Develop a sense of the importance of integrity and ethics in small Essay

Develop a sense of the importance of integrity and ethics in small business ownership - Essay Example This paper will discuss the importance of ethics and integrity in small business enterprises. Research asserts that small-business investors substantially rely on ethical codes in the business setting. For example, the aspect of ethics in matters regarding finance should not be overlooked. This is because such businesses rely on accounting ethics. In case the business owners are not conscious about financial recordkeeping practices, then, they are likely to face tremendous challenges. In addition, they are exposed to risks related to fraud if they do not uphold ethics and integrity in the business (Petryni, 2008). Recently, some of the small businesses have implemented the code of ethics which is normally entailed in the policies of the organization. This code of ethics is normally a statement of values which defines the organization. In most cases, the code of ethics usually addresses issues related to conflict of interest, competition data, assets of the company and employee practices. Furthermore, integrity also forms a crucial part in business since; lack of integrity in the organization leads to poor development of the firm (Longenecker, Petty, Palich, & Hoy, 2012). Contrarily, there are some businesses which do not uphold the integrity and the code of ethics. In such cases, the business is said to run under unethical practices. There are several unethical practices that are practiced in most of the small businesses. One of the most prominent unethical practices is the lack of compassion. According to empirical studies, most of the workers in small business firms are usually exposed to unethical treatment (Longenecker, Petty, Palich, & Hoy, 2012). For example, most small companies offer medical covers for its employees especially if the company operates in risky circumstances. In case an employee is injured while in the line of duty, he or she must be