Question

Why business ethics is vital for managers?

Answer 1

Presentation on importance ofbusiness ethics for managers. ... Acompany's manager play an important role in establishing its ethical tone. Ifmanager behaves as if the only thing that matters is profit, employees are likely to act in a like manner.

Answer 2

Ethics is the study of an individual's moral judgement about what is right and what is wrong.

Decisions might be taken by individuals or groups in an organization, but whoever makes them will be influenced by the culture of the company . Therefore it is necessary for managers to follow business ethics so that there should not be any conflict within the organization.

If the managers are making ethical decisions then the employees will be likely to follow their footsteps and this would create a healthy working environment.

The ethical operation of a business in long term as well as short term is the one which decides its profits. The reputation of a business in the surrounding community, other businesses and individual investors is important in determining whether a company is a worthwhile investment.

If a company is perceived to not operate ethically, it is highly unlikely that the investors will buy stock or invest in the company.