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Ethics are basically moral guidelines which makes us capable of differentiating in good behavior or bad behavior. So behaving ethically is the manner of doing what is morally correct. Nowadays business is full of scams and corruptions, so significance of this subject is increasing rapidly.
Ethical behavior in business is regarded as good business practice.
There is a marked difference between ethics and law. An important distinction made between the two is that behaving ethically is not same as behaving lawfully.
An ethical decision combines the both legal and ethical standards of the community. Business ethical issues are like -
1. Should businesses generate revenue from problem gambling?
2. Is ethical shopping becomes a luxury we can't afford?
Business ethics includes corporate social responsibility (CSR) as it is closely linked with the topic. This means a socially responsible firm should be an ethical firm and vice versa.
How businesses do guarantees that its directors, managers and staff members act ethically?
A common way is to implement code of practice in the organization. Ethical codes are gaining its popularity days by days and cover areas such as:
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