MINISTRY OF EDUCATION AND TRAINING

EASTERN INTERNATIONAL UNIVERSITY

INFO 105: Computer fundamentals

“Business Ethics”

Lecturer: Ms. Tran Ngoc Quyen

Group 1

Name IRN

HO XUAN QUYNH 2132300424

NGUYEN THI THANH NGAN 2032300122

Quarter 4: 2022-2023

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 TABLE OF CONTENTS

I. Introduction: .................................................................................................................................3

1. What is business ethics? .......................................................................................................... 3

2. Key takeaways: ........................................................................................................................3

II. Main body: ..................................................................................................................................4

1. Why Business Ethics Are Important? ...................................................................................... 4

3. What are aspects of business ethics? ....................................................................................... 5

4. Examples of Unethical Business Behaviors ............................................................................ 6

5. Recommendation for applying in Business Ethic ....................................................................8

III. Conclusion .................................................................................................................................9

IV. Recommendation ....................................................................................................................... 9

I. References .................................................................................................................................. 11

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 I. Introduction:
1. What is business ethics?

Business ethics studies appropriate business policies and practices regarding

potentially controversial subjects, including corporate governance, insider trading, bribery,
discrimination, corporate social resonsibility, fiduciary responsibilities, and much more. The
law often guides business ethics, but at other times business ethics provide a basic guideline
that businesses can follow to gain public approval.

Business ethics ensure that a certain basic level of trust exists between consumers and
various forms of market participants with businesses. For example, a portfolio manager must
give the same consideration to the portfolios of family members and small individual investors
as they do to wealthier clients. These kinds of practices ensure the public receives fair
treatment.

The concept of business ethics began in the 1960s as corporations became more aware
of a rising consumer-based society that showed concerns regarding the environment, social
causes, and corporate responsibility. The increased focus on "social issues" was a hallmark of
the decade.

Since that time, the concept of business ethics has evolved. Business ethics goes
beyond just a moral code of right and wrong; it attempts to reconcile what companies must do
legally vs. maintaining a competitive advantage over other businesses. Firms display business
ethics in several ways

2. Key takeaways:

 Business ethics refers to implementing appropriate business policies and practices with
regard to arguably controversial subjects.
 Some issues that come up in a discussion of ethics include corporate governance, insider
trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.

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  The law usually sets the tone for business ethics, providing a basic guideline that
businesses can choose to follow to gain public approval.

II. Main body:

1. Why Business Ethics Are Important?

a. Business Ethics Affect Reputation

Brands are no longer owned only by the companies they represent. Employees, consumers,
and stockholders increasingly feel that a brand belongs to them too. That’s why 42 percent of
consumers will stop doing business with a company if they disagree with its words or actions on
a social issue. And more than 60 percent say their purchasing decisions are driven by a
company’s ethical values and authenticity.1

b. Business Ethics Set the Tone for Employee Behavior

Leadership sets an example for employees. If the CEO of a company cuts corners to secure a
contract and it’s a well-known company secret, it can signal to other employees that financial
misbehavior is OK. On the other hand, when leaders display a strong moral compass, it
encourages others to do the same. If you want your employees to behave well, you need to treat
them well and act in a manner that makes them proud to call you the boss.

c. Good Business Ethics Aid in Negotiations

When a company has a positive reputation, it encourages other businesses to negotiate with it.
No one wants to broker a deal with a company that may not make good on its word. If both
businesses understand the rules of the ethical game, they can make better, stronger negotiations
because they know they will get what they’ve been promised from the deal.

d. Business Ethics Impact the Bottom Line

When an organization is unethical, its reputation is tarnished and its consumers may find an
alternative source for the products it sells. Companies like Enron, Wells Fargo, and Monsanto all
suffered the effects of bad behavior. But big, profitable companies, such as Microsoft and Dell,

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are recognized and rewarded for their ethical behavior, proving that you can be a good corporate
citizen and make a profit at the same time.

3. What are aspects of business ethics?

 Top Management Commitment:

The top management of an organization plays a crucial role in ensuring business ethics. They
guide the whole organization towards ethical behaviour. To get better results and inculcate ethical
behaviour amongst the members of an organization, the CEO and other top-level managers need
to strongly commit themselves to ethical conduct. Their commitment to the ethical code of
conduct will set a good example for the employees and encourage them to follow the codes
themselves. They must lead the employees to continue to develop the firm and uphold its
values.

