What is business ethics? Roles and 7 important principles

Business ethics is the most important factor to help businesses develop healthy, sustainable relationships with employees, partners and customers. Join 1C Vietnam to immediately learn what ethics in business is, the importance and principles to build complete business ethics through the following article!

1. What is business ethics?

Business ethics is understood as principles, policies, and ethical standards aimed at controlling and regulating business activities of individuals and organizations. Through that, business ethics is a means for businesses to interact with customers, partners and the government, and is also how businesses treat employees and deal with negative public opinion.

Therefore, ethical issues in business are always associated with business performance, determining the survival and success of the business.

2. Examples of business ethics issues

Business ethics not only helps maintain trust with customers and partners, but also creates consensus and cohesion between employees in an organization. Some examples of ethics in business include:

• Prioritize customer interests: To show respect for customers, businesses need to prioritize their needs and desires, by providing the best and most valuable solutions.
• Equal working environment: Enterprises use recruitment methods to help provide equal and fair working opportunities for different ethnic groups, genders and classes.
• Volunteer: Implement volunteer projects such as house repair, cooking, cleaning and sanitation... or skills training courses in the locality where the business operates. This not only helps individuals in need but also enhances the trust of businesses in society.
• Raise environmental awareness: Enterprises organize activities to reduce waste and clean the environment where they do business. Such as: Air travel, holding remote conferences, promoting office recycling by providing sorting bins to collect recyclable waste.

3. Examples of business ethics violations

Violation of business ethics is when an individual or business commits acts inconsistent with ethical standards in business. This greatly affects the development of organizations and society. Below are some specific examples of this violation:

• Using child labor: Currently, there are more than 1 million Vietnamese children between the ages of 5 and 17 years old participating in labor, (accounting for more than 5.4% of the child population in this age group). This is an ethical violation and deserves condemnation. This not only causes mental and material harm but also affects the child's life. In addition, the use of child labor also limits children's opportunities to go to school, receive health care, and enjoy basic rights.
• Negative work environment: If an overly competitive environment will create pressure on employees, causing them to become hostile and engage in destructive behavior towards those who have the will to advance at work. This also greatly affects the overall situation of the organization.
• Taking up company time: Many employees do not really contribute to the organization, instead, they abuse company time in many different ways such as: Playing games, surfing social networks during work hours. work, long lunch breaks... This is considered an ethical violation because the employee is being paid by the business but has not really contributed to the development of the business.
• Untrue advertising: Violating business ethics is also shown through false advertising about product quality and features to motivate users to buy. In today's digital age, social networking platforms are fertile ground for businesses to promote and introduce their products. However, many customers have purchased poor quality products or incorrectly advertised products when buying online, affecting consumers' experience and health.

4. The importance of ethics in business

Business ethics issues play a key role in building trust and maintaining respect for customers, helping businesses fulfill financial goals and improve product/service quality. service. As follows:

• Ethics in business helps businesses operate in accordance with current legal regulations, thereby helping to maintain respect for employees and customers and protecting businesses from legal liability.
• In addition, business ethics also helps businesses attract and retain talented people, improve work quality, reduce recruitment costs and training time.
• Establish trust and create long-term cooperative relationships. Old customers will return and introduce the business to partners within their sphere of influence. From there, boost revenue and reputation of the business.

5. Important principles of business ethics

In addition to understanding the importance of business ethics, mastering the principles for ethical business is also an important approach, helping to ensure that business activities are carried out in accordance with the law. in accordance with the provisions of law. Here are important principles that any business needs to know:

5.1 Leadership ability

The leadership ability of managers will help employees effectively apply the principles of business ethics in the organization. From there, create a healthy working environment, attract and retain talented people. In addition, good leadership also helps employees feel safe and ready to contribute to the development of the business.

5.2 Transparency

This is one of the important principles of business ethics . Businesses need to frankly share information about their operations, performance, revenue, promotions, prices, supplies, etc. to help customers, partners and employees be able to trust and long-term attachment to the business.

In addition, if any errors or unwanted situations occur, businesses should not cover it up and quickly take corrective measures for relevant parties such as employees and customers. or partner…

5.3 Honesty

The next principle in business ethics is honesty and consistency in products/services. Only then can new businesses continue to exist and compete in a fluctuating market. As follows:

• Unity in words, commitments and actions.
• Do not use cunning tricks.
• Do not produce counterfeit goods, false advertising, use of pirated products, fake promotions...
• Do not evade taxes, produce prohibited items or perform services that affect the fine customs and traditions of the state.

