Formation of Organisational Structure

This document discusses the definition and advantages of business ethics, including its impact on the working environment, individual safety, income distribution, reputation, decision making, and profits. It also explores the influence of ethics on human resource management, financial management, international marketing, and ICT. The conclusion emphasizes the importance of ethics in maintaining a positive business environment.

Running Head: FORMATION OF ORGANISATIONAL STRUCTURE
Part 1:
Definition of business ethics:
According to the author Crane et al., (2016), business ethics refers to the set of principles
and ethical code of conduct that is required to be followed by each of the individual operating
within an organization. This has been created to eliminate any activity that is illegal in the eye of
law.
Advantages of business ethics:
It improves the working condition of the business environment. On the other hand, it
hampers the individual objects to cause harm to the sentiments of another individual. It maintains
the formal decorum of the organization.
Ethics corresponds to basic human needs:
It is the ethics that create a positive, healthy working environment. It keeps the safety of
the individual employee on the line. Some other factors such as,
Equal income distribution among the same level of employees- This eliminated any unequal
distribution of income among the common group peers undertaking similar activities.
Equal reputation and justice- The individual is required to be paid with equal amount of respect
as they are the primary bodies that contribute towards the organizational goals (Gough et al.,
2015).
Ethics create credibility with the public:

1FORMATION OF ORGANISATIONAL STRUCTURE
It is the ethics because of which an individual arouse faith about another individual. In
our society from a very early phase of life, we have been told to follow a particular set of
principles, and the common people believe that every individual have a presence of this basic set
of ethics.
Ethics give management credibility with employees:
The management believes that since each of the individual employees is aware of the
corporate norms and policies, and since they have a basic set of ethics. The management arouses
some faith in regard to the functioning employees.
Ethics help in better decision making:
It is the ethics that aligns the individual mentality, thoughts and perceptions within the
positive path. Thus, it ensures that a legal decision making criteria is being carried out (Ferrell et
al., 2015).
Ethics and profits:
It is the ethics that make sure that the profit earning criteria of an individual employee
and that of the management falls in a positive path. It is the ethics that eliminates the negative
step of the individual towards the profit earning criteria.
Part 2:
Effluence of ethics on Human Resource management:

2FORMATION OF ORGANISATIONAL STRUCTURE
It is the believe of the market leaders that within the business market, it is the various
sub-markets that govern the organizational interests. However, this interest are met by mean of
individual people within the market, the latter is therefore at the highest risk. It is the HR policy
and the HR body that regulates the entire workforce within an organisation.
Effluence of ethics on financial management:
It is the security against the theft of financial resources or the wrong use of financial
resources. It is the ethics that ensure that no one falls greedy with regard to the flow of money.
Effluence of ethics on - International Marketing:
It resembles the set of manner and ethical code of conduct by which an individual greets
and respect the international marketing policies. It is the ethics that ensure positive influence, in
which the business undertaking takes place within the international boundary (Cavusgil et al.,
2014).
Effluence of ethics on Informations and Communication Technology (ICT):
It is the set of ethics that safeguards the confidential data of the clients and that of the
concerning business firm.
Conclusion
Thus it can be concluded that ethics is a means to maintain a positive environment within
the business premises. It ensures that each of the ongoing activities within an organization as
well as outside the organization falls ethically. Ethics defines what is good for an individual as
well as for the society and establishes the nature of duties that people owe themselves and one
another.

3FORMATION OF ORGANISATIONAL STRUCTURE

4FORMATION OF ORGANISATIONAL STRUCTURE
References
Carroll, A. and Buchholtz, A., 2014. Business and society: Ethics, sustainability, and
stakeholder management. Nelson Education.
Cavusgil, S.T., Knight, G., Riesenberger, J.R., Rammal, H.G. and Rose, E.L., 2014.
International business. Pearson Australia.
Crane, A. and Matten, D., 2016. Business ethics: Managing corporate citizenship and
sustainability in the age of globalization. Oxford University Press.
Ferrell, O.C. and Fraedrich, J., 2015. Business ethics: Ethical decision making & cases. Nelson
Education.
Gasper, D.D., 2016. Development ethics.
Gough, I., 2015. Climate change and sustainable welfare: the centrality of human needs.
Cambridge Journal of Economics, 39(5), pp.1191-1214.