Business Ethics is as set of conduct that is acceptable to most businesses. It acts to determine how employees behave in the normal running of the business. The principles are accepted to guide the general behavior of the company towards its all stakeholders. This paper will look at how business ethics has evolved and developed over time. The business environment is extremely dynamic and keeps on changing from time to time. Business ethics needs also to change to reflect the current situation in the business environment.
In the early days, ethical issues in business were discussed by theorists and theologians in their places of worship. It is in these places of worship where different subject mainly morality, labor, capitalism and wages arose. Workers at that time were subjected to unfavorable work conditions. Capitalism took center stage and played a crucial role in business ethics evolution. For instance, there was a movement that provided citizens with minimal living wage. It was meant to encourage the adoption of better policies in the provision of employee’s welfare in terms of better pay, education and training, health and favorable retirement benefits. The movement later transformed to a better new deal where all businesses were to consult with legislators to come up with a family income. The deal was later transformed by the President Truman to a Fair deal that pointed out crucial issues on civil rights and ethics in regard to environmental responsibility and care.
The period after 1960 was marked with a lot of social and political movements. People were sensitive to various issues that were happening around them. They were concerned with the rate at which alcohol was drunk, job security, civil rights and issues touching on the environment. President J.F. Kennedy introduced consumers’ bill of rights in his regime. The bill was meant to protect the general public. It addressed consumers’ rights to be heard, safe, have choice and right to information. The bill made a major impact to the evolution of business ethics.
Later on, Ethics emerged as a subject of study offered in different learning centers. A lot of research and training were carried out. Theologians and Philosophers identified moral principles that were accepted to commercial activities. It was believed that an organization had to play an important role in improving their business reputation in the eyes of consumers and shareholders. At around this time, employees were aware of and reacted to ethical issues and human rights violations.
Organizations became sensitive to various vices affecting most businesses. The vices included: corruption, embezzlement of resources, financial fraud, and illegal contracts. Organizations saw the need to come up with principles that would govern their operations and interactions with external partners. In fact, the military developed their defense initiative that had six principles. The plan was to guide military-corporate support. It emphasized the code of conduct, ethical training, provision of only work environment, regular internal audits and effective reports, high integrity and public accountability in the military. The initiative was an eye opener for most organizations as it provided the ideal work environment. They followed the example, coming up with such action plans.
1990s were vital in the development of business ethics. Ethics supports moral business practices. Many atrocities extended to workers were brought to the limelight. Favorable working conditions and fair pay were sought. In addition to that, workers were to be compensated for personal accidents that occurred in the company. Clinton’s administration was instrumental in shaping ethics. So many scandals and other business malpractices were exposed. His administration came up with a program for ethical compliance that was to reward companies for their accountability and positive efforts geared towards preventing employee misconduct.
Business ethics continues to evolve in today’s world. The government has put up stiff penalties to deal with the rising cases of misconduct on the business arena. In fact, the government has been in the forefront to pass laws and policies that support accountability and transparency in all operations with a special focus on financial recording and reporting. With the emergent of issues like cybercrime, intellectual property theft, global financial misconduct and product safety this evolution is inevitable.
Business Ethics exists today to ensure that the environment and its habitats are well protected; the rights and freedom of employees are maintained and preserved and zero tolerance to corruption. It also operates to ensure that consumers enjoy better quality products at an affordable price, and all types of discrimination and sexual harassment cases do not happen within organizations. There is a price to pay by all those caught up in these vices. The long arm of the law is keen to arrest and prosecute. Ethics is a matter of personal view that determines the choice to be made. It is crucial to search yourself deeply before embarking on making any decision, then go ahead to seek the law. These two are not far from each other.
Ethics in business have come a long way to what it is today; the various stages have been instrumental in making an all-around positive change. Leaders must follow what is set by the government to manage business operations as well as what the business has put up to govern various relations and interactions. Every member of the company has a role to play in building a company’s reputation and making it the best in goods and services delivery. Strong Business ethics goes a long way in the success and prosperity of any company. They build solid foundations for growth.
About the Author
Nancy Bauman is a financial analyst and accounting expert. She is also an expert on business ethics and is constantly participating in university conferences as a member of the Educated Youth Movement. She regularly contributes articles related to business and loans at advanced-writer.com