This chapter discusses business ethics and social responsibility. It begins by defining business ethics as the principles and standards that determine acceptable conduct in business organizations. Social responsibility is defined as a business's obligation to maximize its positive impact and minimize its negative impact on society. The chapter outlines the importance of ethics in business and examines some common ethical issues that can arise, such as conflicts of interest. It also discusses how businesses can promote more ethical behaviour. Finally, it explores the nature of social responsibility and key social responsibility issues.