Business Ethics holds a very important value in the corporate world. Businesses operate on a regular basis to earn profits but business ethics make them liable to follow the corporate regulations and identify ethical and unethical practices in the workplace.
Business ethics can be studied in terms of philosophy, science, or in legal aspects. But the law has a huge role to play in business ethics so far. Many businesses follow ethical practices to remain clean from the legal and public image. It helps establish a good relationship between consumers and businesses that serve them.
The principles of business ethics for executives are integrity, transparency, honesty, promise-keeping, trustworthiness, loyalty, fair approach, concern for others, respect for others, and law-abiding by nature. One can define business ethics as a set of moral rules that are created by the company or a governing body to control how businesses function and thus, how business decisions can be made in an ethical manner and how people who work for the business can be treated in the right manner. Different people who are a part of the business are customers, clients, shareholders who need to be treated with respect and in the most legal manner to avoid any lawsuit against the functioning of the business.
One of the ways a business can function in the most ethical manner is by being transparent about its working policies with its customers, employees, and all stakeholders concerned. If there is transparency in communication and how the business earns its profits or gets revenue, people will feel like trusting the business and investing their energy, time, and money in it as they would certify it as an ethical business which is formed to create good for the people concerned and society in general. Thus, business ethics should be followed in the best manner for the long-term growth and reputation of the company.