Business ethics:

• A set of accepted principles and standards that guides how a business should behave and operate is called business ethics.
• Based on discussions, established facts, input from academicians, industry experts, etc. the principles and standards for business facts are established.
• Business ethics define what is right and what is wrong, how individuals of the unit should be treated. For example, standards that say that a unit should bot indulge in fraud, bribery, etc.
• Note that business ethics are quite different from legal regulations. Business ethics cannot be enforced whereas legal regulations can be. If business units follow business ethics whole heartedly and with discipline it is quite possible that there might be no need to enforce the ethics by law. Society also expects that businesses run ethically so that social set-up does not get disturbed.
• Mostly business units violate ethics when they aim at speedy, undue and high profits.
• It has been observed that units who follow business ethics properly survive longer and also achieve good economic returns.