Definition of Ethics

Including a Definition For Business Ethics

The definition of ethics is, at a simplistic level, to do no harm. An understanding of the definition of business ethics and ethics in decision making is important in our business environment today.

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What is the definition of ethics? Ethics is also called 'moral philosophy'. This branch of thought seeks to understand fundamental values, both personal and professional, and how to effectively facilitate actions that reflect those values.

There has been a lot of media attention given to ethics in decision making; particularly in the workplace. Consumers and society as a whole want to see more corporate accountability. Additionally, they want business to more actively think about not only how a company treats employees, but also how a company's code of ethics extends to the end-line consumer.

From the time a business begins its operations to the time it delivers a service or product, there are a lot of choices to be reviewed, problems to be solved and decisions to be made. The manner in which those choices, problems and decisions are handled speaks volumes about the business' ethics.

Ethics in Decision Making:

All ethical questions hinge on making a decision. So how does one go about framing that choice? Initially, of course, a person or corporation has to recognize that an ethical issue exists. The issue could be a legal one, or more of a judgment call, but in both cases the question of 'what is the greatest good' must be asked (and answered).

In determining right versus wrong, we have to remember that those terms are subjective. That's where understanding the definition of ethics, and relying on a corporate code of ethics, can be very helpful. The code is the baseline by which a person, group, or organization can measure the facts of a case (including whether a determination can be made impartially).

When analysis and evaluation begins, the rights of the individual and group, the equality of treatment, and the steps taken to remedy the situation in a way that best serves the corporate vision or identity must all come into play. By examining each of these facts a decision that's cohesive, consistent and appropriate should begin to form. Finally, that decision must be implemented (otherwise you’re spinning your wheels).

Ethical reasoning can be focused on answering two kinds of questions:

1. Definitive questions (defining the facts relevant to the question);

2. Reasoned judgment (somewhat intuitive).

4 Questions to Focus on When You Have to Make an Ethical Decision:

1. What are the other competing, interpretations of the situation or problem? (Consider other perspectives or points of view.)

2. What is the cash value of the situation or problem? (Both from a risk and benefit perspective.)

3. By reviewing your vision, values, and mission statements and company policies, is how you handle the situation clear? (If not, revise those statements and policies.)

   For example, if your statements clearly indicate a strong commitment to a respectful workplace, yet one of your customers has been abusive, bullying and disrespectful, your decision to the situation is clear: you need to advise your customer that you cannot accept that behavior and that if they can't accept your policy then you can no longer be a supplier to them.

4. As the individual who needs to make the ethical decision, are you committed to doing the right thing?

What is the Definition of Business Ethics?

Defining ethics in a business environment is a little different than defining personal morals and values. A business is an entity of many parts. Within that entity, there are both written and unwritten principles that drive actions, ideas, and decisions. The individuals within an organization determine whether or not those principles manifest substantively – i.e. in good behavior and positive choices.

Ethical business behavior may be defined by law, but it also can be defined by business leadership. Generally speaking an action or choice can be considered ethically correct if it’s honest, fair, supports a beneficial outcome for both parties, and generally enables the overall corporate image and vision.

Using this guideline its easy to see why a company's managers are incredibly important to building a corporate ethical atmosphere and inspiring it in others. To integrate managerial ethics into your business culture, your and your staff need to operate in an environment where all can not only SEE ethical actions, but all are inspired to do likewise.

The definition of ethics does nothing, in itself, to motivate ethical behavior. While there is no way for any company to 'force' ethics, the corporate culture and any written code of ethics or conduct certainly help create an atmosphere where ethical behavior becomes more natural.

When employees feel fairly treated and rewarded, they’re less likely to undermine that culture. Similarly when employees see their leaders being treated equally in ethical decisions and issues, it inspires trust.

With this in mind, understanding the definition of ethics and adopting a sound business code of ethics needs to be a high-ranking priority for socially responsible companies.

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