Business ethics definition

The Encyclopedia Britannica describes ethics as "the discipline concerned with what is morally good and bad, right and wrong." Business ethics are the decisions made by businesses according to their moral concepts. Many companies define their own ethical codes for their employees and managers. These depend on the line of business the company is in. For instance, a company that produces weapons will have different ethical codes than a company that produces toys for little children. Often it is inevitable that companies or their employees will get into a conflict pr have to decide between different ways and the company ethics determine how the conflict is solved or which way is taken.

The reputation and with it the success of a company depends to a big extend on its ethics. The reputation of a company can be damaged forever, when it does a decision, which does not agree with the ethics of its customers or stockholders. But it can also help the company when they solved a conflict very ethically. Many companies have struggles, because their employees do not know how to behave in certain situations and could do unethical decisions.

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