Three Principles Of Business Ethics And Responsibility In A Business

833 Words 4 Pages
During this course, I have learned numerous principles about conducting business on an international scale. However, three principles that I believe are most important are: (1) the importance of effectively managing human resources; (2) the necessity of exercising ethical practices within a business; and (3) the effect that foreign exchange rates have on a company’s profitability.
First, with respect to effectively managing human resources, it is essential for an organization to provide all of its employees with the opportunity to advance and develop their individual prospective careers. These opportunities include entrusting employees who meet certain requirements with additional responsibilities and ensuring equal access to promotions.
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Since people manage companies, it is crucial that individuals in those management positions possess high moral character. Company leaders should consider not only the legal implications of their decisions, but also the moral aspect of their decisions. Two of the most common ethical issues facing companies are human rights and environmental concerns. Too often some companies legally are permitted to force their workers (often in foreign countries) to work extremely long hours for low compensation. Regardless of the legality, these company practices essentially are exploiting their workers. Some of the harsh working conditions include dirty work stations and overcrowded facilities. In contrast, businesses have an ethical responsibility to provide their employees with a safe and humane work …show more content…
These issues are quite complex considering their effect on a company’s profitability. Conducting business in a socially conscious way can significantly reduce profit margins. While it is more cost effective to produce products by using the cheapest production techniques, these practices can take a toll on the environment. With respect to Australia, an increasing number of mining companies are beginning to make changes to their processes in order to preserve the environment.
The third lesson I learned throughout this course is the effect that the foreign exchange market can have on a company’s profits. Because the exchange rates are constantly changing, a company that conducts business overseas could make a deal that is unprofitable over a long period of time (example: if one currency depreciates in value relative to another). For this reason, it is necessary to engage in a forward exchange deal to ensure a fixed rate over a specified time period, which removes foreign exchange risk. This is relevant across all industries and

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