Ethical business practices are conduct standards related to moral judgments applicable to people engaged in commerce related positions (Gitman, 2012). Business ethics start with determining what the exact purpose of the business or company is. For example, a corporation has an ethical duty to secure the maximum return to its shareholders. Ethics is about how we live in the present to prepare for the future, and a business without profits (or a plan to create them) is not meeting its ethical obligations to prepare for the future well-being of the company, its employees and customers.
Many times business owners are worried that having textbook business ethics will cause their business to fail because of reduced profits, when actually the opposite is true. Running our businesses based on Christian standards doesn’t mean letting people walk all over us. I think we can look at Jesus for our example in this.
Your company ethics also apply internally to how you treat your employees and contractors. Although there are many in the business world who believe that a business has no room for ethics if it is to function competitively, the numbers of corporate whistleblowers indicate that there is still room for ethics in business.
Ethical theory can help illuminate the moral problems managers face. Business ethics is the application of ethical values to business behaviour. An entrepreneur should not only know the ethical behavior standards, but also to follow them. In this form, social responsibility is nothing but a modern and open way of flexible management.
The general public, as well as company stakeholders, have come to expect that corporations will conduct business ethically and with the highest regard for social accountability. Since public image is largely a result of company behavior, business ethics play a large role in determining public image since they determine behavior.