Business Ethics: Definition, Ways to Determine and its Importance

This essay provides an overview of business ethics, defining it as the structure of moral rules and principles applied to business behavior. It emphasizes the importance of ethics in ensuring financial transparency, truth in selling, and integrity in management practices. The essay further explains how adhering to ethical values leads to better decision-making, enhances public credibility, protects society, and ensures long-term profitability. It concludes that following ethical guidelines is crucial for businesses to build a positive image and achieve sustainable success. The document is available on Desklib, a platform providing study tools and solved assignments for students.

Business Research
Business Ethics
Pooja Khemani_JPR
4/28/2018

Introduction
The aim of this paper is to explain the meaning of business ethics and what is its importance
in the business world.
Business ethics
The word business ethics means the structure of rules moral rules and principles of the
behavior applied to the business. These ethics are concentrated towards the way business
should behave (Boylan, 2013). Every profession or business creates some does and don'ts for
its employees and members. The employees are provided with some standard in which they
have to work. These standards are affected by the dominant social and economic situation.
“Business ethics, in general, to understand what is accurate or incorrect in the work premises
and doing what is right”. – Cater Mcnamara. (Ruddell, 2014)
Ways to determine Business Ethics and Integrity
Accounting Practices
Financial transparency and honesty is a normal anticipation of employees, customers, and
shareholders. Inconsiderate practices of accounting limit the ability of the organization to
perform with effective financial management (Lotich, 2016).
Truth in Selling
When a company promotes a service or product, they are bound to provide what was assured
to the purchaser. Whether the promotion was through newspaper, television, the described
product must be delivered to the purchaser.

For example, a customer responded to an advertisement of furniture and went to the store to
purchase but he came to know that the store was out of that specific furniture item and the
sales officer tried to vend a similar furniture item that was very expensive.
Integrity in the Practices of Management
Practices of management are the fundamental basis for the integrity of the organization.
Whether it promises to worthy customer service or reasonable practices of employment, a
businesses’ status can be stained by unsettled product or service issues.
Importance of Business Ethics
Better Decision Making
In regards to the respect for ethics, the management of the organization is forced to take
numerous ethical, social, and economic features into concern at the time of making decisions.
The decision-making process becomes effective if it is in the interest of employees, public,
and for the company's long-term benefit.
Credibility in the Public
Organization’s Ethical values make integrity in the eyes of the public. People prefer to
purchase products from those companies that are honest and provide value for money.
Protection of Society
Ethics are capable to protect the community in a superior way as compared to the country’s
legal system. Where law fails or does not provide assistance, ethics each time thrive. The
government cannot control all the events that are damaging the society.
Profitability
Performing ethically in the market does not reflect that there will be no profit. Every business
has the accountability of itself i.e., to make profits. Companies that are ethical are assured to

be fruitful and more moneymaking in the long term however they can lose money in the short
run (Applied Corporate Governance, 2018).
Conclusion
In the conclusion, it can be said that for every business it is very important to follow all the
ethics that are framed in order earn a long-term profit and enhance the image in the eyes of
society. Some of the ethics that business needs to follow are truth in selling, accounting
practices, and honesty. Business ethics support organization in making better decisions,
protecting the society, and earn a profit in long run.

References
Applied Corporate Governance. (2018). The Importance Of Business Ethics. Retrieved from
https://www.applied-corporate-governance.com/best-corporate-governance-practice/
importance-of-business-ethics/
Boylan, M. (2013). Business Ethics. 2nd edn. U.S: John Wiley & Sons
Lotich, P. (2016). 6 Ways to Demonstrate Ethics and Integrity in Your Business. Retrieved
from https://thethrivingsmallbusiness.com/examples-of-business-ethics-and-integrity/
Ruddell, L. (2014). Business Ethics – Faith That Works. 2nd edn. Bloomington: WestBow
Press.