Business Ethics: Theories, Implementation and Justification

This essay provides a comprehensive overview of business ethics, beginning with foundational concepts and exploring the significance of ethical practices within organizations. It delves into descriptive and normative ethics, emphasizing the importance of ethical leadership, and the development of ethical leaders. The essay examines the implications of ethical leadership, including its impact on organizational culture and employee behavior. Furthermore, it explores the role of corporate social responsibility (CSR), its dimensions, and implementation strategies. The document analyzes various theories of business ethics, such as technological and deontological ethics, and provides a detailed discussion on ethical characteristics. It concludes by highlighting the critical role of business ethics in fostering transparency, long-term profitability, and sustainability within a company, drawing upon observations, theories, and empirical evidence to support its conclusions.

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

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Introduction of Concepts of business ethics
From the class discussions and online tutorials, it is revealed that the the concept of business
ethics is primarily recognized as the application of principles based on ethical application in
the domain of economic activity. The values that centralize the concept are solidarity,
humanity and responsibility (Goel & Ramanathan, 2014). The ethical standards are justified
from the outcomes and consequences of economic activities performed on other people and
in the organizational environment. Ethical standards are acknowledged by the factors of
sustainability and justice. Ethics are segregated into different categories that specifically
known as descriptive ethics and normative ethics. Following it, descriptive ethics directs on
how people actually behave and perform. Whereas normative ethics approaches to facilitate
answers to the questions based on how to act. Normative ethics are further classifies into
formal and material ethics (Goel & Ramanathan, 2014). Material ethics consider that concrete
and firm norms and values primarily originate from the religious beliefs. Whereas formal
ethics forgoes the features of material values and norms in the favor of the derivation of the
principles based on formal dialogues, which reveals the reflection of ethical procedures that
are essentially carried out. With an approach of brief description and classification of ethics,
it is further marked that Business Ethics also inquires certain patterns and design in different
sectors such as firm markets, political oversight, and market regulation in a society as well as
in the global economy.
Importance of Business Ethics
As I delved deeper into the study of Business Ethics, I found that the importance of business
ethics are identified or realized through various reasons. Firstly, it keeps the working
environment with a parameter of the law that ensures that they are not committing the illegal
or unfavorable actions against consumers, customers and employees (Goel & Ramanathan,

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2014). However, the awareness of business ethics marks the success of the organization.
Through business ethics, trust is built between the businesses and consumers. Leveraging
business ethics results in maximizing the brand equity. Business ethics also provides highly
appealing factor to the investors and the shareholders. The more an organization is
recognized for its decorum and ethics, greater is the exposure in market among investors and
consumers. Following such business ethics, business employees gain a benefitting factor in
operations. Attracting high graded favourable talent is in fact easier in the grounds of ethical
businesses (Goel & Ramanathan, 2014). Following to this reason, employees not only
appreciates the socially aware employers but also approaches towards them with an idea of
efficient and potential employee. This results in producing more employees that are dedicated
and further it also proves to reduce the cost of recruitment.
Ethical leadership
Following to the insights of the definition and importance of business ethics, I realized that
Ethical leadership is the prime pivotal factor in order to maintain the decorum of the
environment in the organization (Goel & Ramanathan, 2014). It is recognized as the actions
that are involved according to one’s moral principles in business life and the decision
making. It primarily means the figure of truthfulness owards moral principles provided with
being aware of the complexities of some issues based on ethics. It also involves sensitivity
towards different views of the employees.
Learnings and its impacts on existing views and opinions
As per the class discussions, lectures, tutorial and case studies; it is understood that the
ethical leadership must maintain a good quality leaderships which are basically built on
respect and trust. These two factors acts as an organizational success. Through such attitude

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and behavior, respect, integrity, fairness and compassion is developed in the organizational
environment.
Considerations of the implications
There are certain implications and considerations of the ethical leadership that includes the
idea of respective goals and its authenticity. The major concerns are on the traditional traits
that are predominantly present in an effective leadership (Goel & Ramanathan, 2014). Traits
such as ability to understand the executive powers of leadership, the essence of integrity,
trustworthiness and honesty. The leadership qualities ranges from motivating the employees
and managing ethical accountability and ethical awareness.
Can ethical leaders be identified and developed?
Through the study of the significant factors, certain questions are raised. Provided with the
proposed significance of the role of ethical leadership, researchers and observers asked
whether the role of ethical leadership be developed and identified (Trevino & Nelson, 2016).
The suggestive answers were facilitated with relevance including all kinds of organizations as
well as the academic domains and educational institutions that are involved in providing
training of the future leaders.
Analysis of logic in order to develop ethical leadership, certain steps were processed
following the recommendations. The recommendations include attracting ethical leadership
through the process of selection, role modeling, training, organizational culture and
socialization.
Propositions
I further proceeded with certain propositions through observations and analytical views.
Based on the learning process, a perspective of social learning is approached, proposing the

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antecedents and conclusions of the ethical leadership, that is, Ethical leadership is identified
as relative to follower motivation, satisfaction and organizational commitment.
Sustainability: Ethical and social
The sustainability of ethical and social factors in Business Ethics requires spirituality as a
foundation. The initiatives of Ethical business remains meaningless and ineffective without
spiritual motivators (Trevino & Nelson, 2016). In ethical and social grounds, business ethics
along with spirituality and sustainability management are interlinked. The concept of
sustainable environment in a business organization lies in the decorum, truthfulness, fairness
and security provided with an influence of motivation and inspiration in order to build up the
efficiency in the company.
Corporate Social Responsibility: dimensions
Corporate Social responsibility is identified as actions involved in businesses. It is a self-
regulatory model of business ethics that provides the company a help in being socially
accountable to all the leads such as to its organization, its public or consumers and to
stakeholders and investors (Trevino & Nelson, 2016). To engage Corporate Social
Responsibility in a company means that the company is operating in variant ways that
enhance the society and social activities in the environment, instead of pouring a contribution
negatively to them. Business ethics and social responsibility are often considered as the
similar concepts (Zadroga, 2017). The social responsibility movement maintains the aspects
of overall discipline in the domain of ethics in business (Goel & Ramanathan, 2014). The
responsibilities cultivate and maintain the ethical practices in the organization and social
practices, resulting an increase in public consciousness.

