After you establish yourself, you'll eventually have to face newer firms that try to slice away your customers.
The percentage of Americans who smoke has dropped by more than half, with a corresponding effect on industry revenues. You can't control the economy, but understanding it can help you spot threats and opportunities. Ethics means different meaning to different people. Competition can make or break you — look at how many brick-and-mortar bookstores crashed and burned competing with Amazon.
External: Customers and Suppliers Next to your employees, your customers and suppliers may be the most important people you deal with. Hence only those firms, which strictly adhere to the ethical code, can retain its position unaffected in its line of business.
There is many similarities between ethical and legal factors affecting business. Such refusals shall exert a pressure on the company to act honestly and adhere strictly to the business ethics.
Example: Do not harm innocent man. Factors influencing business ethics Internal factors : can be controlled by proper management External factors: no control by mgt Internal factors People : individual characteristics Vision statement: policies and programmes Strategies Rewards Targets and budgets Profits Working condition Leadership Corporate culture External factors Society Religion and culture Government ,laws Technology Competition Reputation quotient RQ : higher RQ gives better financial performance Influences on ethical decision making 3 major influences: Work place ethics Nature of ethical issue Personal values and moral standards Work place ethics Set of values that are part of the workplace corporate culture Set of beliefs, goals, norms and the manner of solving problems that workers of the organisation share.
Experiences in turn alter ethical practices. Garrett puts this idea when he says: The best protection is the example presented by the conduct of top management and the atmosphere it creates, when leaders are scrupulous, the employees know what is considered right.
There are 5 myths: Business and ethics do not go together: Business runs on scientific management principles whereas ethics is religious.