History, definitions and benefits
of Business ethics
Bc. Dominika Maloňová M20681
Bc. Pavlína Steinbocková M20917
Essay
2021
CONTENT
1 INTRODUCTION......................................................................................................3
2 HISTORY AND PRESENT OF BUSINESS ETHICS ...........................................4
3 DEFINITION OF BUSINESS ETHICS...................................................................7
4 BENEFITS OF BUSINESS ETHICS .......................................................................9
CONCLUSION ..................................................................................................................13
RESOURCES.....................................................................................................................14
1 INTRODUCTION
At this time it is very important for businessman to focus on business ethics for several
reasons, which will be described here. Companies that are not interested in business ethics
don't have much power. Therefore, future entrepreneurs need to have an overview of the
basic, ethical knowledge that this essay will introduce us.
This essay is focused on the problematics of business ethics. The aim of this paper is to
outline the history, key definitions, and benefits. Which relate to the respective topic.
In the first part of the essay we will explain the history of business ethics.
The second part explains the most important definitions to introduce the topic. We'll talk
about the importance of business ethics.
In the final part, we will introduce the benefits of ethics in business and what an organization
should be aware of in order to maintain these benefits.
We will get the information from relevant sources that can be found on the internet and in
the books.
Aims
• The first aim of this essay is to define the needs of good business ethics.
• The second aim of this seminar work is to define the basic principles of business
ethics
2 HISTORYAND PRESENT OF BUSINESS ETHICS
Before we move on to the main problem of business ethics, we put the topic into a historical
context. In 2016, exactly two decades have passed since the 6th Polish Philosophical
Congress, which appeared in Toruń. For the first time in the history of Polish conventions,
business ethics was approved as a philosophical sub-discipline. The subject of ethics in
history falls into the field of philosophy and practicality. (Wojciech, 2017)
Another way we can look at the history of business ethics is influenced to some extent by
our views on ethics as such. Within a given essay, we can also perceive it as a social practice.
(Abend, 2016)
When we turn to the developmental stages of ethical thinking. Socrates was one of the first
ethical philosophers. Socrates believed that through rational processes or reasoning we could
know the truth from a lie. Socrates was trying to teach that man has the moral capacity to act
rationally. He explained that "knowing good is doing good." (Detienne, 2021)
Than it continues to modern ethical concepts from the beginning of the 19th century. We are
already talking about analytical ethics. Ethics is explored in more depth. The last stage of
development is postmodern ethical thinking, which is perceived as the most important stream
of ethical thinking. (Seknička, 2016)
When we focus on the current perception of ethical thinking in societies, a lot has changed
in the last 200 years. There have been a number of major changes in industrial companies,
Picture 1 Socrates
both in business practice and in business intensity. Further changes are expected. As part of
this development, what could be called a job for business ethics has also changed and
expanded. As a result of various events initiated by those who deal with business ethics. It
is worth emphasizing that these are mainly HR professionals working in specific companies.
Who follow certain laws of ethics and have adopted professional codes within the
organization. As a result, HR professionals provide training to address moral issues for
employees and seek to raise awareness that companies are accountable to the public and
must act responsibly within ethics. (ABEND, 2016) Today is very progressive and
innovative. This way, HR professionals can use a variety of modern technologies to educate
their employees. These methods include e-learning, which includes webinars, the provision
of a digital library for employees or the use of various educational facilities. (Dytrt, 2006)
In addition to modern online technology, human resources also have other modern methods
for educating and cultivating business ethics. This is mentoring and leadership, where an
experienced manager uses the following methods to try to pass on opinions, skills or
experience to a new employee. Training is one of the main tasks of a responsible personnel
officer who greatly contributes to the ethical development of the company. (Seknička, 2016)
Certainly is a good thing that some businessman are trying to devote themselves to ethical
thinking these days. This fact will ensure greater value for the company. And it will reduce
the negative impact on the organization's stakeholders. It can also prevent various conflicts
in the company and employee turnover. And this is in any case beneficial for companies.
Own word: We personally observe a big leap in business ethics of the last 5 years. Of course,
there has been great progress here years before, but in the past, ethics has focused on a very
similar content. The first big leap we see was the inclusion of women in higher positions and
the raising of women's wages.
In recent years, on the other hand, we have observed that women can run businesses or be
managers without major complications. On the other hand, we also see innovations in that
companies try to employ people 50+. However, this group still has a big problem. Therefore,
many of them are more comfortable staying dissatisfied with their current job. But why
should the 50+ age group still want a change of job? In our opinion, it is not just about
satisfaction. Let's say they have another 15 years of work ahead of them. So they have plenty
of time for career growth and can still learn a lot.
