The Influence of Ethics in Business/Organizational Performance

Running head: INFLUENCE OF ETHICS IN BUSINESS/ ORGANIZATIONAL PERFORMANCE
THE INFLUENCE OF ETHICS IN BUSINESS/ ORGANIZATIONAL PERFORMANCE
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INFLUENCE OF ETHICS IN BUSINESS/ ORGANIZATIONAL PERFORMANCE 2
THE INFLUENCE OF ETHICS IN BUSINESS/ ORGANIZATIONAL PERFORMANCE
1) Introduction
The quest for triggering business performances in different markets and industries have
catalysed efforts directed towards the effective facilitation and running of firms/ business entities. In
other words, todays’ research has greatly been dominated by studies focussed on how business and
organization performances can be improved so as to enable a firm to favourably compete in its market
of operation. There are significantly many factors that have been pointed out by researchers, that
affect business performance, among which include; following/ observing business ethics, level of
research and innovation, coordination on the external stakeholders, the level of employee satisfaction,
and the strategic planning of an organization in general (Alzola, M. (2015, p. 318)
Looking at the many factors identified, it is typically and imperatively justifiable that, most of
the factors are integrated on business ethics. The leaderships styles, working conditions, marketing
methodologies, branding techniques and product quality are all solely dependent on ethics (Anderson,
Baur, Griffith, & Buckley, 2017, 260). It therefore implies that the performance of any organization
is substantially dependent on the ability of the stakeholders to follow the pre-determined/ established
ethics of the market in which they operate (Arce, & Gentile, 2015, p.542).
Ethics has been defined by many different scholars/ researchers. The definitions are mostly
dependent on the field/ area of expertise. some have defined it from the philosophical perspective
while others have approached it from the religious and law perspective. Nonetheless, it is true that
there is a sense of relationship among the various definitions put forth by the different researchers
(Blay, Gooden, Mellon, & Stevens, 2018, p.206). In in other words, ethics can primarily be defined as
the sets of moral principles, norms, and believes that governs or determines an individual’s
behaviours and deeds as generally accepted by a given class of people. a given class of people may be
a community, a clan, specific profession, and/ or a particular nation. This can further be understood as
a set of rules that defines what is good and what is bad to a given individual or community.
Additionally, ethics may also be defined as a division of knowledge that deals with moral conducts
and principles of a given community/ group of people (Brennan, 2016)

Running head: INFLUENCE OF ETHICS IN BUSINESS/ ORGANIZATIONAL PERFORMANCE
From the preceding insight, business ethics can be defined as the pre-established rules
principles, norms and believes that guide the operation of a definite market or an operation with in a
business entity (Collins, Weber, & Zambrano, 2014, p.529). Business organizations draw rules and
regulations through which all the operations are based. In most cases, the constitutions drawn by firms
have acted as the determinants of defining a bad or a good deed within the marked boundary of
validity or operation. It is within the business ethics or organizational ethics that defines the most
appropriate and applicable leadership styles in organizations, the ways in which the employees are
handles, the magnitude of powers leaders command over their employees, and the working conditions
of the employees in an organization (Crane, & Matten, 2016, p.p.73). Additionally, the quality of
goods and services produced, the type of competition adopted by a firm and the relationship with
other competitors are all reliant on the business ethics. This implies that business ethics is the sole
determinant of a firm’s operation in a community (Demuijnck, 2015) also shared the same idea as he
cited the universal values in business and management, p. 835)
2) The major sources of business ethics
As noted earlier, ethics has been perceived from different perspectives and by different
personalities/ schoolers. From the business viewpoint, there are mainly four major sources of ethical
values as recommended in Steiner. These typically focused on religion, philosophy, law and culture.
These are different but closely related field as it all deals with the social context, guiding the
behaviour and defining the good and the bad of the community or society (Frynas, & Stephens, 2015,
p.509)
a) Understanding business ethics from the cultural perspective
Firstly, it is important to note that culture is a set of values, norms and pattern of behaviours
transferred from one generation to another. Nevertheless, culture has seen a significant level of
adjustment, where new things are integrated while the unideal norms and deeds are removed from the
culture (Grant, Arjoon, & McGhee, 2017, p.65). This has mainly been due to the inter-mixture of
people from different cultural backgrounds and nations operating within the same organization or the

INFLUENCE OF ETHICS IN BUSINESS/ ORGANIZATIONAL PERFORMANCE 4
same business arena. Holding the fact that culture is passed from one generation to another, it is
through culture that some behaviours, are defined as bad or good with in a given context (Grosser
Moon, & Nelson, 2017, p.567)
When dealing operating in organizations or business enterprises especially ones that combine
employees from different localities, it is important to be open and diversified to different actions and
reactions. This is anchored on the argument that people from different cultures behave in different
ways, which may be inappropriate to another party or individual. Culture may further be understood
from the organizational level (Hummel, Pfaff, & Rost, 2018, p.577). In reference to the earlier note,
the believes, norms and codes of conduct in are mostly called the constitution can also be referred to
as culture. In simple terms, ethics determine the basis of operation in an organization (Guirong, Yue.,
& Jinwei, 2015, p.10)
b) business ethics from religion perspective
A series of research studies have reported that religion has been one of the oldest and most
influential foundation of ethical standards and value. It emphasizes that the definition of good and bad
is determined by the manifesti0n of the divine/ spiritual understanding. religions have over time
recommended the use of divine books such as the bile and quarrian as a source of reference in
determining the definition of good and bad (Collins, Weber, & Zambrano, 2014, p.528). Anything
that pleases the spiritual realm and believe is believed to be ethically good. It is through the variance
of religion that people have been grouped and named in different ways including orthodox,
fundamentalist and moderates (Hwang, & Chung, 2018, p.368). Reports have however indicated that
that religion has been greatly exerted and practiced by the orthodox and to a very less extent, the
moderates. Religion has played a significant role in altering the way people behave/ conduct
themselves when in different context. This can be witnessed in the difference between the many
different religions that exist, among which include Christianity, Islam. There is a significant
difference right from the types of foods eaten to the clothing worn and languages spoken (Jagger,
Siala, & Sloan, 2016, p. 403)