Introduction

Business and Ethics are always interrelated. Ethics guides us that we are doing the right thing. In
the conduct of our business, we need to follow ethical standards of the company.

But first, let us define what is Ethics?

Ethics is derived from the Greek word “ethikos” which means “having to do with character. The
Latin word for ethos is “mos” (or “mores”). That is why we known Ethics as the Moral Science or Moral
Philosophy. It refers to the theory of morality of right conduct.

Definitions of Business Ethics

1. Business Ethics is the study of what is right and wrong on huma behavior and conduct in
business.

2. Business Ethics is the study of perceptions of people about morality, moral norms, moral
rules, and ethical principles as they apply to peoples and institutions in business.

3. Business Ethics is the study, evaluation, analysis and questioning of ethical standards,
policies, moral norms, and ethical theories that managers and decision makers use in resolving moral
issues and ethical dilemmas affecting business.

But how can business be considered as an ethical organization? Previously, you learned about
the core principles of good governance in business namely accountability, fairness, transparency, and
stewardship.

Ethical organizations are based on these core principles. A business with good practice of
accountability makes sure that all the financial obligations from its debtors are paid on time.
Accountability of a company can also be shown in proper planning, hiring, and keeping employees, and
budget management and reporting. An ethical organization also based on the principles of fairness.
Employees who feel secured, because there is no impartiality, often stays with the company
organization build. Meanwhile, transparency and stewardship also are known characteristics of good
governance in an organization. Transparency in business builds the trust of the employees to the
company, and the stakeholders such as the suppliers, investors, and of course the customers. Whereas
stewardship is an ethical practice of managing the resources of the company well.

To ensure that all those principles are practiced by all employees in the organization, Code of
Ethics, or Code of Conduct are crafted to be the guiding light of the business in ensuring good ethical
practice. What is Code of Ethics?

ETHICAL CODE OR CODE OF ETHICS are principles adopted by an organization to assist those in
the organization called upon to decide; it is about understanding the difference between “right” and
“wrong” and to apply this understanding to their decision. In addition, Code of ethics is a written set of
guidelines issued by an organization to its workers and management to help them conduct their actions
in accordance with its primary values and ethical standards.
 CODE OF CONDUCT: it is a document designed to influence the behavior of employees. They set
out the procedures to be used in specific ethical situations and delineate whether a violation of the code
of ethics occurred and, if so, remedies should be imposed.

CODE OF PRACTICE: it is adopted by a profession or by a governmental or non-governmental

organization to regulate that profession. It may be styled as a code of professional responsibility, which
will discuss difficult issues, difficult decisions that will often need to be made, and provide a clear
account of what behavior is considered “ethical” or “correct” or “right” in the circumstances.

CODE OF ETHICS is not written solely for the purpose of doing ethical business practice. It can
also be applied and practiced in school, government, and even professional groups. There is code of
ethics for teachers, accountants, engineers, lawyers, doctors, nurses, and all other professionals to
ensure that they are following the same ethical standards in their professional practice.

Ethics refers to the theory of morality of right conduct.

Business Ethics is the study of what is right and wrong on human behavior and conduct in business.

Code of ethics is a written set of guidelines issued by an organization to its workers and management to
help them conduct their actions in accordance with its primary values and ethical standards.