Importance of Business Ethics in an Organization

Running head: IMPORTANCE OF BUSINESS ETHICS IN AN ORGANIZATION
IMPORTANCE OF BUSINESS ETHICS IN AN ORGANIZATION
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1IMPORTANCE OF BUSINESS ETHICS IN AN ORGANIZATION
Business Ethics in a local or multinational organization
Every company has their own moral principles and guidelines. Introducing and following
new business ethics has benefits like keeping and attracting the employees, customers and
investors in an organization. For an example if a an energy drink manufacturing company like
Red Bull proclaims on the labels and advertisements that it does not add any preservatives to the
drinks. Then it should adhere to the claims it has made. However if the company is seen to be
disobeying the claims and selling its products by adding preservatives, it would be considered as
unethical to the business.
This will thus deteriorate the brand and eventually the customers will be losing the trust
over the company. It will also damage the reputations of the company. Therefore, business ethics
is very much important for a local as well as a multinational company. The Deontology class of
business ethical theories states that people should adhere to the obligations and the duties, which
are engaged in the decision-making ethics of an organization (Cowton, Dempse and Sorel 2019).