What is the relationship between business ethics and administration and management of companies?
Business Etics and Assiwayys Assorancs are two important factors that affect society and how it works. Business ethics represents the values, principles or qualities that the company adheres to in business in the economy. Administration and management of companies is an internal framework proposed by the company and implements the government and protects those they have invested in society. The relationship between ethics and administration comes from the owner of an organization or executive managers who create administration and decide which ethical principles will be followed by employees. This theory states that individuals and companies will adhere to ethical principles commonly found in society and therefore the term normative or standard ethics. Three normative ethical theories include the shareholder, the parties and theory of social contracts. The ethical theory of shareholders states that the company should create a relationship between the commercial ethics of the Assistance and Management of the Company, which focuses on shareholders. Managers will use strategies and activities thatare proceeding or increasing in investment of shares holders. Although this connection between these factors is often stronger because recent changes in the company management include every individual that is influenced by society. This connection ensures that everyone receives the same or fair treatment in dealing with the company. For example, customers who buy a defective product can gain compensation free of charge and several other benefits. This supports business ethics throughout the organization.
The third and final ethical theory is the theory of social contracts. This theory focuses on companies that improve the overall welfare of society. Sharehstarodi may be less willing to invest money in a company that is governed by this ethical theory, as shareholders can lose money for causes or other benefits that are outside the company's context. In order for investors to fully realize the theory of social contracts of societyMingities, owners of enterprises, managers and members of the Board of Directors will often include this information in the administration and management of companies.
Another relationship between business ethics and administration and management of companies is a statement on the mission of the company. The mission statement clearly outlines the planned level of Excellency of the Company in the Business Environment. This mission statement may focus more on the social aspect of operations rather than the motive of profit to repay shareholders. They will invest in the company in these types of companies because they believe in society and want society to succeed in its social mission.