Business Ethics Study
Studying business ethics has numerous advantages in ensuring effective and sustainable competitive advantage for businesses. This is because of the various enactments of public initiatives and laws dictating for ethical business conduct at the marketplace. Business ethics as a field of study enables an individual to scrutinize ethical morals that guide effective successful business practices.
This gives the students a competitive advantage in design and executing sustainable strategic business plans. Another importance of studying business ethics is that it equips students with adequate knowledge on how to identify ethical problems in an organization. Such are quite instrumental in ensuring their success in mitigating corporate downfall due to poorly formulated practices.
For the companies, ethical business practices have numerous advantages. First, they serve to protect and strengthen the reputation of the company (Barnum & Richter, 1994). According to the principles of effective business marketing and investor attraction practices, the reputation of an organization is identified as quite crucial in defining the success of such practices. Business buffing is found to have massive short term benefits to the organization. However, such are the ultimate result of the collapsing of organizations in the long run. With the increasing trend towards globalization and its impact on
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As a fact, only companies with a reputable corporate conduct of code stand a competitive advantage in realizing reliable strategic business alliances. Therefore, business ethics protects the long term sustainable survival of an investment; a concern for any investor. Still, business ethics serves a crucial role in mitigating liability cost losses by both the company and its employees (Barnum & Richter, 1994).
According to available laws, unethical conducts by an organization subjects it to legal proceedings, which can lead to compensation directives as well as imprisonment of concerned company employees. In addition, business ethical conduct serves the ultimate purpose of safeguarding personal reputation of the individual employees, a factor that sufficiently improves their marketability in the job market.
Ethical business practices play an important role in the society. Above all other benefits, such practice find their importance in ensuring that the public get the value for their money on purchasing goods and services. Another benefit of business ethics in the society is that it safeguards the economic prosperity for the individual members of the community. The society is the source of investors in most companies such as small scale stock market investors.
Without ethical business practices by organization, such investors are deemed to loose their investments. Thus business ethic functions to safeguard the public confidence on goods, services, and investments. All these play a crucial role in the realization of sustainable social and economic development in the society.
Lastly, the world of business is quite volatile due to globalization and its associated economic competition. This is increasingly calling for ethical business practices by individual businesses as a defining tool for competitive advantage. Business ethics serve not only to enhance customer pool and loyalty, but to instill trust and confidence among investments.
This is important for the realization of reliable cooperation among investment. As an emphasis, business practices such as formation of mergers and strategic business alliances as well as acquisition play an important role in ensuring sustainable competitive advantage for businesses in the marketplace. This is best achieved through ensuring ethical business practices. Therefore, business ethics is important as it affects all aspects of our community.
Barnum, C., & Richter, A. (1994). When Values Clash-Business Ethics-Includes- Related Articles. Retrieved May 20, 2010, from <http://findarticles.com/p/articles/mi_m3495/is_n9_v39/ai_16309020/>