Ethics is concerned with what is right and what is wrong in human behaviour judged on the basis of socially determined standards of behaviour. Business ethics concerns itself with relationship between objectives, practices, and techniques and the good of society. Ethics is important for every business .
Elements of Business Ethics.
(i) Top management’s commitment,
(ii) Publication of a “Code”,
(iii) Establishment of compliance mechanisms,
(iv) Involving employees at all level and
(v) Measuring results.
Top management’s commitment: Top management has a crucial role in guiding entire organization towards ethically upright behaviour. To achieve results, the chief executive officer (or CEO) and the other higher level managers need to be openly and strongly committed to ethical conduct.
Publication of a “Code”: Enterprise with effective ethics programmes do define the principles of a conduct for the whole organization in the form of written documents which is referred to as the “Code”.
Establishing of compliance mechanisms: In order to ensure actual decision and action comply with the firm’s ethical standards, suitable mechanisms should be established. Example of such mechanisms is: paying attention to values and ethics in recruiting and hiring; emphasizing corporate ethics in training etc.
Involving employees at all level: It is the employees at different level who implement ethics policies to make ethical business a reality. Therefore, their involvement in ethics programmes becomes a must.
Measuring results: The top management team and other employees should discuss the results for further course of action.