BUSINESS ETHICS (ASSIGNMENT 1)

FARAH NASHIHA BINTI AZIZAN
62289212154

GROUP ME 40

BBA (HONS) In ISLAMIC FINANCE

DEFINATION OF "BUSINESS ETHICS" 

Business is an economic activity, a transaction where an offer is made by a seller and the offer is accepted by a buyer for a consideration with the hidden agenda of a gain or profit.

Ethics is concerned with "doing the right thing" in terms of morals, fairness, respect, caring, sharing, no false promises, no lying, cheating, stealing, or unreasonable demands on employees and others.

Business Ethics can be defined as the critical, structured examination of how people and institutions should behave in the world of commerce. In particular, it involves examining appropriate constrains on the pursuit of self - interest or for firms, profits,when the actions of individuals or firms affects other.


REASONS "BUSINESS ETHICS" is considered "oxymoron"

By oxymoron, we mean the bringing together of two apparently contradictory concepts such as cheerful pessimist or deafening silence.

The question determine if Business Ethic can be an oxymoron is very relevant because these two areas seem to be very incompatible. Indeed if we have a look to their respective definitions they do not work together first. Succeeding in business is largely about advancing our own private interests, aggressively competing against other people, beating them out for the same prize, and having unlimited ambition for money, position, and power. The moral life by contrast, focuses on our duties to hurt anyone (deliberately or accidentally ), to place other people's interest ahead of our own when it's called for, and always to treat others with the dignity and respect they deserve. An oxymoron is the juxtaposition of two apparently contradictory words or concepts. The very contradiction that is inherent in Business Ethics is an indication of the challenge that individuals who work for organisations face when they have to take decisions that involves conflicts of interest. Aim of business and ethics are contradictory and incompatible (apparently). Business ethics put values in conflict according to Trevino and Nelson on 2007. The global concept of business is fundamentally based on the principle of competation for limited resources. That means the practice of maximizing one's gains at the expense of others. The outcome is the creation of a hierarchy of those who have and those who have not. Therefore the aim is "to eliminate" the others in orders in order to obtain more. As said Mielton Friedman "The social responsibility of business is to increase its profits"


DEFINITION OF "CORPORATE GOVERNANCE"

 The system of rules, practices and process by which a company is directed and controlled. Corporate governance essentially involves balancing the interests of the many stakeholders in a company, its these include its shareholders, management, customers, suppliers, financiers, government and the community. Since corporate governance also provides the framework for attaining a company's objectives, it encompasses practically every sphere of management, from action plans and internal controls to performance measurement and corporate disclosure.