Business ethics is the code of conduct for a particular business. It helps employees to decide what is right and wrong. Management decisions have ethical implications and there are various legality ethics dilemmas that managers need to face while taking decisions.
Legality ethics are the code of conduct for a business
Legality Ethics are the principles of right and wrong. Ethical behavior is behavior that is consistent with the moral principles of an individual or group. The ethics code of a business or organization articulates the values and standards that affect how people do their work. It may be part of a company’s written employment policies, or it may be unwritten in the culture of an organization.
In business ethics, there are two main categories: legality ethics (which relate to compliance with laws) and professional/organizational ethics (which relate to compliance with ethical standards).
A manager makes decisions keeping in mind the business objective
The manager makes decisions keeping in mind the business objective, social objective and personal objective. The business objective refers to maximizing profits while meeting the customers’ needs. The social objective refers to satisfying stakeholders like employees, shareholders, government agencies etc., in addition to customers.
Personal objectives refer to personal motives such as career advancement, financial security and recognition among peers for doing a good job.
The manager must balance all three objectives so that he does not prioritize one more than another at any given time during decision making process. Decision makers should have some knowledge about their own personal goals before they can make effective decisions related with legality ethics issues like lying or stealing from employer’s property for personal benefits because these actions often contradict with other two objectives mentioned above i.e., business & society (social).
In a business environment, managers must face various ethical dilemmas
Ethical dilemmas are difficult to handle because they involve difficult choices and to make the right choice one needs to consider all aspects of the situation. These can be avoided by following a code of conduct, being honest and transparent, being open with feedback etc.
Managers should make decisions that are consistent with their duties to the stakeholders of the organization.
In order to make sure that your decisions are legality ethics, you should consider the people and organizations that are affected by your decisions. These people or organizations are known as stakeholders. Stakeholders can be employees, customers, suppliers and shareholders of a business.
To avoid making unethical decisions that can harm stakeholders, managers must make sure their actions are consistent with their duty to these stakeholders.
For example: If a manager decides to give a raise only to his/her favorite employee instead of all employees equally then this is an unethical decision because it does not benefit everyone equally within the organization (in this case giving everyone equal pay would be ethical).
Business ethics include adherence to all laws regulating businesses
The legal system is an important tool in maintaining order and ensuring that citizens are treated fairly. Legality ethics business practices not only provide a good service at a fair price, but they also help to ensure that companies do not break the law. Businesses that do not follow the law can be fined or even shut down by authorities, which could result in financial loss for shareholders.
Legal requirements include:
- paying taxes on time
- obeying environmental regulations
- following child labour laws
- complying with equal opportunity employment policies
Business ethics are the code of conduct for a business. They may be a gray area, but you need to adhere to them while making decisions. Business legality ethics help employees make decisions, managers make decisions and helps in maintaining a good reputation. To improve the business, you have to follow these rules as well.
Business ethics is a very important concept, and we need to adhere to it while taking decisions. It is a code of conduct for a business, which will help its employees to decide what is right and wrong. In case of legality ethics dilemmas in business environment, managers must face difficulties while making decisions. They should make decisions that are consistent with their duties to the stakeholders of the organization.