s actions.
At the same time, there have been numerous examples when the head of a company was responsible for scandals even though the rest of the company’s employees acted ethically. Therefore, business world can be characterized by ethical behavior if all stakeholders act ethically and share the same ethical values.
To sum up, it is possible to conclude that ethics in business is a set of regulations followed by all stakeholders. It is aimed at development of conduct based on such concepts as trust, reliability, honesty, and consistency. It is also important to note that ethics in business is crucial as it ensures proper development of the global market. Ethics in business can help avoid global financial crises in the future.