 Publication of a ‘Code’:

Companies having effective ethics programmes define the principles of conduct in written
form for the whole organization. This written document of principles of conduct is known as
“code.” The code or code of conduct covers various areas, like product quality, product safety,
fundamental honesty, adherence to laws, financial reporting, marketing practices, employment
practices, health and safety at the workplace, etc. These principles or standards guide an
organization and its actions.

 Establishment of Compliance Mechanisms:

Publishing the code of conduct is not sufficient until the organization establishes a
mechanism to ensure they are being followed by the employees and the actions of the firm
comply with these standards. For example, ensuring the applicant has values and ethics while
recruiting, forming a communication system for employees to report any incident of unethical
behavior, etc.

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  Involving employees at all levels:

Employees of an organization play a crucial role in the implementation of ethical policies at

different levels of the business, making the idea of ethical business real. Therefore, organizations
need to involve employees in ethics programmes. For example, an organization can form a small
group of employees to discuss the essential ethics policies of the firm and evaluate the
employees’ attitudes towards these policies.

 Measuring results:

It is not easy to measure the results of an ethics programme with full accuracy. Therefore, the
organizations implementing ethics programmes can verify and audit the end results and ensure
that the employees carry out the work according to ethical standards. Once the auditing has been
completed, the top-level management and other employees of the firm can discuss the end results
for their further course of action.

4. Examples of Unethical Business Behaviors

a) Fraudulent Financial Practices:

Fraudulent financial practices involve manipulating financial statements, engaging in insider

trading, or misleading investors. This unethical behavior undermines the integrity of financial
markets and erodes trust among stakeholders. Companies that engage in fraudulent financial
practices intentionally misrepresent their financial health or manipulate stock prices for personal
gain, resulting in significant financial losses for investors and stakeholders

b) Exploitation of Labor:

The exploitation of labor involves unethical practices such as engaging in child labor,
providing unfair wages, maintaining unsafe working conditions, or violating labor rights. These
behaviors disregard the well-being and dignity of workers, compromising their rights to fair

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compensation, safe working environments, and reasonable working hours. Companies that
exploit labor not only harm workers but also face reputation damage and legal consequences.

c) Environmental Negligence:

Environmental negligence refers to the disregard for environmental regulations, pollution

of ecosystems, or the absence of sustainable practices. Companies that engage in unethical
environmental behaviors contribute to environmental degradation, harm natural resources, and
negatively impact local communities. Such actions can lead to legal repercussions, damage to
brand reputation, and loss of customer trust.

d) Unfair Competition:

Unfair competition involves engaging in anti-competitive practices that distort market

dynamics and harm fair business competition. Examples of unethical practices include price-
fixing, predatory pricing, bid-rigging, and monopolistic behavior. These actions hinder market
efficiency, limit consumer choice, and stifle innovation. Unfair competition is not only
detrimental to competitors but also to consumers and the overall market.

e) Discrimination and Harassment:

Discrimination and harassment in the workplace involve treating employees or customers

unfairly based on characteristics such as race, gender, religion, or sexual orientation. These
behaviors create hostile work environments, violate individuals' rights, and foster an atmosphere
of inequality. Companies that tolerate or engage in discrimination and harassment face legal
consequences, damage to their reputation, and diminished employee morale and productivity.

It is crucial for businesses to recognize and address these unethical behaviors to ensure
ethical conduct and maintain long-term success. Implementing robust ethical standards and
practices is essential to promote transparency, accountability, and social responsibility within the
business environment.

