Business ethics is the branch of applied ethics that deals with the morality of the conduct of individuals and organizations within an enterprise, particularly regarding their relationships with each other and their clients. The term “business ethics” can also refer to a normative discipline which defines moral standards for business conduct, or it can refer to a positive discipline, which applies theory and research findings to help managers make ethical decisions.
Business ethics is the study of how people make decisions, particularly where those decisions can establish or breach moral principles. The term often applies to people in management positions within a company. The people who are the most concerned with the ethics of business are not usually those who are directly involved in it. Often, this is because they are not well-informed about what it really takes to be a successful businessperson.
Business ethics are the moral principles that govern the conduct of individuals, organizations, and societies. Generally seen as universal, business ethics are applied differently across different cultures. Every organization has a set of values that they follow to ensure that their practices are socially responsible. These values can include corporate citizenship, honesty, transparency, accountability and responsibility. When these values are not being followed at an organization, it can have serious consequences for the company’s future success which is why it is important to always stay true to them.
Some examples where ethical standards may be violated include:
- Stealing trade secrets or intellectual property from another organization
- Narcissism in which you put your own needs before those of others engaged in the same activity
- Discrimination against employees or customers based on race
There are three main types of ethics that companies may have: normative, descriptive and proscriptive. These include socially responsible behavior, behavior that reflects the company’s values and behavior that is prohibited by law. Business ethics is a term that is often about the morals and standards of business more tips here. It also encompasses the fairness and honesty in which they operate their businesses. It can be considered as a set of standards that determines how an organization should conduct themselves in the marketplace.