Many people wonder if business ethics is just a buzzword that has been tossed around lately, due to some of the aggressive tactics we have seen them as we enter the 21st century. However, a primary goal of transparency in performance management is to achieve visibility, alignment, and accountability across the organization’s goals and objectives. However, it may be said that any individual who does not practice business ethics cannot be personally ethical even though the reverse may not also be true.
He is a professional, who is involved in serving clients and customers, who wish to sell or buy businesses. However, if he is billing his clients for hours that he did not actually work, he is not using ethical business practices. Ethics is related to all disciplines of management like accounting information, human resource management, sales and marketing, production, intellectual property knowledge and skill, international business and economic system.
Wasted time on the job is free money for the employees, but costs employers billions of dollars in lost productivity. Learning ethics under all three theories (and engaging in ethical behavior) has a significant voluntary component. Ethical businesses may not always live up to their ideals, but they are clear about their intent.
Teaching individuals how to apply ethics when it comes to moral controversies must become a key focus of leaders in the new paradigm (p. 7). “Applied ethics focuses on norms and guidelines of professional practice, methodologies for promoting ethical decision-making, various codes of conducts and how these function to promote discussion, informal decisions, and resolve practical ethical problems (p. 7). This focus must become a new major responsibility of every manager and leader within the new organization.
Part of business ethics is responsibility to the investor and for that reason companies with strong reputations in the field of ethical business behavior are also companies that tend to attract more investment from people that are new into the market.