The challenge of ethics in business can be a very daunting one for individuals that are not inclined to follow the ethics and morals that are the standard of the nation. In contrast, it is very easy for an individual to use the correct moral and ethical principles in their day-to-day business decisions, when good ethics and morals have been instilled into them during their formative years and beyond. If an individual was raised in a home where there were strong religious, philosophical, legal, or other ethical frameworks, then it would be almost second nature for such an individual to follow higher ethical standards in their business activities. The ideal business environment would be an environment in which strong ethical and moral codes of right and wrong would be followed without question or delay, but due to the fact that this is not always the case, ethical guidelines and the enforcement of these guidelines are often necessary.In essence, business ethics is the study of the examination of the ethical problems that often arise during the day-to-day operations of businesses. The challenge of ethics in business includes the activities of individuals just as much as the overall examination of the activities of the organization, due to the fact that the actions of individuals collectively determine organizational actions. The great challenge of ethics in business, is for business leaders as well as employees to conduct a thorough self-analysis in order to determine if the actions that they take on a day-to-day basis are in line with good moral character. In most cases , if the leader of an organization uses good moral and ethical judgment in directing the organization, then the members of that organization emulate the actions of their leader.
Ethical business practices can be a careful blend of maximizing the profitability of the business enterprise, while conducting these activities according to legal and just guidelines that are established by governing bodies, as well as an internal sense of right and wrong. The Enron scandal is a classic example of where a business attempted to maximize its profitability, at the expense of its investors. This is a case where there is a detrimental imbalance between profitability and justice, which inevitably resulted in dire consequences for the organization and its leadership. Business leadership must always strive to maintain the balance between profitability and ethical behavior, because this is the most beneficial manner in which to run an organization, and will subsequently increase the probability of the organization having long-standing success.
In order to meet the challenge of business ethics, many organizations provide training in this area. Organizational leaders, and employees must complete this training before assuming their positions within the organization.