This chapter discusses business ethics and social responsibility. It defines business ethics as moral principles that guide business conduct, and explains that ethical behavior benefits businesses through customer loyalty and employee satisfaction. The chapter also defines social responsibility as a business's duty to benefit society. It describes how businesses have social responsibilities to customers, employees, and the environment, as regulated in the US by agencies like the FDA, EPA, and OSHA. The chapter maintains that businesses that practice ethics and fulfill their social responsibilities create long-term value for all stakeholders.