Business sustainability is the management and coordination of environmental, social and financial demands and concerns to ensure responsible, ethical and ongoing success. Social, Economic and Environmental sustainability are considered as the three pillars of sustainability, which is sometimes referred to as the triple bottom line. The importance of ethics and values in business sustainability. In order to behave ethically, you need to take moral decisions. In order to achieve the biggest short-term profit, the company will need to draw up rules and regulations that will govern the behaviour of the employees.
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.
We will look at some companies that promote business ethics and values in the organisation and how that affects them in general. It is said that organisational success is obtained from leadership roles. What are the traits of a leader and what’s the benefit of having leadership and its cost, also what are the practical application of leadership in the success of an organisation and the difference between leadership and management. 2. Definition of ethics and values in business context According to Ken Rushton ethics are defined as the application of moral principles in making choices between right and wrong courses of action and business ethics is the application of those moral principles in making business decisions.
Question 1: Explain the importance of ethics and values in business sustainability. What is ethics? Ethics is the study of discipline about morals duties and the requirements of making decision about what is right and wrong in the organization. Looks at in-depth characteristics of our moral and the way we make decision, treat others in the society. Deals with the truth and law, with interest of how we behave in society, corporate behavior and carrying of social responsibility.
The Moral Philosophies’ Functions in Business Usually the conversation about philosophy in society is centered on the universal structure of values as part of their lives. Conversely moral philosophy relates to certain ideologies or statutes which are used by societies in determining right or wrong. It is imperative to comprehend there is a difference between “moral philosophies” and “business ethics”. The “moral philosophies” pertain to individual’s values, whereas “business ethics” is centered on groups’ decisions or relate to meeting a business objective. As espoused by Ferrell, et.al, (2013) the moral philosophy is what a person hold as their ethics and beliefs.
However, there can be more definitions about what Corporate Social Responsibility can be. For example, Corporate Social Responsibility can be the commitment which is continuing for a business to behave ethically and bring to economy the development to improve the workforces’ of the whole society and local community and their families’ quality of life. Corporate Social Responsibility is also known as the obligation of a company to serve the society’s interest and of course its own. With the help of the Corporate and Social Responsibility, social and environmental concerns companies can integrate into their business and stakeholders operations. Corporate Social Responsibility is an organisation’s obligation to serve the company’s own interest and the one’s of the society.
Introduction: I shall answer this question by discussing what ethics and values are and how they can influence business sustainability. I will also discuss why ethics and values are important and necessary in a business, and the possible repercussions that could occur without ethics and values in a business. Business sustainability: Business sustainability consists of three components, these are: social, economic and environmental. The business has to consider these three components as the business must make a maximized profit (economic) but must not in any way damage the environment in the long term (environmental). The business must also take care of social issue and people and communities as they are support the business.
Finding a correlation between corporate ethics (also referred to as social responsibility) and a firm’s fiscal performance is not easy feat. There are various viewpoints to question of the affect of the general ethical theory of corporate social responsibility. Weighing the possibilities of either a positive impact or trade-off leaves every organization in a puzzled state as they undergo their day-to-day operations. Social responsibility is an ethical theory that states an organization has a duty to ensure continuous welfare to society as a whole. The idea is that these entities must maintain a balance on the equilibrium through its outputs to both the economy and ecosystem.
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. Numerous systems and methods in conjunction with the embedment of ethical codes will be considered to exhibit the effects of ethical behaviour; these include analysing the link between control mechanisms and correlating them to the primary components of a management system. As well as portraying how an ethical culture and successful communication stream enhances ethical behaviour amongst employees. In effect these methods are used as an overall message, created by the corporation in an attempt to instil behaviour and effect change through explicit statements of acceptable behaviour (Stevens, 1994). Codes of ethics are written to guide behaviour, and so any analysis of the impact of a code must include how well it affects behaviour.
How an organisation approaches the social and environmental impacts of its business operations and its voluntary contribution to the wellbeing of the global and local communities in which it operates, is often known as Corporate Social Responsibility (CSR); it is often about "doing ethical things". Ethical and socially responsible practices are important in relation to various aspects of organizational effectiveness such as quality,communication, profits, competitiveness, survival, efficiency, and stakeholder satisfaction. Based on past literature that emphasizes cultural factors, corporate culture, and individual characteristics, the cross-cultural variation in marketers perceived importance of ethics and social responsibility in achieving organizational effectiveness is explained by country differences (including cultural differences and differences in the economic environment), organizational ethical climate, and selected demographic characteristics of individual marketers.