Ethics and Business Conduct

Ethics are a concern in business.

The ethical conduct of business is a tricky matter. In a free market, where competition and efficiency are highly praised and sought after, the introduction of ethical concerns can seem to be at cross purposes. However, it is possible to run a business both in the most efficient manner and in an ethical one. In a larger societal context, where ethical concerns do matter, an ethically run business world is a key concern.

Corporations

Corporations are legally considered to be individuals with all of the corresponding rights awarded to single individuals under the legal code. The question for a business ethicist then becomes if corporations should also consider themselves to be bound by the same ethical limits as single individuals. Many argue that corporations have ultimate responsibility only to their shareholders. Others argue that corporations owe the same responsibility to the larger society in how they seek their profits.

Employers and Employees

One of the main concerns of business ethics is the relation between employers and employees. The duties that employers owe to their employees and that employees owe to their employers are hotly debated. Making clear what employees can expect from their employers and vice-versa allows for a more efficient workplace where all know their appropriate duties. The default employee contract in the United States is fire-at-will. Ethicists argue that there must be a higher standard.

International Business

As world trade increases a growing concern in business ethics has to do with how businesses conduct their businesses in countries other than their own. Whether it is appropriate to seek labor in other countries because it is available at a cheaper rate is a major subject of debate. In addition, there is the concern which businesses may have in adopting their ethical conduct to the standards of the countries that they operate in.

Ethical Culture

A prime concern in business ethics is how an ethical culture may be established in a large organization. The benefits of an ethical culture in a business can be substantial at least in theory as it leads to a more predictable and accountable environment as well. Companies are encouraged to make written accounts of the behavior that they expect from their employees. It is also considered wise to make ethics part of employee training.

References

• Santa Clara University: Ethical Risk Assessment- Crisis-prone or Crisis-prepared
• Stanford University: Business Ethics
• University of Tennessee: Business Ethics
• Connexions: Business Ethics
• SRA International Inc.: Code of Business Ethics and Conduct
• Bloomberg Businessweek: Wharton Faculty Backs Curriculum Overhaul

Resources

• Business Ethics
• The Canadian Resource for Business Ethics
• International Business Ethics Institute