News in business ethics are also in the modernization of corporate culture, which does not
despise dark-skinned people and takes them as equal, or which also accepts homosexuals or
people who have decided that they do not belong to any gender.
3 DEFINITION OF BUSINESS ETHICS
One way how to understand business ethics is to perceive this ethic as a discipline run on
the border of ethics as an industry, practical philosophy and managerial activity, which in
many cases is associated with economics, banking, business and other forms of business. It
is an organized study of moral problems that arise in business, industry and other related
areas. (Wojciech, 2017)
Everyone can define their own ethics. This is when he thinks about certain issues in the field
of philosophy. It is important to ask the question to yourself. As an example, let's think about
the questions: What's good? What is wrong? Is that fair? Where did evil and good come
from? People have been trying to answer the following questions since the beginning of their
existence. But a common view is difficult to define. It is worth noting that in answering the
given questions lies our morality, which everyone has rooted in himself. And each of us
engages it in a different way. You could say that morality is the individual bible of each of
us. (Seknička, 2016)
In fact, there are gaps between how people really feel about morals and ethics and how they
act in reality. This discrepancy occurs for many reasons, not least because we prefer some
standards to others. We may also face resistance and opposition from others. There is also
the possibility that we have made too high commitments. In addition, it should be noted that
certain people, whether entrepreneurs or doctors, do not act in accordance with their moral
principles, and this is perceived as hypocritical behavior. (Abend, 2016)
Picture 2 Culture in the company
Another concept that is closely related to ethics is the concept of morality. Morality is a term
that originated in the Old Slavic period. And in translation, it is a word of custom, custom,
or morality. This concept is associated with people who adhere to moral rules even in their
practical actions. These are people who are oriented to the good side. With the help of these
individuals, one can find out where to look for good. If we always want to be on the right
side, it is appropriate to keep pace with such people. Nowadays, we meet a lot of people who
do not respect moral principles in reality and such meetings usually result in bad life
situations. For this reason, it is necessary to be able to distinguish hypocrisy from morality.
(Seknička, 2016)
Then we have the concept of morality. Which has already been mentioned in the essay. In
the past, the terms morality and morality were taken as synonyms. This is not the case today,
and it is necessary to see the differences that distinguish the words. One difference is that
morality is reflected by one's own conscience, but morality does not have to be reflected by
one's own conscience. Morality is governed by a certain order. For example, when we adopt
specific school rules, and then we behave according to its principles. Morality is a rather
general concept. (Seknička, 2016) Even if we have the ability to think well, it does not
always lead to moral behavior. Morality is very important for human existence, but thinking
is only one of several human skills. In any case, morality and morality are an integral part of
business ethics. (Detienne, 2021)
4 BENEFITS OF BUSINESS ETHICS
And what are the benefits of following ethical behavior? Whether in our business or in our
lives. We have several such advantages.
Now that we focus on business ethics, today the ethical behavior of managers is very
important to the success of an organization. It could be said that ethics is a key element that
determines the overall progress of a company. Today, great emphasis should be placed on
adherence to ethical standards in organizations. It has been found that managers who do not
adhere to ethical standards bring poor business results in the long run. Not only is a company
that adheres to ethical standards more advanced, but it also has better results in the long run.
Which result from the right decisions of managers. (Bulog, 2017)
For most managers who have poor ethical performance, they ussually are, for example,
selfish behavior or unreliable behavior. Despite the fact that they have perfect conditions for
working in their field. Overall, it is stated that unethical behavior manifests itself most in the
relationship between superior and subordinate. This issue could be related to the fact that
managers may feel competition in subordinates and start behaving unethically towards them.
As a result, employees have a negative attitude towards their work. And this unit then shows
Picture 3 Team work
poor results not only from the management, but also from the entire organization.
