Importance of Business Ethics and Its Co-Relation with Profit

Ethics are beliefs regarding right and wrong behavior. An individual’s interpretation of ethical behavior is strongly influenced by a combination of family influences, life experience, religious beliefs, personal values, and personal influences. In public mind ,ethics in business are mainly connected with financial integrity .According to peter Pratley ethics have  a twofold objectives –“It evaluates human practices  by calling upon moral standards, also it may give prescriptive advice as how to act morally in a given  kind of specific situation .

There are many importances of Business Ethics. First, Business in particular depends on the acceptance of rules and expectation, mutual trust and fairness. Second from a personal perspective ethical errors move quickly .Leaders are role models because they influences ethical climate for everyone else. Third the manager who has ethical behavior establishes an organization climate which in turns empowers employees to become responsible to assume enhanced responsibilities.

At most times, profit maximization and discharge of social responsibilities at maximum limit, cannot be carried out simultaneously, are bound to affect the other. Many managerial decisions have ethical implications and these decisions give rise to managerial dilemmas.

A company is considered to be ethical only if it tries to reach a tradeoff between pursuing its economic objectives and its social obligations. 

Finally ethical behavior is intrinsically valuable .There are three types of management ethics which explains the whole ethics pertaining to management .Moral Management, Immoral Management and Amoral Management.

Business ethics is as necessary in business as it is necessary for its existence. Because every institutions runs as per ethical norms followed by management and labour.

Today, more and more interest is being given to the application of ethical practices in business dealings and the ethical implications of business. Many managerial choices represent Managerial Dilemmas, between the profit consideration (commercial concern) and the social consideration (welfare concern) of the organization. Many managerial decisions have ethical implications and these decisions give rise to Managerial Dilemmas.

Ethics requires a manger to be honest with himself and society. The manger’s performance and quality reflect in the success of a business. Sometimes ethical issues occur as managerial dilemmas because they represent conflict between an organization’s economic performance (measured by revenues, costs and profits) and its social performance (stand in terms of obligation to persons both inside and outside the organization).

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