If you favour anyone just because he is your relative, the other team members are bound to feel demotivated and thus start looking for new opportunities. Privacy Policy, Insider Trading & Strategies to Combat it. Employees tend to lie if you do not allow them to take leaves. Ethics in Leadership . Do you think it is entirely the employee’s fault? We are a ISO 9001:2015 Certified Education Provider. Defining Objectives and Targets – It helps to define the objective, aims, targets, missions, vision, strategy and values of the organisation in order to enable them to achieve in proper way. The most important part about ethics in business is that the activity of the business should comply with the law, meeting the standards while it also follows its own clear aims and objectives of the organization and satisfying generally everyone who is involved in the business at the same time. This article highlights the importance of ethical environment in enhancing organizational performance. Business ethics is a subjective term. Being ethical involves being fair and equal however, if this is the case, then this wouldn’t be fair for the business itself. Some of the advantages which can result from being ethical in business management practice are improved public image, relationships, reputation and increase in the range of customers which will lead the business to gain greater profit. In the employees’ perspective, treating the employees well with respect and providing them with an adequate payment is also an ethical behavior that should be performed as well. Milton Friedman has argued that “There is one and only one social responsibility of business – to use its resources and engage in activities designed to increase its profits so long as engage in open and free competition without deception or fraud.” The consumer awareness towards social responsibility is increasing. Most of us would agree that it is ethics in practice that makes sense; just having it carefully drafted and redrafted in books may not serve the purpose. It is mandatory for superiors to know what their subordinates are up to. One of the main ethical issues in the business world is multinational companies misuse of their power. Management ethics is a complex discipline and its importance is still growing. Then is it possible for businesses to behave fully ethical? Transparency is essential. For that to happen, organizations need to abide by ethics or rule of law, engage themselves in fair practices and competition; all of which will benefit the consumer, … "Honesty, responsibility, respect and fairness are the values that drive ethical conduct for the project management profession," according to the Project Management Institute (PMI). This is important as it allows the nature to keep itself fresh and providing us resources that we need at the same time. The legal markets which sell those goods will be affected greatly as their profits will decrease. Businesses can also save money by reducing the amount of waste they dispose of and resources and energy they use. The emergence of black market is also a big issue that is concerned. Attention to business ethics has substantially improved society. It concludes with a useful performance management check list. Employees also develop a feeling of loyalty and attachment towards the organization. Unnecessary favouritism is against workplace ethics. That governs actions and decisions in a company. More input from employeesBut are th… Nike has been sued in the past for using child labor in the process of making football. 150 Royall Street, Suite 207 Canton, MA 02021. 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