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Business Ethics examines relevant company policies and practices on potentially controversial issues, including corporate governance, insider trading, corruption, discrimination, corporate social responsibility, fiduciary duties, and more. The Business ethics often governs the law, but sometimes business ethics provide basic guidelines that companies can follow to gain societal acceptance.

Business ethics is the implementation of appropriate company policies and practices concerning potentially controversial issues. Issues raised in the ethics debate include corporate governance, insider trading, corruption, discrimination, social responsibility, and fiduciary duties. The law generally sets the tone for business ethics and provides basic guidelines businesses can follow to gain societal acceptance.

Understanding Business Ethics

Business ethics ensures a  basic level of trust between consumers, various market participants, and businesses. For example, the portfolio manager should pay as much attention to the portfolios of family members and small individual investors as those of higher net-worth clients. Such practices ensure that society remains treated relatively.

Business ethics emerged in the 1960s as companies became aware of the growing consumer society sensitive to the environment, social issues, and corporate responsibility. Greater emphasis on “social issues” was the sign of the decade.

Since then, the idea of business ethics has evolved. Business ethics goes beyond a simple moral code of right and wrong, balancing companies’ legal obligations with maintaining a competitive advantage over other companies. Companies present business ethics in different ways.

 Why are business ethics important?

There are several reasons why business ethics are essential to success in the modern economy. More importantly, the established ethics programs establish a code of conduct that rules the behavior of employees, from upper and middle management to the newest and youngest employees. When all employees make ethical decisions, the company gains a reputation for behaving ethically. Its reputation grows, and it begins to benefit from the  moral establishment:

  • Brand awareness and growth
  • Increased negotiation skills
  • Increased confidence in products and services
  • Customer retention and development
  • Attracts talent
  • Attracts investors

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