Ethics is a subject of science and it is related to moral principle and social values. Therefore, the business ethics is the study of proper business practices and policies. These policies and practices regard controversial issues like corporate governance, bribery, discrimination, and corporate social responsibility among others. It is therefore important for business today to abide by these basic principles for them to have business excellence (Ferrell, 2015). Business should make sure their institutions produce high-quality goods and services to customers and produce them at a considerable price. Secondly, business and organizations should avoid misleading advertisements and other ill malpractices that might lead to business failure. Andrew crane and Raymond C.Baumhart define business ethics as the study of all business activities and situations where all issues of wrong and right are addressed. There are several characteristics of business ethics among them is code of conduct, moral and social value, protection to social groups and education and guidance among many others.
Having known what business ethics are, they are applied in different situations in business such as managing conflict, managing agreements, decision making and how they contribute to profit. The paper will, therefore, describe how ethical business issues impact to each of the mentioned filed as well as the processes of making them effective. Many businesses and organizations are faced with several challenges in workplaces. With basic business ethics in business, all the external and eternal company processes become grinding halt (Shaw, 2015) . Therefore, many businesses depend on general ethical principles in the workplace to get rid of fraud, dishonesty, and manipulation towards customers. Businesses which are unethical experience low investors in the business as well as the low sinking of money into its operations. More precisely, many business today experience conflicts and in such situations, there is no effectiveness in the business performance. A business ethical conflict is a situation where a colleague makes a decision that is assumed and viewed as illegal or inappropriate to a third party. This decision affects the general performance of the business as ethical conflicts in businesses are assumed to result from the smallest lie to a decision that ends up affecting employees within a business, investors, and customers.
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There are many types of ethical conflicts in businesses today which fall under fraud, confidentiality, finance, and honesty. The first ethical conflict is fraud which is a conflict that occurs when a business intentionally presents the wrong information about its profile to the public and employees (Shaw, 2015). For example, a business can choose to present the wrong financial statements to employees that show how well the business is performing but literally the business is performing poorly. Secondly confidentiality business ethical conflict occurs when business information is accessed by a party that is not authorized to access the information (Shaw, 2015). On financial ethical conflict, there are situations of stealing in either small or huge amount. In addition, dishonesty conflict occurs in businesses when the business provides an incomplete picture and profile of its information to customers and employees. For example, many businesses provide incomplete information during interviews and recruitments such as a big promise of the amount one can make from the business without telling than for what period of time. Conflicts in business also can be seen in professionalism and ranks in a company where people tend to enjoy benefits that are not meant to be in the business.
Using ethics in business, therefore, can solve these conflicts through discussions with the unethical people or individuals. Typically, conflicts are inevitable but understanding human nature leads to positive resolutions of these conflicts. Resolving and managing conflicts in business can be simple as a discussion (Trevino, 2016). From the principles of business ethics, therefore, business should avoid exploitation of consumers. As discussed earlier many businesses have dishonesty conflict in their operations. To solve this conflict and manage it, business should, therefore, avoid cheating and exploiting customers and investors. Through avoiding exploitation of customers and investors, there will be more investments and collaboration with investors due to high turnouts of consumers.
Secondly, to solve the fraud conflict, business should avoid profiteering and sell high-quality goods and services to customers. To make profits, many businesses today are running unscrupulous business activities like black-marketing selling harmful goods and hoarding. Through these activities, business experience fraud conflicts that are caused by wrong information about the business activities by employees. To manage this conflict, business ethics, therefore, call for avoidance of profiteering and running of legal business activities ( Trevino, 2016) . In addition, there should be accuracy in weighing, packing, and quality of supplying goods to customers.
The other conflict as discussed earlier is the financial conflict where it involves stealing a huge and small amount of money in the company. This conflict also involves lack of transparency to the investors. To solve and manage this conflict business ethics encourage for auditing of accounts in business in order to detect any theft. There should be proper business records and accounts must be managed. Through this resolution, all authorized people in that business should have access to the financial details of the organization or business ( Armstrong, 2014) . Secondly, investors should be kept informed about the financial status of the business as well as other decision being made in the business.
