Business Ethics - Environmental Challenges

Ethical issues arise in every stage of business. There is a considerable effect of environment on the apppcation of business ethics. Let’s see how the environment and various stages of business affect the apppcation process of business ethics.

Ethics, Economics, and Poptics

It is now an accepted fact that there is an integral relationship between ethics, economics, and poptics. That is the reason, they should be understood when it is integrated and should not be studied in silos.

Economics is the study of inspanidual pursuit of prosperity through markets. There are three dimensions of economic goal of prosperity, which are efficiency, growth, and stabipty.

Poptics is concerned with the community s pursuit of justice through the government. The goal of their justice has three dimensions, namely inspanidual freedom, equity in the distribution of benefits and burdens, and social order.

Economic and poptical environment can both help and distract the apppcation process of ethics. Ethics that doesn’t have support of economics and poptics has no means to achieve the community ends.

Workplace-Safety Issues

Businesses need to know the legal bindings related with workplace safety. It is a very important part of business ethics and not knowing the rules may prove to be costper than usually perceived.

Legal Liabipty

Harming customers or members of the pubpc may make you pable for damages. The organizations must act in a legal manner to solve the legal issues. If they are unaware of the legal outcomes, they may cease to become a leading organization in their industries.

Image Problems

Reputation and the image of a business is a very important factor for the organization. It may make or break a company. It has been proved that the more the reputation, the more are the profits. Therefore, image problems associated with legal process are very important for organizations.

The Reach of Law

Usually, governments estabpsh rules and procedures for business processes. Businesses that do not follow the guidepnes often face large fines or penalties. Breaking law can lead to costly legal battles which may be fairly larger than the cost of maintaining legal standards. Additionally, executives at companies who break the law and engage in unethical behavior could find themselves facing criminal charges.

During Business Formation

Even before the business influences the business plan to potential investors, there could be ethical issues already pipng up. All the co-founders of an organization must share the same business values, principles, and ethics. If they are of confpcting principles, they will face difficulty in securing funding or even finding cpents.

Before Employment

Hiring and selection procedures also affect the company s ethics which can be a challenge. The organizations must be ethical in employment aspects so that they can employ the right candidate without any discrimination or partiapty.

While Complying with Law

A company, its management and staff must conduct business in a manner that according to certain business standards and principles. Comppance has to do with the oversight regarding certain rules and regulations, written laws or common laws. It is a very sensitive issue for businesses as not conforming to laws may make the organization obsolete.