Assignment 1

NAME  :  MUHAMMAD HAZWAN BIN ZAILANI

STUDENT ID  :  62283212194

SUBJECT  :  BUSINESS ETHIK

LECTURE  :  DR KAMARUDIN BIN MOHD NOR

QUESTION 1 : Defination of business ethik and why business ethic is considered "oxymoron"

                              



                               DEFINITION OF BUSINESS ETHICS

Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Business ethics manifests both as written and unwritten codes of moral standards that are critical to the current activities and future aspirations of a business organization. They can differ from one company to another because of differences in cultural perspectives, operational structures and strategic orientations. The guiding framework of business ethics permeates all levels of the organization. It is about having the wisdom to determine the difference between right actions and wrong decisions.

In simpler terms, business ethics fundamentally epitomizes the organization's codes of corporate governance. It stipulates the morality standards and behavioural patterns expected of individuals and the business as a whole. These moral benchmarks can be perceived in terms of the microenvironment and macro environment of the business.

                    IT IS OXYMORON

To the average person, business ethics sounds like an airy fairy concept with limited relevance to the real world. The practice of business is to buy cheap and sell dear, and not to bother in some instances whether the cheap price obtained or the dear selling price, is ethical or not. To the average person, business ethics is a public relations stunt employed by large successful companies to look good.

The pace, scale and complexity of modern business has forced a change in how business is done. While it is accepted that it is foolish to do business with someone who is not trustworthy, the question arises whether you can trust someone who is not ethical in all of their behaviour. Short timelines, tight supply chains and narrowing margins mean that chances cannot be taken that suppliers or customers will not honour their contracts as expected. Suppliers and customers are now becoming partners and stakeholders in business, and relationships with them are becoming more and more underpinned by trust. Trust is built on expectations of truth in words and consistency in behaviour. It is impossible to do profitable business with someone who says one thing one day and does something different the next.

Another issue challenging the practice of good business ethics is the values which employees bring to the work environment. Much has been said over the years about the deterioration of employees’ work ethics. The impact of poor work ethics results in low productivity owed to high levels of absenteeism, tardiness, theft and acceptance of bribe taking. Unfortunately many employees seem not to understand the concept of conflict of interest nor see anything wrong with it.

QUESTION 2 : The definition of corporate governance

Definition of 'Corporate Governance'

The system of rules, practices and processes by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company - these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.

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