Importance of Ethics in Business

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What is Business Ethics? Business ethics (also known as corporate ethics) is a type of applied ethics or professional ethics that considers ethical principles and moral or ethical problems that occur in a business environment. It concerns all aspects of business demeanor and is relevant to the conduct of individuals and intact organizations. It is the study of appropriate business procedure and practices concerning potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibilities and fiduciary responsibilities. Business ethics are often guided by law, whereas other times provide an essential framework that businesses could opt to follow in order to gain public acceptance. Why are Business Ethics essential to a business? Business Ethics is an essential aspect in a business, primarily because of the fact that they are inherently vital in a market economy. People tend to be exceedingly distrustful of corporations in market economies and the bigger they are, the more trust becomes a problem. Therefore, business ethics are politically charged in different circumstances and that in turn serves to make them important. Aside from being crucial to gaining the trust of the populace, business ethics are also important for a company in terms of expansion. The following are only some of the many factors through which business ethics can affect a business. 1. Public Image It is impractical to discuss business ethics as an essential aspect in an organization without taking a look at the correlation between business ethics and public image. Each corporation has a particular public image, which stands for the way in which the public views the corporation. Wal-Mart, for exam... ... middle of paper ... ...adership. Retrieved from http://www.globethics.net/?gclid=CJfTofzYsr0CFQaBfgodFUUAQQ Businesscasestudies.com (2013).The times 100 business case studies. Retrieved from http://businesscasestudies.co.uk/ refresher.com (2013).The CEO refresher…brain food for business. Retrieved from http://www.refresher.com/abahethics.html globalpost.com (2013). Retrieved from http://everydaylife.globalpost.com link.springer.com/ (2013). Retrieved from http://link.springer.com/article/10.1023%2FA%3A1006445915026 invezz.com (2013). Retrieved from http://invezz.com/analysis/equities/112-ethical-investment- big-business-but-what-does-it-mean-exactly oracle.com (2012). Retrieved from http://www.oracle.com/partners/en/how-to-do-business/opn- agreements-and-policies/019520.pdf scu.edu (2014). Retrieved from http://www.scu.edu/ethics/practicing/focusareas/business/businesspartnership/
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