https://www.investopedia.

com/ask/answers/040815/why-are-business-ethics-
important.asp (link video business etchics)

Business ethics

Definition : the system of laws and guidelines by which business professionals and
corporation create in a fair, legal and moral fashion

Value, behavior and decision of business organization and individuals between that
organization

Structure, policies, process is ecthical behavior components

Business ethics refers to how ethical principles guide a business's operations

Integrity means doing the right thing even when no one is around

Related to : (common issue)

 Globalization
 Political contributions
 Executive pay
 Earnings management
 Bribery
 Tax avoidance
 Corporate governance
 Fiduciary responsibilities
 Corporate social responsibility
 Intellectual property
 Insider trading
 Discrimination
 Unionization
 Corruption
 Discrimination
 Healthy and safety
 Sales and practices
 Privacy
 Human resource management
 Marketing practices

Flow : ethical employees  good reputation  loyal / repeating customer  advanced

earning potentian
https://yourbusiness.azcentral.com/advantages-business-integrity-4551.html
The success of an organization is built off of the trust of customers, employees
and the general public.
The best way to gain that trust is to demonstrate ethics and integrity in business
practices.

Good things :

 When etchical guidelines are followed, trust develop between worker and
management. As well as between the public and corporation. That means business
ethics lead to a more productive workplace. So the customer do business with us
because our product is needed, not because we give something exceed the core
business
 Building on a foundation of ethical behavior helps create long-lasting positive
effects for a company, including the ability to attract and retain highly talented
individuals, and building and maintaining a positive reputation within the
community. Running a business in an ethical manner from the top down
builds a stronger bond between individuals on the management team,
further creating stability within the company.
 Employees make better decisions in less time with business ethics as a
guiding principle; this increases productivity and overall employee morale.
When employees complete work in a way that is based on honesty and
integrity, the whole organization benefits.
 As with all business initiatives, the ethical operation of a company is directly
related to profitability in both the short and long term. The reputation of a
business in the surrounding community, other businesses and individual
investors is paramount in determining whether a company is a worthwhile
investment. (increase the positive public image)

 opportunity to set the standard for excellence in your industry. In this sense, you
have the opportunity to earn the long-term respect of customers, vendors, staffers and
even competitors
 the value of trust : Trust is the basis of all business relationships, be it
employer-employee or company-consumer.
 Reputation at stake : A company which acts with integrity creates
goodwill for itself in the market. This helps in building trusting
relationships with customers and employees. The company also sees a
surge in productivity and sales.



History : Foreign corrupt practices act of 1977 arises because us company bribe government
(foreign government or officials included) in order to secure their business
-1960 : new focus of individualism
-1970-1960 : conflicts between employer and employee
-1990 : as law grow stronger, many business faced law suit and must spend more in legal
department
-2000 : business ethics have expanded
-2001 : cybercrimes and privacy issue

https://www.investopedia.com/ask/answers/022615/how-have-business-ethics-evolved-
over-time.asp

Definition(label) made depends on history

How to achieve etchical culture : correct hiring, code of ethics has been developed, (ada
dislide hal 16)

Why organization fail to develop ethical culture :

 Principle of participation
 Principle of validity
 Principle of authenticity

2 category of etchical system : https://study.com/academy/lesson/code-of-ethics-

compliance-based-and-integrity-based.html
 Compliance approach
 Integrity approach

Ways to demonstrate business integrity (example : SAS ranked 1 out of the rop 100)
 Accounting practices (honest and transparent)
 Truth in selling (sell what you promised)
 Integrity in management practices (good customer service / fair employment
practices)
 Customer service integrity : service after sales
 Personal integrity (business leaders)
 Product integrity
https://thethrivingsmallbusiness.com/examples-of-business-ethics-and-integrity/

format video : tulisan & ngomong https://www.linkedin.com/learning/business-

ethics/understanding-the-purpose-and-intent-of-business-ethics

format video : presentasi & ngomong : https://www.youtube.com/watch?v=vxNqGtNHPb0