Contemporary Business Term Paper Example | Topics and Well Written Essays - 2000 words

Contemporary Business - Term Paper Example Business ethics concept has been used by many academic scholars to distinguish between successful and unsuccessful organizations. Academic scholars believe that business ethics can not only ensure organizational but fillip sustainable business growth also. Rationale behind Selecting Business Ethics as Contemporary Management Topic The study has selected business ethics in order to continue further analysis. Business ethics has emerged as an important management issue for companies in recent time. The study has selected business ethics in order to understand following learning outcomes: Many companies (read Nortel, Enron, Layman Brothers and others) have suffered the ill effect of poor business ethics in last two decades hence discussing contemporary issues related to business ethics can help the authour to gain knowledge about organizational sustainability. Business helps the organization to build sustainable representation in front of their stakeholders. Unethical business practice creates negative impact in the mind of both shareholders and stakeholders. In many cases it has been observed that government of a particular country takes legal action against organizations practicising unethical activities such as bankruptcy, fraud, misrepresentation of financial asset or fraud. Legal action against unethical organizations not only purturbs sustainability of them but negatively impacts shareholder’s interest. Studying business ethics will help author to understand importance of organizational sustainability in terms of financial perspective. Many companies of USA have understood importance of business ethis hence they have created ethical assistance lines for stakeholders to report ethical concern about business practice to them. Following diagram will show increase of concern related business ethics in recent times. (Source: Ferrell, Fraedrich, and Ferrell 222) Business Ethics There is a vast gap between ethics and self interest in the business practice. M any business executives emphasizes on self interest in order to fulfil personal prosperity instead of doing business for betterment of society. Objective of Business Ethics In 2003, Hooker has pointed out that main objective of business ethics is to create a guideline for companies to compete and sustain in the market without getting involved in financial fraud or any kind of deception. Importance of Business Ethics in Business Environment Reseach scholars have defined business ethics in multidimensional manner in order to cover broad spectrum of the topic. Hooker and other reaseach scholars have pointed out following guidelines for business ethics. Companies need to design a fair and transparent fair incentive and remuneration system for top level management executives in order to draw a clear picture of the company in front of share holders. Companies need to emphasize on maintaining interst of shareholders because they are the key drivers to maintain sustainibility of any organiz ation. Companies should implement transparent inter level business practices in order to refrain employees to commit fainancial fraud and perform in accordance with industry standards. Leading companies should not manipulate industry standards in order to create entry barrier for small firms. Companies should not involve in price discrimination because price discrimination not only perturbs industry equilibrium (read oligopolistic