Defining Business Ethics

In this lesson, we will explore the concept of ethics and how they differ from the law. We will also delve into the realm of business ethics and examine what makes companies ethical. To understand this better, we will identify the four principles that ethical companies uphold.

Firstly, we will define ethics and understand their significance. Ethics refers to a set of moral principles and values that guide human behavior and decision-making. While laws are enforced by governing bodies, ethics focus on the personal beliefs and values that shape our actions. It is essential to differentiate between ethics and the law, as ethical behavior may not always be required by legal mandates.

Next, we will explore business ethics. Business ethics refers to the application of ethical principles within the context of an organization. It involves making morally sound decisions, considering the impact on stakeholders, and striving for fairness and integrity in all business practices.

Furthermore, we will identify what makes companies ethical. Ethical companies demonstrate a commitment to upholding four fundamental principles. The first principle is integrity, which involves being truthful and honest and maintaining high moral standards. The second principle is fairness, ensuring equal treatment and unbiased decision-making for all stakeholders. The third principle is accountability, taking responsibility for one's actions and owning up to any mistakes made. Finally, the fourth principle is respect, valuing the dignity and rights of all individuals involved in the business.

By understanding the essence of ethics and the distinction between ethics and the law, we can comprehend the significance of business ethics. Knowing the four principles that ethical companies uphold allows us to evaluate the ethical conduct of organizations and make informed decisions when engaging with them.