Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Business ethics refers to contemporary organizational standards, principles, sets of values, and norms that govern the actions and behavior of an individual in the business organization.
Some key features of business ethics include:
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Standards for morally right and wrong conduct in business: Business ethics refers to the standards for morally right and wrong conduct in business.
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Guidelines for appropriate business policies and practices: Business ethics studies appropriate business policies and practices regarding potentially controversial subjects, including corporate governance, insider trading, bribery, discrimination, social responsibility, and fiduciary responsibilities.
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Promotion of integrity among employees and trust from stakeholders: Corporations establish business ethics to promote integrity among their employees and gain trust from key stakeholders, such as investors and consumers.
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Enhancement of the law by outlining acceptable behaviors beyond government control: Business ethics enhances the law by outlining acceptable behaviors beyond government control.
Business ethics is important for companies and business professionals for several reasons. It ensures that a certain basic level of ethical behavior is maintained in the workplace. It also helps companies gain public approval and trust from stakeholders. Additionally, it can help prevent legal and financial repercussions that can arise from unethical behavior.
