Reasons for Studying Business Ethics
Ethics is a tool used to bring sanity to the world since it acts as a moral compass that could be used to determine behavior that could be either right or wrong. In the business world, business ethics can be considered as the legalization of assessment of right or wrong, and is comparable to accounting used to determine the success or failure of a business. The applications of the use of business ethics are many and diverse depending on the type of business, its experience, its size, its modus operandi, and its profit margins. Therefore, for this analysis, the goal of the report is to provide an assessment of the viability for the use an application of ethics into a business.
Corporate social responsibility refers to the ability of businesses to become responsible to the needs of the society, their employees, and their stakeholders by engaging them in activities that would be beneficial to their needs. This is one of the applications of business ethics to the real world. It acts as a means for organizations to give back to the community by engaging in development activities such as sponsorships of local sports teams, free medical care, free maintenance of electrical or software components to the community, among many others. This strategy is crucial for ensuring that the company caters to the needs of all individuals without bias or prejudice.
Legal obligations are another core reason for organizations to practice business ethics. During the learning process for business ethics, an individual learns the important functionalities of a business, laws protecting business practices, laws protecting employees, and laws protecting clients and customers of a business. Therefore, learning business ethics ensures that the individual remains legally conscious of the law and consequences that may abound if a contravention is sensed or committed.
Competition practices are another reason for learning business ethics. Competition among businesses may spiral out of control in markets where demand of products and services is less than their supply. This causes businesses in similar lines of work to engage each other in competition wars that may become unfair and dangerous without proper control of the practice. Therefore, learning business ethics induces in an individual the useful and fair competition laws, rules, and guidelines that would allow all businesses to thrive based on their ability to be innovative, increase their brand experience, and improve customer loyalty.
Globalization is another reason for learning business ethics. In this era of free flow of information, people, goods, and services across different continents, it has become vital for businesses to ensure that their modus operandi, policies, and strategies conform to the global multicultural environment. Globalization has allowed businesses to continually seek new areas to expand their markets and businesses operations that may fall outside their normal operational zone. Therefore, with an understanding of business ethics, an individual would be able to adequately drive the business across new and tough socio-cultural environments by understanding the ethics and existence of these new areas. For instance, McDonalds has expanded its services across different continents and changed their business based on the markets being accessed. In Mexico, they have changed their menus to suit the cultural existence by providing Mexican foods to the menu, which is written in Spanish. Therefore, there are many reasons to learn business ethics since their applications to the success and existence of a business is many.