Business Ethics

If we have previously discussed ethics , this time we will narrow the scope of business ethics . The word business ethics in general means the ways in which a business conducts business activities that cover several aspects, be it individuals, companies , or the community.

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Understanding Business Ethics

Understanding Business ethics is as a knowledge of the ideal procedures for running and managing a business by taking into account norms and morality that apply universally, economically, and socially. Business ethics is also interpreted as a guideline in determining whether or not an action and behavior carried out by a company in running a business or business.

In conducting its business, every company must pay attention to and apply the ethical ethics that apply, for example, obey the laws and regulations to pay taxes in accordance with applicable laws. In a business ethic, there are principles including being honest in communicating and behaving, having loyalty, having commitment and fulfilling promises, and having integrity.

Some experts also interpret business ethics, including the following:

  • Budi Untung

Business ethics is knowledge of the ideal procedures for business management and regulation that must pay attention to morality and existing norms and are universally recognized.

  • Yosephus

Business ethics is an area of ​​application of general moral principles in the area of ​​human action in the economic field, especially business. So, basically the goal is the moral behavior of business people who have economic activities.

  • Hill and Jones

Understanding business ethics is a guideline to distinguish between right and wrong. This can provide equipping to every business leader / company when considering making strategic decisions related to complex moral issues.

  • Steade Et Al

“Business ethics is an ethical standard relating to the goals and ways of making business decisions.”

From the several definitions of business ethics above, it can be summarized that business ethics is a guideline used by companies or businesses in conducting their business which considers norm and moral values ​​in making business decisions.

The Purpose of Ethics in Business

Why must obey ethics in business? Every entrepreneur or company must have knowledge of ethics in running a business or business. The goal for entrepreneurs and companies is to raise moral awareness and set certain limits for business people and run ‘good business’.

Every entrepreneur and company should know that doing monkey business or dirty business practices will only hurt many parties, especially himself. Understanding and implementing ethics in doing business will eventually bring a company towards better business management so that it has a good image in the eyes of everyone.

So, a business or company that applies a good business ethics in running its business, generally will not harm other parties, do not violate applicable laws, and be able to keep business conditions conducive.

Principles of Business Ethics

Business people are required to have the principle of honesty in conducting their business to get the key to success that is able to last for a long time. If there is a businessman who commits dishonest and fraudulent actions, then it is very likely that no business person will cooperate with him.

The attitude of honesty itself is generally associated with the price of goods that have been offered. In running a modern business, consumer confidence is quite important because business people are required to provide true information to consumers.

Principle of Autonomy 

There are several principles found in business ethics. The principle of autonomy is a person’s ability and attitude when taking actions and decisions based on his own awareness of what he thinks is good that can be done.

If people are aware in carrying out their obligations in doing business, it can be said that the person already has the principle of autonomy in business ethics. For example he knows about the field of work with the situation and demands that will be faced by him and knows what rules are in his field of work.

The Principle of Mutual Benefit 

In running its business, business people must run their business as well as possible with the aim that each party related to profit. For example, entrepreneurs or companies must provide the actual price of goods to consumers and provide the best possible service to increase customer satisfaction.

The Principle of Justice

This principle of business ethics requires business people to be treated fairly and adjusted to rational criteria. In addition, this principle requires that someone in running a business is able to treat internal and external relations equally and give their respective rights. This is done in order to keep losses from one party of the business. So, the good thing is that a businessman does not harm the other party and benefits one party in the business.

Principle of Moral Integrity

The principle of moral integrity is an ethical principle that must be upheld and maintained to maintain the good name of the company. Businesses must be able to manage and run their business as well as possible so that the trust of consumers or other parties involved in the company remains.

That is, an entrepreneur or business person must be able to provide encouragement to yourself in doing business so that it raises a sense of pride. This can usually be seen from the behavior of business people outside and inside the company.

Examples of Ethics in Business

There are a lot of business ethics that must be considered and implemented by all business actors, for example are as follows:

  1. Mention the name

Mention someone’s full name when meeting a business partner colon for example. This is a simple method that is usually done by entrepreneurs who have good ethics. But, sometimes, just mention the short name if the person’s name is too long or difficult to pronounce.

  1. Stand When Getting Acquainted

Standing during acquaintance is an example of good ethics. By standing, we respect the people we are acquainted with so that someone will feel treated well. This attitude can also be bent to show that someone has a positive attitude towards others.

  1. To say thanks

The word “thank you” is a simple word but has a great impact on many people. Saying thank you is a sign that someone respects others. So, do not ever hesitate to say thank you because the impact is quite vital especially for companies in the field of services, for example banks.

Such is the explanation and commentary on the notion of business ethics, goals, principles, and examples of ethics in business. Hopefully this article is useful, thank you


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