Business ethics--why conduct business in the right way?

In today's business world, organizations must conduct business in an ethical manner to demonstrate honesty, caring, transparency, fairness, and respect toward its shareholders, stakeholders, investors, and by extension, the world. Because firms conduct business activities across borders, and within a multi-cultural environment, they must conduct activities within the boundaries of the law. In the event a firm decides to do business unethically, it will reflect negatively, and tarnish their reputation. Additionally, current and prospective investors and suppliers may refuse to do business with the organization.

Define ethics

Ethics is the right and honest way of conducting business with others in mind. According to Business Insights: Global. What is Business Ethics? Definition, Overview, and Example, "business ethics is the study of the way a business should act in the face of dilemmas, how the business is governed" (White, J.). Firms develop a code of ethics and conduct for all to follow beginning at the corporate level.

Unethical behavior in the business arena refers to bias, lying, cultivating a hostile workplace, and corruption. According to the Corporate Finance Institute, who is Bernie Madoff, "The Bernie Madoff Ponzi scheme became the largest fraud in history. Investors losses were estimated at more than $50 million over twenty years" (Corporate Finance Institute).

Corporate Social Responsibility (CSR) is also a component of ethics in the business world. Firms must also consider the environment they operate...the

residents and the surrounds in the absence of conflict or any unnecessary

disagreements resulting in legal battles. CSR also looks at helping the community

by providing support such as assisting schools, promoting education, providing

employment, and helping the needy.

Corporate management must become the role model to the staff members of the firm, and conduct business along ethical guidelines aligned with the company's vision. mission, and values in mind.

References

https://bi.gale.com/global/article/GALE%7CA594358361?U=uphoenix&sid-ebsco

https://corporatefinance.com/resource/knowledge/other/bernie-madoff/