Why Code of Ethics in Business is Important

ethics code in business

Why we need ethics in business? Business needs ethics to make the decision that prevents hurt ourselves or human life. Business always connects to human life and living together. Business activities are always related to other people, as consumers, suppliers or worker. The business decision has a positive or negative impact on others, directly or indirectly. Therefore, to make good business decisions, it is necessary to know good or bad considerations in business decision-making. The consideration is study ethics. It helps to find a good business decision for our living together.

May someone says, it is difficult to find a profit, even we do not consider good and evil. Why we make our business more complex by considering good and evil? Business ethics concern about that question. Management, accounting, production planning and inventory control, and so on does not concern mainly with the issue.

Business ethics also need to be discussed because businesses often face conflicts between people from different cultures. Business activities are the hub of different kinds of people with different good and bad views. Good deeds according to one person are not always good according to others. Selling pork dishes according to Muslims is a bad thing, but for adherents of other religions, it is not necessarily bad. These differences can lead to inner conflicts as well as social conflicts that disrupt business. Business ethics can help identify the common ground of the different moral views of different cultures. It can help overcome inner conflicts and social conflicts.

Suppose business people are not interested to consider business activities from the good and evil terms. They just want to assess in terms of financial profit and loss. Are they still need to learn business ethics? If other people’s support for business is important, understanding business ethics is necessary.

Because every exchange is always a relationship, to get the most while giving the least is unjust, unethical, antisocial, abusive, perhaps ‘evil.’ Yet predatory commerce.

James Hillman

When the businessman does business in the community, conducts buying and selling activities, it is likely that he will get an assessment from parties closely related to his business. Their judgment is not only financial gain but good and bad. Their judgment determines their support for the business.

Ethical assessment is inherent in business activities because business activities are activities with other people. Everyone wants their lives to be peaceful and comfortable. Therefore when interacting, some rules protect the peace and comfort of each person. Decisions that only provide financial benefits to one party and interfere with the comfort and tranquility of the other party are unacceptable and will face rejection and termination of cooperation. Business ethics studies are useful for understanding the rules and improving if they no longer work as they should.