Which Of The Following Is A Reason Why A Business Should Be Managed Ethically?

Why is it important for a business to act ethically?

Customers, management, and employees all appreciate honest and ethical practices.

Business ethics are vital because they help maintain a great reputation, help avoid significant financial and legal issues, and they ultimately benefit everyone involved..

Why is it important for business to act ethically quizlet?

Why is it important for businesses to act ethically? Because it reflects on how they will do. If a company has a reputation for behaving ethically and for example stealing money from customers who is going to want to shop with them.

Where does ethical behavior begin?

Organizations must both model and encourage ethical decision making. THE WAY A LEADER chooses to act can have systemic ethical consequences for the entire organization.

What are the 7 principles of ethics in business?

Business Ethics for ExecutivesHonesty.Integrity.Promise-Keeping & Trustworthiness.Loyalty.Fairness.Concern for Others.Respect for Others.Law Abiding.More items…•

Which of the following is the best reason for a business to be managed ethically?

A business should be managed ethically for many reasons: to maintain a good reputation; to keep existing customers and attract new ones; to avoid lawsuits; to reduce employee turnover; to avoid government intervention; to please customers, employees and society.

What will happen if a business is unethical?

Unethical behaviour has serious consequences for both individuals and organizations. You can lose your job and reputation, organizations can lose their credibility, general morale and productivity can decline, or the behaviour can result in significant fines and/or financial loss.

What are examples of ethical decisions?

10 Great Examples of Ethical Decision Making In BusinessCostco’s Decision To Pay Fair Wages. … Volkswagen’s Strategy to Reduce its Workforce Without Layoffs. … Best Buy’s Commitment to Sustainability. … Woolworth’s gets out of liquor and gambling. … CVS Health Stops selling tobacco. … Chick-fil-A Pays for Employee Education. … McDonald’s invests in Employee Skills and Animal Rights.More items…•

What are the characteristics of business ethics?

Integrity and Fairness Integrity is an all-encompassing characteristic of an ethical business. The ethical business adheres to laws and regulations at the local, state and federal levels. It treats its employees fairly, communicating with them honestly and openly.

What are ethics and why are they important for organizations?

Organization ethics includes various guidelines and principles which decide the way individuals should behave at the workplace. It also refers to the code of conduct of the individuals working in a particular organization. Every organization runs to earn profits but how it makes money is more important.

What are some examples of business ethics issues?

The 5 Biggest Ethical Issues Facing BusinessesAccounting. “Cooking the books” and otherwise conducting unethical accounting practices is a serious problem, especially in publicly traded companies. … Social Media. … Harassment and Discrimination. … Health and Safety. … Technology/Privacy.

What do ethics mean?

Ethics is two things. First, ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues. … Secondly, ethics refers to the study and development of one’s ethical standards.

What are the ethical standards in workplace?

Business Ethical Principles Honesty; don’t mislead customers, superiors or subordinates by lying, including partial truths and omissions. Integrity; do what’s right, even when doing the wrong thing benefits you. Work hard. Keep your word.

What are ethical responsibilities in an organization?

A business should administer employee behavior and HR decisions in a manner that fits the law and establishes social responsibility. By establishing policies and applying them fairly to all employees, a business owner creates a climate of fairness and equity.

What does doing business ethically mean?

Business ethics refers to implementing appropriate business policies and practices with regard to arguably controversial subjects. Some issues that come up in a discussion of ethics include corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.

What do you mean by organizational ethics?

Organizational ethics is the ethics of an organization, and it is how an organization responds to an internal or external stimulus. … A code of ethics within an organization is a set of principles that is used to guide the organization in its decisions, programs, and policies.

What is business ethics and why is it important and how can business leaders encourage their companies to act ethically?

Business leaders can encourage their employees to act ethically by implementing proper procedures and rules that mandate employees to hold them selves to a higher standard and take accountability for their actions. Leaders and managerial staff most importantly can also lead by example.

What are the three components of business ethics?

There are three intricately related parts to the discipline of business ethics: personal, professional, and corporate.

What are the four areas of ethical business issues?

The ethics in business can be divided into four areas, such as equity, rights, honesty and exercise of corporate power.