Business ethics are the system of moral and ethical beliefs that guides the values, behaviours and decisions of a business organisation and the individuals involved within that business. These ethics are important to business as many of them are tied directly into the law, and breaches of these can be punishable as an offence
Though this varies by industry, a business’ ethics can have a significant impact on how a business may operate on a day to day business.
Business ethics can often be seen in the code of conduct that businesses and their employees follow.
Here are some of the benefits of a business taking ethics into consideration
- Consistent ethical behaviour leads to a positive public image
- Building a business’ foundation of ethical behavior helps create long-lasting effects for the business
- Employee ethics are influenced by business ethics, leading to better perceived employees.
- Ethical practice leads to profitability
In essence, profitability and business ethics are linked. Companies that are perceived to have better ethical responsibility and operate in such a way may have a better reputation overall. With investors leaning more towards socially responsible and ethically responsible companies to invest, companies need to align themselves with appropriate ethics moving forward.