5.4 Be socially responsible

Businesses need to improve social responsibility and conduct business activities in a sustainable way. Such as promoting beneficial social activities, ensuring the rights and obligations of workers as well as maintaining a fair and civilized working environment.

5.5 Ensuring service quality

To maintain business ethics, businesses need to commit to ensuring the quality of the products/services they are providing, be ready to meet customer needs, and keep their promises and treat them fairly. with consumers.

5.6 Compliance with the law

Compliance with laws and regulations issued by authorities is one of the important principles of business ethics . Specifically, businesses need to carry out business activities within the legal scope and allowable regulations on tax, labor, environment and many other regulations.

5.7 Respect and equality

In order to contribute to creating a healthy and positive business environment, businesses need to uphold the motto of respect and equal treatment among employees, customers and competitors. Specifically:

• For employees: Businesses should respect their legitimate rights, respect their development capacity, and respect their other freedoms and legal rights.
• For customers: Businesses need to respect the needs, preferences and psychology of customers.
• For competitors: Respect interests and compete equally with competitors in the same industry.

6. Classification of ethics in business

Business ethics issues are understood in many different aspects and scopes. Here are the 3 main types of business ethics :

6.1 Personal responsibility

Personal responsibility in business ethics requires business members to complete assigned tasks well, make complete and honest work reports, and know how to admit mistakes if they encounter errors.

6.2 Responsibilities of the organization

Businesses need to promote and respect the interests of stakeholders, especially taking responsibility for employees, partners and customers. These benefits can be the timely completion of any contract, commitment or legal obligation.

6.3 Responsibility to society

Finally, responsibility to the environment and the community where the business operates also greatly determines the business process. Businesses need to focus on environmental protection, make financial investments, organize volunteer projects and apply waste reduction policies, to create a healthy and safe environment.

7. How to implement business ethics in organizations

In today's period of harsh competition, issues related to business ethics are increasingly receiving attention. Therefore, businesses need to increase their responsibility to implement business ethical principles to build and maintain business development.

Below are some methods of implementing ethics in business that 1C Vietnam has compiled, which administrators can refer to and apply to their businesses:

• Developing a code of conduct: Enterprises need to prepare a code of conduct and business ethical principles, thereby requiring employees to comply with it. In particular, the leadership in the business needs to be a shining example for employees to follow.
• Encourage the implementation of business ethics: Enterprises can improve the implementation of ethics in business by rewarding individuals who fulfill business ethics standards and company culture.
• Increase awareness of education: Businesses need to improve business ethics issues through communication and education for employees, customers and business stakeholders.
• Enhance the role of supervisory agencies: Strengthening the role of competent agencies in managing and preventing ethical violations in business helps the working environment become healthy and sustainable. .
• Set appropriate penalties: In addition, businesses need to provide appropriate penalties for individuals who violate business ethical standards to deter and prevent similar behaviors.

On the other hand, businesses not only need to build ethical business principles, but also need to improve management efficiency and improve work processes by using integrated multitasking software. Once the quality of work is improved, business ethics and social responsibility standards can be fully achieved.

1C:ERP is one of the software that meets the above requirements with outstanding features such as:

• Helps improve and optimize work processes: 1C:ERP supports controlling and connecting activities of businesses within the corporation and departments within the organization. Helps support businesses improve and eliminate duplicate work, manual operations as well as optimize work processes.
• On-demand and real-time reporting system: Businesses can completely prepare management reports at any time. In particular, the system is always ready for collaboration with departments and companies and can change reporting options without needing to know about programming.
• Improve product/service quality: The data synchronization process will help the system operate in accordance with the standards prescribed by the Ministry of Labor. In addition, the ability to quickly check inventory levels, check shipping policies and record customer feedback will help businesses improve service quality, thereby detecting errors quickly. easy.
• Enhance security: With the ability to encrypt data and strictly decentralize, the system will help businesses easily distribute information when decentralizing. At the same time, record data versions after changes and repairs to ensure transparency of user information and work history.
• Optimize investment value: 1C:ERP software is also compatible with necessary IT software, the browser interface and winform are the same and have the ability to customize and expand, helping businesses Optimize investment value for your digital transformation process.
• Planning and controlling KPIs: Supports businesses to quickly plan and control performance goals (KPIs), estimating the operational efficiency and performance of departments and employees within the company. From there, achieve your financial goals.

Thus, 1C Vietnam has joined with your business to learn about the importance of business ethics and the principles to establish a complete business ethic. It can be seen that establishing ethical issues in business not only helps businesses develop sustainably but also builds trust with employees, customers, and partners, and contributes to creating an environment Work healthily and effectively.