Business ethics and ethical business behavior

What is Business Ethics?

Ethics in business are very important for any industry or corporation. From the recent history, it is clear that there are many international organizations that are condemned for not acting ethically in business. Therefore it is essential to maintain the principles of ethics in business for a better communication with the stakeholders and with the external groups. This is also essential for the better growth in the business and also for the reputation. In business ethics, it is easy to recognize the practices that are unethical in the business. For example, in business practices, it is better for the companies not to use children as a labor. Because child labor is a crime in some countries and it is also against the law so the stakeholders consider this unethical. Another major example of such unethical issue is that it is better not to use copyrighted materials and one should also avoid any unlawful action. Because copyright is a serious crime and this is also regarded as unethical by the stakeholders so one should follow all the rules and the laws. On the other hand, it is also not easy to act on good ethical practices. For a company, it is better to focus on the competitive return for the shareholders of the company and act with the employees fairly because the stakeholders regard the trust and the honesty the major ethical concern because it is important not to mislead or deceive anyone with some fake statements or reports.

The other examples include respected behaviors and integrity that any given business embraces in its operations are referred to as Business ethics. Personal integrity is the main concern for the stakeholders in the business ethics because in this way the trust of others can be earned. Ethics in business operations stretch as far as the relations with customers on an individual basis. However, it has to be noted that the ethical behaviors embraced by a given business don’t necessarily apply to other businesses. This is so because different businesses operate in different industries, implying that there is a difference in the code of conduct or operations.

Essentially, the prior study reflects that businesses need to stay poised on the best ethical traits as well as on the practical links of their operations. This implies that administrators ought to create a lucrative business proposition for the business’ shareholders while having to operate genuinely in the eyes of governments, suppliers, customers, staff members, and generally the communities. In a fast-changing global environment, operating or behaving ethically for international businesses is becoming dense as what may prove ethical in one environment may not necessarily be approved in another. Behaving ethically involves taking on responsibilities that cause minimal harm to the societies in which the business is operating. It can’t be implicit independently from the common facts of ethics, and the universal ethical assumptions concern with business ethics as well. Most studies aspire to recognize fundamental ethical rules that persons can pursue in the company or lay down structures of ethical values to relate to decision making. These honorable ideologies are copied from a mixture of established ethical studies.  The role of ethical studies is less prevailing, on the ground of ethical decision building. Only some ethical decision-making forms depend openly on ethical studies putting a usual focus on the ethical reasoning or justification that individuals use to explain their decisions and actions in morally challenging situations.

What are the benefits of ethical business behavior?

There are several benefits of ethical business and that affect the business along with the wider community as well. Now coming towards the example of an Anglo American business project, there are several benefits to the local community and also for the company’s shareholders. Anglo American provides the maximum return to its shareholders and this is the main objective and they try to improve time by time and hat improvement comes through innovation and learning, which in turn is predicated on constant tracking, monitoring, and evaluation of performance. Measurement is used to find out what works, and change what does not work. A corollary of this principle is that funders need to support measurement, both with resources and a belief that a measurement is a learning tool and not a potential reason for reducing funding. Thus, organizations that embrace measurement as a means towards improving their programs should not be made to feel that their funding may be at risk if they do not meet anticipated outcomes. 

Anglo American is a huge company and being a socially responsible company it is also an ethical firm. Despite the ever-worsening image of entrepreneurs and corporations as a whole, companies and their executives cannot simply change the structure of their respective organizations. But when it comes to Anglo American, there is a significant limitation to corporate decisions is that shareholders are usually given more voice over the issue in question than the concerned public or consumer groups; this means the options left for the majority of corporations go only as wide as shareholders want/allow them to (Roach). As such, corporations are unable to alter the methods they currently employ completely, despite the knowledge that their economic activities may or may not affect the environment negatively; rather, they resort to increasing the efficacy of their operations and reduce production costs, and this has to be done at a consistent basis. Therefore, using these ethical objectives, the Anglo American anticipates achieving a competitive benefit. By representing a more thoughtful and prolonged approach, the business is able to distinguish itself from other similar industries. So, being ethical gives an opportunity and privilege to Anglo American of being a chosen firm for various governments and societies.

This is most commonly known as sustainability, which has been promoted in recent years as a marketable and widely encouraged business strategy available for this industry; in fact, all current business operations and strategies are measured in effectiveness depending on their mode and performability of its sustainability elements (Sales). But sustainability is designed to prolong the system of over-consumption so rampant on our shores, not stop it; while sustainability significantly reduces the number of resources needed to sustain the local community, it encourages consumerism all the more, the modern concept which lies at the heart of all corporations and multinational companies. To date, there is a considerable lack of alternative solutions which can lead to more beneficial grounds for all parties involved. Companies like Anglo American, who are reasonable, fair and open in their transactions with workers, have a better likelihood of maintaining the most capable people. The profits are in a way returns for the shareholders and contributor to the community’s development. The society also benefits in terms of being associated with a good brand, that does not encourage harmful ways of production. The Anglo-Americans have also benefited from its ethical conduct while dealing with the returns of the shareholders and responsibilities towards the community.

Having a reliable clientele is one of the solutions to the success of business in the long run because providing services to an active customer doesn’t engross marketing expenditure, as does in attaining a new one. A company’s repute for ethical conduct can assist it in creating a more constructive figure in the market, which can fetch in new clientele via tittle-tattle recommendations. This would help the firm in achieving trust and huge profits from the society. 

Everyone wants to be remunerated reasonably for their work and commitment. They want profession improvement within the business to be on the basis of the quality of the job they do and not on undue partiality. They want to be part of a corporation whose administration team lets them know the truth regarding what is going on, such as at what time layoffs or restructurings are being considered. Companies like Anglo American, who are reasonable, fair and open in their transactions with workers, have a better likelihood of maintaining the most capable people. The workforce who does not believe the reimbursement style is fair is generally not as devoted to their occupation as they could be. So, we can say the ethical behavior of the firm also helps the employees to be ethical and fair towards the business. A few firms may be tempted to avoid the rules and regulations, ignoring the laws and use of substandard materials for manufacturing, and for this, the penalties can be severe like fines, legal fees, and sanctions by the related authorities. The ethical business firms need time and money to train their workforce regarding the expected code of conduct. An ethical business also distinguishes its accountability for reducing or removing the non-financial costs. Anglo American has been seeking advice extensively and via a controlled procedure with local persons, politicians, companies, and especially native people. This environmental aspect needs to be considered while assessment of any project. This is an example of an ethical behavior being reflected by the business, which can benefit the whole of the society.