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Why is business ethics important to managers? Definition of business ethics.

History of business ethics

The term ethics derives from the ancient Greek word “Ethos” which meant different things at different times. One of the meanings was the way to do something, the quality of something.

Aristotle called good human qualities ethical ones. To translate this word from Greek into Latin Cicerone used the word “moralis”. Both these terms are used in the languages nowadays, but the first mostly means the science while the second is the subject, which is taught.

Business ethics are an important contemplation in managing a team of project managers. The “golden rule” of ethics appeared in the middle of the first century B. C., at the time when people’s society turn to human principles. It runs as follows: “Do unto others as you will have them do unto you”. This rule is very actual at present as well.

Ethics are moral beliefs about what is right and the study of this.

Business ethics are theories about conduct and values which a business has to a community it exists in, to its employees and its customers.

Examples of bad business ethics

But for some people the concept of business ethics may be a contradiction. They may think that main task of a company is to make profits. Though advanced companies found that placing a high priority on ethics can be good not only to a community, but to the company itself. If a company enjoys public confidence, cares about the consumers, follows ethical principles it can increase its market share Some companies think it is important to blend economic and social goals.

This means undertaking social and environmental projects outside the company, (effective environmental management is now a very important part of manufacturing in many countries) treating the company’s own employees with unusual respect when the employees can: have opportunities to speak to the highest executives, express their concerns openly, meet together several times a year to discuss companijs issues.

Some companies have a code of good practice which is a written document laying out ethical ways of working for the personnel of a company, this document prevents managers and employees to behave unethically.

Business ethics importance

A company’s internal code of ethics contains its ethical credo and the company may have a mission statement. And there may even be an ethics ombudsman to check that the issues are put into practice and deal with complaints when they are not.

A mission statement is a document in which a company sets out general approach to doing business and its objectives. Not all companies have mission statements, and they can vary from a single sentence to several pages.

Not long ago protecting the environment was the concern of a small group of people. Now many businesses and managers discovered it would make more business sense to reduce the amount of waste and recycle any waste that produced. Ideally the company would take “cradle-to-grave” responsibility for all materials it uses or produces. Market sensitive companies think about benefits for their companies and also they take care about society on the whole, they see business opportunities in developing environmentally safe products.

 

Why is business ethics important to managers?

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