Lastly, to solve and manage professionalism conflict in business, leaders and top management should possess the principle of fair treatment to employees and avoid discrimination. Despite the rank and position an individual an employee is working on in a business, leaders should ensure that these employees are paid fairly and under good conditions and facilities (Armstrong, 2014) . More so, top management of business should avoid injustice and discrimination in terms of the level of level of power and language.
Managing Agreements
Globally, many businesses are in the contracts deals which are legally binding. These contracts are only effective to business and companies that are within an ethical framework. Effective business contract ethic is where companies and business observe and fulfill all contractual obligations. In managing agreements, (Bowie, N. E. (2017), therefore, it is important to engage in business ethics during contracts and other agreements as competing for, obtaining and satisfying contracts ethically is significant in an operating economy.
Business contracts are divided into two four categories which are leases, sales related agreements, employment-related and general business contracts. Leases are divided into real property leases and equipment leases (Bowie, 2017). On property, which is referred to commercial leases involves renting of house and land. There are several considerations that should be put in place for this property leases contracts. Among them is defining how to a business will use the space rented and whether alterations and improvements are made by you the business or landlord. Equipment lease involves renting building equipment or copier to a fleet among others. Sales related involve, an agreement between a buyer and a seller and provision of security. On employment agreement, businesses have contracts with their employees who include employment agreement, separation agreement, and confidentiality agreement. More so, business has general contracts which are available for any type of business (Bowie, 2017) . For example, companies may choose to work together and therefore there is need to have a partnership agreement.
Leaders and top management in business, therefore, should have several business ethics in managing these agreements. One of the ethical principles is determining prices ethically where a leader must have a basis for determining prices ( Armstrong, 2014) . This is considering the cost of the whole contract plus the profit the business should make the contract. Many businesses base their price on hidden factors and this, therefore, becomes an unethical practice on agreements and contracts. This element advocates for calculation of the price and presenting it in an honest transparent way without any unnecessary cost on it. Through this ethically negotiated process of attaining contracts and agreements, there is a balance between the supplier and the business. Additionally, managing ethical agreements through honesty and transparency, there are advantages to both parties as they are able to avoid problems.
Secondly, business should avoid conflicts of interests which are not accepted ethically. These ethics include bidding on work for which the business already knows who is awarded the contract. This conflict according to business ethics can be managed by transparency. Additionally, if a conflict of interest is beyond a business control, the issue should be addressed publicly ( Cavusgil, 2014) . For instance, a business leader may have an interest in a contract that a family member has interest in. ethically, addressing the issue publicly is the best option according to business ethics, the business should withdraw from participating in the relevant decision.
Additionally, top management and leader should ensure that there is fair competition in their agreements. This is because a competitive market gives the business a feedback on the quality of services that business offer to clients. Obtaining contracts fairly makes the business to understand that it is being successful in presenting exceptional values (Cavusgil, 2014) . If for instance a competitor is awarded the contract then the business should reduce its prices or increase quality. Lastly, there are laws and regulations that protect the customer and employees. Ethically, is business has signed an agreement with its employees and other companies; it should keep legal and regulatory constraints in mind.
Decision Making Process
Typically, all business in the world makes decisions in their operations. Business, therefore, uses ethical frameworks and models in making these decisions. The ethical process of decision making generally, leads to strong decisions thus creating chances for the available limited or unlimited opportunities. There are several ethics business ethics that businesses today should keep into consideration. These ethics include a wide range of moral principles and ethics in the business environment. Individual actions in a business also can be part of business ethics in decision making. Typically, there are many businesses that are conducting ethical business in their daily operations. There should be consideration of several factors in making ethical decisions (Cavusgil, 2014). One of the elements is considering social responsibility where a business should make decisions that are meant to improve the social conditions of the community by improving the local economy and offering opportunities to low income generating people. For instance, it is ethical for a business to donate some of its profit to charity. These actions can only be seen in a business where business ethics have played a role in making the decision.
