Importance Of Business Ethics

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Question 1: Explain the importance of ethics and values in business sustainability.

A business without ethics would never be able to exist in the corporate world; there would be no control or any hierarchy of management the business would eventually fall apart.

Ethics can be described as the human values that describe how one should live when keeping in mind what is seen as ‘correct’ behaviour in society’s eyes.
Business ethics is described as the study of how personal values and principles are applied in a business situation.
Values can be defined as attitudes that organisations or society’s establish themselves with.

There are different types of ethics, for example; descriptive normative and analytical ethics.
Descriptive ethics is when we describe the way people in different societies behave.
Normative ethics is when we compare what people actually do to what they should be doing, this eventually becomes the normal way in things are done.
Analytical ethics is when people justify the way in which they decide to behave and why.

Why businesses should concentrate on ethics?
A business must focus on ethics because business must not only concentrate on the profit that they make but also the impact that their business, as well as their decisions impact on the societies that are involved in their communities. A business must also concentrate on their employees because employees are more productive when there is a balance between personal and professional life, as a result the business will act more ethically in the corporate world. Another concern is bad publicity which has a very negative impact on the business, as a result the business must play according to the unwritten and written rules. A business should be responsible an...

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...hat their skills were not as good as good as they thought they were, managers should have rather dealt with motivation instead of break confidence. Most people know that if people are motivated to act a certain way most people will do it for the good feeling of actually getting it done.

In conclusion as seen in the article if there is no proper leadership in a company it could become a problem, in this case Microsoft lost employees. In other cases organisations could lose customers or suppliers etc. Leadership has a big impact on how external forces react to certain business transactions between them and a company with a good or bad leader. A bad decision by a leader could cost the company a great deal of damage. Whereas, a leader with good intentions and uses motivation to get employees to complete tasks could cause that company to grow and become a huge success.
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