UNIVERSITY OF LAGOS, AKOKA, YABA, LAGOS

DEPARTMENT:

PHILOSOPHY

NAME:

ADENEKAN ADEWUNMI ADENIKE

MATRIC NO: 190107099

COURSE CODE:

PHY 322

COURSE TITLE:

PHILOSOPHY OF LAW: NATURAL LAW THEORIES

LECTURER:

Dr. Fatai

ASSIGNMENT:

WHAT IS THE BUSINESS OF BUSINESS ETHICS WITH

BUSINESS?

Introduction
Business ethics is a crucial concept in the management field as it guides the rules by which organizations
should operate in terms of decisions made, relations with stakeholders, and impact on the larger society.
As used in this case, the term ‘business of business’ means the responsibility that the business sector has
as concerns the ethical issues as it strives to make its profits. This paper seeks to discuss business ethics as
applies to corporate governance, the effects arising therefrom, responsibilities of businesses to society and
other stakeholders.

Business ethics can be described as the field that covers right and wrongdoing and acceptable behavior in
the conduct of business. Performance assessment, based on this theory, is a way of determining what is
right or wrong within numerous business activities that include corporate governance, treatment of
employees, and respect for the environment. The importance of business ethics can be summarized in
several key points trust establishment and reputation as well as risk management and future stability
define corporate objectives.

The paper focuses on discussing business ethical requirements for decision-making, discussing the need
for clearer ethical conduct, and the ethical issues of taking into consideration the profit-making aspect of
the business within the decision-making process. It also explores the notion of CSR as a subtopic of
business ethics, which denotes the role of business as a key player in making the world a better place
through the responsible use of natural resources, support of the community and employment of ethical
labor practices.

What Is Business Ethics?

Business ethics may simply be defined as the degree of morality that is followed in a specific business
environment. It embraces several subjects and topics such as corporate governance, insider trading,
bribery, discrimination, corporate social responsibility, and the like. Business ethics is the process of
applying these ethical standards to business practice to serve stakeholders’ best interests for reliability and
long-term success. The purpose of this paper is to investigate the definition and importance of business
ethics, how it affects stakeholders, and its contribution to organizational culture.

How Important is Business Ethics?

The significance of business ethics can be discussed from the following perspectives:

1. Build Trust With Stakeholders:

Business ethics also enable organizations to build trust with relevant stakeholders including
investors, customers, and society. According to the statistics, the majority of consumers from the
United States stated that they stopped shopping at unethical companies.

2. Drives Employee Behavior: Business ethics sets standards and procedures for the corporation that
outline what course of action is proper in the eyes of the company and employees from the
managerial level down to the newcomers. Another point is that when people at work make ethical
decisions, it means that new customers will trust such a company and, thus, the company’s image
will be improved.

3. Promotes Corporate Social Responsibility: Today people have high demands for a business and
require it to have a significant social responsibility apart from making money. The four elements
of ethical behavior comprise of being straightforward, observing customers’ secrecy, and
conserving the physical environment.

4. Long-term Sustainability: Organizations that apply ethical practices in their business are more
likely to survive in the market. Focusing on sustainability and CSR, or creating value for
shareholders and society both at the same time is possible.

5. Avoids Legal Consequences: Unethical behavior results in legal consequences, fines, and loss of
reputation affecting the organization’s bottom line. Fraud leaders such as Enron and Theranos
depict catastrophes of fraud and misconduct in an association.

The Role of Business Ethics in Decision-Making

When it comes to the tactics that companies are using, business ethics have important roles to play.
Experience and research have shown that managers and leaders are sometimes faced with difficult
decisions when deciding what to do in a given situation because the most appropriate course of action
may not always be obvious or well-defined. Here is the process that involves ethical decision-making:

1. Guiding Organizational Culture

Ethics, as a matter of fact, greatly define the organizational culture of any organization. A case is
that when leaders embrace ethical decision-making, the employees are likely to emulate the kind
of behavior demonstrated. This helps to nurture an organizational culture based on ethical
considerations since the process will involve an ethical aspect

2. Implementing a Decision-Making Framework

Thus, structured frameworks can be used for integrating ethics into decision-making within an
organization. One such approach is the PLUS model which focuses on Policies and Procedures,
Legal, Universal values and Self. This particular model assists in making decisions that are right
and are in congruence with the organizational ethical standards and organizational values.

3. Transparency: Clearness in operations and the way that relevant decisions are made ensures that
the public trusts the company.

4. Establishing Trust and Reputation;

Ethical decision-making builds credibility among the employees, the consumers and even the
shareholders. When the leaders decide to choose the ethical options they exercise
professionalism, which in turn creates an excellent impression of the organization. This trust is
essential for the future sustainability of prospective businesses because it strengthens the bonds
with the stakeholders.

5. Stakeholder Consideration: Ethical businesses take time to look at the effects that they are likely
to have on everyone in and around the business embracing everybody from employees,
customers, suppliers, the community and everybody else with interest in the business. Thus, this
strategy can build a positive image and improve relations with investors, customers, and other
members of the corporate environment.

6. Balancing Profit and Ethics: Although the general aim of every business organization is to make a
profit, ethical concerns cannot be left out when formulating profit-making strategies. Such
balance is crucial in creating the Company’s sustainable development and bringing advantageous
changes within the society.

Corporate Social Responsibility (CSR) and Ethical Business Practices

Corporate social responsibility is an extension of business ethics, emphasizing the responsibility of
businesses to contribute positively to society. CSR initiatives can take various forms, including:

Fair Labor Practices Ethical companies maintain high standards of employee treatment, including safety
at the workplace, as well as the timely payment of reasonable wages, which are likely to boost morale
among personnel.

 Environmental Sustainability: Almost all firms engage in the practice of benchmarking, and one
way of benchmarking is to give back to society through giving, volunteering, and other such
measures that would sufficiently show that society benefits from the firms.

 Fair Labor Practices Ethical companies maintain high standards of employee treatment, including
safety at the workplace, as well as the timely payment of reasonable wages, which are likely to
boost morale among personnel.

 Community Engagement: Most companies contribute back to society through giving,

volunteering, and other such measures that ensure that society benefits from the companies as
well.

Conclusion

The purpose of the business in ethics can be described in terms of several different topics, including the
rules of corporate conduct, ethics in decision-making that is prevalent within organizations, and corporate
social responsibility in pursuit of a positive impact on society. Distinguishing between right and wrong
has never been more important as organizations work within a dynamic and global context By applying
ethics into operations, it is not only the right thing to do, but the smart thing to do. Thus, it could be
concluded that businesses’ ethical actions will have recurrent positive effects on business performance
and the overall welfare of the society in which they operate.

Consequently, business ethics is not an idea that exists in the realm of pure reason; it is the crucial part of
the business planning and strategic development that determines the further trends in the corporate
management practices and social expectations.

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