Business ethics is the systeꦛm of moral and ethical beliefs that guides the values, behaviors, and decisions of a business organization and the individuals within that o𒁃rganization.

Some ethical requirements for businesses are codified into law. Environmental regulations, the minimum wage, and restrictions against insider trading and 澳洲幸运5官方开奖结果体彩网:collusion are all examples of the government setting certain standards for business ethics. The concept of business ethics has also evolved.

Ethics in Leadership

A management team sets the tone for how an entire company runs on a day-to-day basis. Leaders within an organization can direct employees by example when the prevailing management philosophy is based on ethical practices and behavior. They can guide them in making decisions that are beneficial to them as individuals and to the organization as a whole🐷.

Building on a foundation of ethical behavior h🗹elps create long-lasting positive effects for a company. One such effect is the ability to attract and retain highly talented individuals. Another is a positive reputation within th🌳e community.

By contrast, unethical behavior at the top can not only destabilize but even destroy a company. Enron Corporation, an American energy and commodity services company, collapsed after the Securities and Exchange Commission investigated its improper accounting practices and revealed that the company hid massive losses and liabilities while paying i🌌ts executives millions.

Thousands of employees suddenly were left jobless. Several executives were convicted of federal crimes. The company's unethical behavior also led to the downfall of one of the oldest and largest accounting firms, Arthur Andersen.

Employee Ethics

Employees tend to follow in those footsteps when management ethically leads an organization. Employees can make better decisions in less time when 澳洲幸运5官方开奖结果体彩网:business ethics are a guiding principle.

The whole organization benefits when employees conduct themselves in a manner that's based on honesty and integrity. Employees who work for a company that demands a high standard of business ethics in all facets of operations are more likely to perform their job duties at a higher level. They're also more inclined to stay loyal to that organization.

Ethics by Industry

Business ethics can differ from industry to industry and 澳洲幸运5官方开奖结果体彩网:nation to nation🥂. The nature of a business's operations has a major influence on the ethical issues with which it must contend.

Ethics Concerning Clients

An ethical quandary can arise for an investment 澳洲幸运5官方开奖结果体彩网:brokerage when the best decision for a client and their money runs counter to whatever pays the brokerage the highest commission. A media company that 𒉰produces TV content aimed at children may feel an ethical obligation to promote good values and eschew off-color material in its program﷽ming, even if there's money to be made by crossing that line.

Ethics Concerning the Environment

The energy field is a striking example of industry-specific business ethics. Companies that produce energy, particularly 澳洲幸运5官方开奖结果体彩网:nonrenewable energy, face unrelenting scrutiny o🦂n how they treat the environment.

One misstep can force a company to answer for its actions whether it's a minor coal ash spill at a power plant or a major disaster such as the 2010 BP (BP) oil spill. Numerous regulatory bodies and society at large may pursue whether the company skirted its duty to protect the environment in an aggressive pursuit of higher profits. The 澳洲幸运5官方开奖结果体彩网:reputational damage to a com🌄pany can endure for years even after the matter has been resolved.

A stringent, clearl𒁏y defined system of environmen🐲tal ethics is paramount for an energy company if it wants to thrive in a climate of increased regulations and public awareness of environmental issues.

Companies that conduct most of their operations online such as Amazon (AMZN) and Google (GOOGL) aren't scrutinized for their environmental impact in the same way as energy companies such as BP and Exxon (XOM). Their ethics are examined very closely, however, when it comes to protecting their customers' privacy and security. Many such companies have elaborate privacy policies that they make available online.

Ethics Concerning Privacy

Marketing is a particular area in which technology companies must make tough ethical decisions. Advancements in 澳洲幸运5官方开奖结果体彩网:data mining technology ena🦹ble businesses to track their customers' movements online and sell that data to marketers or use it to match customers wi🌜th advertising promotions.

Many people view this type of activity as a serious invasion of privacy. Such customer data is invaluable to businesses, however, because they can use it to increase profits substantially. An ethical dilemma is born. To what extent is it appropriate to spy on customers' online lives to gain a marketing advantage?

Benefits of Business Ethics

The importance of😼 ൲business ethics reaches far beyond employee loyalty and morale or the strength of a management team bond. As with other business initiatives, the ethical operation of a company is directly related to profitability in both the short and long term.

The reputation of a business in the surrounding community and for individual investors is a key factor in determining whether a company is a 澳洲幸运5官方开奖结果体彩网:worthwhile investment. Investor🐼s are less inclined to buy stock or otherwise support a company's operations if it's perceived to operate unethically.

Companies have more of an incentive to be ethical as the area of 澳洲幸运5官方开奖结果体彩网:socially responsible and 澳洲幸运5官方开奖结果体彩网:ethical investing keeps growing. The increasing number of investors seeking out 澳洲幸运5官方开奖结果体彩网:ethically operating companies to invest in is driving more firms 🦋to take this ꦅissue more seriously.

Changes in society and technologies are also raising fresh ethical concerns. The advent and ongoing development of 澳洲幸运5官方开奖结果体彩网:artificial intelligence creates ethical dilemmas across a host of industries.

The Bottom Line

An increasingly positive public image comes with consistent ethical behavior. Few other considerations are as important to investors and 澳洲幸运5官方开奖结果体彩网:shareholders. Businesses must be committed to operating on an ethical foundation as it relates to the treatment of employees, 澳洲幸运5官方开奖结果体彩网:resp🌠ecting the surroundi♔ng environment, and fair market practices in terms of pricing, delivering value, an🐓d serving customerℱs.