BEL311

ENGLISH FOR ACADEMICS PURPOSES

BUSINESS ETHICS
(FINAL DRAFT)
PREPARED FOR: SIR XAVIER THAYALAN PREPARED BY: HAMZAH BIN ARUMAL 2008591719 MOHD FIZRAL BIN DERASIN 2008769831 DATE 13 OF APRIL 2010

FINAL DRAFT

BUSINESS ETHICS TO ENHANCE PROFIT

Nowadays, more and more people are likely to start a business. First goal of a business is to serve the needs of the customers which pays for profit. There are many ways how to maximize the profit of a business and few obstacles that can bring a business to fall. Business ethic is one of the most important factor that can lead the business to run effective and efficiently whether in short or long run. In contrast, unethical business practices can stop the effectiveness of the business reputation, decrement in productivity and reduce the profits. Business ethic can be defined as the good morale value which can be conducted between employee and employer, company and customer, as well for an organization to another business neighbor. There are few ways how business ethics could enhance profit making in business.

Firstly, as according to Kiamba (2009), it is a common belief to start business ethics first in the workplace. If a business uses unacceptable or unfavorable recruitment

procedures, it may cause decrement in quality or quantity of productivity. An organization or a company must apply ethics in presentation system such as through right recruitment channels, rewarding of good employees, and give comments to employees' works. If the ethics applied are acceptable by the workers, there will be decrement in employees'

complaints, increment in morale and productivity output. This result in comfotable working environment. McNamara (2008) states that giving attention and open dialogue between employees and managers in the workplace will builds teamwork and community in the organization. The working environment in the workplace determine the employees' motivation

and performance in the production process. If there are comfortable and favorable of working environment, employees will react by doing better works in production process.

According to McNamara (2008), an organization that often to give attention to it's ethics can give a good positive images to the public. Present the good images of business ethics to public is an effective way to attract more costumers. The effort is shown when people see the organization as valuing people more than just to make a profit, which also means giving hardworking to operate with integrity and honor. In contrast, customers likely to turn away from businesses that recognized for poor ethical decisions and presentation. Kiamba T. (2009) states that poor application of work ethics would make the customers to turn away from the business especially when the element of customer care is not applied. Customer care can be described as the responsibility of a company to treat the right of the customers such as good communication with them or the guaranteed promises given to them for being a buyer of the business' product. In addition, it is necessary to has a good communication between customers and employees which result to satisfaction of the incoming customers. To get loyal and trust by customers, they must be treated fairly and know that the business will discharge the guarantees or promises for the product served.

Lastly, partners or shareholders of a business is also an important key of a successful profit making business. Mutua (2010) states that the economic trend right now tend to rely on partners or mergers involvement to increase the profits of business. If a business run with good procedures of business ethic, the partners likely to invest more fund to the business. The business that present business ethics in the workplace environment seems to get more trust and respect by the mergers. In a business environment, more fund will result in more sustainable productivity process whether in the quality or quantity of the the production which

finally returns back higher profit. Yeh-Yun and Yu-Chen (2004) elaborate that there are few cases of partners and mergers who turn back from the business that conducted bad ethical values decision which cause bankruptcies. This means that one business reputation and sustainability are influenced by ethical values decision which always be monitored by mergers and partners.

Thus, there are some business ethics that can be applied by a business which may repays in higher profit. There is a strong relationship between the business ethics and the profit. Moreover, business ethical values in the workplace important for sustainability and long term run business. It may improves trust and respect in relationships between the members, customers and business itself. In today's competitive business environment, it is more important than ever for a business to act with integrity and honor. Therefore, presentation of these kind of business ethic treating all stakeholders fairly and treating people and other businesses fairly which repays more than just for making profits.

References

Kiamba T. (2009). Understanding the relationship between business and ethics. Retrieved on 31 January 2010, from website: http://www.helium.com/items/1734295-understanding-therelationship-between-business-and-ethics

McNamara C. (2008). Complete Guide to Ethics Management: An Ethics Toolkit for Managers. Retrieved on 31 January 2010, from website: http://www.managementhelp.org/ethics/ethxgde.htm

Mutua, A. (2010). How Business ethics can be profitable. Retrieved on 31 January 2010, from website: http://www.helium.com/items/1151467-ethics-profitability

Yeh-Yuh L. C. & Yu-Chen W. (2004) The Role of Business Ethics in Merger and Acquisition Success: An Empirical Study. Retrieved on 12 April 2010, from website: http://www.springerlink.com/content/m1634m755l17m34x/