Facilitated development Business development is affected by external factors.
Planning systems are systems set in place in order to regulate businesses. In many cases, ruling agencies deem the necessary for business survival. There is a section of business that is dedicated to facilitating ethical business development in developing countries. In the early 2000s,
business ethics was dedicated to helping the businesses in need that are in these countries. However, owing to the strong backlash from critics, they have changed their focus into helping businesses that are going to help the most people develop. These policies have improved the quality of life of the people. However, this facilitation changes the norms and, in turn, harms some groups. In order to enforce the new policies in an ethical manner business ethicists have created a
cost-benefit analysis, placing an emphasis on basic necessities. These concerns have become so great that business ethicists have created a new department called
development ethics. Now, instead of simply helping developing businesses, international business developers have begun ensuring that the companies keep basic human rights in mind. This especially applies to countries where the laws are not so strict and allow for abuse to take place. These development policies now have to follow the criteria that Penz created, consisting of: security, empowerment, rights, equity, integrity, and cultural freedom. The idea of providing people with human rights in order to facilitate business development can be seen through the rapid development of
China in the last few decades. The policies that were implemented in the last couple decades coincide with these developments. In the 1980s, government policies facilitated the rise in
literacy rate and education. The following decade, healthcare coverage increased significantly. This development was not originally seen as monetary capital, but instead, it was seen as
human capital. With more workers able to bring skill and maximum effort to their workplace, companies were able to develop extremely rapidly.
Reputation building With companies becoming more and more conscious of ethical practices, closely watching themselves to avoid scrutiny, a company's reputation has become a great concern.
Ethical business practices are closely tied with reputation which makes it essential to follow ethical guidelines if a company is looking to build their reputation. In fact, businesses that develop quickly and successfully have tendencies to show honesty, impartiality, and service to all of their stakeholders. In order for a company to be considered "ethical", it must cater to the needs of the customer, keeping their best interest in mind. This will influence customers to make repeated purchases and lead to more profit. In order for a company to build a strong reputation with their suppliers, it is crucial for them to focus on impartial business interactions and developing long relationships. These relationships can lead to mutually-beneficial business deals for both the company and its supplier. With the employees, they must take their interests into consideration and facilitate teamwork as opposed to rigorous competition. This ensures that the company will keep their most loyal and dedicated employees for as long as possible. Funding for further development can rise when a company is able to develop strong relationship with each stakeholder individually, and ethically. This is based on the concept of
reciprocation, which states how in order for social change to take place between groups of people, trust must be built between them through mutually beneficial actions. This can be supported through the results of a questionnaire study that was conducted on technology industries in
GTSM and
TSE. In addition, in order for a company to practice business ethics, and ensure strong business development, it is essential to maintain a positive relationship with the environment. With concerns about the recent decline of the environment increasing, stakeholders have become more involved in efforts to preserve resources and a negative impact on the environment brings about risks of damaging stakeholder relationships. ==See also==