Business ethics (business ethics) is a general application of ethics to business conduct. More specifically the meaning of business ethics denotes ethical or unethical behavior by managers and employees of a corporate organization. Business ethics reflects the moral reflection of individual and institutional (organizational) business actors to assess an issue, where this assessment Is the choice of a growing value in a society. Through this choice of values, the individual or organization will judge whether something done is true or false, fair or not and has usability or not.
Business ethics is not an ethics distinct from ethics in general and business ethics is not an ethic that only applies in the business world. For example, if dishonesty is viewed as unethical and immoral behavior, then anyone in a dishonest business (manager or employee) against workers, shareholders, customers or competitors, is considered unethical And immoral.
Furthermore, if the behavior of preventing others from suffering harm is viewed as ethical behavior, then the company that withdraws its products that have defective production and may endanger the safety of consumers, may be viewed as a company that carries out ethical and moral conduct.
Why does a business need business ethics? Is not a business activity only aimed to gain as much profit as possible in any way? Is not the ethical behavior imposed by the company even hindering the company from competing against its competitors? There are at least seven reasons that drive the company to conduct its business ethically:
- Increased public expectation for the company to run its business ethically. Companies that are not successful in running their business ethically will experience the spotlight, criticism, and even punishment.
- In order for the company not to take various actions that endanger other stakeholders.
- Application of business ethics in the company can improve company performance.
- The application of business ethics such as honesty, keeping promises, and refusing a bribe can improve the quality of business relationships between two parties who do business relationships. This is due to increased confidence among parties involved in business relationships with others. Conversely, if one party is not to be trusted, then this unreliable party will be ignored by its business partner even by the business community in general.
- In order for the company to avoid abuse by employees and competitors who act unethical.
- Proper application of company’s business ethics within a company may prevent the occurrence of labor rights violations by the employer.
- Companies need to apply business ethics in the conduct of their business, to prevent companies (represented by their leaders) from obtaining legal sanctions for running an unethical business.