Business Ethics and Corporate Governance Buad 821

BUSINESS ETHICS AND CORPORATE GOVERNANCE BUAD 821
NAME: VICTOR AKUGOM OWAI
MATRIC NUMBER: P22DLBA80269
Business ethics comprises the principles, values and standards that guide behaviour in the
world of business. Discuss.
Business ethics is the moral principles, policies, and values that govern the way companies and
individuals engage in business activity. It goes beyond legal requirements to establish a code of
conduct that drives employee behavior at all level and helps build trust between a business and
its customers.
Principles: Business ethics is built upon fundamental principles that serve as guidelines for
ethical decision-making. These principles include honesty, integrity, fairness, and accountability.
Honesty entails truthfulness and transparency in business dealings, while integrity involves
adhering to moral and ethical principles even in the face of challenges. Fairness ensures
equitable treatment of all stakeholders, while accountability holds individuals and organizations
responsible for their actions and decisions. Principles of business ethics serve as guidelines for
ethical behavior in business. These principles include:
i. Honesty: Truth in all matters is key to fostering an ethical climate. Partial truths,
omissions, and under or overstating don't help a business improve its performance. Bad
news should be communicated and received in the same manner as good news so that
solutions can be developed.
ii. Integrity: Incorporates other principles—honesty, trustworthiness, and reliability.

Someone with integrity consistently does the right thing and strives to hold themselves
to a higher standard.
iii. Fairness and Justice: Treating all stakeholders, including employees, customers,
suppliers, and competitors, with fairness and equity. Everyone should have the same
opportunities and be treated the same. If a practice or behavior would make you feel
uncomfortable or place personal or corporate benefit in front of equality, common
courtesy, and respect, it is likely not fair.
iv. Respect for laws: Ethical leadership should include enforcing all local, state, and federal
laws. If there is a legal grey area, leaders should err on the side of legality rather than
exploiting a gap.
v. Responsibility and Accountability: Promote ownership within an organization, allow

employees to be responsible for their work, and be accountable to stakeholders for
business practices.
vi. Sustainability: Promoting business practices that are environmentally sustainable and
socially responsible
Values: Business ethics are also shaped by the values held by individuals and organizations.
Values represent what is deemed important and desirable, guiding choices and actions. These
may include integrity, accountability, transparency, social responsibility, and environmental
stewardship. Values often reflect the culture and identity of a company, influencing its
relationships with employees, customers, suppliers, and the broader community.
Standards Business ethics are further defined and operationalized through standards, which are
specific guidelines and norms governing behavior in various contexts. These standards may be
internal, such as corporate codes of conduct and policies, or external, including legal regulations,
industry standards, and professional ethics codes. Adhering to these standards helps mitigate
risks, ensure compliance with legal requirements, and uphold the reputation and credibility of the
business.
Together, principles, values, and standards form the ethical compass that guides decision-making
and actions in business. They provide a framework for evaluating the moral implications of
business practices, from financial transactions and marketing strategies to employee relations and
environmental impact. Moreover, business ethics are not static; they evolve in response to
changing social, cultural, and economic dynamics, as well as emerging ethical dilemmas and
issues.
Importance of business ethics
i. Brand recognition and growth

ii. Increased ability to negotiate
iii. Increased trust in products and services
iv. Customer retention and growth
v. Attracts talent
vi. Attracts investors
Management ethics may be seen as a component of corporate social

responsibility (CSR). Discuss
Corporate social responsibility refers to an organization's commitment to consider and address

the social, environmental, and economic impacts of its operations. This includes taking
responsibility for the effects of the company's actions on various stakeholders, such as
employees, customers, communities, and the environment.
There are ways in which management ethics can be considered a component of CSR:
Stakeholder Management: Ethical management entails considering the interests and well-
being of various stakeholders. By acting ethically and making decisions that prioritize the needs
and rights of employees, customers, communities, and other stakeholders, managers contribute to
CSR.
Transparency and Accountability: Ethical management involves being transparent and

accountable for the organization's actions. This includes providing accurate and timely
information to stakeholders, as well as taking responsibility for any negative impacts.
Transparency and accountability are essential aspects of CSR.
Ethical Treatment of Employees: Ethical management practices include treating employees

fairly, providing a safe and healthy work environment, and ensuring fair compensation and
opportunities for growth. These practices contribute to CSR by valuing and respecting the well-
being of employees.
Environmental Responsibility: Ethical management also includes considering the

environmental impacts of the organization's operations and taking steps to minimize or mitigate
these impacts. This could involve implementing environmentally friendly practices, reducing
waste and pollution, and adopting sustainable business practices. Environmental responsibility is
a key component of CSR.
Ethical Leadership: Ethical management requires leaders to act as role models, demonstrating
integrity, honesty, and ethical behavior. Ethical leadership influences the overall culture and
values within an organization, promoting ethical decision-making at all levels. This ethical
culture aligns with the principles of CSR.
In conclusion, management ethics plays a central role in corporate social responsibility by

guiding ethical decision-making, fostering ethical leadership, ensuring good governance,
managing risks, and promoting long-term sustainability. By integrating ethical considerations
into all aspects of management practices, organizations can fulfill their responsibilities to
stakeholders and contribute positively to society.
References
Crane, A., Matten, D., & Glozer, S. (2019). Business Ethics: Managing Corporate Citizenship
and Sustainability in the Age of Globalization. Oxford University Press.
Treviño, L. K., & Nelson, K. A. (2016). Managing Business Ethics: Straight Talk about How to
Do It Right. John Wiley & Sons.
https://www.investopedia.com/terms/b/business-ethics.asp#:~:text=Business%20e

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BUSINESS ETHICS AND CORPORATE GOVERNANCE BUAD 821

NAME: VICTOR AKUGOM OWAI

MATRIC NUMBER: P22DLBA80269

ii. Integrity: Incorporates other principles—honesty, trustworthiness, and reliability.

v. Responsibility and Accountability: Promote ownership within an organization, allow

Importance of business ethics

i. Brand recognition and growth

iii. Increased trust in products and services

iv. Customer retention and growth

vi. Attracts investors

Management ethics may be seen as a component of corporate social

Corporate social responsibility refers to an organization's commitment to consider and address

Transparency and Accountability: Ethical management involves being transparent and

Ethical Treatment of Employees: Ethical management practices include treating employees

Environmental Responsibility: Ethical management also includes considering the

In conclusion, management ethics plays a central role in corporate social responsibility by

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