Business Ethics

Business Ethics refers to the principles and standards that guide behavior in the world of business. It encompasses the values and practices that determine how businesses conduct themselves in various situations, including relationships with Stakeholders such as employees, customers, suppliers, and the community. Business ethics ensures that a company’s activities align with societal values and expectations.

Examples of business ethics include:

• Honesty in Advertising: A company accurately represents its products without misleading claims.
• Fair Labor Practices: Ensuring that workers are paid fairly, work in safe conditions, and have reasonable working hours.
• Environmental Responsibility: A business takes measures to minimize its environmental impact, such as reducing waste and emissions.

Cases illustrating business ethics include:

• Enron Scandal: Enron engaged in widespread accounting fraud, leading to its Bankruptcy and loss of thousands of jobs, highlighting the importance of ethical financial reporting.
• Volkswagen Emissions Scandal: Volkswagen’s decision to cheat on emissions tests raised serious ethical questions about honesty and corporate responsibility.