Question

Why are companies concerned with business ethics? What are business ethics?

Answer 1

Business ethics refer to the collection of moral principles based on which rules are created that act as a guide to the business and it's employees with regard to their conduct.A company which the public perceives to operate in a more ethical manner will enjoy a better reputation than a firm that is not.A company that is perceived to be ethical will attract more investors especially the investors who are inclined towards companies known for their ethical practices.This in turn will have a positive impact on the firm's profitability.This is the ultimate reason why companies are concerned with ethics.Business ethics vary from company to company and industry to industry.When it comes to business ethics there is no approach that is universally accepted.Ethics in an organization begins at the top,since the philosophy that would be in practice in a n organization is often set by them.A company whose philosophy is sound ethically will find it much easier to establish stability in the organization and build better relationship between management and employees.When the management acts as an example when it comes to ethics this will result in employees working on a higher level since they try to incorporate honesty and integrity into their work .Thus we can conclude that ethics has a significant impact on a company on various levels.