Companies began to emphasize their ethical stature in the late 1980s and early 1990s, perhaps in an effort to distance themselves from the trade scandals of the time, such as the savings and credit crisis. The concept of business ethics attracted the attention of academics, the media and commercial enterprises at the end of the Cold War. [13] [17] [18] However, criticism of business practices was attacked for violating the freedom of entrepreneurs and critics were accused of supporting communists. [19] [20] This has destroyed the discourse on business ethics in the media and academia. [21] The Defense Industry Initiative on Business Ethics and Conduct (DII) was founded to support ethical corporate behavior. It was at this time that the belief and support for self-regulation and free trade began, removing tariffs and barriers and allowing companies to merge and divest in a growing global atmosphere. Companies with high employee well-being attract top talent. Business ethics lay the foundation for proper employee care. In addition, providing good well-being to employees improves employee productivity and encourages them to stay true to a company`s long-term vision. Adherence to business ethics can also be beneficial to employees and company operations. Attracting top talent is much easier for ethical companies. Employees not only value a socially responsible employer, but will also perceive it as the type of company that acts in the best interest of their employees. This leads to more engaged employees and can also reduce recruitment costs.
This is an important shift from the absolutist perspective of many contemporary business ethics, especially the idea that we can only acquire moral brilliance if others do not make comparable sacrifices. Their principle of “mutual trust” allows authors to find a moral justification for deception in certain difficult business situations, while urging business ethicists to help managers “find strategies to bring practice closer to moral ideals.” And in what may well be a manifesto for the new business ethic, Dees and Cramton argue that “the most important work in business ethics” is not “building arguments to please moral idealists, but creating workable strategies for pragmatists.” However, there are signs that at least some business ethicists are beginning to address these shortcomings. They question the direction their field is taking and urge their colleagues to move beyond their current concerns. Although some of their ideas have been bubbling up for years, the discontent of critics signals the beginning of a potentially more productive direction. Think of it as the new business ethic. Finally, Laura L. Nash, a professor at Boston University School of Management, attempts to respond to Joanne Ciulla`s recommendation in Good Intentions Aside: A Manager`s Guide to Resolving Ethical Problems. Assuming that managers already have good intentions, the task of business ethics is to go beyond “preaching” in at least two ways. First, all managers face “difficult problems whose solutions are not obvious”, where “matching profit motives and ethical imperatives is an uncertain and very delicate issue”. It is precisely the need to find these solutions and coordination that business ethics should address. The concept of business ethics began in the 1960s when companies became aware of an emerging consumer society that cared about the environment, social causes and corporate responsibility.
Increased attention to so-called social issues has been a feature of the decade. Prejudices and personal beliefs should be avoided in corporate decision-making processes. The company must ensure a fair chance for all and promote their growth and empowerment. Lying to your employees or customers is the best way to break trust. Trust is the best source of commitment and loyalty for any business. Once this trust is broken, it is extremely difficult to get it back. For example, if a high-performing employee of a company requests a promotion, there may not be room in the budget for a promotion this year. A few months later, another employee may receive a promotion. Telling blatant lies isn`t just unethical – it will drive people away from your business. Respect is an important business ethic, both in the way the company treats its customers, customers and employees, and in the way its employees treat each other. When you show respect to someone, that person feels like a valuable team member or an important customer.
You care about their opinions, you keep your promises, and you work quickly to solve any problems they might have. You can see the practice of business ethics in all departments of a company. A company`s ethics reflect the generally accepted principles established by the company`s founders and governing body. It encompasses the morale of the company in relation to the policies and practices that guide the company`s decisions and actions. It also includes how the company interacts with customers, how it treats its employees, how it interacts with other businesses and the government, and how it deals with negative publicity. A company that practices transparency will be clear in its communication with employees and customers. The language used will be clear, so there is no doubt about the policies or priorities that guide business decisions. Transparent corporate communication will also be honest and truthful.
Anyone who works for or works with the company should be able to trust what they say. Ethical theory can help shed light on the moral problems facing managers. But no other area of professional ethics has felt the need to dress its analyses in the language of pure moral philosophy. In his new book, Ethics and Excellence: Cooperation and Integrity in Business, philosopher Robert C. Solomon of the University of Texas writes that “such a theorization . Completely inaccessible to people for whom business ethics is not only a subject of study, but is (or will be) a way of life – students, executives and companies. Unfortunately, academic uncertainty leads business ethicists to divert their work from the real needs of managers and satisfy the perceived rigor of academic science in their field.