Ever felt cheated by your employer, bribed someone to get some work done or ever falsified information on an official document or recommendation letter?
Ethics are principles and morale standards that govern a person's behaviour or the conducting of an activity. These principles and morale standards define what is right and wrong in different spheres of life. Ethics are applied in business, sports, human behaviour and other areas. They outline the kind of behaviour that businesses should and should not engage in. These principles and standards are adopted into a code of ethics that set values for the company and everyone associated with the business.
The reasons for having ethical standards include:
- A higher morale within your employees and the organisation;
- It helps to attract new clients;
- It builds higher client loyalty; and
- It helps to make a positive impact on the community.
Many legal cases are raised because of individuals seeking compensation for their losses as a result of businesses making unethical decisions for example Enron company which misrepresented earnings and modified its balance sheet to indicate a favourable performance. Businesses need to hold themselves accountable; therefore the following principles form the basis of business ethics:
- integrity
- honesty
- fairness
- loyalty
- keeping promises
- respect
- caring
- obeying the law
- morale
- accountability
- being a leader
- excellence
Businesses without ethics can be misguided and make decisions which can cause financial loss or injury to other people or the business. Holding yourself and your business to these standards will ensure you're not only covered against any wrongdoings, but you'll impress clients, employees and build a strong sense of trust with everyone you associate with.
Article written by Sharon Siyamombe for BMT College.
Reference:
Rossouw, D. & Van Vuuren, L. 2004. Business Ethics. 3rd ed. Oxford University Press, Southern Africa