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Ethical business are executed with the help of certain policies that include the implementation
of core responsibilities and managerial tasks. The dimensions of responsibility of business
ethics includes communication, motivation and delegation of the organization’s ethical
position to employees. Corporate social
Implementation
The essential implementation lies in the delegation as unclear clarifications often cause
difficulties to the subordinates. The second implementation that is executed as a core
responsibility is Communication (Trevino & Nelson, 2016). Communication should be
followed in any ethical practices. It happens in variant ways such as the code of ethical
conduct, training programs and training programs. Through communication, one gains the
initial ethical exposure (Goel & Ramanathan, 2014). It is often marked that a progressive
business ethics also questions the model based on the dimensions of duties and
responsibilities of the managers (Zadroga, 2017). It is observed that progressive business
ethicists often worry about the spectrum of ethics practices and therefore either promote or
undermine the autonomy and freedom.
Justification
Business Ethics are viewed based on principle features. The first level is the micro-level that
concerns the indivualistic behavior assessed in the working environment of the organization
(Trevino & Nelson, 2016). The second concern is on the mid-level activities, governance
structures and policies of an organization such as firms, professional association, non-
governmental organizations, regulatory agencies and industry associations (Zadroga, 2017).
The third feature is the activities of a macro-level concerning the regulation and structure of
markets within a parameter of democratic state and an international economy (Goel &
Ramanathan, 2014). The issues that is highlighted at each of the mentioned levels are closely

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linked to those positioned at other levels. The norms and rules within the organizational level
of business ethics and environment depends on the general justifications of the role involving
the political and economic systems. The justifications of regulations and market designs take
the account of issues in the micro-level such as fundamental rights. Issues in the mid-level
concerns majorly on the dynamics of decision-making and governance within an organization
and other firms (Zadroga, 2017). Provided with the range of legal, empirical and institutional
issues, it is clarified that the business ethics must be considered as interdisciplinary (Goel &
Ramanathan, 2014). The fundamental problems in the domain of business ethics is identified
in the course of justification of self-regulation.
Theories of Business Ethics
Business Ethics contains two distinct theories. Thy are technological ethics and
Deontological ethics (Trevino & Nelson, 2016). Technological ethics theories are the ethics
that determine the activities by observing the probable outcome or results of the decisions
(Zadroga, 2017). Whereas, Deontological ethics holds the factors that are associated with the
fulfillment of the obligations, processing the proper procedures, performing the right thing
and following the moral standards and ethical virtues and values (Goel & Ramanathan,
2014). It further elaborates through six theories that are categorized under these two distinct
sets of ethics. Eternal Law, Hedonism, Utilitarianism, Universalism, Distributive justice.
Religious leaders often follow the Eternal Law, that is incorporated in the mind of God. It is
believed to be unchanging provided with obvious rights and duties. Hedonism refers to the
philosophy of self-serving in an individual who seeks to increase the pleasures in the world.
Utilitarianism refers to the ethical decisions that are made based on the consequences and
conclusions (Zadroga, 2017). This theory advocates the utilization of action that brings ta
immense amount of goodness of bad. It measures the degree of preferences for particular
good in terms of its service and price (Trevino & Nelson, 2016). The utilitarian provide a

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process of decision making through a quantitative method for making decisions on ethics
(Goel & Ramanathan, 2014). Utilitarianism rules are recognized through honesty,
truthfulness, duty and responsibilities, and promises. Universalism is the approach that refers
to the reversal of teleological theory (Zadroga, 2017). The theory describes that it is about the
individuals who feels valuable by themselves but not because of social values. Therefore,
arguments that comes forward are the capacity for making rational decision is the most
significant feature. Moral beings have the capacity to follow the rules and laws. Happiness is
not everything or the ultimate desire s human seeks variants goals (Goel & Ramanathan,
2014). Following it, the factors emphasizes the moral worth of an individual’s action,
provided with an independency upon the consequences and outcome because these
consequences are uncertain and indefinite.
Personal Ethical Characteristics
Ethical behavior are recognized as the product of the personal experiences, personal values
and the environmental factors in the paradigm of which one acts and lives (Zadroga, 2017).
Individuals create a network of ethical principles and norms through the assessment of
socialization, that contains the ethical philosophy and impacts the decision making in
situational cases in which the ethical component is involved (Trevino & Nelson, 2016). The
personality based on ethics is majorly influenced by four factors. They are ego strength,
cognitive development of morals, locus of control and the concept of Machiavellianism.
Conclusion
From an in depth reflective study of Business Ethics, it is concluded that the status of
business ethics grew out of the learnings and thorough study regarding observations, theories

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and empirical foundations. Ethics in business is essential because without the awareness of
ethics, the employees or any individual cannot achieve any satisfactory outcomes or profit
along with integrity and support from the surroundings and from the business company. It
provides a transparency and long term profit to the company and keeps the company
sustainable due to it commitment towards business ethics. A company’s ethics determines the
reputation and retains a good business with essential positive and success factors of an
organization.

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