What is Business Ethics? Know the Principles and Benefits

In the business world, ethics is an essential thing that is indispensable to help manage and run it. As social beings, of course we can not live alone and need to establish relationships with others.

To establish the relationship there are values that are incorporated and the way of life in a social environment or commonly called ethics. Good ethics will certainly help you in developing your business more easily. Actually, what is business ethics? How important is this business ethic? Should we apply it? Don't skip this article, let's discuss the review below!

What is Business Ethics? 

Business ethics is a way to conduct business activities that cover all aspects related to individuals, companies, and communities. Business ethics plays an important role because it can shape the values, normal, and behavior of employees and leaders in order to build fair and healthy relationships with partners, shareholders, or the public.

Business ethics is an unwritten rule on how to carry it out fairly and is in accordance with the laws imposed by the state, and does not depend on the position of individuals or companies in society. Business ethics can be standards and guidelines for every employee including management and used as a guideline to carry out daily work with the foundation of honesty, noble morals, transparency, and professional attitude.

Understanding Business Ethics According to Experts 

Ethics is a word meaning ethos (derived from The Greek). Ethics has to do with the value system of how human beings live that will manifest in patterns of behavior and be carried out repeatedly. Here are some experts who expressed their opinions on the understanding of business ethics. 

1. Steade Et Al

Business ethics is an ethical standard related to the purpose and manner of making business decisions.

2. Velasques

A study devoted to the moral right and wrong. This study concentrates on moral standards as applied in policies, institutions, and business conduct.

3. Hill and Jones

Business ethics is a teaching to distinguish between wrong and right. Where it can provide briefings to each company leader when considering taking strategic decisions related to complex moral issues.

4. Yosephus

Business Ethics is intrinsicly Applied Ethics. Here, business ethics is the area of application of general moral principles in the area of human action in the field of economics, especially business. So, intrinsicly the goal of business ethics is the moral behavior of business people who are economic activities

5. Brown and Petrello

Brown and Petrello state that Business is an institution that produces the goods and services needed by the community. If the needs of the community increase, then business institutions will also increase their development to meet these needs, while obtaining.

6. Bertens

Business ethics is even broader than the provisions governed by law, even a higher standard than the minimum standard of legal provisions, because in business activities we often find gray areas that are not governed by the provisions of the law.

7. Muslich (2004:9)

Business ethics is a knowledge of the ideal procedures of business regulation and management that pays attention to universal norms and morality 

Important Principles of Business Ethics

Bertens (2013:25) suggests that ethical business needs to be viewed from three points of view, namely:

• 1. Economic point of view
• A good business will make a profit without harming others.
• 2. Legal point of view
• Good business does not violate the applicable and established laws.
• 3. Moral point of view
• Good business is certainly in line with measures of morality. 

Meanwhile, there are five principles that can be used as a code of conduct to conduct the ethical business. This was stated by Sonny Keraf (1998), namely:

1. Principle of Honesty

The principle of honesty instills an attitude that something thought means as much as it says, while what is said is something that is done. This principle prioritizes compliance in carrying out agreed commitments and agreements.

2. Autonomy Principles

The principle of autonomy upholds independence, responsibility, and freedom. This means that an independent person is a person who is able to decide and perform actions based on his own abilities based on what is believed and free from incitement, pressure, and dependency. Principles of Mutual Benefit

This principle instills awareness if in running a business requires a win-win solution, where every decision and business action carried out must be attempted so that all parties feel advantaged.

3. Principle of Justice

In this principle it is ingrained attitude to treat all parties fairly, i.e. not distinguishing anyone from various aspects.

4. Principles of Moral Integrity

The principle of moral integrity is a firm principle not to harm others in all decisions and business actions taken. This principle is based on the realization that everyone must be respected, both his dignity and dignity.

3 General Principles in Business Ethics

In practice, there are three general principles in business ethics that will certainly make it easier for you to implement them. 

1. The existence of mutual trust in each other 

Mutual trust in each other will certainly help the implementation of good business ethics through mutual compliance with previously agreed agreements and rules.

2. Sense of Responsibility

An important general principle in bisns ethics is responsibility. The purpose of the responsibility here is the company's commitment to create prosperity that is not limited to shareholders, but also stakeholders as well as the company's operational environment. 

3. Respecting the Environment 

A principle that is no less important is to always respect the environment in which you live. Every company must be able to maintain, manage, and utilize natural resources efficiently for the continuity of natural and environmental sustainability.

Benefits of Implementing Business Ethics

Did you know that practicing business ethics in the company will certainly provide a variety of benefits. What?

A. Effective Management 

One of the benefits obtained by applying business ethics is more effective management. This ethics will have a positive impact because of the compliance with the rules imposed. 

B. Compliance 

No less important benefit in implementing business ethics is the increasing compliance with the rules imposed in the company. 

C. Reputation Improvement

Lastly, the benefit of business ethics is the increasing reputation of the company. This is characterized by an increasing atmosphere of integerity within a company.

Well, that's his review of business ethics in terms of understanding, principles, and benefits. Keep in mind that business ethics has an important role to smooth the business run by a company. Establish a good relationship with your partners so that the business runs well. 

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