As espoused by Ferrell, et.al, (2013) the moral philosophy is what a person hold as their ethics and beliefs. However, when viewing ethics in the framework of business, ethics are based on what the group considers to be the best or worse approach for the business operation and its objectives. Therefore, it is the responsibility of a company or its managers to create, and instruct, employees on the conformity of ethical in business practices within their organizations. Managers also should understand that their personal moral philosophies can be influential as a guide to other employee. Moreover, it should be understood that moral philosophies offer standards for controlling how conflicts are settled in reference to people life’s concerns.
We then break leadership into smaller compartments, as we look at its theories and significance to the advantage of a successful business 2. The importance of ethics and values in business sustainability 2.1 ETHICS For a business to be effective and running, ethics and values are important factors. Both of these factors work in correlation with one another and they are central to any organization. We then define ethics as moral principles that govern a person’s behaviour. This can be identified on how stakeholders (consumers, customers and shareholders) behave in the organisational environment.
Question 1 Explain the importance of ethics and values in business sustainability In order to answer this question we need to understand what ethics and values, business ethics and business sustainability means. What are ethics and values? Ethics can be described as rules and regulations that govern a person’s behaviour. In order for a good business reputation, the employer and employees need to work towards customer satisfaction Values are our beliefs. They provide guidance when we have to define what is right and what is wrong.
The notion of ethics deals with people’s behaviors within a company. Social responsibility involves a company’s moral obligations and the manner in which the organization makes its decisions. Although ethics and social responsibility are similar on a conceptual basis, each has its own unique characteristics that express their differences and its independence of the other. Ethics and social responsibility have to be present and coincide with one another for a business to be ethically sound. Ethics is the application of one’s personal beliefs and the impact on how a person makes decisions regarding the relationships involving a company.
Deals with the truth and law, with interest of how we behave in society, corporate behavior and carrying of social responsibility. Business ethics Is the applied ethics in wide spectrum it is the application of moral obligations or principled norms to the business. Ethics aim to answer essential inquiries whether the establishment can make decisions beyond their lucrative basis. Sets the standards with what kind of behavior is acceptable in the workplace. Eskom believes that ‘Integrity, Excellence, Customer Satisfaction and Innovation, but it also establishes the foundation for the interaction of Eskom’s Board of Directors and teams with colleagues, customers, suppliers, shareholders, the environment, the public and other stakeholders.’ In ensuring that quality services are delivered to their clienteles and management should lead the way in screening other departments what is the right way to behave in the workplace.
Question 1: Explain the importance of ethics and values in business sustainability. In order to understand the importance of ethics we first need to understand what ethics is. Ethics can be defined by Hornby as “moral principles that govern or influence a person’s behaviour”. It deals with an individual’s or business’s behaviour so it is therefore related to businesses. Business ethics can be defined as “written or unwritten codes of principles or values that govern decisions and actions within an organisation”.
Values are defined as “attitudes towards things like truth, justice, honesty, loyalty, etc.” these are the basis of how employees should behave the work background of an individual, and the personality of the individual influence ethics. Organisational factors which influence ethics include: what top management believes, the rewards system of the organisation and the dimensions of the jobs in the organisation. Ethics are also influenced by environmental factors such as: competition, economic conditions, social institutions as well as cultural institutions. (Nieuwenhuizen C. & Oosthuizen TFJ, 2012:94) Ethics and values are important to an organisation, therefore organisations have developed guidelines for management and employees on how to act and behave ethically in the form of written Code of Conduct. A Code of Conduct promotes honest and ethical behaviour and all employees should be familiar with it in order for it to be effective.
Applying the concept of real decisions in is acknowledge business ethics. Business ethics is the code of values and principles that govern the actions of a person that is either right or wrong. The business creates a code of ethics which is represented within the company’s or organization’s policy. Business ethics is defined as the set of moral values that governs the operations of businesses or companies, the making of business decisions how people are treated. In business, there are many different people that the decision affects such as the customers, shareholders, and clients.
Documentations that state significant philosophical principles and make clear the values depicted within an organisation are known as ethical codes. For these codes to be considered effective they are required to be able to define the responsibilities of an organisation to stakeholders, the conduct expected of employees (Kaptein & Wempe, 2002) and articulate the ethical parameters of the organization as to what is acceptable and what is not (Stevens, 1994). While behaviour of course, refers to the ethical behaviour of individuals in organizations. Employee behaviours are purposely designed to be affected by codes, regardless of the extent of the script. As much as codes are used to enhance social responsibility and explain the norms and values of the organisation, it would be equally important to consider how codes can influence behaviour.
Truly, ethics indicates weather are behavior is moral or immoral. Furthermore, values ultimately, identifies the fundamental human relationships. Thus, business ethics is critical for a business to succeed (Floyd, Xu, Atkins, & Caldwell, 2013). As there is a variety of arguments of why business ethics is essential to an organization; indeed, one of the most important reasons is enhancing business performance (Floyd et al., 2013). Clearly, numerous of empirical studies displayed benefits of being perceived as an ethical business.