Business Ethics and Business Failure

Flashcards on business ethics, types of ethics, sources of ethics, principles, unethical behavior, benefits, importance, barriers, business failure, and its causes.

Business Ethics

A branch of philosophy concerned with analyzing morally right and wrong in people's behaviors and conduct.

Ethos

The Greek origin of the word 'ethics', meaning character.

Ethics

Involves making ethical decisions, practicing transparency, and demonstrating social responsibility.

Normative Ethics

Prescribes and evaluates ethical behaviors on what should be done in the future.

Descriptive Ethics

Examines other people's beliefs and principles.

Meta Ethics

Considers where ethical principles come from and what they mean.

Genetic Factors (as a Source of Ethics)

Traits an individual is born with.

Religious or Belief System (as a Source of Ethics)

Has inbuilt ethical values and conduct.

Individual Philosophical System (as a Source of Ethics)

Based on religious conviction, experiences, or other factors influencing individual behavior.

Principles of Business Ethics

Fairness, Integrity, Commitment to agreements, Broad-mindedness, Considerable, Importance to human esteem and self-respect, Responsible citizenship, Attempt to excel, and Accountability.

Unethical Behavior of Business

Misleading products and services, cover-ups, cheating, policies causing others to lie, overconfidence, disloyalty, poor quality, and humiliating people at work.

Factors Responsible for Unethical Behavior

Lower societal expectation, social decay, materialism, competition, shareholder pressure, poverty, weak legislation, political corruption, high costs, and misplacement of corporate loyalty.

Benefits of Business Ethics

Organization, Employee, Customers, and Industry.

Barriers to Business Ethics

Loss of employment, loss of clients, lack of affluent but comfortable, loss of wealth, loss of life, and unpopularity.

Common Reasons for Business Failures

Poor cash flow management, absence of performance monitoring, poor debt management, and lack of understanding.

Concept of Business Problems

A situation of a company in difficult financial distress.

Business Failure

A company ceasing from operations due to inability to make profit or cover expenses.

Reasons for Business Failure in Nigeria

Compounding financial stress, drop in sales, failing to understand the role of technology, employee turnover, and when others are noticing your business isn't doing fine.

Internal Causes of Business Failure

Poor cash flow management.