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 5. Recommendation for applying in Business Ethic

a) Creating a Strong Ethical Framework:

- Organizations should establish a comprehensive ethical framework that includes a

clear mission statement, core values, and ethical principles.
- This framework should align with the organization's overall strategy and guide
ethical decision-making across all levels of the company.
- Regularly review and update the ethical framework to ensure its relevance and
effectiveness in addressing emerging ethical challenges.

b) Implementing Ethical Policies and Codes of Conduct:

- Develop and implement ethical policies and codes of conduct that outline
expected behaviors and standards for employees and stakeholders.
- Provide clear guidelines on topics such as conflicts of interest, fair competition,
bribery and corruption, and respect for diversity and inclusion.
- Regularly communicate and train employees on these policies and codes to
promote awareness and compliance.

c) Promoting Transparency and Accountability:

- Foster a culture of transparency by openly sharing information about the

organization's ethical practices, performance, and decision-making processes.
- Establish mechanisms for employees and stakeholders to report ethical concerns
or violations without fear of retaliation.
- Conduct regular audits and assessments to ensure compliance with ethical
standards and hold individuals accountable for unethical behavior.

d) Fostering an Ethical Culture:

- Promote ethical behavior and values through leadership by setting a positive

example and acting as ethical role models.
- Encourage open dialogue and discussions about ethical issues to create a
supportive environment where ethical dilemmas can be addressed and resolved.
- Recognize and reward employees who demonstrate ethical behavior and
contribute to the ethical culture of the organization.

e) Integrating Ethical Considerations into Decision-Making Processes:

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 III. Conclusion
In conclusion, business ethics plays a vital role in shaping the success and sustainability
of organizations. Throughout this report, we have explored the concept of business ethics,
discussed its importance, examined different aspects of ethical behavior, and provided examples
of unethical practices. It is evident that ethical conduct is essential for maintaining trust, fostering
positive relationships with stakeholders, and ensuring long-term business viability.

The findings of this report underscore the significance of adhering to ethical principles in
business operations. Organizations that prioritize ethics create a foundation of trust and integrity,
which in turn enhances their reputation and strengthens relationships with customers, employees,
suppliers, and the wider community. By operating ethically, organizations not only comply with
legal and regulatory requirements but also demonstrate a commitment to social responsibility.

IV. Recommendation

In light of the research conducted, several recommendations can be made to promote the
application of business ethics within organizations. Firstly, it is essential for organizations to
establish a robust ethical framework that outlines their values, principles, and expected standards
of behavior. This framework should be effectively communicated and serve as a guiding
document for employees. Secondly, fostering an ethical culture is crucial, and it starts with
leadership commitment and the establishment of a supportive environment where ethical
behavior is encouraged and rewarded. Open communication, ethics training, and employee
empowerment play vital roles in cultivating this culture. Thirdly, organizations should
implement clear ethical policies and procedures that address key areas such as conflicts of
interest, confidentiality, fair competition, and stakeholder rights. Regular review and updates of
these policies ensure their relevance and effectiveness. Fourthly, promoting ethical decision-
making is essential, and organizations can provide employees with the necessary tools, resources,
and training programs to assess ethical dilemmas and make informed choices. Access to ethical
advisors or committees can also assist in navigating complex ethical situations. Lastly,
organizations must establish mechanisms to monitor and enforce ethical behavior. This includes
implementing reporting channels for ethical concerns, conducting regular audits and assessments,

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and taking appropriate disciplinary action when ethical breaches occur. By implementing these
recommendations, organizations can create a culture of ethics that permeates all levels and
functions. Embracing business ethics not only mitigates risks and enhances reputation but also
contributes to the long-term success and sustainability of the organization. In conclusion,
business ethics serves as a guiding principle for organizations, ensuring that they operate in a
responsible and sustainable manner. By integrating ethics into their core values and practices,
organizations can cultivate trust, build strong relationships, and positively impact society.
Upholding ethical standards is not only the right thing to do but also a strategic imperative for
long-term success in today's dynamic business landscape

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 V. References
Answers to: Write an essay about Importance of business ethics. (n.d.). Class Ace.
https://www.classace.io/answers/write-an-essay-about-importance-of-business-ethics

GeeksforGeeks. (2023). Business Ethics Meaning Benefits and Elements. GeeksforGeeks.

https://www.geeksforgeeks.org/business-ethics-meaning-benefits-and-elements/

Twin, A. (2023). Business Ethics: Definition, Principles, Why They're Important. Investopedia.
https://www.investopedia.com/terms/b/business-ethics.asp

Why Business Ethics Are Important | Limestone University. (n.d.). Limestone University.
https://www.limestone.edu/blog/why-business-ethics-are-important

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