
Business ethics is a form of applied ethics or professional ethics that examines ethical principles and moral or ethical problems that arise in a business environment. It applies to all aspects of business conduct and is relevant to the conduct of individuals and entire organizations. Employees tell us in one way or another that the single most important characteristic of their job is a boss whose fair who hires, promotes, and recognizes the right people. All bosses think they're fair, a much larger proportion than is perceived by their employees.
In a free market the self interest of producers and consumers will produce an outcome desirable to all concerned
But the market can also lead to inequality of income, wealth and market power:
Monopoly suppliers can exploit consumers
Monopsony buyers can exploit supply firms
Worldwide inequality of income can result in unethical practices such as the child labour
Ethical issues and society - examples
Involvement in the community
Honesty, truthfulness and fairness in marketing
Use of animals in product testing
Agricultural practices e.g. intensive faming
The degree of safety built into product design
Donation to good causes
The extent to which a business accepts its alleged responsibilities for mishaps, spillages and leaks
The selling of addictive products
Involvement in the arms trade
Trading with repressive regimes
The Institute recommends that organisations issue statements of ethical practice in respect of:
Relations with customers
Relations with shareholders and other investors
Relations with employees
Relations with suppliers
Relations with the government and the local community
The environment
Relations with competitors
Issues relating to international business
Behaviour in relations to mergers and takeovers
Ethical issues concerning directors and managers
Compliance and verification
