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There are a lot of definitions of business ethics. They include a variety of terminology, best practices, and methodology. Such values as honesty, integrity, and fairness underlie the business corporation. This corporation must ban employees to take bribes or other financial encouragements. The main part of business ethics is corporate governance.

It is not possible to make a business without experiencing certain issues. Political, social, environmental, ethical, and other problems are inseparably connected. Sometimes, it is impossible to find their borderlines.

Description of the Relationship between Politics and Ethics

Organizational politics is the self-interests chase in an organization. Sometimes, this self-interest does not correspond to the goals of this organization. This activity is intentional and self-conscious, and the organization's benefits increase even with the help of questionable tactics. Politics can be understood as a subunit activity or individual activity.

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Politics includes using influences means, which the company does not sanction or pursuing goals or ends, which are not sanctioned by the company. It is the connection between influence ends and influence means that defines whether these actions are political and whether they make a profit for the company.

Moral consequences may influence stakeholders' decisions. Stakeholders are people outside or inside of a company, who have the power to be exaggerated by managerial decisions. All ethical issues are connected with the social, political, environmental, and other aspects of human life.

According to a recent survey, the most common ethical concerns are questionable gift-giving, conflicts of interest, and sexual harassment. Moreover, a lot of companies report about the problems in dealing with foreign business practices, which work opposite to their own ethical norms. Honest communication, special consideration, fair treatment, fair competition, corporate social responsibility, responsibility to the organization, and respect for the law can help managers to deal with ethical dilemmas.

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According to Coghlan and Brannick (2010), there are ten key power relationships which are needed to be managed and considered. They are your relationship with your sponsor, the sponsor's relationship with other executives, the relationship of executives with each other, the relationship between you and significant others, between executives and others in higher management, between executives and organizational members, the interdepartmental relationships, the relationship between the researcher and subordinates, between customers or clients, and the relationship between you and your peers.

The main causes of unethical behavior are:

Gain. The anticipation of healthy strengthening for following the course of unethical action, especially if no penalty is expected, has to endorse unethical decisions.

Competition. The absence of competition and stiff competition for limited income can motivate unethical behavior.

Role Conflict. A lot of ethical issues are the forms of role conflict that get determined in an unethical way.

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Personality. A personality with an economically strong value orientation with a high necessitate for personal power is more likely to behave unethically.

Organizational and industry culture also can pressure ethics. Often, the ethical values are created by how the conduct of greatly visible role models is recompensed.

A lot of organizations invest in ethical programs, which brings a good result. Some simple guidelines can help in the ethical screening of decisions. The main idea is to think badly about the moral implications of your decisions before they are made.

The Guidelines

The guidelines below allow you to create ethical judgments, know ethical issues, and then change these judgments into conduct:

  • Identify the benefits and costs of different alternatives to these stakeholders.
  • Identify stakeholders. It means identifying those who have an interest or a stake in the project and its outcomes, as well as identifying their intentions.
  • Transfer your ethical judgments into appropriate action.
  • Consider the pertinent moral expectations which enclose a particular decision.
  • Be well-known with the general ethical dilemmas in your specific profession or role.
  • Talk about the ethical matters with decision stakeholders and others.
  • There are other useful guidelines, such as work in the comfort zones, network, make deals, withhold and withdraw, if all else fails, you must have some fallback strategies.
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Freeman has argued that he could renew the managerial capitalism concept by replacing the idea that managers were indebted to stockholders. They had the conception that managers had provoked a fiduciary relation to stakeholders. Stakeholders are the groups having a claim or a stake in the form. According to his book, these include customers, suppliers, stockholders, the local community, and employees. The management is an agent for them. The theory of the firm currently has received some economic, legal, moral, and political challenges. This theory is a contrast nexus between customers and owners of the production factors. That is why this concept should be revised. Every person of these groups should not be treated as a method to receive an end but must take part in determining the future firm's direction in which they are interested.

The company has the responsibility to its investors and owners, employers, managers, customers; a wider community; a natural environment; and its suppliers. For being a successful company, it must take account of the stakeholder's interests. This approach means to make the business more ethical, help the suppliers out, and provide proper cooperation. The respect and rights for humans must be in the first place. It is bringing people to work.

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