The Importance of Ethical Behavior in Business: The Best Practices - Research Paper Example

Ethics in business has received a lot of attention in recent years and the pressure on business to indulge in ethical business is very high. This paper is aimed at explaining how an organization can improve its ethics and in order to do so, it takes the example of the “The Co-operative Bank” which has carved a niche for itself due to its ethical business practices. What Organizations Can Do To Improve Their Ethics? The first and the foremost, an organization (Top management) must commit itself to do ethical business.

Without intent and the support of the top management, irrespective of the nature of the business an organization cannot act ethically. Therefore, the drive to conduct business ethically must come from the top. Next, there is a need to establish a “code of ethics” that needs to be followed throughout the organization. Most organizations do have a “code of ethics” but very less is being done to adhere by it. A culture of ethical behavior must be infused into the organization’s fabric.

This will ensure that at the most basic level of business, ethics are followed. Now let’s take a narrow approach and see what an organization can do to improve ethics when it comes to a specific aspect of the business. To Protect Business Customers The best way a company can act ethically to protect its business customers is by convincing them to act ethically. There are many businesses that indulge in unethical trade. It is an ethical dilemma for an organization which adheres to ethical obligations to conduct business with one that indulges in unethical business practices.

In such cases, the organization must take a tough stand and try to educate the other organization to act and conduct ethically. If the business customers do not agree to, then the organization must cut business ties with such customers. All organizations must take a leaf out of the ethical policy at “The Co-operative Bank”. The bank refuses to do business with any company whose operations conflict with their ethical policy. This is a strong stand but a very important if an organization commits to ethical business ("Co-operative Banking Group").

But it is very important in the first place for the organization to influence its business customer to adopt ethical practices. To Enhance Their Reputation as a Good Business and Employer In order for an organization to enhance its reputation as a good business, all its products and services must be in accordance with its customer’s ethical concerns. For example, there are many products and services that are legal but do not fall under the ethical category. An organization should not manufacture such products or offer such services.

It must be actively involved in activities that contribute to the development of the community that the organization is part of. An organization must show that it is socially responsible and acts towards the development of the whole community. It must take measures to ensure that all of its operations are eco-friendly and do not contribute to pollution or surrounding environmental degradation. An organization must consistently take feedback from all its stakeholders on how it is faring and how better it can do.

Philanthropy can be an effective way for an organization to enhance its reputation. The organization also must take special initiative to ensure its employee's health and welfare.