In addition, business ethics advocate for individual ethics in making decisions. Employees and many other people in workplaces and in business tend to actively participate in gossips and spreading wrong information about the business thus damaging its reputation. Other ethical issues that are seen in decision making in business is honesty and keeping confidential information safe. Lastly, there should be consideration of the wide circumstances which vary from business to business. These circumstances include location and side of the business because, for instance ethically, a small business can enact codes and distribute them to employees to ensure equity of information in the business ( Ferrell, 2015) . Another type of ethical decision making is through expert insight where business can use professionals and consultants to educate employees on decision making in business ethics. Therefore, having identified the types of business decisions, business ethics can play a major role in ethical decision-making process. Knowing how to make ethical business decision helps businesses to set the standards for the entire business, (Ferrell, 2015) . Ethically, business should create a code of ethics and consult it before making any business decision. Through the help of consultants and professions, code of ethics help employees in the business to make a decision within a short time.
Secondly, business ethics advocate for consideration of the effects of the decision on all the parties involved in the business. Through this consideration, there will be a perfect address of issues like growth in revenue, cost control among other. Ethical decision making, therefore, have positive effects on suppliers, customers, and the community. More so, business ethics call for use of regulations as the initial point of making a business decision. This is because of regulations generally, requiring ethical considerations; therefore need to exceed laws and regulations which go further than those of competitors to ensure equality (McMurrian, 2016) . Additionally, there should be consultation with others when making decisions with widespread consequences. Through this ethics, businesses are able to shed light on possibilities and results which it might be unaware. This role enables a business to ask for help in developing options and choosing the best of all to pursue. Lastly, through business ethics, businesses today can be able to review the results of their past business decisions and look at the mistakes. This is because in this last step of the ethical decision-making managers are able to reflect on the outcomes of their decisions.
Role of Ethics in Profitability
Ethics in business play an important role in running a profitable business. There are several factors that businesses today should put in place in order to make good profits. Among the factors are the business ethics management, dedicated and productive employees and consistent customer demand. It is, therefore, important for business today to implement these ethical factors in their business in order to have profits (McMurrian, 2016) . Through business ethics in management, top management and leaders show to hold the key to the long-term success and remain consistent with the management policies built on ethics foundation (McMurrian, 2016). Their policies and ethical practices include ethical accounting practices, good treatment of employees and integration with the public.
Secondly, business ethics advocate for employee morale as they reduce the widespread unrest among employees. This is because business ethics encourage the ability of employees to focus on the work they need to complete to make themselves and the organization, in general, be successful and increase productivity. Happiness in employees, therefore, reduces the training and recruitment expense thus increasing the business long-term profit. Lastly, business ethics encourage the public image of a business. Through public image, businesses have many investors thus profits are experienced because public traded business through ethical behaviors has good integration and relationship with investors and the general public.
Conclusion
Conclusively, business ethics play major roles in every organization. As discussed in this paper, ethics can be used to manage several numbers of conflicts through the business ethics principles set. They can manage financial, confidentiality and professionalism conflicts in business. Additionally, through business ethics, businesses and organizations are able to manage agreements and contract ( Ferrell, 2015) . In managing agreements, business is able to compete fairly and keep the constraints of the signed agreement in their mind. Winning a contract fairly is significant in evaluating a business quality and prices of the contract. Similarly, business ethics play a major role in making business decisions as they help to consider all the factors in the business as well as the environment (Shaw, 2015) . Lastly, every business has an objective of making a profit in its operations. Business ethics, therefore, play a significant role in business ethics management, building public image of a business and encourage employee’s morale which is key determinant of profits in businesses.
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