Corparate and Social Policy

Introduction Business ethics is the belief that, traditionally, a corporation's sole objective or obligation was to maximise profits. While many people today regard this as greedy or inhumane, the profit-maximizing theory's rationale remains valid. Business ethics refers to the moral principles and social values that businesses' code of conduct should embody. These are the rules that businesses must accept and adhere to in order to benefit society and all of its stakeholders. Ethical decision-making is founded on fundamental character values such as honesty, respect, accountability, fairness, compassion, and good citizenship. Ethical choices result in ethical behaviours and serve as the foundation for ethical business practises. A successful business or organisation must adhere to the highest standards of business ethics. These decisions help an organisation maintain better and more harmonious relations with society, customers, employees and the relevant industry sector. If this is not done, the organisation may not succeed or achieve its goals. The business's ethics should be strictly adhered to by all employees. To maintain a positive public image, a company must follow all accepted business practises and principles. Business management must therefore consider how they can uphold the various business ethics frameworks in place. Business ethics plays a vital role in increasing a company's profitability, productivity, and market reputation. An organisation or business depends on its managers to work with and through other people by coordinating the staff's work activities so as to accomplish organisational goals (Robbins et al. , 2003, p. 6). Therefore, for an organisation to implement a code of ethics efficiently, good managers are needed. Good managers are self-confident, follow ethical guidelines, have a sense of integrity, and are not self-centred (Wallington, 2003). A manager should have moral sensitivity on top of his instrumental roles (Whetstone, 2003). He should be able to judge the ethical behaviour of his employees. These managers will be instrumental in ensuring that an organization's code of ethics is carried out and obeyed by employees. For the business to have a positive appreciation and enhance its brand value in the market, it is quite imperative for the management and employees to understand the importance of business ethics. And once the ethics are followed as business objectives and fundamentals, they become the DNA of the brand in the most integrated manner. Here is the importance of business ethical decisions within an organization: a. Control Business Malpractices: Business ethics directly affects operations. It tells businesses what is wrong and what is right. Business ethics set strict rules and principles that must be followed to avoid penalties. These principles ensure that businesses do not engage in unfair practises such as black marketing, misleading advertising, measurement and weight fraud, adulteration, etc. Business ethics focuses on providing better products at reasonable prices to customers. b. Better Relationship with Employees: Employees are an important part of the business and are required for its survival. Business ethics ensures that a company works for the benefit of its employees. The company should concentrate not only on achieving its objectives, such as profit maximisation and increased growth, but also on the people who work for it. Ethics ensures that businesses provide better monetary compensation and working conditions to their employees, as well as active participation in decision making, resolution of complaints, and advancement based on their performance. This aids in the maintenance of good working relationships with employees. c. Improves Customer Satisfaction: The consumer is king in the market and determines every business's success or failure. It is vital that the company meets its customers' needs. Business ethics sets standards for business operations that require higher quality products at lower prices. It ensures better customer service and resolution of all complaints. This helps businesses improve customer satisfaction. d. Increase Profitability: Every business benefits from business ethics. It outlines the rules that all employees must follow. Every employee must follow these rules and perform their duties honestly. These values ensure no resources are wasted and that every resource is used efficiently. Long term, this increases business profit. e. Improves Business Goodwill: Business reputation matters in gaining market share. Better-willed businesses attract more customers. The company hopes to better serve the market by incorporating ethics into its operations. Ethical businesses operate with low profit margins and honesty. This improves the public image and is easily accepted by customers. f. Better Decision Making: Business ethics helps them make faster decisions. It lays out the rules and regulations that every business must follow. Every choice is based on the moral principles and social values embodied in these codes. It aids businesses in determining right and wrong. A breach of these ethics by any employee of the company will result in a fine. g. Protection of Society: Every business relies on the success of society. A business that does not consider the needs of society risks extinction. Business ethics dictate that businesses contribute to social welfare and participate in infrastructure development programmes. It ensures that businesses actively contribute to their CSR. A company should not engage in any activity that harms the society in which it operates. Conclusion It is important that businesses adhere to the established code of ethics for their company or organisation. As they say, there are numerous ways and possibilities for a company to reach the pinnacle of success and growth in the market, but one of the most genuine and fair methods is to follow and comprehend the Importance of Business Ethics. They will be able to run and manage the company without tarnishing their reputation or jeopardising their market sustainability as a result of this.