Importance of Business Ethics for Corporations: Factors, Benefits, and Challenges | Desklib

Running head: BUSINESS ETHICS AND ITS IMPORTANCE
A STUDY TO ANALYZE THE IMPORTANCE OF BUSINESS ETHICS AND THE
NEED OF THE BUSINESS CORPORATIONS TO EFFECTIVELY USE BUSINESS
ETHICS
Name of the Student:
Name of the University:
Author’s Note:

BUSINESS ETHICS AND ITS IMPORTANCE1
Table of Contents
1.0 Introduction..............................................................................................................2
2.0 Research Problem...................................................................................................2
3.0 Research Questions................................................................................................3
4.0 Overview of the concept of Business Ethics...........................................................3
5.0 Factors affecting the usage of Business Ethics by the Business Corporations..........4
5.1 Legislations of the national government..................................................................4
5.2 Ethical Code of the Business Corporations.............................................................5
5.3 Personal Code of Ethics..........................................................................................5
5.4 Social Pressures......................................................................................................6
5.5 Organizational Culture.............................................................................................6
5.6 Leadership and Management approaches of the Business Corporations..............7
6.0 Benefits derived by the Business Corporations through the usage of Business Ethics
...........................................................................................................................................7
7.0 Challenges faced by Business Corporations for the usage of Business Ethics..........9
8.0 Literature Gap............................................................................................................10
9.0 Conclusion.................................................................................................................10
10.0 References..............................................................................................................12

BUSINESS ETHICS AND ITS IMPORTANCE2
1.0 Introduction
As opined by Epstein (2018), a major dilemma that the majority of the business
corporation face in the present times is fact that they are often confused regarding the
fact whether they should take the help of the construct of business ethics. Crane et al.
(2019) are of the viewpoint that the concept of business ethics requires the business
corporations to formulate or for that amend their business activities or processes taking
into account the entities of ethics, morals, common good and others. More importantly,
Alvarado-Herrera et al. (2017) have noted that the effective usage of the construct of
business ethics offers different kinds of benefits to the business corporations and also
offers them the opportunity to attain sustainability as well. However, it had been seen
that the usage of business ethics often reduces the profitability of the business
corporations in the short-term range and this is one of the major reasons why the
majority of the business corporations forego the use of this particular construct (Cooper
2017). It is in this particular backdrop that the researcher will conduct this literature
review related to the topic of business ethics and the need of the business corporations
to embrace the same.
2.0 Research Problem
Wood and Logsdon (2017) are of the viewpoint that the focus of the contemporary
business corporations is to increase thereby profitability and thus it had been seen that
they take the help of the kind of business measures or for that matter activities which
are highly unethical in nature. Adding to this, Trevino and Nelson (2016) have noted that
the short-term benefits or the gains offered by the unethical practices have greatly

BUSINESS ETHICS AND ITS IMPORTANCE3
influenced the business corporations to take the help of the same. However, the major
problem arises because of the fact that the long-term usage of the different unethical
business activities rather than enhancing the profitability of the business corporations
adversely affects the same. More importantly, it had been seen that the adequate usage
of the construct of business ethics offers the opportunity to the business corporations to
substantially improve their brand image, gain competitive edge, offer wide ranging
benefits to their stakeholders and others (Rodriguez-Fernandez 2016). Thus, it had
become imperative for the different contemporary business corporations to take the help
of the construct of business ethics so as to attain sustainability or long-term growth.
3.0 Research Questions
1) What are the factors which influence the business corporations to use the
concept of business ethics?
2) What are the benefits that the business corporations have the opportunity to gain
through the usage of business ethics?
3) What are the challenges that the business corporations face for the usage of the
concept of business ethics?
4) How can the usage of business ethics help the business corporations to attain
competitive advantage or sustainability?
5) Why there is a need on the part of the business corporations to use the concept
of business ethics?