Business in modern society is gaining more power, which affects various areas of society. Accordingly, society forces the business to take responsibility for wealth creation, the upholding of values, the appropriateness of the tools used to meet the goals. Thus, people value the business not only in legal, economic, but also ethical terms.
There are so many companies that create a business with a primary goal to make a profit and meet own needs. Being an entrepreneur in business, his morality, social norms, and norms of conduct and social responsibility initiatives are a matter of business ethics. Business ethics and culture are closely related to each business enterprise and influences each business.
The entrepreneurship is close related to morality. By creating a business, an entrepreneur can only rely on his or her desires, insight, ingenuity, diligence and ability to expect the consequences of the taken decisions. He is always responsible for his decisions and actions, and any responsibility has a moral starting point. In the entrepreneur's activity, morality - behavior, norms, values - is the object of business ethics.
What Is Business Ethics?
According to some scientists, business ethics is a form of social responsibility, while by others, business ethics are more related to compliance with rules and moral norms. Interestingly, the authors describe business ethics as an invisible force that regulates the relationship between business and morality and helps to find harmony in that relationship.
Business ethics divides into macro-ethics and micro-ethics.
Micro-ethics deals with moral relationships within a business organization, relationships between business organizations as moral entities, as well as between their employees and shareholders.
Importance of ethics in business - Photo credit: twitter.com
Macro-ethics consists of that part of business ethics that explores the specifics of moral relations between the socio-economic system of macro-entities, business organizations, the state, and society in general, as well as its parts.
Ethical problems first are the result of people's communication, because only by communicating with each other, people make decisions that we judge from ethical positions. Thus, the moral maturity of business entities and provided moral values determine the ethical problems in the enterprise.
Company culture' doesn’t exist apart from the company itself: no company has a culture; every company is a culture. - Peter Thiel
The Most Important Ethical Issues Encountered By Entrepreneurs
• Hiding facts and correct information in reports.
• Production of poor products.
• Unfair price increases or direct fraud during negotiations.
• Excessive confidence in your justice.
• Poor quality of work and goods, blind obedience to management, whatever it is unethical and wrong.
• Conflicts between personal and business organization interests.
Business ethics in entrepreneurship - Photo credit: plus.google.com
• No opportunities to express your resentment or disapproval of permanent unethical behavior within the organization.
• Insufficient attention to family and personal life due to excessive workload.
• Production of unsafe products.
• Excessive attention to career advancement.
• Fraudulent behavior to employees to benefit the organization.
In modern business, the core value is the pursuit of benefit, and everything else does not matter. In such situations, the business ethics becomes important. The fundamentals of business ethics are particularly important for those whose business relates to communication with people. All entrepreneurs should not only lead people but also, under their leadership, to convey moral attitudes, find the most proper ways to solve problems and earn their subordinates' respect for ethical and moral activities.
The purpose of ethics is to find a compromise between what is mandatory and what is ethical and moral.
Business ethics in entrepreneurship - Photo credit: hollandalumni.nl
The Three Key Statements Of Modern Business Ethics
• The company must develop and deliver to society not only material products but also moral values.
• Business organizations must direct their profits and other funds toward socially important goals.
• In addressing the challenges that arise in the business world, priority must be given to reconciling interpersonal interests, and only then to increasing production.
Every business owner strives for long-term success, not short-term impact. The question is whether there are enough time and space for ethical deeds in the process of managing a company when it comes to numerical indicators that describe business success?
Leading a company based on ethical principles is a constant attempt to try, to go wrong, and to try again. If the business ethics were universally recognized and applied without exception in all companies, the way to business success through the prism of business ethics would be more straightforward, but today, the manager often faces various obstacles and barriers.
Ethical Business Culture - Photo credit: wallpapercraft.site
When starting a business, an entrepreneur usually assumes threefold responsibilities to the employees, business partners, the state.
Commitments to employees - timely pay, respect, honesty.
The business ethics importance is not only seen in the company's relationship with partners or society. No less important is the ethics of business management. It's professional ethics of each company or organization that manifests itself in relationships between managers and subordinates to properly encourage and motivate employees, to form tasks and positions accurately and clear instructions.
