Love: Is Ethical Business Behavior Good or Bad for Business - Assignment Example

Introduction: This introductory section describes the annotated outline on the topic “Love: Is ethical business behavior good or bad for business?” Business ethics is “moral values and principles of a company policy related to dealing with market”. Good or bad behavior in business is what represents the business ethics of the company. Business ethics determines the policy that a business company adheres in their business dealing with companies, clients and workers of the company. Usually there is an ethical policy of a company which they keep as a policy while dealing other companies and persons. Each company has its own business ethical policy from other companies (Trivology, 2012). What is business ethics? Business ethics determines how to deal with customers, which includes interaction with outer world and the ways business dealing with customers should be regulated. Companies and industries are usually made to elaborate a proper business ethics strategy for their company that helps them to deal with other companies and they should keep their dealing according to the strategy. Business ethics play an important role in business dealing as all of the business proposals include the company strategies that are made according to the rules of company ethics (Wisegeek). Let’s take a simple example which will give a clear picture of what business ethics is; when we go to a shop we see a note which says “no return or no exchange” whereas in some shops there is a return policy within specific time when one can exchange or replace the product. This is what business ethics of every company is, which as we can see varies from company to company. Companies keep revising ethical strategies according to needs and market demands. The complete business structure runs simultaneously according to the position of the company in market (MacDonald, 2012). When new companies come in the market with better ethical policies, they might gain more success in market. This affects business market and other companies try to amend their policies according to the needs of market in order to maintain their place. For this purpose companies even change their business strategy. This is determined by company analysis and evaluation of the company (Tutor2u). The Advantages of Ethical Behavior: This research has supported many advantages of business ethics and ethical behavior in business. Ethical business policy of the company helps the firm to have a safe deal with other companies and it also gives a clear picture of a company policy at the market. Ethical policy of a company is very important in business acts as it is a prime factor to determine the strategy of the firm. As a rule, ethical business policy is direct, yet flexible with some conditions to work over depending on sudden changes in markets and demands (About.com). A research shows that good ethical policies can bring an increase in revenue of the company as it is quite obvious that good ethical policy can lead to more deals. It provides a guideline to an organization interested in dealing with a company about the strategy policy of the company and gives a guideline to an interested company about the policies of a company (Business Mantra). When a company has a proper ethical policy, employees are able to deal with different issues related to company and deals in a better way. Ethical business policy also helps to develop an insurance policy based on the company strategies and legal procedures. (sixsigmaonline) An ethical policy includes how to deal with the damage and hideous events. A good ethical policy of a company helps to develop a strong public image in market and helps to gain company recognition in market. (Article Click) With good ethical business strategy, new investors are attracted to invest in prestige companies as they prefer investing in leading companies of market (Chron; About.com; Online Ethics Centre). The Disadvantage of Ethical Behavior This research has covered some of the obvious and major disadvantages of business ethics which relate a reputation of a company in market. Business ethics sometimes decreases a company’s liberty to maximize their profit. A company cannot indulge to maximize their profit as child labor, extra working hours, poor health and level of wages are among those many ethical issues which damage its business (Chron). There are high rates of lawsuits that can be very costly if a company is involved in legal procedures. Training of employees in ethical issues and knowledge of ethical policy is highly costly (Ehow). Other disadvantages covered by this research lie in the fact that sometimes in a deal a company has to stick to ethical policies making sure that the deal is concluded according to the policy of a company, although this can sometimes lead to losses from the side of the company. It should be said though that if a company abides by all ethical norms in business, legal procedures can take a lot of time, which makes them costly and sometimes may even lead to losses due to change in market prices. In addition, if company goes against its ethical policy then it can result in losing credibility of the company in market (Buzzle.com). Even considering all pros and cons of a deal and being discreet and ethically correct can lead to losing a deal but business ethics teaches us to be