Business ethics

Ethics is about what is right and wrong in human behaviour, judged by standards approved by society. Business ethics means the socially determined moral principles that should govern business: for example, charging fair prices, using fair weights and measures, treating workers fairly, earning reasonable profits, and making exactly what the packet says.

Ethical behaviour goes beyond obeying the law. The law sets the minimum; ethics asks what is right even where no law says so. And ethical business is good business: customers, workers and suppliers trust and stay with a firm that deals fairly, so in the long run ethics and profits go together.

The elements of business ethics:

• Top management commitment: the leaders must give continuous leadership and set an example.
• Publication of a code: a written code of conduct setting out the firm's principles, for example how suppliers must be checked before the firm deals with them.
• Establishment of compliance mechanisms: ways to make sure that decisions and actions follow the firm's ethical standards.
• Involving employees at all levels in making ethics real.
• Measuring results: checking how well the firm is living up to its standards.

Simple ground rules for everyone in business: be trustworthy, respectful, responsible, fair, caring, and a good citizen.