The Importance of Ethics in Business and Management

Role and Importance of Business Ethics

The Importance of Ethics in Business and Management
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Ethics involve an employee's moral judgement about right or wrong. Business ethics involve dealing with all the stakeholders in an ethical manner. Read this article to know about the importance of business ethics.

When I do good, I feel good; when I do bad, I feel bad. That's my religion. - Abraham Lincoln

Good ethics lead us to believe in not doing things that are not right and not saying if they are not true. Ethics is a system of moral principles governing the appropriate conduct of a person or a group. It is a way of being human and having a feeling of compassion, sympathy or regard for others the way we have for ourselves. Good ethics is important to all occupations or social or economic class.

Thus, maintaining good ethics is being consistent with the principles of correct moral conduct constantly.

Business ethics is similar to our normal every day ethics. Good ethics leads to good business. It is a fundamental requirement of any profession. It is integral to the success of the business as well. Good ethics makes us aware of what we are doing including the consequences of our actions. An organization strives continually to be in pursuit of its goals while benefiting the employees in building up their high competencies. In this pursuit, the adherence to high ethical standards of the employees can be very much contributory to the impressive achievements of business goals being turned out as planned and intended.

Ethics refers to human conduct as to make judgments between what is right and what is wrong. It could be that there are several factors that may encourage one to adopt unethical behavior, but the right person is he who, despite facing ethical dilemmas, assesses the situations and makes differentiation between what is morally good and bad in order to follow the rules and code of professional conduct. Good ethics causes to gain confidence of superiors while promoting integrity, which means to continue doing right things even when we are not being watched.

Business also has responsibilities, such as, designing proper jobs. After the jobs are created and the employees are appointed, fair reward and promotion systems are necessary for an organization to implement. Employees develop positive feelings, the feeling of pleasure when a need or desired is fulfilled. If an organization does not recognize the talent and hard work of the employees, the consequences may lead the employees toward unethical behavior. Employees must be treated fairly. If they are treated respectfully and in an appropriate way, they are in favor of management else they may get back to adopt unethical behavior.

Moreover, it is the responsibility of management to intervene if managers take improper decisions in terms of hiring and firing the employees because the managers of business may sometimes lose their ethics when they take certain decisions that affect the employees' career and growth. If the decisions of managers are unethical, both employees and the organization suffer the consequences. It must be seen whether employee morale is enhanced. The policy guidelines related to compensations is a factor affecting employee morale. The difference between the aspects that what compensation the employees expect to get and what is being offered to them is in general prevailing and so it is a reason of dissatisfaction. What in such situation a management needs to do is it should come out with the schemes that can enhance the morale with reasonable compensations.

Furthermore, business managers or supervisors need to develop perceptual abilities that on the basis of accurate perceptions, an unbiased outlook may be maintained. Every employee should be treated fairly by inculcating the sense of positive feelings about the organization. Professionalism should be preferred to favoritism as the practice of giving special treatment or unfair advantages to a person or group creates lots of problems that result in hurting the feelings, causing emotional pain or suffering of another person or group.

The importance of ethics in professional life can be evidenced by a number of instances showing failure of businesses and several scandals. It may be rightly said that the situations would not have been so worsened had there been observance of ethical standards. Therefore, maintaining ethical standards is must for the prosperity of an organization as well as the development of one's personality. Good ethics will lead us to maintain our honest image. It will enable us to refrain from such activities that may discredit to our profession. Thus, adhesion to good ethics is to let our conscience be our guide at all times. Albert Schweitzer says, "Ethics is the activity of man directed to secure the inner perfection of his own personality."


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