Business Ethics Definition

A practice can be made illegal, if society views it as being unethical. For example, if contributions to political parties by companies are being viewed as excessive and unethical, the practice can be banned. In fact, considered from all angles, it is unethical, not to make profit. Managerial ethics, thus, are those principles that guide the conduct and thinking of managers with respect to what is good or bad; right or wrong . It is not always easy to divide managerial actions into clear-cut compartments of ethical and unethical behaviour because of certain complicating factors. Commonly, a business will have a code of conduct document that informs employees of their ethical responsibilities. is also related to political economy, which is economic analysis from political and historical perspectives. Political economy deals with the distributive consequences of economic actions. Establishing requirements for not only internal operations but also first-tier suppliers as well as second-tier suppliers to help drive environmental and social expectations further down the supply chain.

The justice approach involves evaluating decisions and behav­iour with regard to how equitably they distribute benefits and costs among individuals and groups. Generally speaking, costs and benefits should be equitably distributed, rules should be impartially applied, and those damaged because of inequity or discrimination should be compensated. Now-a-days, the consumer movement has developed so much to protect consumer interests.

We believe that an investment in business ethics drives sustainable business benefits, including higher levels of staff engagement, better and more consistent decision-making, and heightened levels of trust. We work closely with organisations to understand their needs and identify best practice in order to raise awareness of ethical issues and provide practical solutions. Business ethics concerns ethical dilemmas or controversial issues faced by a company. Often, business ethics involve a system of practices and procedures that help build trust with the consumer.

Some companies have an in-house training department while others may opt for an out-source expert. To ensure ethical behaviour, a corporate training programme is established which deals in assisting employees to understand the ethical issues that are likely to arise in their workplace. The word ‘ethics’ refers to principles of behaviour that distinguish between good and bad; right and wrong.

Sometimes there is a disconnection between the company’s code of ethics and the company’s actual practices[who? Thus, whether or not such conduct is explicitly sanctioned by management, at worst, this makes the policy duplicitous, and, at best, it is merely a marketing tool. ] are assessing the environmental factors that can lead employees to engage in unethical conduct. A competitive business environment may call for unethical behavior.