loyal and truthful. If there is bribery or corruption under the carpet of a company then this may lead to imbalance in company’s stability and structure. Therefore, we can conclude that business ethics teaches us the goodness, though it’s obvious that business ethics do have some obvious disadvantages. (Smart Pros; Business 101) Conclusion Concluding this annotated outline of the research “Love: Is ethical business behavior good or bad for business”, we can say that role of business ethics in business is more important than it seems. Many companies don’t follow business ethics to make full possible revenue but in the long run they ruin their market image and damage their good name in market to only gain short term success. The uncertain policy of a company leads to downfall of a company, and as a result of this the company loses credibility in market. It is important to understand that to run a profitable business one has to abide by ethics as it is an essential key to success. Many companies have neglected the importance of business ethics in their dealing but the most prestige ones have most reliable ethics policies. Business ethics typically means avoiding breaking the law in work environment, avoiding actions that may result in conflict between two companies and, the last but not the least, avoiding those actions which can create bad image of the company. However, business ethics is not only about some points, it aims to make a policy for a company, which helps them to maintain credibility in market and be a reputed one. The business ethics policy helps to maximize the deals and positions in market. By gaining credibility, it helps to generate ways in which company can increase their revenue in ethical way (Lawhorne, 2011; Ebersole; Fieser; On business, 2007; Businessburrito, 2009; Crimeradius; Highered.mcgraw-hill). References About.com. (n.d.). 7 Principles of admirable business ethics. Retrieved February 25, 2012 from about.com: http://sbinformation.about.com/od/bestpractices/a/businessethics.htm About.com. (n.d.). 7 Principles of admirable business ethics. Retrieved march 1, 2011 from http://sbinformation.about.com/od/bestpractices/a/businessethics.htm Article Click (n.d.). The importance of business ethics . Retrieved February 28, 2012 from http://www.articleclick.com/Article/The-Importance-Of-Business-Ethics/999950 Business 101. (n.d.). Why are business ethics so important? Retrieved March 1, 2012 from http://www.opeiu-153.org/why-are-business-ethic-so-important.htm Business Mantra. (n.d.). Advantages of business ethics policy. Retrieved February 28, 2011 from http://www.businessmantra.net/what-are-advantages-of-business-ethics-policy.html Businessburrito. (2009). Does your company combine? Retrieved March 3, 2012 from http://www.businessburrito.com/business-and-ethics.html Buzzle.com. (n.d.). Ethics important in business. Retrieved March 1, 2012 from http://www.buzzle.com/articles/ethics-important-in-business.html MacDonald, C. (2012). Social class and unethical behaviour. Retrieved February 28, 2012 from businessethicsblog: http://businessethicsblog.com/ Chron. (n.d.). Advantages & disadvantages of business ethics. Retrieved February 24, 2012 from /smallbusiness.chron.com: http://smallbusiness.chron.com/advantages-disadvantages-business-ethics-10414.html Crimeradius. (n.d.). The importance of ethics in business. Retrieved March 3, 2012 from http://www.crimeradius.com/ Ehow. (n.d.). The disadvantages of international business ethics. Retrieved February 24, 2012 from http://www.ehow.com/info_7736609_disadvantages-international-business-ethics.html Highered.mcgraw-hill. (n.d.). The importance of ethics in business. Retrieved March 3, 2012 from http://highered.mcgraw-hill.com/sites/0073526703/student_view0/ebook/chapter1/chbody1/the_importance_of_ethics_in_business.html Ebersole, J. G. (n.d.). The critical importance of business ethics. Retrieved March 3, 2012 from http://www.businessexpertwebinars.com/content/view/471/29/ Fieser, J. (n.d.). Business Ethics. Retrieved February 25, 2012 from http://www.utm.edu/staff/jfieser/vita/research/busbook.htm On Business. (2007). Why is business ethics so important? Retrieved March 3, 2012 from http://www.fk999kfw.com/2011/04/28/why-is-business-ethics-so-important/ Online Ethics Center. (n.d.). Importance of ethical behavior in the workplace (TI) . Retrieved March 1, 2012 from http://www.onlineethics.org/cms/4745.aspx Lawhorne, P. (2011). 3 Reasons why social responsibility and ethics in business is important. Retrieved March 3, 2012 from http://pamlawhorne.com/3-reasons-social-responsibility-ethics-business-important/ Sixsigmaonline. (n.d.). The importance and advantages of good business ethics. Retrieved February 24, 2012 from http://www.sixsigmaonline.org/six-sigma-training-certification-information/the-importance-and-advantages-of-good-business-ethics.html Smart Pros. (n.d.). Ethics in business. Retrieved March 1, 2012 from http://www.pro2net.com/x12209.xml Trivology. (2012). What is business ethics . Retrieved February 24, 2012 from http://www.trivology.com/articles/493/what-is-business-ethics.html Tutor2u. (n.d.). What is business ethics? Retrieved February 24, 2012 from http://tutor2u.net/business/strategy/business-ethics-introduction.html Wisegeek. (n.d.). What is business ethics? Retrieved february 24, 2012 from wisegeek: http://www.wisegeek.com/what-is-business-ethics.htm Read More