Unfortunately, there are many organizations that show poor ethical performance. For this
reason, it is necessary to clarify the benefits of adhering to ethical principles for our
organization. (Bulog, 2017)
One of the important points in adhering to corporate ethics is that customers perceive which
company is ethically oriented and which is not. And within these facts, they then decide
which organization they prefer. This fact alone is very necessary for organizations to
implement ethical standards in their organization. (Bulog, 2017)
As already mentioned, ethical companies are more successful overall, due to the fact that
they are dominated by a positive climate and awaken self-confidence and the possibility of
development in employees. Ethical companies are more profitable, have a lower stress factor
for employees, have stronger management than other organizations, and definitely have a
better reputation with customers. And for all this, zero costs are enough only to comply with
ethical standards, which are introduced into the company through a code of ethics. (Bulog,
2017)
Codes of ethics are the most practiced tools of ethical management. It is primarily a tool
applied for prevention. This trend, in the form of applying a code of ethics, has historically
been used primarily by advanced, Western companies. In the Czech Republic, according to
research from Bentley College at the turn of the new millennium, only 20% of large
corporations use the code of ethics. Over time, managers become aware of the usefulness of
a code of ethics. Not only does it help in difficult situations, but it also forces management
to reflect on the functionality of their organization. The codes are based on practical
experience and knowledge of business ethics, which are subsequently regulated by a legal
norm. And this processed unit then has huge benefits for organizations. We talk not only
about the benefits for the company, but also for its surroundings. To which the state and
customers belong. Codes of ethics reduce corruption, increase trust in business, force the
company to comply with rights, improve the company's approach to customers and provide
many other, effective benefits. (Seknička, 2016)
If, we have already given several reasons why to apply ethics to their business, then why do
not all managers apply ethical principles to their organization? There are many managers
who do not work in an ethical environment, even if they would like to apply ethical
principles. As a result, other business partners who are unethical will not allow it. And
ethical-minded entrepreneurs are mistaken in believing that they should behave just like their
surroundings. There is also the possibility that managers are afraid that they will complicate
their lifestyle through ethical behavior. Ethical principles need to be very much fixed if we
are to understand them, and this will change our overall worldview to some extent. Not
everyone has to accept this change. Other managers are also unsure whether business ethics
in their organization would pay off. They have the success of unethical companies as a
model. Unethical companies can succeed, but only in the short term. In the long run,
companies must be able to apply the rules associated with corporate culture. Only then can
the company be successful in the long run. Therefore, it is necessary for managers to take
into account the above benefits that the application of ethical principles brings to the
company and its surroundings. And they avoided these mistakes. (Dytrt, 2006) The hope is
certainly that with a better understanding of these practices, organizations can put in place
structures to lead employees to more frequent and consistent ethical behavior. But it is clear
that business researchers are still here and still working to discover what in reality
Picture 4 Gender balance
encourages ethical behavior that leads to maximizing the organization's profits and
improving corporate culture. (Detienne, 2021)
Own word: The benefits of business ethics are definitely for us both from the point of view
of the employer and from the point of view of the employee.
What are the benefits for our employees?
A company that has its culture set up correctly can be a pleasant environment for employees,
where they do not mind spending a large part of their time. Such a company goes hand in
hand with a stable team, which is then the reason why fluctuation is not high.
What are the benefits for employers for us?
When an employee feels good in the company, then in his free time he talks positively about
the company among friends or family. This increases the image. Overall, when a company
allows employees to be satisfied in their work, we increase its attractiveness in the job
market.
CONCLUSION
This seminar work was structured into the chapters. Each chapter is focused on a specific
topic related to business ethics.
The aims which are proposed in the introduction were observed and answered in the structure
of this essay.
At the end of this seminar work, we would like to point out how important it is to pay
attention to business ethics at this time. The goal for every employer should be to make their
employees satisfied and stable. This fact brings a positive view of the company as such.
Paradoxically, an employee can find a job more easily than an employer's employee at this
time. Of course, it depends on the field.
RESOURCES
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Unternehmensethik [online]. 2016, 17(1), 42-76 [cit. 2021-11-01]. ISSN 1439880X.
From: doi:10.5771/1439-880X-2016-1-42.
BULOG, Ivana and Ivan GRANČIĆ. The Benefits of Business Ethics - Ethical Behavior of
Decision Makers: the Empirical Findings from Croatia. Mediterranean Journal of Social
Sciences [online]. 2017, 8, 9-14 [cit. 2021-11-01]. ISSN 20399340.
From: doi:10.2478/mjss-2018-0067.
DETIENNE, Kristen Bell, Carol Frogley ELLERTSON, Marc-charles INGERSON a
William R. DUDLEY. Moral Development in Business Ethics: An Examination and
Critique. Journal of Business Ethics [online]. 2021, 170(3), 429-448 [cit. 2021-11-01]. ISSN
01674544. From: doi:10.1007/s10551-019-04351-0
DYTRT, Zdeněk. Etika v podnikatelském prostředí. Praha: Grada, publishing, a.s, 2006.
ISBN 978-80-247-6311-8.
SEKNIČKA, Pavel and Anna PUTNOVÁ. Etika v podnikání a hodnoty trhu. Prague: Grado,
publishing, a.s, 2016. ISBN 978-80-271-9146-8.
WOJCIECH W. GASPARSKI. A brief history of Business Ethics here and now. Annales
Etyka w Życiu Gospodarczym [online]. 2017, 20(7), 7-21 [cit. 2021-11-01]. ISSN 18992226.
From: doi:10.18778/1899-2226.20.7.01
PICTURE LIST
Picture 1 Socrates...................................................................................................................4
Picture 2Culture in the company ...........................................................................................7
Picture 3 Team work..............................................................................................................9
Picture 4 Gender balance .....................................................................................................11