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3. Employee feels like they are part of ethical and good firm
4. It helps having an edge in competitive market.
Some of the basic elements of business ethics while running a business enterprise
are as follows:
(i) Top management commitment: Top management has a crucial role in
guiding the entire organization towards ethically upright behavior. To
achieve results, the Chief Executive Officer (CEO) and other higher
level managers need to be openly and strongly committed to ethical
conduct. They must give continuous leadership for developing and
upholding the values of the organization.
(ii) Publication of a ‘Code’: Enterprises with effective ethics programmes
do define the principles of conduct for the whole organization in the
form of written documents which is referred to as the “code”. This
generally covers areas such as fundamental honesty and adherence to
laws; product safety and quality; health and safety in the workplace;
conflicts of interest; employment practices; fairness in
selling/marketing practices; and financial reporting.
(iii) Establishment of compliance mechanisms: In order to ensure that
actual decisions and actions comply with the firm’s ethical standards,
suitable mechanisms should be established. Some examples of such
mechanisms are: paying attention to values and ethics in recruiting
and hiring; emphasizing corporate ethics in training; auditing
performance regularly to analyze the degree of compliance; and
