Importance Of Ethics In Business

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Before the importance of ethics and values in business sustainability can be established, Ethics Values and sustainability need to be defined in order to fully understand the concepts and how these ideas apply in a business context. According to The Oxford dictionary, Ethics are “Moral principles that govern a person’s behaviour or the conducting of an activity”. Applied to a business context, according to Investopedia, they are “The study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities. Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow in order to gain public acceptance”. The definition ethics also includes the idea of written and unwritten codes of principles that governs how business is done in an organisation. Values on the other hand are “Principles or standards of behaviour” according to the Oxford dictionary. In a business context they are “Important and lasting beliefs or ideals shared by the members of a culture about what is good or bad and desirable or undesirable. Values have major influence on a person's behaviour and attitude and serve as broad guidelines in all situations. Some common business values are fairness, innovation and community involvement”. Lastly, sustainability can be defined as the ability to be maintained at a certain rate or level. The definition of sustainability in business according to dowelldogood.com is “a business strategy that drives long-term corporate growth and profitability by mandating the inclusion of environmental and social issues in the busin... ... middle of paper ... ...anagement. Environmental projects like recycle and saving energy enhance internal performance and cut expenses. Presenting an organization social responsibility plan offers managers the chance to analyse and make improvements on the spending. The best organisation social responsibility programs are depending on a mutual relationship with the managers and the stakeholders. This fact enables all participants to be pushed and develop together. The organisations social responsibility should be consistent with its values, ethics, customers and workers. Most of all, they need to be created upon a true concern for individuals, community, the environment and the economy. A poorly created concept of Social Responsibility will cause the public and investors to become doubtful of the organisation. A good Social Responsibility leads to a sustainable future for the organisation.
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