"Business Ethics" can be defined as the critical, structured examination of how people & institutions should behave in the

world of commerce. In particular, it involves examining appropriate constraints on the pursuit of self-interest, or (for firms) profits, when the actions of individuals or firms affects others.
The critical and the structured parts of those definitions are both important: Ethics is critical in the sense of having to do with examining and critiquingvarious moral beliefs and practices. (In other words, its not just about describing peoples values or behaviour, though that can be a useful starting point.) Ethics involves looking at particular norms and values and behaviours and judging them, asking whether various norms and values are mutually contradictory, and asking which ones matter more in what sorts of situations. Ethics is structured in the sense that its not just about having an opinion about how people should behave. Everyone has opinions. Ethics involves attempting, at least, to find higherorder principles and theories in an attempt to rationalize and unify our diverse moral beliefs. For practical purposes, ethics means providing reasoned justification for our choices & behaviour when it affects others, and reasoned justification for our praise or criticism of other peoples behaviour. Now, nothing above constitutes an argument. Im just explaining roughly the proper use of the term ethics. There are, of course, other uses of that term some of them arguably regrettable. (Some people in business and government, for example, take the w ord ethics to refer exclusively to the rules set out in various ethics laws that govern the behaviour of individuals in positions of responsibility, rules about conflict of interest, bribery, and so on.) So, here comes the contentious part. Im not sure it really is or should be contentious, but some people are bound to disagree with it. The breadth of the topic business ethics, as defined above, means that other, related ideas like Corporate Social Responsibility (CSR) and corporate citizenshipand sustainability are in fact sub-topics within the broader topic of business ethics. Thats not to diminish the importance of those sub-topics. But its worth keeping in mind, because it means that a focus on any one of those topics means setting aside potentially-important issues that fall under a different heading. This is especially true when companies (and consultants) focus on just one term. When they do that, its worth wondering, and maybe asking pointedly, about the stuff theyre leaving out.

Definition of 'Business Ethics'

The study of proper business policies and practices regarding potentially controversial issues, such as corporate governance, insider trading, bribery, discrimination, corporate social responsibility and fiduciary responsibilities. Business ethics are often guided by law, while other times provide a basic framework that businesses may choose to follow in order to gain public acceptance. Read more: http://www.investopedia.com/terms/b/business-ethics.asp#ixzz2DWoy3PC4

Investopedia explains 'Business Ethics'

Business ethics are implemented in order to ensure that a certain required level of trust exists between consumers and various forms of market participants with businesses. For example, a portfolio manager must give the same consideration to the portfolios of family members and small individual investors. Such practices ensure that the public is treated fairly

Read more: http://www.investopedia.com/terms/b/business-ethics.asp#ixzz2DWp2dZVi

Three levels of business ethics

In our mission to define business ethics, Johnson and Scholes provide a useful way of classifying the diverse elements therein:

the macro level:the role of business in the national and international orgnisation of society the relative virtues of different political/social systesms, such as free enterprise, centrally planned economies, etcinternational relationships and the role of business on an international scale the corporate level:corporate social responsibility ethical issues facing individual corporate entities (private and public sector) when formulating and implementing strategies the individual level:the behaviour and actions of individuals within organisations

Legal
Each business and its employees must follow the laws set forth by the federal and state government. Although most business organizations don't write down the legal code of ethics each member of the business is responsible for, some organizations do. The foundation of any code of ethics is the legalities governing employees and the specific establishment. A bar may establish an official code of ethics for bar attendance, bouncer etiquette and drinking maximum. An organization that produces written content may establish a plagiarism clause as part of a code of ethics. Beyond these specific ethical areas, most establishments establish a diversity program where equal opportunity is available for all regardless of sex, religion or background.

Moral
Whether your subscribe to the ideas discussed in the Bible or not, treating others like you want to be treated is the foundation of moral ethics. Treating employees with respect builds loyalty. Doing the right thing for the customer is paramount to maintaining customers. When employees have access to confidential public information, creating ethical standards on confidentiality not only protects clients but establishes trust in the organization. In addition, how an organization deals with complaints and resolves conflict, internally and externally, is set by a moral code of conduct. The code of conduct establishes protocol to treat each issue from an objective viewpoint and move toward amiable resolution.

Professional
Professional codes of ethic vary from organization to organization. A state bar association will have a very descriptive code of ethics for attorneys practicing law in that area. A car dealership may describe its professional code of ethics by defining dress code, promptness and disclosure to consumers in the sales process. Ultimately, the professional code of ethics demands from employees at all levels of an organization to do what they were hired to do with care and diligence. Among many executives, a professional code of ethics extends to the handshake agreement with someone following through on what he said he would do.