How to Better Understand Business Ethics in Practice

More and more companies are realizing that if they want to be economically successful in the long run, they must become trustworthy for their customers and business partners.

A business entity may be in favour of ethical business, but the reality depends on how it sees the place of ethics in practice. See the list of office services online reviews to get more information on how other companies apply ethics in their business. The best known are three understandings of business ethics:

  • functionalist
  • corrective
  • integrative

The functionalist understanding of business ethics is that an economic entity perceives ethics as a tool to achieve its business interests. It behaves ethically, but only if it suits one. At first sight, such an approach to business ethics is seamless. Its weakness lies in the fact that it is not a permanent purpose of ethics in business, but only a selective one. If the purpose of ethics would mean an obstacle in the creation of profit, respectively. its reduction would then be abandoned.

Example:

When an entrepreneur refuses to give a bribe, he will not receive an order and will not have as much work in the company as if he had given the bribe. In such a situation, he “lays” the ethics aside, justifying his actions with answers such as:

“Everyone does that, why shouldn’t I do that?”

Business ethics as a correction of immoral behaviour means that the company applies ethics only when it needs to cover up its control or the consequences of behaviour that was obviously immoral, harmed customers, nature, the state or other entities and the public learned about it also through us-reviews.com.

Example:

The entrepreneur will cause environmental damage in the region. To repair this damage – it will help affected families, support local schools, build a new stadium and so on. He thinks something like this:

“I made a mistake that everyone knows about, I have to fix it to improve the company’s image.”

An integrative understanding of business ethics is based on the idea of ​​combining ethics and economics. If an economic entity thinks in this way, its intentions and actions will be ethical in the long run. In practice, this means that the entrepreneur is able to give up economic profit that would not be created in an ethical way, or that he is looking for ethical ways to acquire and redistribute profit. A business entity that subscribes to business ethics understands ethics as a part of human life and business and behaves ethically even if it is beyond the scope of the suitable law.

Example:

If an entrepreneur should make money by selling products that are harmful to customers, he will give up such an activity. An entrepreneur who sees ethics as an integral part of the business would never sell spoiled meat to his clients.

For the development of business ethics in practice, it is desirable that as many entities in the economic sphere as possible take the application of ethics into the economy as a matter of course and take business ethics as integration of ethics and economics.