Business ethics

•The process of evaluating decision either before or after, concerning moral standards of society.

•Selecting right over wrong, fair over unfair, good over a bad, truth over a lie.

•Business ethics is the study of moral values based on economic systems prevalent in different countries and

across the globe.

•Ethics in society may not be the same as the business, business ethics is concerned with the relationship

with business goals.

• Ethics examines good or bad practices within the context of moral duty. Moral conduct indicates which is right and
wrong. Business ethics include practices and behaviours that are good or bad, in other words, ethical or unethical.

• There are many reasons for an individual or group of individuals or corporations and others to follow ethical or
unethical practices, these include
• Conflict of interest

• Incentives

• Unreasonable targets

• Decision making

• Weak control systems

• Unhealthy competition

• Discrimination
• Accounting -window dressing, creative accounting, misleading financial analysis

• Concealment of facts

• Money Laundering activities

• Misappropriation and diversion of funds

• Lack of internal control

• Executive compensation

• Bribery, overbilling of expenses, fake reimbursements

• Non-compliance of the regulatory and legal framework

• Financial market

• Unfair trading practices (fraud and manipulation)

• Insider trading

• Fair conditions

• Financial contracting

• Fairness in making contracts

• Contractual obligations

• Financial Services

• Financial contracting

• Agents and fiduciaries

• Opportunism

• Conflict of interest
• Guiding principles

• Test of Legality

• Test of fairness

• Eleventh Commandment Test

Some key guiding ways to be ethical:

• Profit but not at any cost
• Priority to your client’s interest
• Focus on excellence
• Priority over ethical practices
• Mutual Trust

• Mutual benefit and interest

• Good intentions

• Business compromise and business tolerance

• Ethical improvement of business behaviour

• Demonopolization of one’s own position

• Conflict between own interests