BUSINESS ETHICS: PRINCIPLES, IMPORTANCE AND REAL CASES - DUDAS - 2025

The business ethics is defined as the branch of philosophy devoted to studying the moral principles that arise within an organization, in order to improve society as a whole. This ranges from the behavior of each and every one of the components of the team to that of the organization as a whole.

There are many issues that encompass business ethics, the most analyzed are the moral principles of the activity carried out by the company and the values ​​of the organization. For this reason, companies try to develop guides based on the moral principles that they seek to implement in the work environment and in business activity.

This business ethic is very important not only because it promotes the improvement of society as a whole, but also promotes it for their own benefit: customers will see this behavior, leading to increased trust and, with it, a increase in sales.

It should be noted that within an organization the behavior of its leaders (directors, bosses, etc.) is really important. This is so because many of her subordinates, seeing these performances, will tend to imitate them. Thus, this behavior will help build business ethics, for both good and bad.

Beginning

The general ethics is divided into three main parts:

- Social ethics / morals, which is what is given by the social environment where people move. Religion, family, culture and education are factors that greatly influence this part of ethics.

- The moral conscience, which includes good, evil and justice, moral principles of humanity.

- Laws, which are the rules imposed by the State and which are based on the morals of the country or region.

If we translate this to the world of business, the principles by which it should be governed in order to achieve a great social ethic are the following:

Trust

Customers seek confidence in the products and services they demand. This trust must emerge from a business culture that makes it possible, and that exudes character, honesty and transparency.

Fulfillment of commitments

This principle is directly linked to the previous one. If the company does not deliver on its promise, customer confidence will plummet, and this is something very difficult to recover.

Exactly the same as happens with people, when a company does not fulfill its promises it loses its credibility, a fundamental pillar in the trust that is placed in it.

Return to the community

Companies live thanks to society, which is the one who consumes their products. For this reason, she should be grateful and give back what she is giving her through activities related to the community, that are responsible and supportive.

Respect for people

Respect for the company must encompass each and every one of its workers to its collaborators and customers.

Without it, it's only a matter of time before people are unhappy. This dissatisfaction will be noticeable in the image that employees and customers have of the company and, therefore, it will also be reflected in sales.

Respect for the environment

It is the duty of all companies to respect the world in which we live and not contribute to making the planet worse in any way. Sustainability is a fundamental pillar when building an appropriate business ethic.

Team of good people

Companies are made up of people. Therefore, the workers that companies have are the reflection of business ethics and, above all, the people who hold leadership positions. This is so because leaders tend to be imitated by many of their subordinates.

It is their responsibility to set an example with their actions and have sufficient character to act correctly.

Quid pro quo

Collaboration must be reciprocal on the part of the company; that is, it must give something equivalent to what it receives and not take advantage of it.

Honesty

As with anyone, if we see a lack of honesty in a company, we will lose trust in it.

Professionalism

Being professional will provide a very positive image from the outside.

Transmission

Ethics must be transmitted throughout the entire organization. This must be led by senior managers and spread to all departments of the company.

Flexibility and adaptability

Through its senior positions, the company must be open to new ideas in order to renew itself and adapt to the new times.

Transparency and good work

The documents and accounts of the company must be truthful and must be available to be consulted. In this way, a very clear message will be given: the practices of the organization are correct and there is no reason to hide them.

Importance to society

Business ethics is essential for society to advance positively. Organizations, as economic agents that they are, have a very great responsibility, like the State and families, to contribute to a more just and ethical society.

That is why carrying out the above principles is the responsibility of all companies in order to improve our society as a whole, benefiting all parts of it.

Real cases

Volkswagen

A very recent case of ethical malpractice was that of the German car company Volkswagen, which was found to have installed a system in some vehicles to make them lie when measuring the emissions that they emitted. Apparently, these vehicles polluted between 10 and 40 times more than legally allowed.

In this case, the company commits two very serious ethical mistakes: on the one hand, it has lied deliberately, which is a lack of honesty and trust. On the other hand, it is polluting more, so it lacks the principle of respect for the environment.

All this caused the trust and image that customers had of this brand to decline widely.

Toms

As a positive case we can name the American shoe company Toms, which based its success on the premise that they called One by one: with each pair of shoes they sold, they would give another pair to a child in need.

This boosted their sales astronomically. Because there is no better marketing than good business ethics.

References

1. Andersen, B. (2006). Intellectual property rights: innovation, governance and the institutional environment. Edward Elgar Publishing
2. Boldrin, M.; Levine, DK (2008). Against Intellectual Monopoly. Cambridge:
3. Dobson, J. (1997). Finance Ethics: The Rationality of Virtue. New York: Rowman & Littlefield Publishers, Inc
4. Duska, R. (2007). Contemporary Reflections on Business Ethics. Boston: Springer.
5. Hasnas, J. (2005). Trapped: When acting ethically is against the law. Washington DC: Cato Institute
6. Machan, TR (2007). The Morality of Business: A Profession for Human Wealthcare. Boston: Springer.