Business ethics are moral values and principles that determine our conduct in the business world. It refers to commercial activities, either with other business houses or with a single customer. They can be applied to all aspects of business; from generation of an idea to its sale. Businesses use the society for its resources and functioning, thereby obligating it to the welfare of the society. While the objective of any business is to make profits, it should contribute to the interest of the society by ensuring fair practices. However, greed has led the present business scenario towards unethical business practices, legal complications and general mistrust.
– Company’s assets, funds and records
– Conflict of interest
– Management and employee practices
– Information on competition
– Distortion of facts to mislead or confuse.
– Manipulating people emotionally by exploiting their vulnerabilities.
– Creation of false documents to show increased profits.
– Avoiding penalty or compensation for unlawful act.
– Harming the environment by exceeding the government prescribed norms for pollution.
– Invasion of privacy used as leverage, for obtaining personal or professional gains.
– Sexual discrimination
– Codes of corporate ethics must be formulated so that employees are aware of the organization’s expectations regarding ethical norms and conduct.
– An appeal process must be in place so that any unethical practice can be brought into light.
– Seminars on business ethics should be conducted for employees. This will help them in understanding the importance of ethical work culture.
– Compliance officers must be appointed to keep a check on fraud, corruption, and abuse within the organization.
– To promote ethical behavior, performance management system of the organization must be modified to incorporate ethical behavior as a parameter for appraisal and rewards.