JOYCE ANN CAMILLE M.

CORTEZ

BSA-2A

SCOPE AND IMPACT OF BUSINESS ETHICS

SCOPE OF BUSINESS ETHICS

Ethical problems and phenomena arise across all the functional areas of companies and at all levels
within the company.

1.ETHICS IN COMPLIANCE

An ethical climate in an organization ensures that compliance with law is fuelled by a desire to abide by
the laws. Organizations that value high ethics comply with the laws not only in letter but go beyond
what is stipulated or expected of them.

2.ETHICS IN FINANCE

The ethical issues in finance that companies and employees are confronted with include:

In accounting – window dressing, misleading financial analysis.

Related party transactions not at arm’s length

Insider trading, securities fraud leading to manipulation of the financial markets.

Executive compensation.

Bribery, kickbacks, over billing of expenses, facilitation payments.

Fake reimbursements

3.ETHICS IN HUMAN RESOURCES

The ethics of human resource management (HRM) covers those ethical issues arising around the
employer-employee relationship, such as the rights and duties owed between employer and employee.

4.ETHICS IN MARKETING

Marketing ethics is the area of applied ethics which deals with the moral principles behind the operation
and regulation of marketing.

5.ETHICS OF PRODUCTION
This area of business ethics deals with the duties of a company to ensure that products and production
processes do not cause harm. Some of the more acute dilemmas in this area arise out of the fact that
there is usually a degree of danger in any product or production process and it is difficult to define a
degree of permissibility, or the degree of permissibility may depend on the changing state of
preventative technologies or changing social perceptions of acceptable risk.

IMPACT OF BUSINESS ETHICS

Business ethics are really most important for all business organizations. Adhering to the business ethics
not only avoids the risk of government intervention and legal battles in law courts but it also helps in
improving the profitability of the company. Most of the small business organizations think that business
ethics have no relation with their profitability ratios. But there is definitely a great influence of business
ethics on the profits of the firm. But the question arises how an ethical work environment provides
career advancement opportunities to the employees. If the employees are getting performance
appraisals then they definitely will contribute their maximum towards the organization.Maximum
contribution of employees yields maximum profits for the company. But it will start only when the
management of the company take ethical decisions and behave ethically. Leading by example is the first
step in fostering ethical behaviour. So business ethics is certainly beneficial in the interest of business.
JOYCE ANN CAMILLE M. CORTEZ

BSA-2A

UNETHICAL BUSINESS BEHAVIOR

 UNFRIENDLY WORK ENVIRONMENT

One of the things that can affect productivity is an unfriendly working environment. This may
come as a combination of abusive bosses, lack of commendation, and misunderstanding.

 VERBAL HARASSMENT

It is common among employers to verbally harass employees when they make little mistakes.
This will reduce employee morale and productivity.

 UNPAID OVERTIME

Some employers take advantage of desperate job seekers and the competitive job market to
use employees' leisure time as they wish. They take advantage to their employees, give work to
them and when the time comes for giving wages there is no increase in their salaries and
sometimes they blackmailed or used the fact that the employees are just in that work because
of them.

 LYING TO HIDE MISTAKES

Lying about your bad doings cannot mask your mistake it will just give result to big problems that totally
affect your performance in work.

 BADMOUTHING COLLEAGUES

Talking behind your co-employee's back is a big no no in business environment because it can lead to
gap between one another and result suspension if the bosses finds out what is happening to their
employees.

 SLACKING OFF WHEN NO ONE IS WATCHING

CONCLUSION:
Unethical behaviour has serious consequences for both employees and employerss. You can lose your
job and reputation, the work can lose their credibility, moral and productivity can decline, or the
behaviour can result in significant financial loss. But nowadays Thankfully, our society is starting to react
and much more attention is being drawn to the extent of the problem and what to do about it.
Accountability and transparency are the new policy that is being implemented in every organization.
Corporations are adding integrity officers, ensuring everyone is aware of the codes of conduct and
training employees on the issue of ethics.