Ethics

Q1. Ethics has been defined as a collection of principles on what is wrong and right conduct, which serve to guide members of the society in addressing the question of morality (Hooker). Therefore, ethics is just the study of moral values and rules, which define what is good and bad, right and wrong, and justice.

Q2. Business ethics can be defined as a code of conduct or a behavior, which parties in a business must adhere to in their daily activities (Hooker). By this, business ethics can be understood as a collection of rules and regulations by a business, which defines how the businesses interact with individual customers as well as the world at large. Therefore, the sole purpose of having business ethics in any organization is to safeguard its reputation in the marketplace for ensuring sustainable competitive advantage (Hooker).

Q3. Upholding ethical behavior in business is very important but for an individual or corporations. First, business ethics serve to protect the reputation of an organization (Hinman). Just to be appreciated here is that the reputation of an organization is the most influential tool in marketing business products. This is because with a strong reputation, customers find much acceptance and loyalty to your products, a factor that is instrumental in sustainable large consumer pool for the business (Hinman). Still, since business ethics defines how a company deals with individual customers, it is quite crucial in ensuring customer satisfaction through enhanced customer relations. One of the most important principles of realizing reliable market for any business is ensuring that customers are equipped with the right information on products. In addition, it is important for a business corporation to give the right information on its progress to its stakeholders or shareholders (Hinman). This would instill trust and smooth running of the business.  Certainly, this is best found in a business or corporation that engages in ethical business practices.

Q4. According to some business professionals, buffing in business is crucial for maximizing profitability while effectively crossing business barriers. This means that a business that does not have business ethics has the advantage of engaging others in unfair competitions, a factor which can give it an unfair competitive advantage (Vickers 23). However, from existing statistics, a business engaging in unethical business practices has limited chances of having long term survival in the marketplace. This is because it risks tarnishing its reputation when such unethical practices are revealed to the general public, a factor that serves to compromise it competitive advantage in the marketplace (Vickers 23).

Q5. The process of creating an ethically sound corporate culture is determined by the effectiveness of policy making and integration on the various operations of the organization (Vickers 12). First, an ethically sound corporate culture must be clearly outlined in the corporations code of ethics that dictate the behavior of its employees. Such a code of ethics must have an effective way of punishing members upon breach of the same (Hinman). This means that all company employees must be well informed of the company ethics and its importance for their individual success as well as that of the organization. Ensuring full integration of the various departments of the organization is important in ensuring easy coordination and control of the conduct of all workers, thus realizing the effective enforcement of an ethically sound corporate culture (Hooker).

Q6. There are many incidences that have led to downfall of organization due to their violation of ethical conducts. Good examples include the 2002 financial scandals in America which saw the fall of it major corporate firms such as WorldCom and Enron corporation. Investigations into their downfall indicated that these firms had been involved in financial scandals such as issuance of their financial statements as a way of attracting investors (Berenbeim). Indeed, they are the reason behind the formulation and implementation of the Sarbanes Oxley Act of 2002 by the federal government (Berenbeim).