Definition of Business Ethics

It 'easy to find a definition for business ethics based on business objectives and priorities, and regardless of how the books and resources I would define it. The most widely accepted definition for business ethics says it is a set of corporate values ​​and codes of principles, which can be written or unwritten, by which a company evaluates its actions and business-related decisions. As the definition goes, business ethics can be written or unwritten. This is because most of the time, business ethics and criteria for what is right and what is bad is shaped by a society of good practices and long-standing culture.

In simple terms, business ethics refers to the propensity to distinguish good from evil, and resilience to choose to do what is right in terms of actions and decisions. Applies to employees of both rank and file and managers, as well as society as a whole.

There are two ways in which companies can approach and implement the concept of business ethics. These two approaches are based on two schools of thought, each providing a different definition for business ethics.

The first school of thought is the shareholder-focused. It contends that the ethical business decisions can be made when individuals within the organization and society as a whole always the best interest of the owners in mind. For those who see business ethics from the perspective of shareholders, the actions and decisions should be geared towards the production of higher profits.

On the other hand, the stakeholder-centered approach puts premium on social responsibility. Under this concept, ethical companies are those that act and take decisions in the interest of all stakeholders not just the owners in mind. Business ethics means finding a balance in the service of all groups that have an impact on, or are affected by corporate decisions and actions. These stakeholders may include employees, supply chain, end users, government organizations and non-government and the community in which the company operates, among others. That said, the prospect of stakeholders stressed the need to make business decisions that work well for all groups of stakeholders.

The definition of business ethics varies in each company. The challenge in defining the term is that there is no clear definition of right and wrong. It 'true that there are laws to punish the crimes which are necessarily wrong. Unfortunately, these laws do not define and punish what is morally right and what is morally wrong. As a result, is left to individuals and legal persons to make their own classifications, and to act and decide from these classifications.

Companies come to these right-wrong classifications based on various factors. These factors include: the culture within the company, the presence of a formal code of business ethics training, the internal system of rewards and recognition, recruitment and human resource practices, the system of values, the way treats its employees and manage the flow of decision making.

In terms of business ethics, the trend today favors companies that operate rapidly from the point of view of stakeholders. The theory is that the communication of socially responsible image is forcing consumers to support the company and its product because of the benefit that gives them moral. To be sustainable, it is important for decision makers who set the standards for ethical business practices to expand their horizons beyond the pursuit of profit.

Businesses and entrepreneurs who want to prosper in the long term must adopt healthy ethical decision-making practices. Companies and people who behave in a socially responsible are more likely to enjoy the ultimate success of those whose actions are motivated only by profit. Know the difference between right and wrong and choose what is right is the foundation for ethical decision making. In many cases, do the right thing often leads to more economic rewards, social, and personal in the long run....