Importance Of Ethics In Business

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In such a competitive world how ethical can a company really be? Discuss.

Ethics are moral principles that govern a person’s behaviour. And in business, it is incorporating that into the company policies and practices regarding controversial issues, such as fraud, bribery, discrimination and corruption. In other words, it is the fairness, the right and wrong of an action. Business ethics are often guided by the law while other corporations create their own framework. However, companies have conflicting duties such as making a profit, work efficiently but remain within the law or else suffer the consequences. Although people start a business to make money, companies must understand that building a corporation is more than just creating billion
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When a leader is clear about what they value and believes in, others who share those values and beliefs will follow suit. The challenge of moral intelligence is not knowing right from wrong, but doing versus knowing. (Lennick and Kiel, 2005) We live in an age where there is moral confusion. Every day we are bombarded with news reports of world dilemmas such as terrorism, global warming, energy shortages, corporate scandal, and corruption. All these problems with no clear solution. (Hester and Killian, 2010). To make a difference, leaders today must face these daily obstacles with value, integrity, and moral courage.

How ethical a company can be in a competitive world first starts with the leaders. I believe that doing the right thing will always bear fruit. For those leaders who set an example by making ethical corporate decisions are worth the applause. I think that a leader with a sound moral compass will inspire their employees to follow their ethical leadership and create a vision and someday will align to those they hope to effect change. They can be ethical when they begin putting importance on what will better our society and organisations today and not for personal
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