Business Ethics in Business Practices

Business Ethics in Business Practices

Business ethics are moral principles that guide the way a business behaves. The same principles that determine an individual’s actions also apply to business. Acting in an ethical way involves distinguishing between ‘right’ and ‘wrong’ and then making the ‘right’ choice. It is relatively easy to identify unethical business practices. It is the study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility, and fiduciary responsibilities. For example, companies should not use child labor. They should not unlawfully materials and processes. They should not engage in bribery.

According to Andrew Crane –

“Business ethics is the study of business situations, activities, and decisions where issues of right and wrong are addressed.”

So, in shortly, Business ethics is a form of applied ethics or professional ethics that ethical principles and moral or ethical problems that arise in a business environment. It ensures that a definite obligatory stage of faith exists between customers and various forms of market participants with businesses. For example, a portfolio executive must give the similar thought to the portfolios of family members and small individual investors. Such practices ensure that the public receives reasonable conduct.