Business Ethics Research Paper Example | Topics and Well Written Essays - 1250 words

Business Ethics - Research Paper Example Ethics can be written or unwritten depending with the extent of the interaction between parties. Some of the written ethics that a person must follow are contracts and warning signs such as this is a non smoking zone. Failure to follow such regulations may have negative effects to the other parties (Howie, 1987, p.17). Business ethics are moral principles that guide business people to earn their profits without having to infringe losses or doing harm to the other party. Some of the major principles include principle of common good, principle of beneficence, principle of respect of autonomy etc. These principles guide the interaction between two parties by putting boundaries and outlining the expected behavior by those individuals when transacting their activities. If not followed, the other parties might suffer. One of example where ethics are not followed in doing business is tarnishing the name and products of the competitor in order to increase the size of the target customers. Bu siness is therefore expected to compete in a neutral ground without doing any harm to each other (Howie, 1987). Importance of business ethics One of the major importances of business ethics is ensuring that there is a good coexistence between business personnel or corporations. The main aim of any business is to make profits. As a result, some business goes to an extra mile of using unethical means to ensure that they eliminate the competitors in order to increase their profit margin. One of the examples of unethical behavior is a business person purchasing all the products of the competitor in the market in order to reduce customer loyalty towards the products of the competitor. When ethical principles are keenly followed, businesses are able to exist peacefully without any of them doing harm to the other (Brooks, Dunn, 2009, pp. 66). Business ethics improves customer loyalty towards the products or services. Currently, customers are very keen on what they are consuming and the sou rce of the product. As a result, they keep on monitoring the ethical standards of their preferred company or businesses. If the business acts unethically be it through its transaction or even employees being unethical this may have an adverse repercussion. This tarnishes the image of the company/business, an aspect that reduces trust of the customers towards the product. This behavior may result to reduced revenue of which can lead to collapsing of the business. This case can also give the competitors a competitive advantage as they can use unethical behavior by the business to lure customers to purchase their products (Ferrell, Fraedrich, Ferrell, 2009, p. 79). Business ethics improves customer relation. Moral conduct of a business plays a greater role in attracting customers to the business (Kline, 2010, p. 39). Customers like to be associated with a business that has a clean reputation. Poor moral values by the business distance the customers from the business. Therefore, employe es hold a very important part in enhancing customer relations. Business ethics increases brand equity. Brand equity is the public valuation of business’ brand name. The brand name attracts investors towards the business. This increase capital that the business holds therefore enabling the business to compete effectively in the market. This capital is also used in diversification of the company operations therefore enabli