It changes the way companies operate today, and it also influences legislation on corporate regulation.
Business ethics are a matter of fair dealing and moral behavior, but the practical implications are not lofty. The purpose of business ethics is to establish trust between people doing business. Over time, a company's reputation is built on its demonstrated pattern of ethical (or unethical) behavior.
How do business ethics differ among countries?
Setting standards.
Business ethics are shaped and guided by the laws of the company's home country.
These laws provide a base point such as a minimum wage, environmental standards, and worker safety regulations in some cases.
Other laws set broad responsibilities and requirements for honesty and fair dealing.
Some companies strive to be the gold standard for business ethics in their industry, while others do the bare minimum that is legally required.
The hazards of adapting.
This is one of the reasons why business ethics differ among countries.
One danger in this approach is that the behavior of a company and its employees will inevitably be judged by the ethical standards of its home country.
For instance, child labor is acceptable and expected in some nations but is illegal and unacceptable in the United States.
Multinational companies using child labor abroad have been judged harshly by their American customers while it is something else to give birth through an operation.
Impact of ethics on global business.
Integrity.
Ethics and laws in business breed integrity. Being trustworthy can have a positive impact both internally and externally.
Consumers appreciate openness as it provides them with insight into how a business operates and conceptualizes the work they do.
Employees also appreciate this quality in a business they work for.
Justice
Ethics and laws on business breed treating customers and employees with a sense of fairness.
Manipulative behaviors are not only unethical, but they are also unhelpful, and the top priority of any business should be to be helpful to its customers and employees. It is also essential to treat all people equally.
Effects of unethical business practices
Poor ethical decisions can affect a business in a variety of ways.
Legal problems: Businesses that act unethically in ways that break the law may face significant fines and other penalties.
Poor employee performance: A lack of ethics within a company affects how employees do their job. People can decide that because leaders can break the rules, they can too. This can lead them to damage the company. They may also become discouraged or not see the need to work hard in an unethical environment.
Poor company credibility: When unethical, it affects its reputation. Not only will the leaders and company lose respect from employees, but they will also lose credibility with the general public. This can result in reduced sales, lost customers, and significant financial harm.
Conclusion
Law and ethics are different from what a person must do and what a person should do.
The former is universally accepted, while the latter is ideal human conduct, agreed upon by most people.
Although, both the law and ethics are made in alignment to not contradict each other.
Both go side by side, as they provide how to act in a particular manner.