What is Business Ethics? Principles and Benefits!
In the business world, ethics is an important thing that is needed to help manage and run it. As social beings, of course, we cannot live alone and need to establish relationships with others.
To establish this relationship there are values that are incorporated and the way of life in a social environment or commonly referred to as ethics. Good ethics will certainly help you develop your business more easily.
Actually, what is business ethics? How important is this business ethics? Do we need to apply it? Don’t skip this article, let’s discuss the review below!
Business ethics is a way to conduct business activities that cover all aspects relating to individuals, companies, and society.
Business ethics has an important role because it can shape the values, normalcy, and behavior of employees and leaders in order to build fair and healthy relationships with partners, shareholders, or the community.
Business ethics is an unwritten rule about how to run it fairly and in accordance with the laws in force in the country and does not depend on the position of the individual or company in society.
Business ethics can be a standard and guide for every employee including management and serve as a guide for carrying out daily work on the basis of honesty, noble morals, transparency, and professional attitude.
Business Ethics According to Experts
Ethics is a word that means ethos (derived from Greek). Ethics has to do with the value system of how humans live which will be manifested in behavior patterns and repeated. Here are some experts who express their opinions on the notion of business ethics.
a. Steade Et Al
Business ethics is an ethical standard related to the goals and ways of making business decisions.
Specialized study of right and wrong morals. This study concentrates on moral standards as applied in policies, institutions, and business behavior.
c. Hill and Jones
Business ethics is teaching to distinguish between right and wrong. Where it can provide a briefing to every company leader when considering making strategic decisions related to complex moral issues.
Business Ethics is essentially an Applied Ethics (applied ethics). Here, business ethics is an area of application of general moral principles in the area of human activity in the economic field, especially business. So, essentially the goal of business ethics is the moral behavior of business people who have economic activities
e. Brown and Petrello
Brown and Petrello stated that Business is an institution that produces goods and services needed by the community. If the needs of the community increase, then business institutions will also increase their development to meet those needs while obtaining.
Business ethics is even broader than the provisions governed by law, even a higher standard than the minimum standard of legal provisions because in business activities we often find gray areas that are not regulated by legal provisions.
f. Muslich (2004: 9)
Business ethics is a knowledge of the ideal procedures for managing and managing a business that takes into account universally accepted norms and morality
g. Sumarni (1998: 21)
Business ethics is related to the problem of evaluating business activities and behavior that refers to the truth or honesty of doing business
Important Principles of Business Ethics
Bertens (2013: 25) argues that ethical business needs to be viewed from three points of view, namely:
- Economic point of view
- Good businesses will produce profits without harming others.
- A good business law perspective. does not violate applicable and predetermined legal rules.
- A good business moral standpoint certainly fits moral standards.
Meanwhile, there are five principles that can be used as a code of conduct for conducting this ethical business. This was stated by Sonny Keraf (1998), namely:
The Principle of Honesty
The principle of honesty instills the attitude that something that is thought means something that is said, while what is said is something that is done. This principle emphasizes compliance in carrying out commitments and agreements that have been agreed upon.
The Principle of Autonomy
The principle of autonomy holds fast, independence, responsibility, and freedom. This means that independent people are people who are able to decide and take action based on their own abilities based on what is believed and free from incitement, pressure, and dependence.
Principle of Mutual Benefit
This principle instills awareness if running a business requires a win-win solution, where every decision and business action is taken must have endeavored so that all parties feel benefited.
The Principle of Justice
In this principle, the attitude is embedded in treating all parties fairly, ie not distinguishing anyone from various aspects.
Principle of Moral Integrity
The principle of moral integrity is a strong principle not to harm others in all business decisions and actions taken. This principle is based on the awareness that everyone must be respected, both in dignity and value.
General Principles in Business Ethics
In practice, there are three general principles in business ethics which will certainly make it easier for you to implement them.
a. There is mutual trust in each other
Mutual trust in each other will certainly help implement good business ethics through mutual compliance with agreements and rules that have been agreed upon in advance.
An important general principle in business ethics is responsibility. The purpose of responsibility here is the company’s commitment to creating the prosperity that is not limited to shareholders, but also to stakeholders and the company’s operational environment.
c. Respect the Environment
The principle that is no less important is to always respect the environment where you live. Every company must be able to maintain, manage, and utilize natural resources efficiently for the preservation of nature and the environment.
Benefits of Applying Business Ethics
Did you know that practicing business ethics in a company will certainly provide various benefits? What are you there?
a. Effective Management
One of the benefits of implementing business ethics is more effective management. This ethic will have a positive impact because of compliance with applicable rules.
An equally important benefit in implementing business ethics is increased compliance with the rules that apply in the company.
c. Increased Reputation
Finally, the benefit of business ethics is the company’s increasing reputation. This is indicated by the increasing atmosphere of integrity in a company.
Well, that’s a review of business ethics in terms of understanding, principles, and benefits. Keep in mind that business ethics has an important role in the smooth running of a business run by a company. Establish a good relationship with your partners so that the business runs well.