Ethics are set of moral principles and values which are essential to be carried out by the business organization, and all the employees are subjected to follow them. Ethics of an organization determine how far an organization is successful in business and business ethics plays a significant role in the strategic decision-making process of the organization. Small business organizations are those which comprises of the less number of employees, and the organization is capable of achieving their goals efficiently. The principal motto of the small business organizations is to reach their goals with low investment and the less number of employees. The small scale business follows the ethical principles to achieve their aims (Crane, Matten, Glozer & Spence, 2019)
Ethics in Human Resources
One can say that a small scale organization cannot function properly without the help of the inclusion of the ethical practices within human resources. The ethical practices in human resources are the way of treating the employees of the organization. If an organization is managing their employees in the best way, then one can say that the organization is under right ethics, and they are following the moral principles and the ethics of the organization properly. The human resources defines the employees or the working staff of the organization, and their senior officials should appropriately treat them. In the case of the small scale business organizations, the common issues arise with the ill-treatment of the low-level employees, and when the ethical principles are established, the non-respect shown towards the employees will be eradicated. Thus one can say that the business people and the leaders of the organization care for the following up of ethical principles (Spence, 2016).
How does business ethics create a positive work environment?
The business ethics are the set of business rules and principles which are necessary to be carried out in the organization. Ethical principles are the set of moral values that should be followed by every employee of the organization, and they cultivate a positive environment within the business. When the business ethics within the organization is maintained, the employees will respect their senior officials, and in turn, the higher authorities of the organization will motivate the employees to do more work in reaching the goals of the organization. Every employee who decides to follow the ethics will possess their professional character, and they maintain the dignity of their professionalism to build an efficient relationship bond among their senior employees and with the low-level employees of the organization. One can say that the employee motivation and the teamwork activities symbolize the installation of the ethical principles within the organization. None can break the bond of the business relationship which is built by the employees who follow the ethical principles and hence in this way the business ethics could make a productive, positive environment within the business organizations.
Small business ethical problems
Many of the surveys tell that moral issues arise probably in the small scale industries when compared with that of the large scale industry. In the case of the small scale business, the ethical problems arise among the employees who are treated like slaves by their high-level employees. In addition to this, the employees may not get motivated, and they are not involved in the decision-making process of the organization. The above condition is one of the pathetic conditions prevailing in the industry, and it can be resolved only with the help of the following up of business ethics.
The list of ethical problems rectified in the small scale businesses are:
- Their higher officials do not appropriately motivate the employees.
- The employees will be not allowed to participate in the decision-making process of the organization.
- A non-disciplinary environment will surround the organization.
The first ethical problem talks about the lack of motivation within the organization. Motivation is the most critical and essential aspect of every organization, and the employees should be motivated to do more work to attain the desired targets.
The second problem talks about the non-participation of the employees in the decision-making process of the organization. The employees who are grown up in the small scale business environment are not allowed to talk freely with their higher employees, and they are not allowed the sufficient freedom to give suggestions in the ethical decision-making process.
The employees who are captives to these ethical problems in the small scale industries work in a non-disciplinary environment where the disciplinary actions are highly spoiled, and the rules and regulations of the organization are ignorant to the employees (Withers & Ebrahimpour, 2018).
How to solve ethical problem?
The ethical issues occurring in the organization could be resolved in the following ways:
- Creating awareness among the employees regarding the necessity of the solutions to ethical problems.
- A productive relationship between the high level and the low-level employees
- is a necessity
- Productive teamwork activities and motivating the employees to do more work for the organization and to gather a large number of customers.
The first and the foremost way to solve the ethical problem involves the creation of awareness among the employees on the necessity to address the ethical issues to carry out the business activities in an effective way and to reach the goals of the organization in an effective manner (Jenkins, 2009).
Another method of solving an ethical problem involves the building up of a productive relationship among the high level and the low-level employees. The mutual connection between the different levels of employees is must in solving the ethical problems and allowing the staff in the organization to work in an inert and an effective way (Ferrell & Fraedrich, 2015).
The motivation of employees and practical teamwork are the two essential factors which help in solving the frequent ethical problems within the organization. In the case of the small scale industries, the ethical issues arise in the form of lack of motivation and the treatment of the employees as slaves within the industry. The employees are forced to do more work and were asked to improve their skills, but with the lack of motivation, the employees do not get promoted to higher levels, and they are not able to satisfy both the clients and the high-level employees. Motivation along with the monitoring process not only makes the employees do more work but also helps them in building a positive relationship with the senior officials (Lehnert, Craft, Singh, & Park, 2016).
Role of business ethics in small scale organizations
The business ethics in the small scale organizations help the industries to follow the moral principles and to carry out the disciplinary actions which are suited to the work environment. The flexibility of the work environment and the moral values are cultivated within the organization to frame the organization ethically and to undergo the benefits of business ethics. The senior managers and the working staff of the organization are very conscious about the happening about the ethical events and to maintain them the same. The entire blog explains the ethical practices and their importance in the small scale organizations. The blog outlines the fact that the moral principles and values are associated with the business ethics and the organizations should follow the business ethics to promote them to higher levels (Burton & Goldsby, 2019).
Burton, B. K., & Goldsby, M. (2019). Corporate social responsibility orientation, goals, and behavior: A study of small business owners. Business & Society, 48(1), 88-104.
Crane, A., Matten, D., Glozer, S., & Spence, L. (2019). Business ethics: Managing corporate citizenship and sustainability in the age of globalization. Oxford University Press.
Ferrell, O. C., & Fraedrich, J. (2015). Business ethics: Ethical decision making & cases. Nelson Education.
Jenkins, H. (2009). A ‘business opportunity’ model of corporate social responsibility for small‐and medium‐sized enterprises. Business ethics: A European review, 18(1), 21-36.
Lehnert, K., Craft, J., Singh, N., & Park, Y. H. (2016). The human experience of ethics: A review of a decade of qualitative ethical decision‐making research. Business ethics: A European study, 25(4), 498-537.
Spence, L. J. (2016). Small business social responsibility: Expanding core CSR theory. Business & Society, 55(1), 23-55.
Withers, B., & Ebrahimpour, M. (2018). The effects of codes of ethics on the supply chain: A comparison of LEs and SMEs. Journal of Business and Economic Studies, 19(1), 3766.