Question

Scope of ethics in business is in which area(s)?

• A. Compliance
• B. Finance and HR
• C. Marketing and Production
• D. All of the above

Answer 1

The correct option is D All of the above

Compliance is about obeying and adhering to rules and authority. The motivation for being compliant could be to do the right thing out of the fear of being caught rather than a desire to abide by the law. An ethical climate in an organisation ensures that compliance with law is fueled by a desire to abide by the laws. Organisations that value high ethical values comply with the laws not only in letter but go beyond what is stipulated or expected of them.

Human resource management $\left(HRM\right)$ plays a decisive role in introducing and implementing ethical practices in an organisation. Ethics should be a pivotal issue for $HR$ specialists. The ethics of human resource management $(HRM$) covers those ethical issues that arise around the employer-employee relationship, such as the rights and duties issues between the employer and employee.

The ethical issues in finance that companies and employees are confronted with include:

— In accounting – window dressing, misleading financial analysis.