Business Ethics

Business ethics refers to the standards of conduct, including the moral rightness or wrongness of that conduct in the business world. While the law partially defines these standards, “legal” and “ethical” are not always synonymous. Business ethics go beyond legal requirements by identifying morally acceptable conduct outside of government control. They are a crucial tool for building trust with key stakeholders, such as consumers, employees, and investors.

Corporations can utilize ethical reasoning to anticipate potential ethical issues in their business practices and/or settings and can develop strategies to avoid lapses in ethical behavior. For instance, many companies have established codes of ethics for their employees and suppliers. While not a universal cure, these codes can heighten awareness of areas that are most susceptible to unethical behavior.