Ethics development understanding and application

Ethics

According to the dictionary definition, ethics refer to the "set of principles of right conduct, or more specifically, "the rules or standards governing the conduct of a person or the members of a profession." Ethics and morals are closely related, but ethics is the term more commonly used in the professional realm, whereas morals generally refer to guidelines for personal behavior. Both ethics and morals are reflections of beliefs and values, which are held by individuals and collectively, by whole societies. The development of ethics therefore stems from social and cultural factors as well as from personal ones. However, a few ethical codes are nearly universal. Ethics are complex; in the business realm they may vary widely from sector to sector. No organization is completely immune to ethics, even if the organization has no formal ethical code. Professional decisions are made with regard to personal ethics or to the formal ethical codes of a company of organization. In some cases, a lack of ethics guides professional decision making. Business ethics are becoming increasingly important, especially as business becomes more global. Understanding and respecting different values, beliefs, morals, and ethics can be a boon for business. Ethics can and should reflect critical thinking because there are rarely cut-and-dry ethical solutions to complex problems that arise in the real world. More often than not, individuals and groups must make ethical decisions based on critical and creative thinking.

Business ethics can apply to internal operations as well as to the ways organizations conduct business. For example, sexual harassment codes are a reflection of a company's ethics. Ethics are often conflicting. For instance, say a manager values loyalty to the organization through vows of secrecy and also values ascription to environmental laws. If the manager discovers that his or her organization is dumping toxic waste, the manager must choose whether to practice loyalty to the company by keeping silent or loyalty to environmental law.

When ethics do not conflict with one another, they can become helpful codes of conduct. The most extreme application of ethics is a strict right vs. wrong point-of-view. While this binary code of ethics rarely works, in some situations actions have clear ethical values for the individual. For instance, most would agree that it is unethical to steal money out of a coworker's purse. Laws against stealing derive from social ethics, and business laws also derive from social ethics. Breach of contract, for example, leads to costly litigation because it might represent unethical behavior.

Ethics and morals go hand in hand, but the term "morals" is more often used in the religious or spiritual realm or in the realm of interpersonal relationships. Ethics, on the other hand, is a more useful term to refer to the general standards of behavior that are practiced in a group, company, or entire society. Some ethics and morals change and evolve over time, while some remain constant. It will probably always be unethical to kill another human being at will, but it has not always been unethical for a man to beat his wife. Therefore, ethical standards should evolve over time, as societies become more aware of and sensitive to the needs of oppressed individuals. As a culture shifts its value system, its ethics will change. For instance, slavery is considered utterly unethical in 2005, but in 1805, many people in the United States freely owned slaves without any ethical qualms. The value system of the American people at the time was far different than it is today, and it is possible that one hundred years into the future, some of our current ethical codes will change again. The environment is one possible realm in which the ethics of the future might conflict with the ethics of today.

The development of personal ethics is a product of family upbringing, peer pressure, and cultural milieu. A child cannot escape these social pressures when adopting a moral or ethical code. However, as an adult, individuals are free to leave behind the ethics of their parents to create a unique set of ethics. The development of ethics later in life can be based on personal experience and wisdom as much as from standardized codes of behavior. In the business world, ethics develop as a diversity of individuals tries to work together towards a common goal. Ethical business standards are based on several factors, including profitability. Many experts believe that ethical businesses are successful businesses because companies want to do business with companies with high moral standards. If a company is known to have unethical standards, clients will drop off in droves. No one wants to get cheated out of money or humiliated. Thus, ethics develop over time, in response to business environments, to the demands of the consumer and to the demands of the market. A diverse workforce also influences the development of ethics, as the wider the range of voices in an organization, the more complex and multifaceted its ethical code will be.

Ethics are one of the primary factors influencing personal and professional decision making. From pricing to hiring workers, from making a deal with a contractor to dealing with the government, all executive decisions are done with at least some attention to ethics. Whether to lie a little, a lot or not at all will be a decision determined by ethics. Whether to skim some money at the top, pad an account, charge a round of drinks to the company credit card: all of these are ethical decisions. When a company designs its business and marketing plans, it does so with attention to ethics. If an organization wants to become a market leader, how far is it willing to go? Is a giant retail company willing to edge out small mom-and-pop businesses in a local community? Does the company CEO hire his nephew? Professional decisions like these reflect the ethical code of the individual as well as of the organization as a whole.

When companies make collective decisions, they will often refer to official company codes of ethics. Drafting a code of ethics can therefore be one of the most intelligent steps an organization can make because it offers a set of clear guidelines for behavior and decision-making. In case of a dispute, an employee can open up the ethical code and make a decision based on it. While some decisions will be too complex for a simple ethical code to handle, general values and beliefs will be reflected in the code of ethics. This is exactly where critical thinking comes into play in terms of ethical standards.