Business ethics refers to the standards of conduct and moral values that govern decisions made in the business environment. This includes balancing profitability with social responsibility. Business ethics considers how companies treat stakeholders like shareholders, employees, customers, and the community. It also examines ethical issues in employer-employee relations, competition, compensation, and respecting the rights of others. Upholding strong business ethics leads to benefits like greater trust, cost savings, loyalty, and attracting top talent.

1. Business Ethics
Code of Ethics

2. Business Ethics
• The standards of conduct and moral values
governing actions and decisions in the work
environment.
– Social responsibility.
– Balance between what’s right and what’s profitable.
• The moral values that governs business behaviour
and restraints companies from pursuing the
interest of the shareholder at the expense of all
other considerations

3. Stakeholders
• People and groups that supply the business
with its productive resources and have a claim
on its resources
– Shareholder
– Suppliers
– Distributors
– Employer
– Employee
– Customer

5. Relations in a Business
• Employer-Employer Relations
• Employee-Employer Relations
• Company-Customer Relations
• Company-Shareholder Relations
• Company-Community/Public Interest

6. Ethical Issues
• Honesty – communication & behaviour consistent
with facts
– Disclosure of information
– Promises/commitments
– Laws and professional standards
– Representation of others like shareholders
• Unfair Competition
– Refrain from bribes and excessive gifts
– Avoid quid pro quo transaction (what for what?)
– Comply with anti-trust laws (pricing, monopolistic
practices)

7. • Just Compensation
– Respect intellectual property
– Treat employees fairly
• Respecting rights of others
– treat others with fairness and respect regardless of:
• Age, Religion, Ethnic group, Sex, Economic status
– Respect the community you operate in by paying fair
share of economic costs
– Respect others and future generations by treating the
environment well

8. Valuing of Ethical Behaviour
• Better Information
– Trust from investors
– Lower costs for audits, controls, investigations
– Better allocation of resources
– Customers will be more loyal
– Lower costs from suppliers
– Attracting and retaining better employee
• Better Competition
– Lowers cost of business economy
– Leads to a better decision making
– Improve competitive nature of a country’s economy

9. • Just compensation
– Creates a more vibrant, entrepreneurial economy
– Attracts and retains better employees
• Rights of others
– Draws upon talents of wider set of individuals
– Develops long-term respect from the community
– Maintains the environment for long term value to
all