What is Business Ethics?
The term business ethics refers to the set of principles that actually guides a company’s performance. All these principles control every aspect of the company’s operations, such as its treatment of its employees, its interaction with the government and other businesses, and also its relationship with its customers. Whenever any ethical problem arises, a business references these foundational principles to help resolve those situations.
Types of Business Ethics
There are various types of business ethics. The following are seven common business ethics
1. Personal Responsibility
In an organization, employees are expected to act responsibly with diligence, willingness, honesty, and punctuality to perform excepted duties. Personal responsibility is a needed attribute for employees in both entry-level and senior positions. If you make a mistake, you should acknowledge your fault and do whatever you need to do to fix it. Individuals should settle dues in time and avoid criminal acts.
Each and every member of the organization should have loyalty as it is the most valuable quality for both team members and corporate leaders. The members should speak positively about the business in public. Customer loyalty can maintain good business and also attract business by cultivating a positive reputation.
3. Corporate Responsibility
Every business has some responsibilities to its clients or customers, employees, and board of directors. Some of these may be legal obligations, others may be promises. The organization completely works as a separate legal entity with certain moral and ethical duties.
Respect is another important business ethic. Both in the way its team members treat one another and the business treats its clients and employees. When you show respect to someone it indicates that you care about their opinions, you work quickly to resolve any issues they may have. The person feels like a valued member or customer of the team.
5. Social and Environmental Responsibility
Making profits should not be at the cost of society. Social and environmental responsibility means a company recognizes its impact outside of the marketplace. There are many companies that for ways to help their communities through volunteer work or financial investments. They also adopt measures for social causes and spread awareness as well.
Favoritism is highly unethical. Fairness means that a business tries to treat its customers with equal respect, offering the same goods and services to all based on the same terms. When any business applies fairness, it treats the same standards for all team members, regardless of rank. The organization has to ensure fair chances of growth and promotion for all.
7. Technology Ethics
The growing use of technology in business operations essentially comes with a need for a business to ensure the technology and information it gathers are being used ethically. They should ensure that the technology is secured as many businesses store customer information and collect data. Technology ethics includes personal information, intellectual property fair practices, and customer privacy.