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The Function and Role of Ethics in Business, Summaries of Business Ethics

The importance of ethics in business and its role in shaping good values, norms, and behavior. It highlights the myths about immoral business and why businesses should act ethically. It also talks about the advantages and disadvantages of various corporate codes of ethics. The document emphasizes that business takes place in a moral context and that attention to ethics in business is still limited.

Typology: Summaries

2020/2021

Available from 01/31/2023

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The Function and Role of Ethics in Business
According to Richard De George a company if you want to succeed in doing business
requires 3 main factors, namely good products, smooth management, and ethics. Lots of
training, education and research efforts are put in place to assist business people in producing
good products and smooth management. To produce good products, businesses can take
advantage of all modern scientific and technological devices. For example, in the
pharmaceutical and pharmaceutical industries, increasingly sophisticated electronics are now
available to modern consumers. Achieving smooth management, business people usually can
make full use of economics and management theory. For example, if in the past businessmen
relied on natural talent alone, now it is almost impossible for professional managers to have
sufficient skills without special education. In fact, management education has made business
a separate profession. Compared to all the efforts and programs that have been made to
improve management capabilities in business, attention to ethics in business is still very
limited. But what is important is that the role of ethics is starting to be recognized and paid
attention to. The function of business ethics itself is to build and shape good values, norms
and behavior in business. For example, in a company, business ethics can shape good
employee behavior, and can also build good business relationships with consumers and
company partners.
1. Business takes place in a moral context
Business is an important element that occurs in people's lives. We buy goods or
services to survive at least to make life more comfortable and we are also involved in the
production of goods or services needed by other people. Business cannot be separated
from moral rules, but sometimes the presence ethics in the field of business is still in
doubt; therefore, we need to look briefly at the contradictory opinions regarding ethics in
business.
I. Myths about immoral business
In society, there is an assumption that business has nothing to do with
ethics or morality. Business people just do their jobs. Sometimes there are
people who don't care about ethics and morality in their business relationships.
However, it is necessary to believe that business cannot be separated from
moral aspects. Because business does not only deal with sales and profit
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The Function and Role of Ethics in Business

According to Richard De George a company if you want to succeed in doing business requires 3 main factors, namely good products, smooth management, and ethics. Lots of training, education and research efforts are put in place to assist business people in producing good products and smooth management. To produce good products, businesses can take advantage of all modern scientific and technological devices. For example, in the pharmaceutical and pharmaceutical industries, increasingly sophisticated electronics are now available to modern consumers. Achieving smooth management, business people usually can make full use of economics and management theory. For example, if in the past businessmen relied on natural talent alone, now it is almost impossible for professional managers to have sufficient skills without special education. In fact, management education has made business a separate profession. Compared to all the efforts and programs that have been made to improve management capabilities in business, attention to ethics in business is still very limited. But what is important is that the role of ethics is starting to be recognized and paid attention to. The function of business ethics itself is to build and shape good values, norms and behavior in business. For example, in a company, business ethics can shape good employee behavior, and can also build good business relationships with consumers and company partners.

1. Business takes place in a moral context Business is an important element that occurs in people's lives. We buy goods or services to survive at least to make life more comfortable and we are also involved in the production of goods or services needed by other people. Business cannot be separated from moral rules, but sometimes the presence ethics in the field of business is still in doubt; therefore, we need to look briefly at the contradictory opinions regarding ethics in business. I. Myths about immoral business In society, there is an assumption that business has nothing to do with ethics or morality. Business people just do their jobs. Sometimes there are people who don't care about ethics and morality in their business relationships. However, it is necessary to believe that business cannot be separated from moral aspects. Because business does not only deal with sales and profit

figures, but good business has a moral meaning. Three symptoms in society that show this myth, namely:

  • Business is highlighted sharply by the public through the mass media. Society does not hesitate to directly associate business with morality.
  • Business is observed and criticized by many NGOs, especially consumer NGOs and environmental NGOs.
  • Businesses are starting to become concerned about the ethical dimension of their activities. II. Why should be ethical Businesses should act ethically by implementing several aspects such as;
  • God is our judge who will judge us later
  • Social contact
  • Virtue is that which prioritizes goodness in society because with high ethics and morality in business it will produce a strong defense of our business in society. 2. ompany code of ethics a. The advantages and disadvantages of various corporate codes of ethics The phenomenon of the company's code of ethics emerged around the 1970s, partly due to the occurrence of several corruption scandals in the business community. Because of this bitter experience, the realization began to grow that companies should have strict and clear regulations to prevent negative things like that from happening. Even though there are various difficulties, the company's code of ethics will provide benefits, namely:
  • Code of ethics can increase the credibility of a company, because ethics has been used as a corporate culture.
  • Codes of ethics can explain how companies assess their social responsibility
  • The code of ethics will provide companies and the business world in general with the possibility to regulate themselves or their own companies. Making a code of ethics is apparently not a sufficient solution to solve all the moral difficulties for the company. Therefore it is not surprising that the company's code of ethics encounters criticism, including:
  • Company codes of ethics are often mere formalities