"It is true that the company does not teach employees moral values, after all these come

with people
as they enter the workplace. The company's responsibility to set clear standards of behavior and to
train employees in recognizing and following them".

"Moral values are a set of principles that guide individuals in judging the rightness or wrongness
of actions and behavior" (Stanford Encyclopedia of Philosophy, 2022). The moral values involve
some basics or source which make someone to believe the right and wrong actions and behavior.
Those sources are parents, religion, culture, peers and teachers.

According to Kenneth Kernaghan is defined as “Ethics is concerned not only with distinguishing
right from and good from but also with commitment to do what is right or what is good. The
concept of ethics is inextricably linked to that of value, that is enduring belief that influence the
choices we make from available means and ends.”

Ethics is a set of standards, or a code value system worked out from human reason and experience,
by which free human actions are determined as ultimately right or wrong, good or evil. If an action
agrees with these standards, it is ethical; if it does not agree, it is unethical.

The following are the reasons to establish ethical standards and policies in the world
organizations: -

Building Trust and Reputation: Trust is the belief that someone or something is reliable good,
honest and effective. (Merriam Dictionary). Reputation is defined as the opinion that people in
general have about someone or something (Cambridge dictionary). Ethical practices help build
trust with stakeholders, including customers, employees, investors, and the community.
Organizations with strong ethical standards are viewed as trustworthy, which can enhance brand
loyalty and public image. This trust is crucial, as stakeholders are more likely to support businesses
they perceive as responsible and honest.

Ensuring Legal Compliance: Adhering to ethical standards helps organizations comply with laws
and regulations. Ethical behavior minimizes the risk of legal issues, fines, and other penalties
associated with unethical or illegal actions. By operating within the bounds of the law and ethical
principles, organizations reduce the likelihood of costly litigation. Smith, N. C., & Rönnegard, D.
(2016).
Attracting and Retaining Customers and Investors: Customers and investors are increasingly
making choices based on an organization's ethical practices. A commitment to ethics can attract
socially conscious consumers and investors who seek to align their values with their purchasing
and investment decisions. This commitment helps build a competitive advantage by appealing to
these groups.

Enhances Organizational Culture: Ethical standards contribute to a positive work environment

by promoting fairness, transparency, and respect among employees. A strong ethical culture
encourages employees to act responsibly and aligns their actions with the organization’s values,
which can improve job satisfaction, morale, and productivity. For example, some organization
provide good customer service, and good brand image through their positive culture Smith, N. C.,
& Rönnegard, D. (2016)

Encourages Corporate Social Responsibility (CSR): Business ethics plays a central role in CSR
by encouraging organizations to consider the broader impact of their actions on society and the
environment. Ethical organizations often implement sustainable practices that contribute
positively to the community and protect natural resources, promoting social good and
environmental stewardship. for example, by considering the accountability and responsibility of
an organization. Smith, N. C., & Rönnegard, D. (2016).

Improves customer Satisfaction: Human resource professional have two customers which are
employees and external customers. The ethical standards tend to higher employee morale and
loyalty, reducing turnover and promoting job satisfaction. Then also for external customers ethical
practices offer high-quality products and transparent communication, fostering customer
satisfaction. (Ilumeo,2023).

Improves Decision making. Decision making is the process of identifying, analyzing and
choosing the right course of action from different alternatives Ethical behavior requires rational or
logical thinking decision-making, which can lead to better long-term outcomes for the business.
By considering the ethical implications of their decisions, businesses can make decisions that align
with their values and achieve their long-term goals. For example, the issues of recruitment and
Selection needs integrity as principle of business ethics. Smith, N. C., & Rönnegard, D. (2016).
Achieve long term success. Businesses that prioritize ethical behavior and values are more likely
to achieve long-term success and sustainability. By focusing on the long-term goals and
considering the ethical implications of their actions, businesses can create a strong foundation for
future success. Ethical behavior is not just a moral obligation, but also a smart business strategy
that can lead to long-term success and profitability. Smith, N. C., & Rönnegard, D. (2016)

Hence, every employee in organization has personal beliefs that guide to differentiate between
what is good and what is bad according to source like parents, religion, culture, peers and teachers.
So, if the organization doesn't set the ethical standards and train employees to recognize and
following them, may lead to occur a lot of negative impacts like conflicts, no morale. Poor
performance of employees, poor customer service, unfairness, inequality and others, so those
negative impacts may hinder an organization to achieve its Objectives or goals.so the ethical
standards are very important in an organization in order to achieve specific goal or Objectives.
REFERENCES

Carroll, A. B., & Buchholtz, A. K. (2014). Business and Society: Ethics, Sustainability, and
Stakeholder Management. Cengage Learning.

Crane, A., & Matten, D. (2016). 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. Cengage
Learning.

Smith, N. C., & Rönnegard, D. (2016). Corporate Responsibility and Ethics: Readings and Cases
in a Global Context. Cambridge University Press.

Trevino, L. K., & Nelson, K. A. (2017). Managing Business Ethics: Straight Talk about How to
Do It Right. Wiley.

Illumeo, (2023). Ethics and professional responsibility: United Kingdom