What are the factors that influence business ethics?
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There are many ways to answer this question. Part of the reason for this is due to the fact that you need to define terms like ethics. As you probably know, ethics is a huge area of study and very debated. But if you are asking about business, then there are a few things that you should keep in mind. First, with money there is great temptation to cut corners, because human nature likes money, to be honest. Second, as businesses become more and more complex, there are different ways to present data. As the public knows all too painfully, companies can manipulate their earnings or shortcomings in so many different ways. I believe this is an ethical question, because it is possible to tell no lies without ever telling the truth. The paradox is in the perspectives. These are all ethical questions.
Ethics is the study of ways of distinguishing and deciding on right and moral behavior as as distinguished from wrong and immoral behavior. The business ethics involves issues of the general policies and practices adopted by a business as a whole as well as its actions in specific situations involving ethical considerations. Business ethics is also impacted by the behaviour of the senior managers responsible for managing the business.
In taking decisions involving ethical issues a business must take in to several considerations. Among others these include:
- Identification of stakeholders of the business and their rights and responsibilities. The stakeholder generally include customers, employees, shareholder or owners, suppliers, other business partners, government and other statutory organizations, and general public.
- Importance of profit and other similar motives of the business and its managers in relation to the importance of morality, honesty and other similar values.
- The extent of responsibility of business for specific areas of responsibility to community in general. Among others it includes environmental protection, equality and fairness in dealing with people among all stake holder groups, product quality and reliability, and abetting corruption.
- Personal value system and belief of the managers and owners of the business.
- Impact of ethical behavior on short term and long term business performance and prospects.
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