For example, today most major corporations promote their commitment to non-economic aloes under headings such as ethics codes and social responsibility charters. Governments use laws and regulations to point business behavior in what they perceive to be beneficial directions. Ethics implicitly regulates areas and details of behavior that lie beyond governmental control. The emergence of large corporations with limited relationships and sensitivity to the communities in which they operate accelerated the development of formal ethics regimes.
Ethical issues is pertaining to or dealing with morals or the principles of morality; ethical is pertaining to right and wrong in conduct, involving or expressing moral approval, in accordance with principles of conduct that are considered correct, especially those of a given profession or group. Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow in order to gain public acceptance. Business ethics are implemented in order to ensure that a certain required level of trust exists between consumers and various forms of market participants with businesses.
Business ethics is the behavior that a business adheres to in its daily dealings with the world. The ethics of a reticular business can be diverse. They apply not only to how the business interacts with the world at large, but also to their one-on-one dealings with a single customer. Many global businesses, including most of the major brands that the public use, can be seen not to think too highly of good business ethics. Many major brands have been fined millions for breaking ethical business laws. Money is the major deciding factor.
If a company does not adhere to business ethics and breaks the laws, they usually end up being fined. Many companies have broken anti-trust, ethical and environmental saws and received fines worth millions. The problem is that the amount of money these companies are making outweighs the fines applied. Billion dollar profits blind the companies to their lack of business ethics, and the dollar sign wins. Business ethics should eliminate exploitation, from the sweat shop children who are making sneakers to the coffee serving staffs that are being ripped off in wages.
Business ethics can be applied to everything from the trees cut down to make the paper that a business sells to the ramifications of importing coffee from certain countries. In the end, it may be up to the public o make sure that a company adheres to correct business ethics. If the company is making large amounts of money, they may not wish to pay too close attention to their ethical behavior. There are many companies that pride themselves in their correct business ethics, but in this competitive world, they are becoming very few and far between. Business Law is the set of law that administers business and commercial transactions.
It is often treated to be a branch of civil law and deals with issues of both private law and public law. Business law consists of within its scope such sale of goods, indention & warranty, caveat emptor, titles as principal and agent; carriage of goods, common carrier, carriage by land and sea, railways, post-office, ICE FOB; merchant shipping; guarantee; marine, fire, life, and accident insurance, voyage policy; negotiable instruments, bills of exchange, promissory note, queue, master card, visa card, credit card, and partnership; commercial arbitration, agreement, award, arbitrator.
Many countries apart from Bangladesh have approved civil codes that including comprehensive statements of their business law. Administrative law is the law relating to the administration. It determines the organization, powers and duties of the administrative authorities. Administrative law is considered a branch of public law and is often referred to as regulatory law. Sometimes the gobo. Imposes some administrative laws on the business concerns in the country.
Sometimes again, it is seen that some organizations follow administrative laws of their own (Mans usually follow the laws of their country of origin) and some other align their administrative laws with the same implemented by the gobo. From individuals to large corporations, everyone needs to know about taxes. For instance; in Bangladesh, the principal taxes are Customs Duty, Value-Added-Tax (VAT), Supplementary Duty and personal income taxes and corporate income taxes. The standard rate of VAT is levied on transaction value of most of the imports and supplies of goods and services.
The top income tax rate for individuals is 25%. For the 201 1/12 tax year (July 1, 2011 -June 30, 20112) the top corporate rate was 45%. However, publicly traded companies registered in Bangladesh are charged a lower rate of 27. 5%. Banks, financial institutions and insurance companies are charged the 45% rate. All other companies are taxed at the 37. % rate. Effective from 1st July 2011; lastly the National Board of Revenue (N.B.) is the central authority for tax administration in Bangladesh.
Importance Of Business Ethics Most of us would agree that it is ethics in practice that makes sense; just having it carefully drafted and redrafted in books may not serve the purpose. Of course all of us want to be fair, clean and beneficial to the society. For that to happen, organizations need to abide by ethics or rule of law, engage themselves in fair practices and competition; all of which will benefit the consumer, the society and organization. Primarily it is the individual, the consumer, the employee or the human social unit of the society who benefits from ethics.
In addition ethics is important because of the following: a. Satisfying Basic Human Needs: Being fair, honest and ethical is one of the basic human needs. Every employee desires to be such himself and to work for an organization that is fair and ethical in its practices. B. Creating Credibility: An organization that is believed to be driven by moral values is respected in the society even by those who may have no information about the working and businesses of that organization. British American Tobacco, for example is perceived as an organization for good corporate governance and social responsibility initiatives.
This perception is held far and wide even by those who do not even know what business the organization is into. C. Uniting People and Leadership: An organization driven by values is revered by its employees also. They are the common thread that brings the employees and the decision makers on a common platform. This goes a long way in aligning behaviors within the organization towards achievement of one common goal or mission. D. Improving Decision Making: A man’s destiny is he sum totals of all the decisions that he/she takes in course of his life.
The same holds true for organizations. Decisions are driven by values. For example, an organization that does not value competition will be fierce in its operations aiming to wipe out its competitors and establish a monopoly in the market. E. Long term gains: Organizations guided by ethics and values are profitable in the long run, though in the short run they may seem to lose money. For Example, Data group, one of the largest business conglomerates in India was seen on the verge of decline at the beginning of 1 99(Yes, which non turned out to be otherwise.
The same company’s Data ANNA car was predicted as a failure, and failed to do well but the same is picking up fast now. F. Securing the Society: Often ethics succeeds law in safeguarding the society. The law machinery is often found acting as a mute spectator, unable to save the society and the environment. Technology, for example is growing at such a fast pace that the by the time law comes up with a regulation we have a newer technology with new threats replacing the Older one. Lawyers and public interest litigation may not help a great deal but ethics can.