What Are Business Ethics? Everything You Need to Know

Ethics plays an important role in a person's personal and professional life. Over the past 10 years, the importance of ethics in business has increased globally. It helps organisations to have proper policies or codes of conduct that will help their companies to grow successfully in the market. Business ethics involves making ethical decisions in areas such as marketing, finance, accounting, and operations, and upholding ethical principles

By learning about Business Ethics, a student can analyse and identify the ethical issues of any workplace and can address them. To have an in-depth understanding of business ethics students can opt for BBA Program. 

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What is Business Ethics?

Business Ethics is a system of what is good or bad and moral or immoral in the business world. It involves not only the financial or legal suggestions of the organisation but also the social and moral consequences. It allows any organization to have a suitable and regular code of conduct, legal liability, and policies for better business operations. 

Business ethics covers a wide range of issues, such as honesty, integrity, fairness, social responsibility, and respect for the law. Not only this, but it also involves the ethical treatment of employees, suppliers, and customers, and the avoidance of conflicts of interest and other unethical behaviours that could harm the reputation of the company.

In all, business ethics is about promoting responsible and ethical business practices that benefit not only the organization but also its stakeholders and the broader community.

BBA Course for Business Ethics

Students can get the advantage of learning about business ethics in any BBA course, though it will greatly benefit if you are planning to pursue BBA in International Business. 

• BBA in International Business is a three-year BBA program, which focuses on business management and global business. The program is designed to provide students with a comprehensive understanding of global business practices, international trade, the concept of buying and selling and much more. 
• For students to be eligible for BBA in International Business course, need to have 50-60% scored in their 12th standard from a recognised board. There are few universities that may also conduct their own entrance exams, while some may take direct admissions on the basis of merit.
• The syllabus covered in this course majorly includes marketing of the cross-cultural business, fundamentals of international business, international strategic management, international marketing, and so on. 
• Students have a number of options for jobs after a BBA in International Business, they can work as global business managers, international managers, international brand managers, and export managers.
• Students can also choose to continue their studies, they can either choose an MBA specialising in Internation Business or can also go for PGDM, in order to scale up their skills. 

Principles of Business Ethics

To have a deep understanding of Business Ethics it is important to understand the principles well so that an individual can successfully implement them in their life. 

• Honesty and Integrity: Being honest is being truthful, transparent, and ethical in all business dealings. This also means avoiding conflicts of interest and refraining from any actions that could be considered unethical. 
• Fairness: Treating everyone equally and fairly is an important principle of business ethics. This can mean providing equal opportunities for employment, promotions, and other benefits based on merit rather than personal characteristics such as race, gender, or religion.
• Responsibility: It involves recognising the effects of business activities on stakeholders and taking ownership of those impacts. This can include promoting a culture of responsibility within the organisation, where employees are allowed to take responsibility for their work and the impact it has on others.
• Respect: Showing respect for others, including employees, customers, suppliers, and the broader community, is an important principle of business ethics. This involves treating others with dignity, fairness, and sensitivity to cultural differences.
• Lawfulness: Complying with laws and regulations is an important principle of business ethics. This involves understanding legal requirements in all business dealings and avoiding any activities that could be considered illegal or unethical.
• Loyalty: It involves showing commitment and dedication to the organisation and its stakeholders, and inspiring the same in employees and management. This includes having a culture of trust and mutual respect within the organisation and confidentiality and care in handling sensitive information.
• Trustworthiness: It involves building and maintaining trust with stakeholders through honesty, transparency, and reliability. This can include being transparent about business practices and decisions, keeping commitments and promises, and being honest in communication with stakeholders. 

Types of Business Ethics

There are several types of business ethics that are commonly recognised. Some of these include:

• Personal Responsibility: It involves taking ownership of one's actions and being accountable for the outcomes of those actions. This can include fulfilling job responsibilities and completing tasks to the best of one's ability, as well as acknowledging and taking steps to correct mistakes and errors. Personal responsibility also involves being proactive in identifying and addressing potential issues or problems and working collaboratively with colleagues to achieve common goals. 
• Corporate Responsibility: It involves recognising that businesses have a range of responsibilities to various stakeholders, including employees, customers, shareholders, and the broader community. These responsibilities can include legal and contractual functions, as well as ethical responsibilities to conduct business fairly and treat stakeholders with dignity and respect. Corporate responsibility also involves being proactive in identifying and addressing social and environmental issues and contributing to the well-being of the broader community through philanthropic and other initiatives.
• Social and Environmental Responsibility: It involves recognizing the impact of business operations on the broader community and the environment, and taking proactive steps to address these impacts. This can include initiatives to promote sustainability, such as reducing waste and emissions, conserving natural resources, and promoting renewable energy. By taking care of this, businesses can show their commitment and build trust and loyalty among their stakeholders, and contribute to the long-term well-being of the community and the environment.
• Importance of Business Ethics: Business ethics is important for a variety of reasons, a business that operates ethically and transparently can build a positive reputation and earn the trust of customers, employees, and other stakeholders. This can lead to increased loyalty, repeat business, and positive word-of-mouth marketing.

Ethical behaviour can help ensure that a business complies with relevant laws and regulations, reducing the risk of legal and financial penalties. Companies that prioritize ethics and social responsibility are more likely to attract investors who value sustainability and long-term growth. It will have a positive impact on the community and the environment, contributing to the well-being of society as a whole.

Also, employees who work for a company that values ethics and integrity are more likely to be satisfied with their jobs and more likely to stay with the company long-term.

Conclusion

Business ethics is a crucial aspect of any business education, including the BBA program. It is essential, as it will help students become responsible and ethical business leaders who prioritize the interests of all stakeholders and contribute to the greater good of society. 

At Sunstone, students can get access to many training courses that will benefit them in learning occupational skills.  Additionally, it offers its students 100% placement support, interview assurances, and other benefits that may help them land employment offers.