What are business ethics? Principles of business ethics

Đạo đức kinh doanh là gì? Nguyên tắc thực hiện đạo đức kinh doanh

Business activities are the basis for the development of society, but in reality, the economy has developed in this way, but it is not sustainable because business ethics is gradually being forgotten in a world where people are running more and more after material values. What are business ethics? What are the principles of business ethics? Please enjoy the article Ms. Uptalent shared today.

1- What is business ethics?
2- To whom does business ethics apply?
3- Why should there be business ethics?
4- Principles of business ethics
5- Concrete examples of business ethics (Tony Morning’s story)

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1- What is business ethics?

Business ethics (also known as business ethics in English) is a term referring to the ethical and humanistic aspects, expressing truth – goodness – beauty that should be applied in business activities.

It is a set of principles and standards both in thought and in action, guiding business people to be aware of

  • The right code of conduct in business with customers, partners, employees, society…

  • Adhere to the value of honesty and fairness when providing business products/services

  • Don’t succumb to temporary temptations but lead to long-term adverse consequences for customers, society and the future of the organization’s business.

Business ethics is the foundation of trust in customers, providing stable and sustainable development capacity for individuals and their businesses.

2- To whom does business ethics apply?

Business ethics applies to all persons and organizations involved in the provision of products/services related to business activities, including:

  • Interesting jobs

    The commercial institution of a country

  • The government conducts national affairs

  • Union where goods/services workers work

  • Supplier of raw materials, accessories and semi-finished products for production and commercial activities

  • Customers buy and resell goods/services

  • Shareholders, business owners, managers and employees of companies, professional organizations…

Business ethics are not only rules subject to legal sanctions, but also unwritten rules of humanity and humanity, providing an ethical basis for individuals and organizations to balance ethical business conduct and conduct that maintains a competitive business advantage in the marketplace.

business ethics

3- Why should there be business ethics?

To know why there should be business ethics, let’s analyze the benefits that this category will bring to great businessmen.

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3.1. Distinguish right from wrong in action

A company must have business standards to create a place in the hearts of customers. This standard must not only be implemented by managers, but also by all employees. The construction of business ethics standards in companies will be the basis for everyone to know what to do, what not to do, how to reward and punish, thus increasing the feeling of compliance with business standards.

3.2. Keep employees engaged for a long time

Business ethics includes rules of fairness, transparency, flexibility to support employees… These are also factors that help employees to benefit from legal, practical, protected and fairly treated rights. Once the employees are assured of the business ethics of the organization, they are always ready to stick by it even in difficult times.

3.3. Build customer trust

Customers choose a company’s products because they find the right benefits in that product, they feel safe, and they intend to stick to the company’s business ethics for a long time. As long as the company stays true to its committed business ethics, a reciprocal relationship will emerge:

  • When it comes to the company’s brand, customers will immediately remember the business ethics applied by the company.

  • When customers want to have the same business ethics, customers will also trust the company’s brand

3.4. Deciding to act quickly and effectively

Many situations arise that require company personnel to act quickly. For example, a situation arises where only one can be selected between goods and carrier. If the company’s business ethics clearly state the priority of people, the goods will be abandoned, thereby protecting human lives. Do not hesitate to waste time, sometimes even to damage property and people.

3.5. Contribute to the construction and development of society

Business ethics directs individuals and business organizations towards good things for society, such as protecting consumer health, protecting the environment, building public infrastructure, etc.

What are business ethics?

4- Principles of business ethics

Each individual and business organization will come up with a different set of business ethics rules, but they are all based on the same principles. That’s to say:

4.1. Trust

To build trust, business ethics must uphold the rules of transparency and honesty in commercial acts, including production and communication processes. Beliefs enable voluntary long-term commitment:

  • Customers who trust companies will always choose products

  • Employees are convinced that the company will always work hard

  • The state believes that enterprises will always create conditions for business expansion

4.2. Respect

Respect in business ethics is manifested in keeping promises, not abdicating responsibilities, admitting mistakes and resolutely correcting mistakes made. We are all ordinary people, and there will be times when we will make mistakes, let alone run a large-scale business. Customers are not strict, but they need the company to interact and show respect to know that at the heart of the company, the place of the customer remains a priority.

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4.3. Justice

From employees to customers, it is necessary to ensure fairness in corporate actions. Never assume that customers who buy less don’t need interaction, procedural service employees don’t need to be rewarded. Each of them is a link to the success of the business you are trying to grow.

4.4. Attention

Business ethics are oriented towards truth – goodness – beauty in business, so earning money and making contributions to society is only “truth” and “good”. To complete the word “beautiful”, one must pay attention to the emotional and angry aspects of customers, employees and partners. It is this emotional cord that will be the cement that will firmly bind everyone around the business activities of the organization.

Examples of business ethics

5- Concrete examples of business ethics (Tony Morning’s story)

To understand the deep value that business ethics brings, let’s look at the following real-life stories that happened in day-to-day business activities:

5.1. “Durable like German”

Anyone who has ever owned a German product such as pots, pans, electronics … is sure that a few decades after using it you will not have to change another, unless you like to change model.

The quality of German-made products is still extremely enduring, in part due to the German character built on perfectionism from the time he was in school. Their discipline is extremely strict, teaching is geared towards learners who will “create jobs” instead of just trying to study well to “apply for jobs”. For them, quality is the business ethic to strive for, the way for Germans to get rich is not quick but extremely solid.

There is a story, a foreign journalist asked a German manager: “The Germans have been making pots for over a hundred years. So durable that customers no longer come to buy. Why don’t you shorten the duty cycle, won’t it be more profitable?”.

The manager replied, “Customers who come to buy our jars do not have to buy them a second time. It’s a good rumor, so many people come to buy our jars, and we are still working today. Busy filling the orders !”.

5.2. Accept mistakes and correct them like Toyota

With world famous brands, errors in new designs can make consumers hesitant to choose in the future. But Toyota accepts this, for them business ethics towards customer safety is the top priority.

Therefore, in 2020, Toyota decided to recall more than 3.4 million cars including Corolla (2011-2019), Matrix (2011-2013), Avalon (2012-2018) and Avalon Hybrid (2013-2018) models. in the world. to fix the issue of the airbag not deploying after there were reports of 02 customers having issues.

The recall demonstrates Toyota’s sense of responsibility in business ethics, not hiding, not blaming, not abdicating responsibility. This prompt action helps prevent maximum harm to customers, as well as preventing negative business consequences for Toyota in the future.

“Three words for the heart are worth three words for Tai”, the verse of the great writer Nguyen Du is still relevant to this day. With the rules and principles of business ethics that Mrs. Uptalent has just mentioned, strongly believes that every individual and business organization is deeply aware of the importance of business ethics in customer trust and loyalty , employees and partners.

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