The Importance Of Business Ethics
A business can be defined as any entity organized for the purpose of earning a profit or increasing the wealth of a society. Business enterprises can either be non-profitable entities or for-profit ones that conduct primarily to meet a social cause or further a worthy social cause. In some cases, businesses are also self-owned enterprises. Regardless of the type of business, any entity that earns a profit can be classified under the heading of a business.
There are many kinds of businesses, although not all businesses are owned and operated by individuals. Many businesses are formally registered corporations that are allowed to have their own employees and offices. Many corporations are registered as partnerships. A partnership exists when two or more people form an entity together for the purpose of conducting the trade or conducting business. The business involved in the partnership will usually be the partner that carries out the majority of the activity.
Trade unions are another category of businesses. A trade union is a body corporate that manages employee payrolls and benefits. Unions typically represent a broad range of groups, including industrial workers, small manufacturers, and other professionals. A major function of a trade union is to protect the wages of its members from unfair employment practices. However, in business ethics, a trade union can sometimes act in ways that harm its own members, customers, and other businesses. Therefore, a major article of business ethics involves determining what, if any, trade unions should have oversight over specific industry practices such as discrimination of employees based on race, gender, religion, age, or disability.
An unethical corporation can also be characterized as a business that does not follow specific ethical standards. An unethical corporation is one that does not follow basic business ethics such as avoiding conflict of interest, paying taxes, spending the public trust in its assets, and hiring honest workers. Businesses that violate these standards may face stiff penalties. For example, a company that fails to pay the payroll taxes associated with its employees can face serious tax penalties. If it spends the money obtained from its stockholders on advertising, then those stocks can be deemed an investment in the company’s future profit, giving rise to unethical business practices.
Many businesses in the United States are traded on the stock market. A few businesses, such as those who trade penny stocks, work with fewer restrictions. The practices of many businesses on the stock market can be characterized as unethical, if the business owners do not adhere to the code of business ethics. Penny stocks, in some cases, can be more easily manipulated by stock brokers than other forms of businesses, allowing them to increase the price of the stock, sometimes through questionable accounting practices, and then sell it for a profit. A number of states, such as the United States, have taken action against individuals who manipulate the price of penny stocks, putting many shareholders in a position that they did not have to put up with.
Overall, business ethics are important for everyone to consider when choosing to conduct business. Business professionals who are found to be engaging in unethical behaviors can face the consequences of their actions. If you do not feel as though you can practice business ethically, then it is important that you find a professional who can help you develop an ethical code for your company, one that you can uphold. Business professionals who know how to effectively lead by example can have a positive impact on their corporation and the world around them.