Importance Of Business Ethics

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BUSINESS ETHICS ASSIGNMENT Organizations that practice better ethical business standards perform better than those that do not have. Discuss Introduction Ethics is the practice of making a principled choice between right and wrong. Oxford American dictionary: Concerned with the principles of what is right and wrong in conduct. Ethical principles are ideas of behavior that are commonly acceptable to society. Using ethical principles as a basis for decision making prevents us from relying only on intuition or personal preference, Business ethics include practices and behaviors that are good or bad, it concern values and standards that guide behavior in business. Many firms have today realized that there is a direct link that exists between business ethics and financial performance of the organization. Building ethical reputation for a company among its employees, customers and also the public is very important to achieve organizational goals. There are many practical benefits of being ethical for organizations. 1. The commitment of employees increases when they realize that their future is tied with the growth of the organization. Their willingness to give personal sacrifices can help the organization grow which in turn can result in their own growth. An organization should always be dedicated towards the employees and should look after their welfare. This results in the employees taking care of the organization. 2. An organization, which is well known for its ethical practices, creates goodwill for itself in the market. Investors or venture capitalists are more willing to put their money in the businesses which they can trust. If an investor does not trust an organization it will be difficult for him to invest there. 3. Suppose an organization named FL Ltd which manufactures cosmetics. FL Ltd greatly believes in the importance
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