Report on the Principle of Management: Role of Ethics in Business

This report delves into the crucial role of ethics in business management, emphasizing the significance of ethical codes in guiding business operations. It highlights the importance of corporate social responsibility (CSR) and how ethical practices contribute to a company's reputation, profitability, and long-term success. The report explores the benefits of ethical conduct, such as attracting customers, improving decision-making, and fostering employee loyalty. It also addresses the specific ethical responsibilities of managers, including treating employees with respect, offering fair prices to customers, and engaging in social campaigns. The conclusion underscores the necessity of ethical behavior and CSR for achieving sustainable business success, boosting sales, and enhancing a company's goodwill and reputation. The report references several books and journal articles to support its findings, including works by Trevino, Arnold, Parker, and Quinlan, providing a comprehensive overview of the subject.

PRINCIPLE OF
MANAGEMENT /
ROLE OF ETHICS

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Code of ethics used by manager.................................................................................................3
CONCLUSION ...............................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Business ethics plays a really important role in ethics which refers to moral rules based
on which business activities are conducted. The codes of conduct are reviewed by the business so
that they can work with the changing environment. This report includes ethical codes that are to
be used by the manager.
MAIN BODY
Code of ethics used by manager
The manager of the company need to take care that the business operations of company
are carrying out with ethics. When business is operated with ethics it creates good reputation of
the company as well as increase profitability of the company. In today's era Corporate social
responsibility plays a really important role as it believes that the resources that belonged to
society which are used by business need to be return to the society. When business work from
ethics it increases standard of living of consumers, attract customers, better decision making,
creditability with employees as well as attract customers (Trevino, 2016).
When business carry out work with ethics it decreases labour turnover of the company
and increase productivity of the company. The company who work on ethics are likely to gain
more talented employees as they get attracted to the company. It also attracts the investors of the
company which keeps the price high of company's shares and save company from hostile
takeover (Quinlan, and et.al., 2019).
The manager of the company for conducting business on code of ethics need to first start
respecting the employees. The employees of the company need to be treated as a useful resource
and their exploitation need to be stop. The manger need to understand the requirements of the
workers and need top give them flexible working hours without giving them overload of work.
The other aspect of ethics deals with customers in which the product and services that are offered
to the customers need to be at fair price with good quality (Arnold, 2016). The customers need to
be satisfied with the services and should not feel cheated. The manager of the company need to
do Corporate Social Responsibility as a part of its responsibility towards the society to give them
benefits on the issues like social campaigns on child's education, women empowerment etc.
Ethics plays an important role in uniting people and leading people. It satisfies needs of
people as when organisation be fair, honest and ethical in dealing with the customers, the
customers stick to that company. When company works with ethics it improves decision making

of the management as the base of the decision are on values and morality. Company who work
with ethics and values are profitable in the long run as slowly and gradually it creates an image
of the business in the minds of customers that company caries out its work from ethics and this
increase the profitability of the company as the brand of the company gets recognised (Parker,
2017).
CONCLUSION
The report concluded that unless and until business does not work ethically, it cannot
achieve success. Ethical behaviour and CSR can being benefits to the company and attract
customers by boosting sales and profit and increase good will and reputation of the business.

REFERENCES
Books and Journal
Arnold, D.G., 2016. Three models of impactful business ethics scholarship. Business Ethics
Quarterly. 26(4). pp.ix-xii.
Parker, D.B., 2017. Rules of ethics in information processing. In Computer Ethics (pp. 17-20).
Routledge.
Quinlan, C.,and et.al., 2019. Business research methods. South Western Cengage.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Unit, B., 2015. Corporate social responsibility.
Online
Importance of ethics 2018. [Online]. Available through :
<https://www.managementstudyguide.com/importance-of-ethics.htm>