BUSINESS ETHICS

Business ethics

Business ethics

[Name of the Institute]

Introduction

Ethics can be defined as on one of the most important factors in the business environment. The ethical code of conduct for a given organization has an impact on the long term business and the majority of the decision making processes of the management. The senior management of the company has the greatest influence over the ethical perspective of the company and the relevant organizational culture. These managers have to ensure that they develop themselves as role model for the rest of the organizations, so that the middle managers and the work force can also indulge in the ethical practices. The leadership role of the managers plays an essential role in the ethical development of a company, as the managers have to communicate the significance of business ethics to the rest of the employees. The definition of business ethics depends on the long term vision and the ideology of the higher management. Busies ethics are dependent on the shareholder analysis of the company, and the primary objective of the management . The companies which view the shareholder value as the primary objective of the company would consider profit maximization as an ethical objective. Even though business ethics can be defined as a subjective concept, which would be dependent on the perception of the higher management of a company; in the global business environment certain ethical standards have been created. As per these standards the companies have to focus on their responsibility towards the overall environment and not only on the profit maximization objectives. Through this comprehensive shareholder analysis the company would be al to have a positive impact on the surrounding environment and hence would be profitable to the society (Hansen, 2011).

Discussion

The concept of business ethics has become challenging in the contemporary business environment, where the level of competition has increased drastically. In the current business environment the process of globalization has caused the companies to face competition from numerous global corporate entities. In this environment it is a challenge for the majority of the companies to focus on their ethical responsibilities. The majority of the companies are motivated to only focus on the profit maximization model, so that they can succeed in the highly competitive business environment. Although it is true that the companies on the contemporary business environment cannot initiate ethical practices which would have a negative impact on the organizational profits, however the ethical responsibilities cannot be ignored. The focus on the ethical practices can help the companies develop a long term vision and attained a competitive advantage. The ethical practice provides the companies with a sustainable operational advantage as compared to the limited profit maximization approach. The companies are a part of the overall society, as their actions have an impact on the overall community. In this scenario these companies have to realize their ethical responsibilities and develop a business model which consists of a comprehensive stakeholder analysis (Hansen, ...