Factors influencing Business Ethics | What affects Business Ethics?
Business leaders today are well aware of the ethical issues and hence they want to improve the ethical standards of the business. Self-regulation is, of course, better and produce impressive results. Besides, there are also a number of factors, which significantly influence the managers to make ethical decisions.
1. Personal Code of Ethics
A man’s personal code of ethics that is what one considers moral is the foremost responsible factor influencing his behavior.
2. Legislation
It is already stated that the Government will intervene and enact laws only when the businessmen become too unethical and selfish and totally ignore their responsibility to the society. No society can tolerate such misbehavior continuously. It will certainly exert pressure on the Government and the Government consequently has no other alternative to prohibit such unhealthy behavior of the businessmen.
3. Government Rules and Regulations
Laws support Government regulations regarding the working conditions, product safety, statutory warning etc. These provide some guidelines to the business managers in determining what are acceptable or recognized standards and practices.
4. Ethical Code of the Company
When a company grows larger, its standard of ethical conduct tends to rise. Any unethical behavior or conduct on the part of the company shall endanger its established reputation, public image and goodwill. Hence, most companies are very cautious in this respect. They issue specific guidelines to their subordinates regarding the dealings of the company.
5. Social Pressures
Social forces and pressures have considerable influence on ethics in business. If a company supplies sub-standard products and get involved in unethical conduct, the consumers will become indifferent towards the company. Such refusals shall exert pressure on the company to act honestly and adhere strictly to business ethics. Sometimes, society itself may turn against a company.
