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Disadvantages Of Corporate Ethics

Decent Essays
Corporate Ethics: Principles and values that govern the decisions and actions of the business are called corporate or business ethics. These may be written or unwritten. The basic meaning of ethics is deciding between what is wrong or right (good or bad) and doing what is morally correct. It govers the behavior of each individual and the organization as a whole. Most employees behave ethically just to avoid penalty or to get some rewards, but there are only a few who do what is right without their selfish motive. Everyone should have this kind of feeling and sensitivity towards others. If this behaviour can be developed within all the employees then the company's reputation will be enhanced. Ethical behaviour in an organization should be promoted as there are various advantages of it, some of which are given below: Goodwill: When a company works ethical it automotically attracts public attention. Nowadays customers are very particular of buying products of companies which care for the environment, do not breach their trust by selling spurious or contaminated products. A business which works ethically and do not indulge in unfair trade practices, make a place for themselves in the market. Shareholders: Investors nowadays invest in companies which are ethically right, i.e., they present their true balance sheets, care for the environment, care for the society etc. So, to attract investors and retain them the business must do what is ethically right. Stakeholders: There are
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