√ Business Ethics: Definition, Purpose, Benefits and Principles
Business Ethics: Definition, Purpose, Benefits and Principles - On this occasion About Knowledge will discuss about Business Ethics. Which in this discussion explains the meaning of business ethics, objectives, benefits, principles, approach briefly and clearly. For more details, see the following article.
Business Ethics: Definition, Purpose, Benefits and Principles
Many companies believe that good business principles are ethical business. It means a business with superior and sustainable performance that is carried out by adhering to ethical rules/regulations that are in line with applicable laws and regulations.
Business Ethics can be a standard or a guideline for all employees. This includes management and can make it a guide in carrying out work day-to-day based on honest, transparent, noble morals and a positive attitude professional.
Definition of Business Ethics
The definition of business ethics is a way to carry out business activities, covering all aspects related to individuals, companies and society. Business ethics in a company can shape the values, norms and behavior of employees and leaders at the company in building fair, healthy and good relationships with customers (work partners), shareholders as well public.
Definition of Business Ethics According to Experts
In order to understand more deeply about the meaning of business ethics, we can refer to several opinions expressed by several experts, including the following:
According to Sumarni (1998:21)
According to Sumarni, the notion of business ethics is related to the problem of assessing business activities and behavior that refers to truth or business honesty.
According to Bertens (2000)
According to Bertens, that business ethics is broader than the existence of a provision regulated by law. Even business ethics is a higher standard when compared to the minimum standard of legal provisions. Because in it business activities or activities we often find a gray area where this is not regulated by legal provisions.
According to Muslich (2004:9)
According to Muslich, the definition of business ethics is knowledge about/about ideal procedures regulation and management of business that pays attention to the norms and morality that apply in a manner universal.
According to Hill and Jones
According to Hill and Jones, the definition of business ethics is a teaching in distinguishing between wrong and right in providing knowledge to every leader of a company when considering in making strategic decisions related to the existence of a moral problem complex.
According to Sim
According to Sim, the definition of business ethics is character in conveying moral integrity and consistent values in serving the community. This is related to effective leadership in an organization.
According to Velasques
According to Velasques, Understanding Business Ethics is a study devoted to moral right and wrong. The study concentrates on moral standards as applied to policies, institutions and business conduct.
According to Business & Society-Ethics and Stakeholders Management
According to Business & Society-Ethics and Stakeholders Management, the definition of business ethics is discipline that relates to the good and bad of a moral duty and obligation in context business.
According to Steade et al
According to Steade et al, the definition of business ethics are ethical standards related to goals and ways of making business decisions.
Purpose of Business Ethics
One of the goals of business ethics is to provide awareness of morals and provide limits to business people in running their business in a good manner. So that it does not behave which can harm many parties related to the business.
Benefits of Business Ethics
The following are the benefits of business ethics for a company, including:
Increase Company Credibility
Business ethics is very important for a company, especially large companies that have/have a lot of employees who don't know each other. Every employee of a company will be bound by the same rules of ethical standards. So if there is a case that arises then it will take the same decision.
Describes How to Assess Their Social Responsibilities
Explaining social responsibility or using a social approach, a company not only gains benefits from an economic perspective, but also from a social perspective. If a company is socially responsible, then the business will run well. So indirectly the company will avoid harmful social conflicts.
Helps Eliminate Gray Areas in the Field of Ethics
For example, equality in receiving salaries, the use of underage workers and the company's obligations to protect the environment. So that the company has provisions for limitations in carrying out its business.
Improving Company Competitiveness
Having competitiveness is now a must for every company. Because if the company does not have competitiveness, then the business undertaken will not last long. If a company has good ethics, then its business will develop and grow improve competitiveness or it could also be the ability to compete in the market with companies or business people other.
Increasing Investor Confidence in the Company
For companies that have achieved going public, they will receive benefits such as increased investor confidence to invest. If there is an increase in stock prices, it will usually attract investors to invest or buy company shares.
Building a Positive Company Image
With business ethics, you can also build a good image of a company in the eyes of business partners or consumers. With a good image will maintain survival in a company.
Principles of Business Ethics
The following are some principles of business ethics, including the following:
Have Honesty When Communicating and Behaving
When building a business, honesty is needed when communicating and behaving with partners and consumers, so that the business that is built will gain trust.
Always Fulfill Promises And Commitments
As a good businessman, he must always fulfill every promise and always be committed to running his business.
Have Integrity
By having integrity in doing business or running a business, you can have consistency in your thoughts, words and actions.
Have Loyalty
Having high loyalty to a business you are in is important. This loyalty can be seen from hard work and seriousness in doing business, working according to the vision and mission and not mixing work and personal matters.
According to the Coux Round Table, the principles of business ethics include:
- Responsibility for what is done.
- In the aspect of doing business, it must lead to innovation, justice, and world community.
- Mutual trust in behavior.
Business Ethics Approach
There are 3 (three) basic approaches in formulating business ethical behavior, including the following:
Utilitarian Approach
Every action must be based on its consequences. For this reason, in carrying out one's actions one should follow a method that can provide the maximum benefit to society. In a way that is not harmful and at the lowest possible cost.
Individual Rights Approach
Everyone in their actions and behavior has basic rights that must be respected. Such actions or behavior must be avoided, if it is expected to cause a conflict with the rights of others.
Justice Approaches
These decision makers have the same position and act fairly in providing a service to customers either individually or as a group.
The following are some business ethics that must be understood and carried out by professionals, including:
- State full name
- Stand up when introducing yourself
- Say thank you in moderation
- Send thank you emails after a business meeting
- Don't sit with your legs crossed
- The host must pay
Thus the explanation about Business Ethics: Definition, Purpose, Benefits, Principles. Hopefully it can be useful and increase your knowledge. Thank You.
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