Unit 1 - Ethical Business Principles (15) Flashcards
Code of ethics should reflect
Ethical business principles.
Ethics in business refers to
Principles and standards that guide its conduct.
Business ethics determines
the manner whereby it conducts its internal relations and how it interacts with third parties.
Goal of business ethics is to
Help managers decide what’s right and wrong and how to achieve the right and avoid the wrong.
Businesses must develop a set of
Values and morals for its management and employees based on generally accepted behaviour and organisation values. These values are stated in the code of ethics.
Business principles addressed in code of ethics
Integrity
Professionalism
Objectivity
Diligence
Competence
Accountability
Service delivery
Transparency
Fairness
Integrity
Probably the most important because it influences the entire culture and image of a business. Integrity implies honesty, fairness, ethics and moral character. It means doing the right thing even if you don’t gain personally from it. It includes sincerity, keeping your word and agreements, truthfulness and justice.
Professionalism
Includes attitude, communication, the way you work, view yourself and the people you work with.
Objectivity
Involves trying to reduce bias, prejudice or subjective evaluations by relying on verifiable data.
Transparency
Implies openness, communication & accountability. Means operating in a way that it is easy for others to see what actions are performed.
Service delivery
Main goal should be to deliver products or services of a high quality to their customers. Deliver what they promised when they promised it.
Diligence
Paying proper attention to a task and being very thorough. Hard and persistent effort when doing a task. This influences the productivity and the profitability of the business.
Competence
Ability to do job properly. Promise from business that their employees have the necessary skills, knowledge & experience.
Accountability
Is the obligation to account for its activities, accept responsibility and disclose results in a transparent manner.
Fairness
Means being just to all parties, impartial and free of favouritism.