A Culture of Ethical Behavior Is Essential | Assignment

Running Head: BUSINESS ETHICS
BUSINESS ETHICS
Name of the Student
Name of the University
Author Note

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BUSINESS ETHICS
Introduction
Business ethics includes all the policies and procedures, which can govern the
misconduct activities in an organisation. The first part of this paper has discussed the concept
of ethics. The next part is discussed on the importance of business ethics. The third part is on
the impact of whistle-blowers on ethical behaviour. The last part has provided certain
recommendations is to support the ethical considerations of whistle-blowers in an
organisation. The intense of this paper is to understand the ethical dilemma of whistle-
blowers in business ethics.
Discussions
Ethics
Ethics are the moral values and principles that support an individual to conduct an
activity appropriately. Ethical experience is an important factor in ethics. It is an activity that
continuously emerges in an individual. It is a kind of active receptivity in an individual.
There is a difference in the moral activity of every individual, which involves strong approval
and disapproval of a particular discussion (Keown 2016). Ethical experience is approval of
demand that can be filled with various constraints.
Theories of Ethics
1. Deontological ethics- This theory says that the morality of an action should be
described based on the action itself, but not based on the consequences of that action.
Kantian Ethics is an example of deontology ethics in which, Kant is trying to show
the moral problem by combing the objectivity with practicability.
2. Utilitarianism ethics- It is a kind of normative theory that mainly focuses on the right
and wrong of the consequences of an action (Donnell 2017). This ethical theory
focuses on the interest of other person rather than focusing on their interest.

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3. Virtue theory of ethics- this theory indicates that the ethical perspective of an
individual can be judged by his or her character, rather than the action deviated by his/
her behaviour. This theory does not consider the morality of an action.
4. Rights- This is the ethical theory that is based on the rights of an individual. The
rights of society are given the highest priority because it is considered to be ethically
correct. For example, a person has said that her friend has borrowed her laptop.
Therefore, the person has the right to take the laptop in the afternoon (Kagan 2018).
Business Ethics
Business ethics includes the study of all the policies related to the controversial
activities in a business. Some of these activities include insider trading, discrimination,
corporate governance and corporate & social responsibility (Trevino and Nelson 2016). The
businesses appropriately choose the related policies for the well-being of society and
themselves.
Importance of Business Ethics
Business ethics is very much important in an organisation. Reputation is an important
component of a company. Potential investors and the shareholders will get attracted for
further investment in the company which have some good reputation and make promises to
keep the share price high. For maintaining this reputation, an organisation must focus on
providing moral guidelines and operates on strong ethics. It benefits the entire organisation.
Ethical decisions in Business Environment
Strong ethical decision-making in business can help a company to explore and select
the best business opportunities. Following are the ethical decisions done by a business:

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BUSINESS ETHICS
1. A clear law of ethical code of conduct inside the organisation and making decisions
based on the code of ethics.
2. Selection of the employees who behave ethically and training them to maintain ethical
behaviour in the environment (Rozuel 2016).
3. Less focus on discrimination and focus more value on the employee’s capability for
team discussions or problem resolution.
4. Ethical decisions related to marketing and sales plan. Promotion of products and
services is done ethically without affecting the moral values of society.
5. Monitoring the regular structure of an organisation for ensuring an ethical climate in
the workplace. This is done by reviewing the performance regularly, responding to
customer’s feedback.
6. Ethical auditing practices preparing annual reports of an organisation. The correct
value of the figures is disclosed in the final statements of the annual reports
(McMurrian and Matulich 2016.).
Issues in Business Ethics
Following are some of the ethical issues faced by a business:
 Issues in Accounting- Unethical accounting practices are involved in many of the
public sector organisations. Accountants are involved in fraudulent activities due to
inflating earnings; auditors are involved in manipulation activities during the financial
disclosure of the company's annual report (Ablander and Gossling 2017).
 Issues in Social Media- Various unethical problems involved in social media are the
misuse of sensitive information of the company, disclosure of confidential
information, conflicts in interests.