Business ethics happens to be the study of proper and appropriate policies of the business and also the practises when it comes to potentially controversial subjects which include corporate policies, governance, liberty, bribery, insider trading, discrimination, corporate social responsibility and all kinds of fiduciary responsibilities as well.
The law also states and says that business ethics is something that every single business should follow. All businesses should follow basic guideline so that you can gain the approval of the public.
Business ethics also refers to the implementation of appropriate business policies and practises which the employees have to follow. It is usually about arguable and controversial topics. Some issues which come up in a discussion of ethics would include the above things that I have stated.
Business ethics also ensures that a certain basic level of trust would exist between the consumers and also all kinds of market participants within the businesses. A portfolio manager should actually give the same consideration to the portfolios of family members as other individual investors as well. This is a really good example. These kinds of practices basically ensure that the public would receive proper and fair treatment. It ensures that there is no partiality.
The very concept of business ethics initially began in the 1960s because corporations started becoming very aware of the rising customer based society and also, they started showing concern about the environment, corporate responsibility and all kinds of social causes. This kind of increased focus on the social issues was definitely a hallmark of the decade. Since the time period that I am talking about, the very concept of business ethics has evolved and become something huge. Business ethics actually goes beyond a moral code of right and wrong. It also attempts to reconcile some things that companies do illegally. Business ethics strives to stop the illegal activities that most companies conduct. It’s on display is a virtue in a lot of ways. It is meant to ensure a certain level of trust between the corporations, the customers and even inside the business.
When we are talking about preventing unethical kind of behaviour, we should also repair the negative side effects. Companies actually look for managers and employees who always report these kinds of instances and people who can observe and report. Some barriers within the company culture itself require some reporting and investigation. Business ethics will tend to do an excellent job in such places.
Some companies fear retaliation on the part of the employees. That is why, most companies make the employees sign a waiver before they are hired. You need to sign certain documents, before you start working for a company.