Business ethics or corporate ethics are the policies and practices that a business should follow to get accepted by government and public. Business ethics are laid down for various fields like environment, policies of management towards employers, policies of the organization towards its customers and many more. Following moral values is the key to success for any organization.
Some of the components of business ethics which lays a strong foundation of any business are as follow:
1. There are five core ethical values: respect, caring, trustworthiness, responsibility and, fairness.
2. Giving importance to its internal members
3. Work keeping in my well being and satisfaction of all the parties involved in the business like employees, suppliers, customers and, shareholders
4. Taking social responsibility for all business activities
Following above moral value not only help in building a strong relationship with employees, customers and, other involved members but will also help in achieving the ultimate goal of business like an increase in sales, higher profits, etc.
Following ethics in business helps in improving the overall performance of the company. A company with strong values will have lesser conflicts with its internal as well as external members. A company with strong ethical value will hold a strong image in the market. Suppliers and investors want to work with a company which has a good image in the market.
Business ethics build pressure on an organization to work in a specific manner. It sets a standard on the basis of which a decision of an organization can be checked. Business ethics policies are laid for almost all the business related field. They help to keep a check on the behavior of a company towards its employees, environment, state as well as customers.