The Importance of Business Ethics in the Field of Business and Its Principles

Business ethics is something that needs special attention in doing business. You must have understood that the purpose of business is to make profit. However, what are the right practices, which can lead a business to that goal? This is where business ethics is needed.

Business people cannot use various methods that are contrary to ethics to achieve this goal. The following explains what ethics in business is, its objectives, benefits, principles, violations, and examples of ethics in business.

Understanding Business Ethics

In business, you need to build a system that is neat and comfortable for the people you work with. This can be achieved when you apply ethics in business.

Business ethics are all business activities carried out by prioritizing morals, so that the business has a good image in the eyes of the public, and can carry out its activities continuously.

Ethics is very important in business because when dealing with clients, consumers, and people within the company there are procedures that have been mutually agreed upon. For example, when a company faces complaints from angry consumers because of poor service, it is not good to respond with anger as well.

If that happens, the company will be branded unprofessional. Ethics in this business is closely related to the manners that are upheld when dealing with consumers, investors, and other people who are involved in the business.

To better understand how ethics in business is important, let's look at the next discussion.

Purpose of Business Ethics

The application of ethics in business for important purposes. Here's the explanation.

1. Prioritizing moral awareness

Making a profit is important, but it cannot be done without prioritizing ethics. In your business as much as possible avoid disputes that can adversely affect business activities.

2. The company has a good image

Just look at the biggest companies that have been able to survive for decades. They not only routinely earn profits, but also manage to establish good ethical values ​​in business, so that many consumers and clients rely on them.

3. Creating boundaries in business

The limitation here means that we can't do business arbitrarily. This restriction was not meant to restrict the movement of those people, but to protect them from harm. For example, not sharing crucial information with rival companies.

4. Creating a harmonious relationship

Not only in the family, the business also needs to have a harmonious relationship with the various parties who work with it. Ethics in business helps companies create that harmony.

Benefits of Business Ethics

Ethics in business benefits any business that runs it. Here's the explanation.

1. Maintain reputation

A company that has been able to stand for many years, does not only rely on revenue, but also has good ethics in running its business. One of them is to maintain good relations with consumers. In this regard, they always respond to customer complaints in a professional manner.

2. Gaining consumer loyalty

Companies that successfully apply ethics in business correctly will gain consumer loyalty. It is not easy to achieve because the company will take years. Why is loyalty so important for companies? Because most of the sales are achieved by reaching the target caused by customers who make purchases many times.

3. Maximum profit

Companies that succeed in achieving maximum profits are not only due to the success of their sales or promotions, but also from the image achieved through the application of ethics.

Consumers will choose companies that give full attention to them, investors are happy to work with businesses that are not problematic and do not violate the law, employees or individual companies will also be happy because all their rights are fulfilled.

Principles of Business Ethics

Generally, there are 6 principles that apply in business ethics. These six principles affect the company's business journey. It is good for business people to know about these principles.

1. The principle of moral integrity

Everyone in the company must protect the company's name. When there is a problem within the company, it will usually be resolved internally first. If there is a serious violation that occurs, the person who feels aggrieved can really take the case to court.

2. The principle of honesty

In business, honesty is a principle that you must always remember. This honesty applies in various aspects. Examples are when you convey the results of sales to investors and when you convey the advantages of the product to consumers.

If the company is caught lying or manipulating, the consequences will be bad for the company.

3. The principle of loyalty

Everyone involved in the business processes in a company, should faithfully follow the development of its business from beginning to end. It is a contribution that will return to them in the form of various kinds of appreciation. For example, getting a bonus when the company gets an increase in profit.

4. The principle of justice

In business, who contributes the most, usually gets more opportunities. However, even businesses cannot ignore others that are still in progress. The point is that business can provide equal opportunities to its people, it's just a matter of how these people take advantage of the opportunity.

5. The principle of autonomy

This principle deals with decisions made for businesses that are taken into account from various points of view. However, it is also ready with all the risks that follow.

6. The principle of mutual benefit

Ethics in business teaches that all parties in the business must feel the benefits. There is no conflict in it, so no one feels lost or left out.

Business Ethics Violation

Even though there is ethics in business, violations can still occur due to various factors. Starting from greed, the gaps they find, only thinking about their own benefits, and so on.

For example, in the banking world, there are employees who trick their customers into creating fake accounts that can be accessed by them. As a result, customers lose money, employees use the money for extravagance, and the loser is also a tarnished company.

This can be anticipated if the company educates the parties in it to act in accordance with the procedures applied by the company.

Then, the parties involved in the business also need to know the laws that apply in Indonesia. When a violation occurs, do not hesitate to make a report, so that the case can be immediately stopped and not repeated in the future. Everything that happened in the past can be a lesson.

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