Business Ethics Definition

An organization can implement sustainability initiatives by improving its operations and manufacturing process so as to make it more aligned with environment, social, and governance issues. Walmart has made commitments to doubling its truck fleet efficiency by 2015 by replacing 2/3rds of its fleet with more fuel-efficient trucks, including hybrids. Dell has integrated alternative, recycled, and recyclable materials in its products and packaging design, improving energy efficiency and design for end-of-life and recyclability. Dell plans to reduce the energy intensity of its product portfolio by 80% by 2020.

These questions include about the morality of the activities, policies, practices, or organizational structure of an individual business taken as a whole. Individual behaviour of the business set the agenda for other companies working in the industry concerned and managers and employees are expected to comply with these standards. Generally, individual companies try to formulate their own ethical standards for their behaviour. As a business grows, it becomes harder to verify that employees are keeping to the ethical standards set by the company. Sometimes the business will rely upon a whistleblower to draw attention to unethical practices within the company. To encourage employees to come forward to report unethical practices, businesses will often put in place protections against negative consequences.

In turn, research on inter-organizational relationships has observed the role of formal and informal mechanisms to both prevent unethical practices and mitigate their consequences. It especially discusses the importance of formal contracts and relational norms between partners to manage ethical issues. Marketing ethics involves pricing practices, including illegal actions such as price fixing and legal actions including price discrimination and price skimming. Certain promotional activities have drawn fire, including greenwashing, bait and switch, shilling, viral marketing, spam , pyramid schemes and multi-level marketing. Advertising has raised objections about attack ads, subliminal messages, sex in advertising and marketing in schools.

Unethical practices create problems to businessman and business units. A business that practices transparency will be clear in its communications both with employees and to clients or customers. The language used will be unambiguous so there is no doubt about the policies or priorities that guide business decisions.

Actions that result in greatest possible balance of good or evil are considered ethical. It deals with the responsibility of an organization to make sure that products and processes of production is not causing harm to the environment. It deals with the enforcement of the rights of employees in an enterprise. Since business exists and operate within the society and is a part of a subsystem of society, its functioning must contribute to the welfare of the society.

Most advertising contains both an informational component and a persuasive component. Advertisements tell us something about a product, and try to persuade us to buy it. The Sarbanes-Oxley Act is a U.S. federal law that aimed to protect investors by making corporate disclosures more reliable and accurate. For example, assume Company A works with a contact at Company B, an individual through which they negotiate all the prices for supplies they buy from Company B. Company A naturally wants to get the best prices on the supplies.

Accordingly, US Supreme Court Chief Justice Roger B. Taney in his 1857 judgment stated, “The right of property in a slave is distinctly and expressly affirmed in the Constitution”. One argument for property ownership is that it enhances individual liberty by extending the line of non-interference by the state or others around the person. Seen from this perspective, property right is absolute and property has a special and distinctive character that precedes its legal protection. Blackstone conceptualized property as the “sole and despotic dominion which one man claims and exercises over the external things of the world, in total exclusion of the right of any other individual in the universe”. Modern discourse on property emerged by the turn of the 17th century within theological discussions of that time.

These two stimuli force individuals to lie, or draw a false consensus of others to cover their mistakes. Ethics in India is based on a number of scriptures, thoughts, ideas, and Vedas. In India, the organizational culture is divided into two broad divisions, namely professional culture and community culture. The professional culture helps the, employees to maintain a certain acceptable level of discipline in the enterprise. Infact, peoples’ values develop as a product of the learning and experience they face in the cultural setting in which they live. Value differences basically arise because learning and experiences differ from one person to another.

Some early responses to French’s work accepted the claim that firms are moral agents, but denied that they are moral persons. Donaldson claims that firms cannot be persons because they lack important human capacities, such as the ability to pursue their own happiness . Other responses went further and denied that firms are moral agents. Velasquez argues that, while corporations can act, they cannot be held responsible for their actions, because those actions are brought about by the actions of their members.