What can you understand from the term Business Ethics?
What role does the business organization play in the society?
What do you infer from the duties and responsibilities of the Business organization?
We all know that the prime motive of business is profit maximization. But should it be confined to profit only. Is it not the duty of the business organization to inculcate social ethics in its code of conduct? It is the core responsibility of business to maintain a cordial environment for work as well as a harmony between business aim and social welfare. Business should take due recognition of all its stakeholders including consumers, employees, shareholders, creditors, competitors, suppliers, community to name a few. Nowadays, we see many organizations conforming to false business practices to earn boastful profits. But they suffer in long run and struggle for their survival.
Business ethics in literal sense means applying ethics to business conduct. Conforming to what is right and what is wrong is the moral duty of everyone. The term encompasses many concerns like fair account practices, corporate governance, social responsibility, fair labor practices, transparent and fair statements of business and some more. It is an applied science where it refers to the conduct of employees on how to make business decisions in line with moral ethics. As a rule if a new thing is applied to business there are many people for and against it. Such as this, business ethics also has many arguments in both for and against.
Many believe that it is the moral duty of the business is not to just move forward in profit maximization but look to the welfare of the society. The business organization should follow practices in which the employees feel free to work and also proper incentives should be given to them to inspire and motivate them towards the attainment of profit goals. Also it should provide cost effective and best quality products to its consumers to achieve the loyalty of the consumers and also to keep them happy. Best after sale services is another duty of the business to perform. It should also look after the environment it’s operating to keep it free from pollution and not to degrade it. Most of the sources of the business products are borrowed from the environment, so it is the primary responsibility of the organization to ensure proper Incentives are taken to dispose toxic and harmful waste and minimizing the damage to the environment.
For long term survival, it is the need of the hour to follow all such activities benefiting the business and the society as a whole. Fair trade practices, maintaining cordial relations with suppliers, competing honestly with the competitors, not indulging in false black money earning, all this enables the long term survival more strong. The arguments not in favor of ethics also exist. People believe that while maximizing society welfare, the employees diverge from their main motive of profit. The business prosperity declines and it incurs loss. Not many investors invest in such companies and thus it hampers the growth of the company. Social evils also affect the business motive thereby causing hindrances.
All in all, we can sum up that though there many things against business ethics but seeing the advantage of this we can infer that proper applying of ethics in business will expand its area and also make it prosper.