Ethical Business Conduct

Business ethics and social responsible behavior are the primary core in running a successful business. Business ethic commonly known as corporate standards is practice of professional ethics or applied ethics that takes into consideration the ethical principle, moral issues and ethical problems that can come up in any business environment. Additionally it also refers to the varying aspects of business conduct that affect the behavior of people and organization in general (Fernando, 2009). Professional ethics is the arena of ethics that deals with ethical demands in varying field like legal, technical medical and business ethics. This practice of enforcing ethical practices to make well-informed business decision is referred to as ethicism.

According to Liangrong studies (2008) studies a business organization can gain enormous profits by ignoring the ethical business practice but sooner or later such practices will have a great negative impact on the organization. Business ethics can be classified into two categories: descriptive discipline and normative. Being a corporate practice or a career specialization this field can be described as primarily normative. The quantity and a wide range of ethical business issue have a significant reflection on the degree at which any business organization is alleged to beat the odds with the non-economical social obligations and values.

However, there are three types of managerial ethic depending on the decision being made namely, Moral management, immoral management, and moral management. Moral management is based on ethical doctrines and principles. The managers in this category work to the make profit for the business without violating any ethical standards. On the other hand, the immoral management is based on ignoring all ethical concerns and actively opposing ethical behavior in an organization. These managers are solely concerned about making profit for the business organization with no consideration of the laws. Lastly,...