VIII. Read and discuss, providing your own examples: New aspect of business ethics

Business ethics – a system of universal and specific moral requirements and rules of conduct, realized in professional activity. Business ethics involves:

• ethical appraisal of a company internal and external policy;

• moral principles of the staff;

• morale in the organization;

• norms of business etiquette.

Business ethics is based in transparency, integrity, consistency, law abidance and business skills.

The new requirement for businesses is transparency of the manufacturing process. A customer pays attention not only to the product parameters, but also to its production parameters.

Consumers prefer:

1. environmentally friendly production;

2. ethical behavior of financial institutions;

3. clarity concerning the origin of certain types of raw materials.

The public demands and aims to persuade enterprises to internalize environmental costs, brought about by the production process and use of material goods and services. The oncoming costs related to the waste disposal or product recycling are to be included in the selling price.

Corporate responsibility.

Companies shouldn’t :

• view nature as an infinite sink to chuck out waste

• squander non-renewable resources

• use child labor, sweatshops

Companies should:

• take on social responsibility

• maintain healthy environment

• internalize costs

• become stakeholder inclusive

• add long-term value for shareholders

• do volunteer work for local community

• speak out on relevant issues

• listen to stakeholders

• become integral within society

Corporate responsibility stays high on the agenda for companies who want to be good corporate citizens.

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