Business Ethics and its Effect on Organizational Sustainability
Keywords:Industrial organizations, Profitability, Integrity, Sustainability, Corporate social responsibility, Environmental social governance, Sustainability disclosure guidelines, Sustainability reporting, Green management.
Business ethics today receives wide attention because of the need for the profitability and sustainability of global organizations. This study adopted the exploratory research design to evaluate the relationship between business ethics and organizational sustainability. Elements that influence business ethics and organizational sustainability include integrity, good corporate governance, among other variables. Integrity as a function of business ethics is crucial to minimize some of the problems of the business enterprise that could be created by weak and imperfect corporate governance mechanisms and therefore focusing on growth maximizing strategies. Business ethics have many dimensions, but the purpose of business ethics, as a discipline of study is not very much about to teach the difference between right and wrong, but to give individuals the tools for dealing with matters of moral complexity, so that they can identify and reason through the perspectives of the moral implications of strategic business decisions. To this extent therefore, the major task of business ethics is to make two central points; that business decisions do have an ethical component, and that management must always weigh the ethical implications of strategic business decisions before taking action. 77 respondents participated in the study and data analyzed through descriptive, multiple correlation and regression statistical techniques showed strong positive relationship between the variables of study. Further study in this area could examine the relationship between business ethics and industrial failure. It is important that issues leading to environmental degradation must be minimized to enhance its sustainability and prosperity of industrial organizations.