Ethical Business Culture - Photo credit: theimmagine.eu
Execution of obligations to business partners - compliance with contractual conditions. Violation of established conditions by one party to the contract creates tension, distrust, and further cooperation interrupts. This has a negative impact on the success of his business.
The entrepreneur's commitment to the state is the need to comply with the laws that define entrepreneurship and to pay taxes honestly.
Fair treatment of employees, the pursuit of quality, respect and trust, cooperation's and mutual help should become the cornerstone of every business's internal ethics. Only a strong inside and ethical company that cares for both internal ethics and social responsibility can secure long-term and successful business activities in the future.
Thus, in the modern world, business ethics become an indispensable tool in the management process of each company.
Business moral values - Photo credit: cleverism.com
Code Of Entrepreneurs Ethics
Regardless of where the business is developed, what the economic conditions are, you can safely say that the entrepreneurial ethics code should contain general provisions followed by every self-respecting entrepreneur:
• Business must not harm human health, human ecological and economic environment; -
• An entrepreneur should earn money in a moral way.
• An entrepreneur must not forget that there are other people in the market which interests he cannot ignore.
• An entrepreneur must not seek to destroy a competitor but to seek mutually beneficial cooperation
• The entrepreneur must honor his business partners honestly and try to treat them in an ethnic way.
• The risk that an entrepreneur decides to take on business must be reasonable and the responsibility for its consequences - personal.
• Business - risky activity: you can not only get rich, but also lose everything, so the entrepreneur must be psychologically ready for it;
• The businessmen first must respect the employees and only then value the money.
Business moral values - Photo credit: asegue.blogspot.com
Why Are Business Culture And Ethics Important?
Why is culture so important to a business? The stronger the culture, the less corporate process a company needs. When the culture is strong, you can trust everyone to do the right thing. People can be independent and autonomous. They can be entrepreneurial. In organizations (or even in a society) where culture is weak, you need an abundance of heavy, precise rules and processes.
When it comes to the business ethics and culture, we do not mean obsolete formulations of mission, vision, and purpose that a rare worker knows and can repeat. The culture is to believe in the higher result the company seeks. Values, service to the public, and its well-being are becoming increasingly important for the Y generation.
The culture and ethics perception is an important condition for a successful company.
In value-based business culture, more employees feel happy with their work and feel they have realized themselves. They create stronger relationships with colleagues, get better results, and have better feedback from the employer. The goal is the company's competitive advantage that helps it succeed.
Business moral values - Photo credit: happilyway.blogspot.com
A part of a company's culture often is various social projects. Companies love focusing on projects that promote social responsibility. Such business positions itself as a socially responsible and carrying about the well-being of the community.
The value-based goal attracts talented people who need to develop and influence change in society. Constantly communicate your company's goal and values.
If you want to change the business culture, first identify the current prevailing culture and values. One cannot absolutely say that one or another organizational culture is better than the another. This much depends on the company's specialization and activity's sphere. It is important for the business to set ambition goal and little by little change the culture and environment but in such a way that is most attractive to society.
On The Final Note
For a company to succeed, it is not enough to just expand its business, increase production, and meet good financial results. It is well understood that it is imperative to take responsibility for their actions, to take into account the needs of society, to add a contribution to the environment's saving and to social development.
That is why we must strive for the highest standards of business ethics, act honestly and responsibly, care for the environment, employees, and society. The time invested in internal corporate culture brings benefits and rewards.
It is clear that in so rapidly changing global business world, business ethics' importance is high and important.
Understanding the business ethics, adhering to accepted norms and unwritten rules in the business world are the way for the entrepreneur to succeed.
Business Ethics And Culture - Photo credit: imamfauzi1987.blogspot.com
On the other hand, we cannot categorically say that without business ethics, the business fails, but I just want to emphasize that business activity based on business ethics is more effective and practical than the activities of a company that does not comply with such principles. The importance and meaning of business ethics are hardly tangible but unambiguously useful.
I want to remind those businessmen who think otherwise: what you will save by cheating your customers, employees, or business partners will only be instantaneous benefits, eventually coming back with hundreds of times more losses!
If you don't have integrity, you have nothing. You can't buy it. You can have all the money in the world, but if you are not a moral and ethical person, you really have nothing. - Henry Kravis
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