Figure 3.2
A group of employees who uphold strong corporate values can be an asset to the company they
work for. (Credit: rawpixel/ pexels/ License: CC0)
Business ethics are considered to be the blueprint for building a successful organization. If an organization is
built on socially responsible values, it will be stronger than an organization that is built on profit alone. More
than just a positive reputation, the core ethics of a business dictate how every decision, process, and
procedure will take place. This steadfast governance applies even if the business faces hard times or difficult
situations. Some will even argue that businesses require full transparency in today’s world.
Over the last few decades, numerous cases of bad business practices have made headlines. From McDonalds’
funding of President Nixon’s campaign in an effort to reduce workers’ wages in the 1970s, to the more recent
case of Uber employees alleging sexual harassment and the company’s CEO having a public meltdown in the
back of a driver’s car, there’s no shortage of ethics-related problems in the business world. Businesses are
more than people working together to offer a product or service. Businesses are often viewed as entities that
should protect stakeholders from unethical behaviors and activities. A set of governing rules should be in
place to set the bar high for ethical compliance in every organization.
Why Is Corporate Ethics So Important in Business?
The idea of business ethics may seem subjective, but it comes down to acceptable levels of behavior for each
individual who makes up the organization. This behavior must start at the top with responsible actions
demonstrated by leadership. By doing so, leaders create a set of rules that are to be followed by others in the
company. These rules can be based on the deep values that the company has concerning the quality of
products and services, the commitment to customers, or how the organization gives something back to the
community. The more a company lives by its set of ethics, the more likely it is to be successful.
Anna Spooner, who writes for LovetoKnow, shares tips on how to evaluate whether or not an organization is
creating ethical practices by determining the impact of each practice. Some examples include:
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Chapter 3 Business Ethics and Social Responsibility
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