The importance of Firms Operating Ethically

(U .S . Department of Commerce , 2004 . With the pressures and demands notwithstanding , businesses by virtue of their existence have to be ethical . The question of business ethics is most emphasized since any unethical behavior affects the stakeholders . To protect the shareholders from harmful effects that may arise due to unethical business conduct it is important that all businesses operate in a professional moral way (Barnum Richter , 1994 . It is also necessary for the business to conduct itself morally because every point in time of any action has ethical and unethical trajectories in

which the business existence is only justified by the ethical options it chooses responsibly . Multinational companies can conduct themselves in unethical way and affect the lives of large numbers of people globally . It is therefore important to ensure that business is conducted in morally acceptable standards

In to ensure a high level ethical conduct within an organization and having in mind the public being served , the business has to build some ethical conduct into defined corporate systems . The business has to define its position as being ethical and provide the customers shareholders and employees with true information on its day to day activity and progress (Hooker , 2003 . An organization should also pledge on ethical conduct to all stake holders . The pledge may contain the value of the company and ways in which it defines what is right and what is wrong . Employees should be trained on ethical responsibilities and guidance and support should be provided to the employees . Success in the business should be measured and related to the codes of conduct and finally all employees who follow the required codes of conduct should be rewarded . The second measure is to talk to the employees all the time about the goals of the business , the roles , expectations and...