Ethics and Business Management

Ethics in HR Management Creates Excellence for Stakeholders HR management is one of the most important processes that affect the development of the company. This is where ethics start as employees are exposed to the values and principles accepted in the company as well as in the business world (Weiss 2008).Advertising We will write a custom essay sample on Ethics and Business Management specifically for you for only $16.05 $11/page Learn More Admittedly, the ethical behavior of employees is beneficial for all stakeholders involved. Ethics in the workplace creates a positive atmosphere where employees respect and support each other. If a company has a set of specific ethical norms to follow, employees tend to act according to those rules. There is also clarity in actions as ethical norms help employees choose the right patterns for each situation (Weiss 2008). The company’s clients benefit from ethical HR management policies as they obtain qualifie d services. Clients also trust the company and feel secure, which is very important in business. Adherence to ethical norms also ensures the company’s safety as there can be no legal action against a company that follows ethical norms. Companies, where employees follow ethical conventions, can cooperate with each other as there are certain clarity and certainty in their activities. Therefore, it is possible to note that ethics in HR positively affects companies’ development. Ethics Is Useful in Business Adherence to ethical norms is important for business as it provides the business world with a certain kind of code of conduct. Ethics describes behavioral patterns in a variety of situations. Thus,the company’s actions to any situation can be easily predicted and assessed if the company follows ethical principles. Conducting in an ethical way helps the company create a positive image which will attract customers. Admittedly, people tend to address companies that have a favorable image, i.e. if companies conduct in accordance with major ethical norms.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Furthermore, the favorable image will also attract investors, which is very important for any company. The company that adheres to major rules can easily get investment as investors can easily predict the way the company will function in this or that environment. Finally, adherence to ethical principles helps the company create proper partnerships. Ethics can become a universal regulatory system which will prevent various cases of misunderstanding (Weiss 2008). Companies following ethical norms move in a similar direction as they have similar values. Thus, it can also help businesses avoid legal actions as ethical conduct helps avoid illegal operations. A Specific Role in Times of Economic Crisis It has been acknowledged that the crisis of 2008 was caused by underestimation of risks which was a result of unethical behavior of companies that provided distorted data (Peck 2012). Some companies did not follow ethical norms as they provided unchecked or even wrong data to analysts who came to wrong conclusions. The crisis became an example of what can happen when businesses are run without adherence to ethical principles. Moreover, it is possible to claim that ethics can help in the period of crisis. People can become more thoughtful of ways they use. People have experienced the outcomes of unethical behavior and they have learnt the lesson. Now companies try to employ only secured data as well as provide only checked information to other stakeholders. This makes companies reliable and they develop favorable images. Of course, companies do not simply pay more attention to the reliability of the information provided but they follow other ethical norms as it is clear that breaking rules can lead to disastrous consequences in the globalize d world. This, in its turn, attracts clients and investors.Advertising We will write a custom essay sample on Ethics and Business Management specifically for you for only $16.05 $11/page Learn More Therefore, compliance with ethical norms in the period of crisis can help a business develop and remain competitive in the contemporary business world. Transparency as a Compulsory and Unavoidably Rule in Human Resources HR managers are â€Å"on the front line† as they assist managers to hire professionals (Weiss 2008, p.60). Transparency should be a core value of HR managers as they should understand their role in the company, i.e. they select people to work in specific areas. Other managers should have complete information on the newcomers to understand what tasks should be given. The newcomers should also have the necessary data to be able to fit the company and complete the tasks given. Finally, HR policies should be based on principles of transpar ency as employees should make a unified team where each member of the team trusts other members. Lack of information can lead to misunderstanding and even hostility which will negatively affect the overall performance of the department and the company. Nonetheless, it can also negatively affect the company. For instance, transparency of salaries or bonuses can lead to an unhealthy atmosphere where some employees envy others. Transparency can be also harmful in the period of cutting manpower as unhealthy competition will negatively affect each employee’s productivity. Employees can start focusing on their salaries and bonuses and their images rather than on proper completion of tasks and development of the company. Recognition Recognition is a set of ways aimed at appreciating employees’ dedication and excellence that had a number of favorable affects for the company or can potentially lead to such effects.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Reference List Peck, S 2012, Investment ethics, John Wiley and Sons, Hoboken, NJ. Weiss, JW 2008, Business ethics: a stakeholder and issues management approach, South-Western College Pub, Mason, OH. This essay on Ethics and Business Management was written and submitted by user Justus Rowland to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.